PARLIAMENTARY DEBATE
Data Protection Bill [ Lords ] (Fifth sitting) - 20 March 2018 (Commons/Public Bill Committees)
Debate Detail
Chair(s) †David Hanson, Mr Gary Streeter
Members† Adams, Nigel (Lord Commissioner of Her Majesty's Treasury)
† Atkins, Victoria (Parliamentary Under-Secretary of State for the Home Department)
† Byrne, Liam (Birmingham, Hodge Hill) (Lab)
† Clark, Colin (Gordon) (Con)
† Elmore, Chris (Ogmore) (Lab)
† Haigh, Louise (Sheffield, Heeley) (Lab)
† Heaton-Jones, Peter (North Devon) (Con)
† Huddleston, Nigel (Mid Worcestershire) (Con)
† Jack, Mr Alister (Dumfries and Galloway) (Con)
† James, Margot (Minister of State, Department for Digital, Culture, Media and Sport)
† Jones, Darren (Bristol North West) (Lab)
† Lopez, Julia (Hornchurch and Upminster) (Con)
† McDonald, Stuart C. (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
† Murray, Ian (Edinburgh South) (Lab)
† O'Hara, Brendan (Argyll and Bute) (SNP)
† Snell, Gareth (Stoke-on-Trent Central) (Lab/Co-op)
† Warman, Matt (Boston and Skegness) (Con)
† Wood, Mike (Dudley South) (Con)
† Zeichner, Daniel (Cambridge) (Lab)
ClerksKenneth Fox, Committee Clerk
† attended the Committee
Public Bill CommitteeTuesday 20 March 2018
(Morning)
[David Hanson in the Chair]
Data Protection Bill [Lords]
Schedule 9 agreed to.
Schedule 10
Conditions for sensitive processing under Part 4
Amendment made: 117, in schedule 10, page 187, line 5, at end insert—
‘Safeguarding of children and of individuals at risk
3A (1) This condition is met if—
(a) the processing is necessary for the purposes of—
(i) protecting an individual from neglect or physical, mental or emotional harm, or
(ii) protecting the physical, mental or emotional well-being of an individual,
(b) the individual is—
(i) aged under 18, or
(ii) aged 18 or over and at risk,
(c) the processing is carried out without the consent of the data subject for one of the reasons listed in sub-paragraph (2), and
(d) the processing is necessary for reasons of substantial public interest.
(2) The reasons mentioned in sub-paragraph (1)(c) are—
(a) in the circumstances, consent to the processing cannot be given by the data subject;
(b) in the circumstances, the controller cannot reasonably be expected to obtain the consent of the data subject to the processing;
(c) the processing must be carried out without the consent of the data subject because obtaining the consent of the data subject would prejudice the provision of the protection mentioned in sub-paragraph (1)(a).
(3) For the purposes of this paragraph, an individual aged 18 or over is “at risk” if the controller has reasonable cause to suspect that the individual—
(a) has needs for care and support,
(b) is experiencing, or at risk of, neglect or physical, mental or emotional harm, and
(c) as a result of those needs is unable to protect himself or herself against the neglect or harm or the risk of it.
(4) In sub-paragraph (1)(a), the reference to the protection of an individual or of the well-being of an individual includes both protection relating to a particular individual and protection relating to a type of individual.’—(Victoria Atkins.)
Schedule 10 makes provision about the circumstances in which the processing of special categories of personal data is permitted. This amendment adds to that Schedule certain processing of personal data which is necessary for the protection of children or of adults at risk. See also Amendments 85 and 116.
Schedule 10, as amended, agreed to.
Clauses 87 to 93 ordered to stand part of the Bill.
Clause 94
Right of access
Amendments made: 35, in clause 94, page 55, line 8, leave out ‘day’ and insert ‘time’
This amendment is consequential on Amendment 71.
36, in clause 94, page 55, line 9, leave out ‘day’ and insert ‘time’
This amendment is consequential on Amendment 71.
37, in clause 94, page 55, line 10, leave out ‘days’
This amendment is consequential on Amendment 71.
38, in clause 94, page 55, line 11, leave out ‘the day on which’ and insert ‘when’
This amendment is consequential on Amendment 71.
39, in clause 94, page 55, line 12, leave out ‘the day on which’ and insert ‘when’
This amendment is consequential on Amendment 71.
40, in clause 94, page 55, line 13, leave out ‘the day on which’ and insert ‘when’ —(Victoria Atkins.)
This amendment is consequential on Amendment 71.
Clause 94, as amended, ordered to stand part of the Bill.
Clause 95 ordered to stand part of the Bill.
Clause 96
Right not to be subject to automated decision-making
Question proposed, That the clause stand part of the Bill.
The specific instance that I want to take up concerns the fact that about 700 British citizens have gone to fight in foreign conflicts—for ISIS in particular. The battery of intelligence-gathering facilities that we have allows us to use remote data-sensing to detect, track and monitor them, and to assemble pictures of their patterns of life and behaviour. It is then possible for our intelligence services to do stuff with those data and patterns, such as transfer them to the military or to foreign militaries in coalitions of which we are a member. For the benefit of the Committee, will the Minister spell out whether the clause, and potentially clause 97, will bite on that kind of capability? If not, where are they aimed?
Question put and agreed to.
Clause 96 accordingly ordered to stand part of the Bill.
Clause 97
Right to intervene in automated decision-making
Amendments made: 41, in clause 97, page 56, line 34, leave out “21 days” and insert “1 month”.
Clause 97(4) provides that where a controller notifies a data subject under Clause 97(3) that the controller has taken a decision falling under Clause 97(1) (automated decisions required or authorised by law), the data subject has 21 days to request the controller to reconsider or take a new decision not based solely on automated processing. This amendment extends that period to one month.
Amendment 42, in clause 97, page 56, line 39, leave out “21 days” and insert “1 month”.—(Victoria Atkins.)
Clause 97(5) provides that where a data subject makes a request to a controller under Clause 97(4) to reconsider or retake a decision based solely on automated processing, the controller has 21 days to respond. This amendment extends that period to one month.
Clause 97, as amended, ordered to stand part of the Bill.
Clause 98
Right to information about decision-making
Question proposed, That the clause stand part of the Bill.
A right to information about decision-making will be created under clause 98. I ask the Minister, therefore, when dealing with very sensitive information, how is this right going to be exercised and who is going to be the judge of whether that right has been fulfilled satisfactorily? There is no point approving legislation that is superfluous because it will have no effect in the real world. The clause creates what looks like a powerful new right for individuals to request information about decisions taken by the intelligence agencies, which might have a bearing on all sorts of things in their lives. Will the Minister explain how, in practice, this right is to become a reality?
“the data subject is entitled to obtain from the controller, on request, knowledge of the reasoning underlying the processing.”
In other words, the data subject—in this case, the individual under surveillance—has the right to obtain from the controller, in the hon. Lady’s example of the intelligence agencies, knowledge of the reasoning underlying the way their data was processed.
Let us take, for example, a situation where CCTV footage was being captured at an airport or a border crossing and that footage was being run through facial recognition software, enabling special branch officers to intervene and intercept that individual before they crossed the border. That is an example of where information is captured and processed, and action then results in an individual, in this case, being prevented from coming into the country.
I have often had cases of constituents who have come back from Pakistan or who might have transitioned through the middle east, perhaps Dubai, and they have been stopped at Birmingham airport because special branch officers have said their name is on a watch list. Watch lists are imperfect—that is probably a fairly good description. They are not necessarily based on the most reliable and up-to-date information, but advances in technology allow a much broader and more wide-ranging kind of interception to take place at the border. If we are relying not on swiping someone’s passport and getting a red flag on a watch list but on processing data coming in through CCTV and running it through facial recognition software, that is a powerful new tool in the hands of the intelligence agencies. Subsection (1)(b) will give one of my constituents the right to file a request with the data controller—presumably, the security services—and say, “Look, I think your records are wrong here. You have stopped me on the basis of facial recognition software at Birmingham airport; I want to know the reasoning behind the processing of the data.”
If, as the Minister says, the response from the data controller is, “We can neither confirm nor deny what happened in this case,” then, frankly, the clause is pretty nugatory. Will the Minister give an example of how the right is going to be made a reality? What are the scenarios in which a constituent might be able to exercise this right? I am not interested in the conventions and international agreements this happy clause tends to agree with, but I would like to hear a case study of how a constituent could exercise this right successfully.
I am slightly at a loss as to where the right hon. Gentleman wishes to go with this. I am not going to stand here and dream up scenarios that may apply. The rights and the national security exemption are set out in the Bill; that is the framework we are looking at, and that is the framework within which the security services must operate. Of course one has a duty to one’s constituents, but that is balanced with a duty to one’s country. This is precisely the section of the Bill that is about the balance between the rights of our citizens and the absolute necessity for our security services to protect us and act in our interests when they are required to do so.
We are not debating here whether the security services have sufficient power; we had that debate earlier. We are talking about a power and a right that are conferred on data subjects under subsection (1)(b). I am slightly concerned that the Minister, who is responsible for this Bill and this matter of policy, has not been able to give us a well-rehearsed scenario, which presumably she and her officials will have considered before the Bill came anywhere near to being drafted. How will this right actually be exercised by our constituents? It could be that the Committee decides, for example, that the rights we are conferring on the data subject are too sweeping. We might be concerned that there are insufficient safeguards in place for the intelligence agencies to do their jobs. This is a specific question about how data subjects, under the clause, are going to exercise their power in a way that allows the security services to do their job. That is not a complicated request; it is a basic question.
All I ask of the Minister responsible for the Bill and this area of policy, who has thought through the Bill with her officials and is asking the Committee to agree the power she is seeking to confer on our constituents, and who will have to operate the policy in the real world after the Bill receives Royal Assent, is that she give us a scenario of how the rights she is conferring on a data subject will function in the real world.
However, Mr Hanson, I think we might have exhausted this debate. It is disappointing that the Minister has not been able to come up with a scenario. Perhaps she would like to intervene now to give me an example.
Question put and agreed to.
Clause 98 accordingly ordered to stand part of the Bill.
Clause 99
Right to object to processing
Amendments made: 43, in clause 99, page 57, line 28, leave out “day” and insert “time”.
This amendment is consequential on Amendment 71.
44, in clause 99, page 58, line 3, leave out “day” and insert “time”.
This amendment is consequential on Amendment 71.
45, in clause 99, page 58, line 5, leave out “the day on which” and insert “when”.
This amendment is consequential on Amendment 71.
46, in clause 99, page 58, line 6, leave out “the day on which” and insert “when”.—(Victoria Atkins.)
This amendment is consequential on Amendment 71.
Clause 99, as amended, ordered to stand part of the Bill.
Clauses 100 to 108 ordered to stand part of the Bill.
Clause 109
Transfers of personal data outside the United Kingdom
This amendment would place meaningful safeguards on the sharing of data by the intelligence agencies.
Amendment 160, in clause 109, page 61, line 18, at end insert—
‘(3) The transfer falls within this subsection if the transfer—
(a) is based on an adequacy decision (see section 74),
(b) if not based on an adequacy decision, is based on there being appropriate safeguards (see section 75), or
(c) if not based on an adequacy decision or on there being appropriate safeguards, is based on special circumstances (see section 76 as amended by subsection (5)).
(4) A transfer falls within this subsection if—
(a) the intended recipient is a person based in a third country that has (in that country) functions comparable to those of the controller or an international organisation, and
(b) the transfer meets the following conditions—
(i) the transfer is strictly necessary in a specific case for the performance of a task of the transferring controller as provided by law or for the purposes set out in subsection (2),
(ii) the transferring controller has determined that there are no fundamental rights and freedoms of the data subject concerned that override the public interest necessitating the transfer,
(iii) the transferring controller informs the intended recipient of the specific purpose or purposes for which the personal data may, so far as necessary, be processed, and
(iv) the transferring controller documents any transfer and informs the Commissioner about the transfer on request.
(5) The reference to law enforcement purposes in subsection (4) of section 76 is to be read as a reference to the purposes set out in subsection (2).”
New clause 14—Subsequent transfers—
‘(1) Where personal data is transferred in accordance with section 109, the transferring controller must make it a condition of the transfer that the data is not to be further transferred to a third country or international organisation without the authorisation of the transferring controller.
(2) A transferring controller may give an authorisation under subsection (1) only where the further transfer is necessary for the purposes in subsection (2).
(3) In deciding whether to give the authorisation, the transferring controller must take into account (among any other relevant factors)—
(a) the seriousness of the circumstances leading to the request for authorisation,
(b) the purpose for which the personal data was originally transferred, and
(c) the standards for the protection of personal data that apply in the third country or international organisation to which the personal data would be transferred.’
This new clause would place meaningful safeguards on the sharing of data by the intelligence agencies.
It is now possible, through satellite technology and drones, to collect video footage of battle zones and run the information collected through facial recognition software, which allows us to track much more forensically and accurately the movement, habits, working lives and leisure of bad people in bad places. We are fighting against organisations such as Daesh, in a coalition with allies, but over the past year one of our allies has rather changed the rules of engagement, which allows it to take drone strikes with a different kind of flexibility from that under the Obama regime.
The change in the American rules of engagement means that, on the one hand, the American Administration has dramatically increased the number of drone strikes—in Yemen, we have had an increase of about 288% in the past year—and, on the other, as we see in other theatres of conflict such as the war against al-Shabaab in Africa, repeated strikes are allowed for. Therefore, even when the circumstances around particular individuals have changed—new intelligence may have come to light about them—the Trump Administration have basically removed the safeguards that President Obama had in place that require an individual to be a “continuing and imminent threat” before a strike is authorised. That safeguard has been lifted, so the target pool that American forces can take aim at and engage is now much larger, and operational commanders have a great deal more flexibility over when they can strike.
We now see some of the consequences of that policy, with the most alarming statistics being on the number of civilians caught up in some of those strikes. That is true in Yemen and in the fight against al-Shabaab, and I suspect it is true in Syria, Afghanistan and, in some cases, Pakistan. We must ensure that the data sharing regime under which our intelligence agencies operate does not create a legal threat to them because of the way the rules of engagement of one of our allies have changed.
The Joint Committee on Human Rights has talked about that, and it has been the subject of debates elsewhere in Parliament. The JCHR concluded in its 2016 report that
“we owe it to all those involved in the chain of command for such uses of lethal force—intelligence personnel, armed services personnel, officials, Ministers and others—to provide them with absolute clarity about the circumstances in which they will have a defence against any possible future criminal prosecution, including those which might originate from outside the UK.”
We need to reflect on some of those legal risks to individuals who are serving their country. The amendment would ensure that—where there was a collection, processing and transfer of information by the UK intelligence services to one of our allies, principally America, and they ran that information against what is widely reported as a kill list and ordered drone strikes without some of the safeguards operated by previous Administrations—first, the decision taken by the intelligence agency here to share that information was legal and, secondly, it would be undertaken in a way that ensured that our serving personnel were not subject to legal threats or concerns about legal threats.
As has been said, we are conscious of the difficulty and care with which our politicians have sometimes had to take such decisions. The former Prime Minister very sensibly came to the House to speak about his decision to authorise a drone strike to kill two British citizens whom he said were actively engaged in conspiring to commit mass murder in the United Kingdom. His judgment was that those individuals posed an imminent threat, but because they were not operating in a place where the rule of law was operational, there was no possibility to send in the cops, arrest them and bring them to trial.
The Prime Minister was therefore out of options, but the care that he took when taking that decision and the level of legal advice that he relied on were extremely high. I do not think any member of the Committee is confident that the care taken by David Cameron when he made that decision is replicated in President Trump’s White House.
We must genuinely be concerned and cautious about our intelligence agencies transferring information that is then misused and results in drone strikes that kill individuals, without the safeguards we would expect. The last thing anyone would want is a blowback, in either an American or a British court, on serving officers in our military or intelligence services because the requisite safeguards simply were not in place.
My appeal to the Committee is that this is a point of principle: enhanced power should bring with it enhanced oversight and surveillance, and the priority for that is the fact that the rules of engagement for the United States have changed. If there is a wiser way in which we can create the kinds of safeguard included in the amendment we will be all ears, but we in the House of Commons cannot allow the situation to go unchecked. It is too dangerous and too risky, and it poses too fundamental a challenge to the human rights that this place was set up to champion and protect.
My argument in support of amendment 160 is one that I have rehearsed in previous debates. In line with recommendations from the Joint Committee on Human Rights, today we benefit from an exemption under European treaties that say that national security is a member state competence and therefore not one with which the European Union can interfere. However, if the UK leaves the European Union, the European Commission reserves the right to review the entire data processing legislation, including that for intelligence services of a third country when seeking to make a decision on adequacy—as it has done with Canada. Where the amendment talks about adequacy, it would be helpful—
As the right hon. Member for Birmingham, Hodge Hill is aware, amendments 159, 160 and new clause 14 were proposed by a campaigning organisation called Reprieve in its recent briefing on the Bill. They relate to concerns about the sharing of personal data with the US and seek to apply the data sharing protections designed specifically for law enforcement data processing, provided for in part 3 of the Bill, to processing by the intelligence services, provided for in part 4. That is, they are seeking to transpose all the law enforcement measures into the security services. However, such safeguards are clearly not designed for, and do not provide, an appropriate or proportionate basis for the unique nature of intelligence services processing, which we are clear is outside the scope of EU law.
Before I get into the detail of these amendments, it is important to put on record that the international transfer of personal data is vital to the intelligence services’ ability to counter threats to national security. Provision of data to international partners bolsters their ability to counter threats to their security and that of the UK. In a globalised world, threats are not necessarily contained within one country, and the UK cannot work in isolation. As terrorists do not view national borders as a limit to their activities, the intelligence services must be in a position to operate across borders and share information quickly—for example, about the nature of the threat that an individual poses—to protect the UK.
In the vast majority of cases, intelligence sharing takes place with countries with which the intelligence services have long-standing and well-established relationships. In all cases, however, the intelligence services apply robust necessity and proportionality tests before sharing any information. The inherent risk of sharing information must be balanced against the risk to national security of not sharing such information.
Any cross-border sharing of personal data must be consistent with our international obligations and be subject to appropriate safeguards. On the first point, the provisions in clause 109 are entirely consistent with the requirements of the draft modernised Council of Europe data protection convention—convention 108—on which the preventions of part 4 are based. It is pending international agreement.
The provisions in the convention are designed to provide the necessary protection for personal data in the context of national security. The Bill already provides that the intelligence services can make transfers outside the UK only when necessary and proportionate for the limited purposes of the services’ statutory functions, which include the protection of national security; for the purpose of preventing or detecting serious crime; or for the purpose of criminal proceedings.
In addition, on the point the right hon. Gentleman just raised, the intelligence services are already under statutory obligations in the Security Service Act 1989 and the Intelligence Services Act 1994 to ensure that no information is disclosed except so far as is necessary for those functions or purposes. All actions by the intelligence services, as with all other UK public authorities, must comply with international law.
Those Acts, and the provisions in the relevant codes of practice made under them, also provide rigorous safeguards governing the transfer of data. Those enactments already afford proportionate protection and safeguards when data is being shared overseas. Sections 54, 130, 151 and 192 of the 2016 Act provide for safeguards relating to disclosure of material overseas.
Those provisions are subject to oversight by the investigatory powers commissioner, and may be challenged in the investigatory powers tribunal. They are very powerful safeguards, over and above the powers afforded to the Information Commissioner, precisely because of the unique nature of the material with which the security services must act.
I hope that I have provided reassurance that international transfers of personal data by the intelligence services are appropriately regulated both by the Bill, which, as I said, is entirely consistent with draft modernised convention 108 of the Council of Europe—that is important, because it is the international agreement that will potentially underpin the Bill and agreements with our partners and sets out agreed international standards in this area—and by other legislation, including the 2016 Act. We and the intelligence services are absolutely clear that to attempt to impose, through these amendments, a regime that was specifically not designed to apply to processing by the intelligence services would be disproportionate and may critically damage national security.
I am sure that it is not the intention of the right hon. Member for Birmingham, Hodge Hill to place unnecessary and burdensome obstacles in the way of the intelligence services in performing their crucial function of safeguarding national security, but, sadly, that is what his amendments would do. I therefore invite him to withdraw them.
I was slightly surprised that the Minister said nothing about the additional risks created by the change in rules of engagement by the United States. She rested some of her argument on the Security Services Act 1989 and the Intelligence Services Act 1994, which, as she said, require that any transfers of information are lawful and proportionate. That creates a complicated set of ambiguities for serving frontline intelligence officers, who have to make fine judgments and, in drafting codes of practice, often look at debates such as this one and at the law. However, the law is what we are debating. Where the Bill changed the law to create a degree of flexibility, it would create a new risk, and that risk would be heightened by the change in the rules of engagement by one of our allies.
The Minister may therefore want to reflect on a couple of points. First, what debate has there been about codes of practice? Have they changed given the increased surveillance capacity that we have because of the development of our capabilities? How have they changed in the light of the new rules of engagement issued by President Trump?
For some time, our defence philosophy has been—very wisely—that we cannot keep our country safe by defending from the goal line, and on occasion we have to intervene abroad. That is why in my view Prime Minister Cameron took the right decision to authorise lethal strikes against two British citizens. He was concerned first that there was an imminent threat, and secondly that there was no other means of stopping them. Those important tests and safeguards are not operated by our allies.
The change to the American rules of engagement, which allow a strike against someone who is no longer a “continuing and imminent threat”, means that one of our allies now operates under completely different rules of engagement to those set out before the House of Commons by Prime Minister David Cameron, which I think met with some degree of approval. If we are to continue to operate safely a policy of not defending from the goal line, if we are to protect our ability to work with allies and—where necessary and in accordance with international law—to take action abroad, and if we are to continue the vital business of safely sharing information with our allies in the Five Eyes network, a degree of extra reassurance should be built into legislation to ensure that it is fit for the future.
“In our view, we owe it to all those involved in the chain of command for such uses of lethal force…to provide them with absolute clarity about the circumstances in which they will have a defence against any possible future criminal prosecution, including those which might originate from outside the UK.”
This is not a theoretical legal threat to our armed forces and intelligence agencies; this is something that the Court of Appeal and the Joint Committee on Human Rights have expressed worries about.
The new powers and capabilities of our intelligence agencies arguably create the need for greater levels of oversight. This is a pressing need because of the operational policy of one of our allies. We owe it to our armed forces and intelligence agencies to ensure a regime in which they can take clear, unambiguous judgments where possible, and where they are, beyond doubt, safe from future legal challenge. It is not clear to me that the safeguards that the Minister has set out meet those tests.
Perhaps the Minister will clarify one outstanding matter, about convention 108, on which she rested much of her argument. Convention 108 is important. It was written in 1981. The Minister told the Committee that it had been modernised, but also said that that was in draft. I should be grateful for clarification of whether the United Kingdom has signed and is therefore bound by a modernised convention that is currently draft.
I know that the Leader of Her Majesty’s Opposition appears to be stepping away from the international community, over the most recent matters to do with Russia, but the Bill and convention—[Interruption.] Well, he is. However, convention 108 is about stepping alongside our international partners, agreeing international standards and putting the thresholds into legislation. The right hon. Gentleman keeps talking about the need for legislation fit for the world we live in today; that is precisely what convention 108 is about.
On the specific point about convention 108, I am glad that the Minister has been able to clarify the fact that it is not operational.
Question put, That the amendment be made.
Clauses 110 to 112 ordered to stand part of the Bill.
Amendments made: 118, in schedule 11, page 190, line 4, leave out
and insert “time falls before”.
Amendment 119, in schedule 11, page 190, line 7, leave out “day” and insert “time”.
Amendment 120, in schedule 11, page 190, line 9, leave out “the date of”.
Amendment 121, in schedule 11, page 190, line 17, leave out “day” and insert “time”.—(Victoria Atkins.)
Schedule 11, as amended, agreed to.
Question proposed, That the clause stand part of the Bill.
We have already had a number of good debates on whether we have struck the right balance between the rights of data subjects and the national interest, national security interests and so on. In our view, it rather undermines our role in scrutinising Government legislation and finding the right balance if we then hand over what is pretty much a carte blanche to change the balance that we have decided on, with the minimum of scrutiny, through broad Henry VIII powers. We therefore continue to oppose broad Henry VIII powers in the Bill and encourage hon. Members to support taking this clause out of the Bill.
Question put and agreed to.
Clause 113 accordingly ordered to stand part of the Bill.
Clause 114 ordered to stand part of the Bill.
Schedule 12 agreed to.
Clauses 115 and 116 ordered to stand part of the Bill.
This amendment is consequential on the omission of Clause 121 (see Amendment 47).
Lord Mitchell’s amendments require the Information Commissioner to maintain a register of publicly controlled data of national significance and to prepare a code of practice that contains practical guidance in relation to personal data of national significance, which is defined as data that, in the Commissioner’s opinion,
“has the potential to further…economic, social or environmental well-being”
and
“financial benefit…from processing the data or the development of associated software.”
Lord Mitchell has made it clear that his primary concern relates to the sharing of health data by the NHS with third parties. He believes that some information sharing agreements have previously undervalued NHS patient data, and that the NHS, along with other public authorities, needs additional guidance on optimising the benefits derived from such sharing agreements.
We agree that the NHS is a prime state asset, and that its rich patient data records have great potential to further medical research. Its data could be used to train systems using artificial intelligence to diagnose patients’ conditions, to manage risk, to target services and to take pre-emptive and preventive action—all developments with huge potential. I have discussed this matter with ministerial colleagues; not only do we want to see these technological developments, but we want the NHS, if it is to make any such deals, to make fair deals. The benefits of such arrangements are often not exclusively monetary.
NHS patient data is only ever used within the strict parameters of codes of practice and the standards set out by the National Data Guardian and other regulatory bodies. We of course recognise that we must continue in our efforts to make the best use of publicly held data, and work is already being carried out to ensure that the value of NHS patient data is being fully recognised. NHS England and the Department of Health and Social Care have committed to working with representatives of the public and of industry to explore how to maximise the benefits of health and care data for patients and taxpayers.
Lord Mitchell’s provision in clause 121 proposes that the commissioner publish a code of practice. However, if there is a problem, a code would seem to be an unduly restrictive approach. Statutory codes are by necessity prescriptive, and this is an area where the public may benefit from a greater degree of flexibility than a code could provide in practice, especially to encourage innovation in how Government use data to the benefit of both patients and taxpayers.
The Government are releasing public data to become more transparent and to foster innovation. We have released more than 40,000 non-personal datasets. Making the data easily available means that it will be easier for people to make other uses of Government-collected data, including commercial exploitation or to better understand how government works and to hold the Government to account. The benefits of each data release are quite different, and sometimes they are unknown until later. Lord Mitchell’s primary concern is health data, but can guidance on how that is used be equally applicable to the vast array of data we release? Such guidance would need to be so general that it would be useless.
Even if we stay focused on NHS data and what might help to ensure that the value of it is properly exploited, Lord Mitchell’s proposal has some significant problems. First, by definition, data protection legislation deals with the protection of personal data, not general data policy. Companies who enter into data sharing agreements with the NHS are often purchasing access to anonymised patient data—that is to say, not personal data. Consequently, the code in clause 121 cannot bite. Secondly, maintaining a register of data of national significance is problematic. In addition to the obvious bureaucratic burden of identifying the data that would fall under the definition, generating a list of data controllers who hold data of national significance is likely to raise a number of security concerns. The NHS has been the victim of cyber- attacks, and we do not want to produce a road map to resist those who want to harm it.
Thirdly, we do not believe that the proposed role is a proper one for the Information Commissioner, and nor does she. It is not a question of legislative enforcement and, although she may offer valuable insight on the issues, such responsibilities do not comfortably fit with her role as regulator of data protection legislation. We have consulted the commissioner on the amendments and she agrees with our assessment. In her own terms, she considers herself not to be best placed to advise on value for money and securing financial benefits from the sharing of such personal data with third parties. Those matters are far removed from her core function of safeguarding information rights. She adds that others in Government or the wider public sector whose core function it is to drive value from national assets may be a more natural home for providing such best practice advice.
I agree with Lord Mitchell that the issues that surround data protection policy, particularly with regard to NHS patient data, deserve proper attention both by the Government and by the National Data Guardian for Health and Care, but we have not yet established that there is any evidence of a problem to which his provisions are the answer. We are not sitting on our laurels. As I have already said, NHS England and the Department of Health and Social Care are working to ensure that they understand the value of their data assets. Further work on the Government’s digital charter will also explore this issue. When my right hon. friend the Prime Minister launched the digital charter on 25 January, she made it clear that we will set out principles on the use of personal data.
Amendment 122 removes Lord Mitchell’s amendment from schedule 13. We do this because it is the wrong tool; however, we commit to doing everything we can to ensure that we further explore the issue and find the right tools if needed. [Interruption.] I have just received advice that the amendments will make no difference in relation to the hon. Gentleman’s question, because anonymised data is not personal data.
I commend amendment 122 and give notice that the Government will oppose the motion that clause 121 stand part of the Bill.
In 2009-10, we began to have a debate in government about the right approach to those agencies which happen to sit on an enormous amount of important data. The Government operate about 200 to 250 agencies, and some are blessed with data assets that are more valuable than those of others—for example, the Land Registry or Companies House sit on vast quantities of incredibly valuable transactional data, whereas other agencies, such as the Meteorological Office, the Hydrographic Office and Ordnance Survey, sit on sometimes quite static data which is of value. Some of the most successful American companies are based on Government data—for example, The Weather Channel is one of the most valuable and is based on data issued from, I think, the US meteorological survey. A number of Government agencies are sitting on very valuable pots of data.
The debate that we began to rehearse nearly 10 years ago was whether the right strategy was to create public-private partnerships around those agencies, or whether more value would be created for the UK economy by simply releasing that data into the public domain. I had the great pleasure of being Chief Secretary to the Treasury and the Minister for public service reform. While the strong advice inside the Treasury was that it was better to create public-private partnerships because that would release an equity yield up front, which could be used for debt reduction, it was also quite clear to officials in the Cabinet Office and those interested in public service reform more generally that the release of free data would be much more valuable. That is the side of the argument on which we came down.
After the White Paper, “Smarter Government”, that I brought to the House, we began the release of very significant batches of data. We were guided by the arguments of Tim Berners-Lee and Professor Nigel Shadbolt, who were advising us at the time, that this was the right approach and it was very good to see the Government continue with that.
There are still huge data pots locked up in Government which could do with releasing, but the way in which we release them has to have an eye on the way we create value for taxpayers more generally. Beyond doubt, the area of public policy and public operations where we have data that is of the most value is health. The way in which, in the United States, Apple and other companies have now moved into personal health technology in a substantial way betrays the reality that this is going to be a hugely valuable and important market in years to come. If we look at the US venture industry we can see significant investment now going into health technology companies.
What Lord Mitchell is super-conscious of is that our NHS records stretch back to 1948, so the longitudinal health data we have in this country is pretty much without parallel anywhere in the world. Some regions, such as the NHS in the west midlands, operate an extremely extensive payer database of the use of medications in a super-diverse population. The dynamic and longitudinal data assets that we are sitting on in parts of the NHS are unbelievably valuable. In the arguments he rehearsed in the other place, Lord Mitchell made the point that the data the NHS is sitting on is like our North sea oil—in fact, it is probably more valuable than the North sea oil assets discovered in the early 1970s. He has told me that at least two sources have related to him that the annual value of those longitudinal data records is of the order of $50 billion. I cannot vouch for that figure or for the source, but I know Lord Mitchell has done his homework on this. He is seeking to ensure that something almost like a sovereign wealth fund is created for data assets in this country—in particular, a sovereign wealth fund created for NHS data assets.
We would like to avoid the kind of mistakes that were made in assembling the Hinkley Point joint venture. Lord Mitchell’s amendment is quite simple: he seeks the creation of a register of significant data assets. The Minister says it is difficult to put that together, but life is a bit difficult sometimes. That is why we have highly paid Ministers and poorly paid officials, to work together to assemble the arguments and the data.
The precedent we have is back in, I think, 1998-99, when the last Labour Government put together what came to be called the Domesday book of Government assets. We are now looking for a similar kind of catalogue assembled for significant data assets. Rather unfashionably for a Labour MP, at that time I was an investment banker working for a small bank called Rothschild & Co. in London. I know that will ruin my pro-Corbyn credentials.
To the best of my knowledge, we do not have a similar data catalogue today. What Lord Mitchell is asking is for Ministers to do some work and create one. They can outsource that task to the Information Commissioner. Perhaps the Information Commissioner is not the best guardian of that particular task, but I am frustrated and slightly disappointed that the Minister has not set out a better approach to achieving the sensible and wise proposals that Lord Mitchell has offered the Government.
The reason why it is so important in the context of the NHS is that the NHS is obviously a complicated place. It is an economy the size of Argentina’s. The last time I looked, if the NHS were a country, it would be the 13th biggest economy on earth. It is a pretty complicated place and there are many different decision makers. Indeed, there are so many decision makers now that it is impossible to get anything done within the NHS, as any constituency MP knows. So how do we ensure that, for example, in our neck of the woods, Queen Elizabeth Hospital Birmingham does not strike its own data sharing agreement with Google or DeepMind? How do we ensure that the NHS in Wales does not go in a particular direction? How do we ensure that the trust across the river does not go in a particular direction? We need to bring order to what is potentially an enormous missed opportunity over the years to come.
The starting point is for the Government, first, to ensure we have assembled a good catalogue of data assets. Secondly, they should take some decisions about whether the organisations responsible for those data assets are destined for some kind of public-private partnership, as they were debating in relation to Companies House and other agencies a couple of years ago, or whether—more wisely—we take the approach of creating a sovereign wealth fund to govern public data in this country, where we maximise the upside for taxpayers and the opportunities for good public service reform.
The example of Hinkley Point and the unfortunate example of the Google partnership with DeepMind, which ran into all kinds of problems, are not good precedents. In the absence of a better, more concrete, lower risk approach from the Government, we will have to defend Lord Mitchell’s wise clause in order to encourage the Government to come back with a better solution than the one set out for us this morning.
I share the right hon. Gentleman’s appreciation of the value and the uniqueness of the NHS database. We do not see it just in terms of its monetary value; as the hon. Member for Edinburgh South made clear in his intervention, it has tremendous potential to improve the care and treatment of patients. That is the value we want to realise. I reassure the right hon. Gentleman and put it on record that it is not my place as a Minister in the Department for Digital, Culture, Media and Sport, or the place of the Bill, to safeguard the immensely valuable dataset that is the NHS’s property.
Amendment 122 agreed to.
Schedule 13, as amended, agreed to.
Clauses 117 and 118 ordered to stand part of the Bill.
Schedule 14 agreed to.
Clauses 119 and 120 ordered to stand part of the Bill.
Clause 121
Code on personal data of national significance
Question put, That the clause stand part of the Bill.
Clauses 122 and 123 ordered to stand part of the Bill.
Amendment made: 48, in clause 124, page 68, line 24, leave out “with the day on which” and insert “when”
Question proposed, That the clause, as amended, stand part of the Bill.
Debates in the other place centred on what safeguards could be wrapped around children if that derogation were exercised and the age of consent left at 13. With Baroness Kidron, we were keen to enshrine in legislation a step towards putting into operation the objectives of the 5Rights movement. Those objectives, which Baroness Kidron has driven forward over the past few years, are important, but the rights therein are also important. They include not only rights that are enshrined in other parts of the Bill—the right to remove, for example—but important rights such as the right to know. That means that someone has the right to know whether they are being manipulated in some way, shape or form by social media technologies.
One of the most interesting aspects of the debate in the public domain in the past few months has been the revelation that many of the world’s leading social media entrepreneurs do not allow their children to use social media apps, because they know exactly how risky, dangerous and manipulative they can be. We have also heard revelations from software engineers who used to work for social media companies about the way they deliberately set out to exploit brain chemistry to create features of their apps that fostered a degree of addiction. The right to know is therefore very powerful, as is the right to digital literacy, which is another important part of the 5Rights movement.
It would be useful to hear from the Minister of State, who—let me put this beyond doubt—is an excellent Minister, what steps she plans to take to ensure that the age-appropriate design code is set out pretty quickly. We do not want the clause to be passed but then find ourselves in a situation akin to the one we are in with section 40 of the Crime and Courts Act 2013 where, five years down the line, a misguided Secretary of State decides that the world has changed completely and that this bit of legislation should not be commenced.
We would like the Minister to provide a hard timetable— she may want to write to me if she cannot do so today—setting out when we will see an age-appropriate design code. We would also like to hear what steps she will take to consult widely on the code, what work she will do with her colleagues in the Department for Education to ensure that the code includes some kind of ventilation and education in schools so that children actually know what their rights are and know about the aspects of the code that are relevant to them, and, crucially, what steps she plans to take to include children in her consultation when she draws up the code.
This is an important step forward, and we were happy to support it in the other place. We think the Government should be a little more ambitious, which is why we suggest that the rights set out by the 5Rights movement should become part of a much broader and more ambitious digital Bill of Rights for the 21st century, but a start is a start. We are pleased that the Government accepted our amendment, and we would all be grateful if the Minister told us a little more about how she plans to operationalise it.
Clause 124 will require the Information Commissioner to develop a new statutory code that contains guidance on standards of age-appropriate design for online services that are likely to be accessed by children. The Secretary of State will work in close consultation with the commissioner to ensure that that code is robust, practical and meets children’s needs in relation to the gathering, sharing and storing of their data. The new code will ensure that websites and apps are designed to make clear what personal data of children is collected, how it is used and how both children and parents can stay in control of it. It will also include requirements for websites and app makers on privacy for children under 18.
The right hon. Gentleman cited examples of the consultation he hopes to see in preparation for the code. In developing the code, we expect the Information Commissioner to consult a wide range of stakeholders, including children, parents, persons who represent the interests of children, child development experts and trade associations. The right hon. Gentleman mentioned the Department for Education, and I see no reason why it should not be included in that group of likely consultees.
The commissioner must also pay close attention to the fact that children have different needs at different ages, as well as to the United Kingdom’s obligations under the United Nations Convention on the Rights of the Child. The code interlocks with the existing data protection enforcement mechanism found in the Bill and the GDPR. The Information Commissioner considers many factors in every regulatory decision, and non-compliance with that code will weigh particularly heavily on any organisation that is non-compliant with the GDPR. Organisations that wish to minimise their risk will apply the code. The Government believe that clause 124 is an important and positive addition to the Bill.
Question put and agreed to.
Clause 124, as amended, ordered to stand part of the Bill.
Clause 125
Approval of data-sharing, direct marketing and age-appropriate design codes
Amendment made: 49, in clause 125, page 69, line 9, leave out “with the day on which” and insert “when” —(Margot James.)
This amendment is consequential on Amendment 71.
Clause 125, as amended, order to stand part of the Bill.
Clauses 126 to 130 ordered to stand part of the Bill.
Clause 131
Disclosure of information to the Commissioner
Question proposed, That the clause stand part of the Bill.
We have a situation in social media land that the Secretary of State has described as the “wild west”. Some have unfairly called the Matt Hancock app one of the features of that wild west, but I would not go that far, despite its slightly unusual privacy settings. None the less, there is now cross-party consensus that the regulatory environment that has grown up since the 2000 e-commerce directive is no longer fit for purpose. Yesterday, the Secretary of State helpfully confirmed that that directive will be modernised, and we will come on to discuss new clauses that suggest setting a deadline for that.
One deficiency of today’s regulatory environment is the inadequate power that the Information Commissioner currently has to access information that is important for her investigations. We have a wild west, we have hired a sheriff, but we have not given the sheriff the power to do her job of keeping the wild west in order. We now have the ridiculous situation that the Information Commissioner must declare that she is going to court to get a warrant to investigate the servers of Cambridge Analytica, and to see whether any offence has been committed.
I am concerned that the way our regulators operate together is simply inadequate. Many of the allegations about misuse of data during election campaigns and referendums will touch on whether the data was collected, repurposed illegally and then used to target so-called dark social ads in an inappropriate way, but there is also sometimes a need to explore where the money came from to buy those ads. Where money has, potentially, been laundered onshore there is a requirement for the Financial Conduct Authority to investigate. Sometimes it will require further investigations in, for example, Financial Conduct Authority countries such as Gibraltar. At the moment, there is no information sharing gateway between the Financial Conduct Authority, the Electoral Commission and the Information Commissioner. It is actually impossible for any regulator to create a single picture of what on earth has gone on. That challenge gets even harder when the Information Commissioner does not have the power to get the information she needs to do her job.
Is the Minister satisfied in her own mind that clause 131 and its associated clauses are powerful enough? Will she say more about the Secretary of State’s declaration to the House last night that he would be introducing amendments to strengthen the Commissioner’s power in the way that she requested? When are we going to see those amendments? Are we going to see them before this Committee rises, or at Report stage? Will there be a consultation on them? Is the Information Commissioner going to share her arguments for these extra powers with us and with the Secretary of State? We want to see a strong sheriff patrolling this wild west, and right now we do not know what the Government’s plan of action looks like.
However, the right hon. Member for Birmingham, Hodge Hill has taken the opportunity to question the powers that the Information Commissioner has at her disposal. As my right hon. Friend the Secretary of State said yesterday in the Chamber, we are not complacent. I want to correct something that the right hon. Member for Birmingham, Hodge Hill said. My right hon. Friend did not say that he would table amendments to the Bill on the matter in question. He did say that we were considering the position in relation to the powers of the Information Commissioner, and that we might table amendments, but we are in the process of considering things at the moment. I presume that that goes for the right hon. Gentleman as well; if not, he would surely have tabled his own amendments by now, but he has not.
On a more positive note, we should at least acknowledge that, although the Bill strengthens the powers of the Information Commissioner, her powers are already the gold standard internationally. Indeed, we must bear it in mind that the data privacy laws of this country are enabling American citizens to take Cambridge Analytica to court over data breaches.
I want to review some of the powers that the Bill gives the commissioner, but before I do so I will answer a point made by the right hon. Member for Birmingham, Hodge Hill. He said that the commissioner had had difficulties and had had to resort to warrants to pursue her investigation into a political party in the UK and both the leave campaigns in the referendum. She is doing all that under existing data protection law, which the Bill is strengthening. That is encouraging.
Question put and agreed to.
Clause 131 accordingly ordered to stand part of the Bill.
Adjourned till this day at Two o’clock.
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