Kevin Hollinrake
MP for Thirsk and Malton · Conservative · United Kingdom
“That issue is one of the many things that the people who signed the petition are concerned about, Dr Huq. One of the big things that the Government promised, which I agree with them about, is the need to encourage faster growth in our economy. Of course that is right, but look at where that growth is.”
“The UK economy went through many challenges, of course, some of them caused by Brexit; the reality is that a change like that was bound to have a short-term effect—but only a short-term effect. The country grew faster than Germany and France during that period of time.”
“As I said before, governing is not easy; we had many challenges ourselves, and we did not get everything right, but what we did during that difficult period of time—those 14 years—was get 1.2 million more people employed in our economy. Unemployment was halved during our time in office.”
“Of course, many Government Members supported his leadership challenge. We are here now, looking forward to a general election coming down the track. We are ready for a general election when the Government are, because, unlike them, we have a strong leader—against their weak leader.”
“I was, absolutely. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for his excellent opening speech. He made so many good points, not least about the level of support for this petition.”
“Members on the Government side of the House also feel betrayed and angry with their own leadership, for marching them up to the top of the hill and marching them back down again on many of these issues, but they do not feel as betrayed as the businesspeople in this country in particular.”
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“It is a pleasure to speak with you in the Chair, Sir Christopher. The clause amends section 15 of the Economic Crime (Transparency and Enforcement) Act 2022 to align it with amendments made to section 32 during the passage of that Act and with amendments introduced by this Bill. The clause substitutes section 15 and adds proposed new sections 15A and 15B. Proposed new section 15 restates and slightly amends the general false statement offence in section 32 of the ECTE Act to reflect changes made by the Judicial Review and Courts Act 2022. Existing section 15 restricts the false statement offence to being committed when a person knowingly or recklessly makes a false statement in response to a notice. Proposed new sections 15A and 15B amend that offence to change the threshold to be met, by splitting it into two separate offences.”
“As the hon. Gentleman knows, as we have discussed on many occasions and as I am on the record as saying, legislation without implementation is worthless. We need to ensure that offences are discovered and then prosecuted. Of course, we must ensure that the registrar, and the law enforcement agencies they work with, have sufficient capacity and resources to do the job. The Bill does not cover that directly, but I am certainly keen to ensure that happens.”
“Clause 138 will improve the effectiveness of the register of overseas entities by defining “service address” so that it has the same meaning as in the Companies Act 2006. That will help those registering as overseas entities to ensure that they understand what a service address is, and that they must provide an address that meets the definition.”
“A non-compliant entity will find it difficult to sell, lease or raise charges over its land and cannot therefore deal freely with it. Upon submitting the requested information to the registrar, the overseas entity will once more be compliant. However, the compliance status is not retrospective. Any person dealing with the overseas entity in the non-compliance period will be unable to register any completed transaction with the land registries. I know that all Members will join me in wanting to ensure the robustness of the register and ensure that overseas entities comply with their duties, or face tough restrictions. The clause will help Companies House to do so.”
“The clause amends the Land Registration Act 2002, Land Registration etc. (Scotland) Act 2012 and the Land Registration Act (Northern Ireland) 1970. It will improve the effectiveness of the register of overseas entities by punishing a registered overseas entity for failing to comply with the registrar’s new power—as inserted into the Companies Act by the Bill—to require information from the entity. Currently, an overseas entity will lose its status as a registered overseas entity if it fails to provide an annual update to the registrar. The clause adds that an overseas entity will also lose its status as a registered overseas entity if it fails to respond to a notice from the registrar requesting information. Once it is no longer considered to be a registered overseas entity, the entity will be treated as non-compliant.”
“Given the number of changes that part 1 of the Bill makes to the Companies Act, the clause is necessary to ensure that accuracy and consistency are maintained between the ECTE Act and the Companies Act, and the respective registers of overseas entities and of UK companies.”
“Under proposed new section 28A, the Secretary of State must make regulations that set out what notice the registrar should give when unilaterally removing information, and the processes to be followed in determining applications for removal. The clause strengthens the registrar’s powers and ensures that she has all the necessary tools at her disposal to clean up the register of overseas entities proactively. The clause also allows the Secretary of State to amend the ECTE Act to apply any changes that part 1 of the Bill may make to corresponding provisions in the Companies Act. The ECTE Act contains a number of provisions that correspond to those in the Companies Act.”
“She can only remove from the register information where there was a power but no duty to include it, or where it no longer appears reasonably necessary for the purposes for which the material was delivered to the registrar. Proposed new section 28 will ensure that material that is unnecessary or does not meet proper delivery requirements can be removed at the discretion of the registrar, either unilaterally or upon application. The Secretary of State will also have the power to specify what sort of material can be removed from the register upon application, so that the scope of material eligible for removal can be modified in line with future operational needs.”
“Section 27 of the ECTE Act allows the registrar to require an overseas entity to resolve an inconsistency in information delivered to her where it appears to be inconsistent with other information on the register of overseas entities. New clause 19 amends section 27, so that the registrar may use any information she possesses, not only that published on the register, to require an overseas entity to resolve a suspected inconsistency. That will strengthen her ability to ensure that the register is accurate and reliable. Government new clause 20 mirrors amendments made in the Bill to equivalent sections in the Companies Act 2006 to ensure consistency between the Act and this Bill when it becomes an Act, and to enhance the registrar’s power to remove material from the register, which is limited under section 28 of the ECTE Act.”
“Clearly, the crisis has been driven by Mr Putin’s illegal invasion of Ukraine, which has caused a surge in the global price of wholesale gas, leading to an unprecedented increase in the amount that households and businesses are paying for the gas, electricity and oil they use. This has compounded already high prices in economies across the globe that are recovering from the covid-19 pandemic. The effects of the price rises are being felt up and down the country, but the Government are determined to ensure that families can provide power for their homes and that businesses can power the economy.”
“It is a pleasure to speak with you in the Chair, Sir Gary. I congratulate the hon. Member for North Down (Stephen Farry) on securing this very important debate, and I thank the hon. Members for Strangford (Jim Shannon), for Belfast South (Claire Hanna) and for South Antrim (Paul Girvan) for their interventions. They all made important and salient points relating to the problem in Northern Ireland. Given the record energy prices, the Government understand the pressures being faced by households and businesses in Northern Ireland and right across the United Kingdom, and we are taking direct action to address the issue.”
“Members say, and we are monitoring the price of heating oil and other alternative fuels very closely, now and in the months ahead, to see whether further payments are required at a future point in time. Households in Great Britain that are eligible for the payments will receive £100 credit on their electricity bills this winter. For Northern Ireland, the Government are working with electricity suppliers to explore how the payment could be delivered via electricity bills under a similar delivery model. Details of when the payment will be made will be confirmed shortly—we have heard that word a number of times from Ministers at the Dispatch Box—so I cannot give the hon. Member for North Down a firm date, but we are very keen to deliver it as quickly as possible.”
“Government support will also be provided for households that use alternative fuels for heating, such as heating oil or liquified petroleum gas instead of mains gas. The alternative fuel payment scheme will provide a one-off payment of £100 to ensure that all households that do not benefit through the energy price guarantee receive support for the cost of the fuel they use. The £100 payment has been calculated with reference to increases in the cost of heating oil between September 2021 and September 2022. The aim is to ensure that a typical customer using heating oil will be offered support that is broadly in line with that offered by the energy price guarantee for those using mains gas to heat their homes. However, I hear what hon.”
“As well as outlining the support that still needs to be delivered, I will set out what the UK Government are already delivering in Northern Ireland, and what is to follow shortly. The energy price guarantee in Northern Ireland launched on 1 November, offering equivalent support to that provided in Great Britain for domestic households. The scheme reduces the price that energy suppliers charge customers for units of gas and electricity, providing money off energy bills. Households will receive backdated support to cover October 2022 through a higher discounted rate. Through the EPG scheme, a typical household in Great Britain with both gas and electricity contracts will save around £700 this winter, based on current prices. Equivalent support will be provided for households in Northern Ireland.”
“The hon. Gentleman makes a very good point, and I heard his comments earlier about the increased price of oil in Northern Ireland. The hon. Member for North Down spoke of the very high number of households in Northern Ireland that are off-grid, and that is extremely important. I will try to cover that point in my remarks. The announcements made by the Government in September demonstrated our commitment to protecting UK households and businesses through the energy price guarantee, the energy bill relief scheme and the energy bills support scheme, which is the key matter under discussion. Under the plans, households, businesses and public sector organisations across Northern Ireland will be protected from significant rises in energy bills, thanks to the Government’s support.”
“Households that are eligible but do not receive alternative fuel payments because they do not have a relationship with an electricity supplier will receive the £100 via the alternative fuel payment alternative fund, which will be provided by a designated body.”
“I totally understand that. We have to get this right. There are some complications in terms of timing, which I will set out. I wish I could give the hon. Gentleman a firm date. I get frustrated, too, in debates like this. I am slightly sitting on the fence in not giving a firm date, but I guarantee to him and other Members that the measure will be implemented as quickly as possible. I had meetings with officials earlier today. They are fully cognisant of the issue and keen to deliver quickly. There are a number of complications. There is no central register either in Great Britain or in Northern Ireland for people who do not use the gas grid for their heating. We are working rapidly with stakeholders on the best way to identify those who merit support.”
“I will continue to work with him to try to make sure that we get the money out of the door as quickly as possible. Question put and agreed to.”
“We are delivering support to households and businesses in Northern Ireland through the EPG and the energy bill relief scheme already, but we fully recognise the need to provide further clarity on when these measures will be delivered to consumers in Northern Ireland and are working at significant pace to do so. I cannot give a firm date, but I can give the commitment that we are trying to expedite payments by every possible means. We have listened to the points made by the hon. Gentleman and others, particularly about off-grid homes, which is an issue not just in Northern Ireland but across the country, and we are working to make sure that the payments are at the right level. I am very grateful to the hon. Gentleman for raising this important topic today.”
“We have already acted to resolve one of the barriers to delivering the scheme in Northern Ireland by taking new powers in the Energy Prices Act 2022, which received Royal Assent only on 25 October. We now need to provide clarity on timings on when the scheme will be finally rolled out to households in Northern Ireland. Some households in Northern Ireland who do not have a direct contract with an electricity supplier or a meter of their own, for example park homes, cannot receive the £400 discount directly via an electricity supplier. We will also support those households under a separate arrangement called the energy bills support scheme alternative funding. The Government have delivered and will continue to deliver comprehensive support for energy consumers across the United Kingdom to overcome the extraordinary challenges we are facing.”
“The reason it only met twice was that its job was to determine the best way to address this issue, and it determined that the UK Government should do it. The issue is now with officials and Ministers in my Department to make sure that we deliver the scheme in a way that accounts for the differences in Northern Ireland, and we are working with suppliers to get this across the line as quickly as possible. Detailed work is under way to establish how suppliers can use their systems to pass funds on to consumers in a way that is consistent with the Government policy intent, while ensuring that public money is properly protected. We will of course use our experience thus far in the scheme in the rest of the United Kingdom, and we will work with the Utility Regulator in Northern Ireland to deliver the scheme.”
“It is very important that non-domestic customers that are less likely to be considered vulnerable to energy price increases, particularly larger businesses that are not energy-intensive, use the six months we have to identify measures they can take to protect themselves against high energy prices. On support already received, low-income households received a cost of living payment in July of £326 and will receive another payment of £324 by 23 November. The energy bills support scheme launched in Great Britain in October provides eligible households with a discount of £400—that is the key point in front of us—that is being paid in six-monthly instalments in the UK. Energy policy is devolved to Northern Ireland, but the issue has now been put back to the UK Government to deal with. The hon. Member for North Down referred to the taskforce.”
“Beyond April, the Prime Minister and the Chancellor—this applies to the whole of the United Kingdom—have agreed that it would not be responsible for the Government to continue exposing the public finances to unlimited volatility in international gas prices. A Treasury-led review is considering right now how households and businesses will be supported after April 2023 and will publish its findings by January 2023. The objective is to design a new approach that will cost the taxpayer significantly less than planned while ensuring enough support for those in need.”
“The exact discount applied will depend on the type of contract a customer is on and when it was agreed. Although the scheme applies to energy use from 1 October, savings applied to October bills are typically received in November, which means businesses in Northern Ireland start to feel the benefits in November. The Government announced on 21 September that we will also provide support to non-domestic consumers who use alternative fuels in Great Britain and Northern Ireland. Further information will be provided shortly. The schemes are supporting millions of households and businesses with rising energy costs, and the Chancellor made it clear that they will continue to do so from now until April next year.”
“I will go on to explain some of the complications. The hon. Gentleman’s points have been well made and heard by me and officials, so we will do what we can. In the discussions that I had this morning, it sounded as though there was a solution. We just need to roll it out as quickly as we can. The energy bill relief scheme for Northern Ireland will apply to all eligible non-domestic electricity and natural gas customers, including businesses, charities and the public sector, which receives its gas or electricity from licensed suppliers. Discounts will be automatically applied by suppliers to the energy bills of eligible customers, covering energy usage between 1 October 2022 and 31 March 2023. The scheme, as has been said, will run for an initial six-month period.”
“I beg to move amendment 14, in clause 89, page 68, line 33, at end insert— “(aa) any function of a Northern Ireland department under or in connection with the Company Directors Disqualification (Northern Ireland) Order 2002 (S.I. 2002/3150 (N.I. 4));” The amount of fees set under the Companies Act 2006 is determined in accordance with regulations. This amendment allows the regulations to reflect the costs or likely costs of a Northern Ireland department in discharging functions relating to directors disqualification.”
“Amendment 16, in clause 89, page 68, line 40, at end insert— “(d) any function carried out by the Insolvency Service in Northern Ireland on behalf of a Northern Ireland department in connection with the detection, investigation or prosecution of offences, or the recovery of the proceeds of crime, so far as relating to bodies corporate or other firms.”.— (Kevin Hollinrake.) The amount of fees set under the Companies Act 2006 is determined in accordance with regulations. This amendment allows the regulations to reflect costs or likely costs of the Insolvency Service in Northern Ireland in connection with enforcement.”
“Amendments made: 15, in clause 89, page 68, line 36, at end insert— “(ba) any function of a Northern Ireland department under or in connection with the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), so far as relating to bodies corporate or other firms;”. The amount of fees set under the Companies Act 2006 is determined in accordance with regulations. This amendment allows the regulations to reflect costs or likely costs of a Northern Ireland department under the insolvency legislation.”
“It is a pleasure to speak with you in the Chair, Mr Robertson. The Bill seeks to ensure that companies and other entities benefiting from incorporated status directly contribute to maintaining the integrity of the company register. We will do that by including investigation and enforcement costs in Companies House fees. We will debate those issues shortly, but first, I hope that Members will agree that it is right that the costs incurred through pursuing enforcement activity in Northern Ireland should also be included in the Secretary of State’s decision making when setting Companies House fees, which is the effect of these amendments. Amendment 14 agreed to.”
“The reason for that is that Companies House has always had the principle that its fees are levied to the extent it needs to do the job that it is set to do.”
“I also agree that, in the past and currently, enforcement agencies have been and are under-resourced, so we need to do something about that. I also have to agree with myself on the statements I made about the proportion of spending on law enforcement for economic crime and in respect of the Treasury Committee report’s conclusion that Companies House fees should be raised. My position on that absolutely stands. I disagree on a number of points, the first being that this situation is somehow just the current Government’s fault—that somehow, Companies House fees have been reduced to £12 over recent years. That is not the case; it has been the case for years, including when Opposition Members were in charge of setting those fees. The right hon. Member for Birmingham, Hodge Hill was in the Treasury at the time when fees were at £12.”
“I thank the right hon. Gentleman and other Members for the amendments and their contributions. I would never take credit for all the progress we are making on economic crime. In fact, I would hark back to the words of Ronald Reagan, who said something like, “There is no limit to what you can achieve in life, as long as you don’t mind who takes the credit.” I am happy to share the credit with anybody on this Committee or the many people who have campaigned on the issue over the years. One thing I do agree with the Opposition about—it is a point on which we all agree—is that Companies House and the other enforcement agencies should have enough money to do the job. That is what we are trying to get to and what I think we will get to.”
“That is exactly what is not happening—what is happening is that Companies House will collect the fees that it needs to do the job. The position we take is that we do not put the cart before the horse. Companies House needs to set out exactly what resources, staffing and IT implementation it will need to do the job. It will present that to the Treasury and the Department for Business, Energy and Industrial Strategy and say, “Right, this is what we need to do”. Fees will then be set on a commensurate basis and ringfenced to the job, not stolen by the Treasury. They are set in accordance with the rules and the oversight that they need, including enforcement. As we know, Companies House is moving from that dumb register to being a proactive body, in terms of overseeing the integrity of the register.”
“Again, we are all in agreement. Changing the environment is what this Bill—this very substantial document—is all about. There is no doubt that the situation has been hastened by what we have seen in Ukraine and other matters. It is absolutely high time to do this; I agree. The shadow Minister suggested that somehow the fees to Companies House are going to face cuts in the future—that is the opposite of what is happening. I think he said the disparity would widen and there would be an absence of additional funding. That is absolutely the wrong way to look at the situation. The right hon. Member for Barking said that somehow these matters would be subject to cuts, and we would have to go to the Treasury as part of the comprehensive spending review to get funding for Companies House.”
“I am coming to that. The simple answer is that, when the fees are assessed, they are subject to regulations that are subject to parliamentary scrutiny. They are laid before the House before the fees are approved.”
“Fees will continue to be set by regulations, and the basis for any changes will be included in the accompanying analysis and explanatory memorandum that are published and presented to Parliament for scrutiny. New clauses 25 and 33, introduced by the hon. Member for Glasgow Central and the right hon. Member for Barking, will shortly set out intentions on the level of fees to be charged. We do not intend to enshrine a level of fee in primary legislation, as doing so would restrict flexibility that may be required at a future date. We will commit to reviewing the fees on a regular basis to ensure that they provide the funding that Companies House needs.”
“If the Secretary of State considered changing those fees, there would of necessity be an appraisal of the resourcing needs of Companies House before that could take place. Fees can be charged only to cover the costs of the activities that they are intended to fund, including enforcement. In order to arrive at an appropriate level of fee, my Department would have to work directly with Companies House to determine the funding requirements. Of course, there has to be Government oversight of that, because that is what we are elected to do. It is right that the Secretary of State would oversee that and then present it to Parliament for scrutiny. I agree that companies will justifiably want to understand how and why a particular level of fee has been arrived at, but the mechanism for that already exists.”
“I will touch on a couple of the points made about the SFO case last week, which I think we all welcome. It was not actually about resourcing; changing legislation made that possible. It was about corporate criminal liability and failure to prevent, which was successfully enforced in that case. That is a lesson for us all. The right hon. Member for Birmingham, Hodge Hill said that there has been only one case ever of a successful economic crime prosecution in the UK, and that Bill Browder had said that. Mr Browder did not say that; there have been many prosecutions of economic crime. To clarify, he was talking about it in connection to the money that came out of Russia. Companies House is funded by the fees that it charges.”
“It is under the affirmative resolution. Different Members have suggested different figures, from £50 to £100. The right hon. Member for Barking said £1,000, as if to say, “We charge that in the BVI, therefore why not charge it in the UK?” That was the implication. What she said was that the people who look to use those jurisdictions to hide their money would be quite happy to pay £1,000, but that is exactly the point. On 99.9% of occasions, we are not just dealing with companies that indulge in nefarious activities; we are talking about not deterring bona fide businesses by setting the fee level at a fair level that does not deter business activity but does mean that Companies House has the right enforcement capability. That is what we want to get to, and we want to ensure that Companies House is able to do that.”
“I cannot imagine that in his many years as a Minister the right hon. Gentleman would have ever set out a date, but it will be shortly. Finally, I turn to proposed new clause 45 and the points made by the right hon. Member for Barking. The Bill amends the fee-raising power within the Companies Act 2006, in order to enable costs associated with investigation and enforcement to be included when setting the level of fees. Companies House is able to retain incorporated fee income under current arrangements between the Treasury and Companies House, with the arrangement reviewed periodically. Legislation does not set the level of fees, but rather the level of fees is set by our regulations. I have to say to the right hon. Member for Barking that that is under the negative resolution procedure and therefore receives parliamentary scrutiny.”
“I do not accept that the two things—inflation and the resources needed by Companies House—necessarily correlate. Salaries do not rise automatically on that basis. As the right hon. Lady will know, Companies House reports annually and I am keen to ensure that there is the right level of scrutiny around this type of activity in terms of resourcing, as I have said to her before. Therefore I do not think an automatic inflationary increase is right, but I absolutely believe in parliamentary scrutiny and it is something that perhaps we can discuss.”
“That may be something that the right hon. Lady wants to table, but this is a significant commitment, both in terms of legislation and resourcing. I cannot imagine a situation where Companies House comes to the Secretary of State or to me, as I will have some oversight over it, and say, “We need this level of resourcing, which will impact on fees in this way,” and we respond by saying, “Actually, that is too much.” It depends what they say, of course, and it is right that we have scrutiny over that, but I am sure there will be many mechanisms the right hon. Lady can use to ensure we have that level right.”
“As I have just set out to the Committee, clause 89, as amended, will enable Companies House fees to be used to fund enforcement and prosecution action against companies and other entities. As we increase the powers of the registrar and expand the role that Companies House and the Insolvency Service play in tackling economic crime, we need to make sure that they are appropriately resourced to carry out that activity. The clause is therefore vital in ensuring that Companies House can do that. Question put and agreed to. Clause 89, as amended, accordingly ordered to stand part of the Bill. Clause 90 Disclosure of information”
“I thank the hon. Members for the amendment.. The registrar is already permitted to share information with insolvency practitioners for purposes connected with her own functions—clearly now expanded, given this legislation. However, we acknowledge that there may be other specific circumstances in which she wishes to share information, so I sympathise with the tabling of the amendment.”
“A company may have only one director, person of significant control and shareholder. Such person could, in effect, be disclosing self-incriminating information about themselves. Committee members can rest assured that under the new powers given to the registrar in clause 90, they can disclose information to a public authority for purposes connected with that public authority’s functions. That includes local authorities. The registrar may also disclose information to any persons for purposes connected with its own functions, such as for the purposes of crime prevention and detection. Clause 90 already provides a route for local authorities to access PSC information for the purposes of tackling crime and recovering relevant unpaid debt. I hope that provides reassurance to hon. Members.”
“Its effect would be to give the Secretary of State a power to make regulations to facilitate the release of people of significant control information from companies to local authorities for the purposes of tackling economic crime and recovering a relevant unpaid debt. We do not believe that the amendment is necessary. Clause 92 already provides a power for the Secretary of State to make regulations that specify the circumstances in which a company may disclose relevant PSC particulars. Furthermore, the Government consider that it would be more appropriate for the registrar to have the power to disclose such information to local authorities, rather than the company, given the closeness of the relationship between a company and its people of significant control, and the risk of tipping off.”
“Clause 91 closes a gap by making it an offence for a company to use or disclose protected information in contravention of section 241 of the Companies Act. Clause 92 confers a power on the registrar on application to make an order requiring a company not to use or disclose relevant people with significant control particulars. Currently, the registrar can use directors’ residential addresses only for the purpose of communicating with the director. Clause 93 will remove the restriction on the use of protected information, specifically directors’ residential addresses. That means that the registrar will be able to use residential address information for alternative purposes such as cross-checking the accuracy of information on the register. That will help to improve the integrity of the register. I thank hon. Members for new clause 36.”
“Currently, the registrar is restricted in what information she can share, which can be done only on a reactive basis. Clause 90 enhances the data sharing powers of the registrar so that she can proactively share information. Sharing will be allowed for the purposes of the registrar’s own functions or where she is sharing with a public authority for the purposes of their function. Schedule 3 makes consequential amendments to the Companies Act 2006 and the Economic Crime (Transparency and Enforcement) Act 2002 resulting from clause 90. Clauses 91 to 93 make further amendments to the Companies Act to improve the registrar’s information sharing capabilities, ensure that the necessary safeguards are in place and improve the integrity of the register.”
“I shall respond briefly to the queries raised. All the information must be handled in accordance with the Data Protection Act 2018. The way the Bill operates is consistent with similar legislation that deals with data sharing. The hon. Member for Feltham and Heston raised the issue of the protection of information. The provision applies in a situation of risk of harm or serious risk of violence or intimidation—for example, in respect of domestic abuse victims. Data sharing was raised by both shadow Ministers—the hon. Members for Feltham and Heston and for Aberavon. It is permitted to assist public authorities when they exercise public functions, such as confirming the accuracy of data or providing intelligence to law enforcement agencies.”
“Data sharing is permitted to assist public authorities when they exercise their public functions. For example, they could ask the registrar to confirm the accuracy of data that is held, which may lead to information being shared for intelligence purposes with enforcement agencies.”