(14 years, 4 months ago)
Lords ChamberRead Hansard Text Read Debate Ministerial Extracts
Lord Avebury
To ask Her Majesty’s Government what is their reaction to the probable closure of Refugee and Migrant Justice.
The Minister of State, Ministry of Justice (Lord McNally)
My Lords, since this Question was tabled, Refugee and Migrant Justice has been placed into administration. The Government’s immediate concern was that the clients of RMJ should continue to receive a good-quality service.
Lord Avebury
My Lords, as other practitioners specialising in asylum cases—particularly, although not exclusively, those who operate on a not-for-profit basis—have had similar cash-flow problems to those of the RMJ, what steps are the Government taking to ensure that the LSC may be able to find providers to take on the RMJ’s 10,000 cases? Will my noble friend acknowledge that there will be serious delays in looking after those cases, first, because the new providers will have to get to know what the cases are, and, secondly, because they do not know whether they will be funded in the spending round that begins on 1 October?
Lord McNally
My Lords, I will take the last point first. Yes, there is bound to be a certain amount of disruption if an organisation that covers 7 per cent of cases goes into administration. However, I can assure the House that the Government are giving high priority to minimise that disruption. On whether other non-profit-making practitioners are facing difficulty, it is true that there have been complaints about the change in funding and fees, which was made by the previous Administration with an eye to saving taxpayers’ money. The change is not popular but, as my right honourable friend the Lord Chancellor said in another place, the organisations are coping. Trying to balance the good work that these organisations are doing against the taxpayers’ not-bottomless pot is difficult.
Lord Bach
My Lords, I am delighted that the Minister has praised those who worked for Refugee and Migrant Justice, which over a number of years did an excellent job. I am also delighted that the Legal Services Commission is ensuring that the existing clients of that organisation continue to have proper advice and representation. Are there estimates of the extra cost to the Legal Services Commission in ensuring that proper advice and representation from fresh providers?
Lord McNally
There are no estimates on that. There will be an extra cost, but Ministers had to face a balance of judgment: did they take into account that RMJ was going into administration and that therefore there would be knock-on costs, or did they give it more taxpayers’ money with no guarantee that it would not again find itself in difficulty in a short time? It was a hard call but, as the noble Lord knows full well, sometimes Ministers have to make hard calls.
Lord Pannick
Will the Minister confirm that the problem faced by RMJ is the consequence of payments being made only after decisions are taken by the Home Office, or by the tribunal, in an individual immigration case, and that that can take two years or more? Will the Government therefore consider introducing a system of interim payments so that competent and efficient organisations such as RMJ are not threatened with closure?
Lord McNally
My Lords, if the description “competent and efficient” was correct for RMJ, one asks how it managed to get itself into administration. It represents 7 per cent of cases, so organisations representing 93 per cent are coping. Again, it was a difficult decision to make and I know that there have been complaints about the tough system of paying. However, we are dealing with taxpayers’ money and there is justification for ensuring that the organisations provide value for it. It may be worth noting that, in the round of bids, double the number of law firms are bidding for this business. That suggests that RMJ is not alone and that companies believe that they can deliver the service under the present scheme.
The Lord Bishop of Exeter
My Lords, reports are circulating that the UK Border Agency is refusing to grant extensions to RMJ clients in order that they might find new representation. It is saying that clients can raise any issues that they have with such a refusal at the time of an appeal. That is not only terrible for clients, but it is also poor value for money, because the appeal process is extraordinarily expensive. What advice, if any, is being given to the UK Border Agency in this respect?
Lord McNally
My Lords, the UK Border Agency has been asked to treat RMJ clients with common sense and to allow time during this period of adjustment. Therefore, according to my briefing, the right reverend Prelate’s first assertion is not true.
Lord Strathclyde
My Lords, there is room for both. Let us listen to the noble Lord, Lord Thomas of Gresford.
Lord Thomas of Gresford
My Lords, RMJ says that it is owed £1.8 million by the Legal Services Commission. Is that the correct figure? The Legal Services Commission was supposed to be abolished by the noble Lord, Lord Bach. Will the coalition Government revive it, or would it not be better for it to disappear as soon as possible?
Lord McNally
Again, dealing with the last point first, I am not even sure whether that is under review, but I certainly cannot give an answer. On the matter of money owing, a case from RMJ will be heard on Wednesday, so I am not sure how much I can comment on it, other than to say that it is the view of the Government and the LSC that no moneys are owing to RMJ. Indeed, when the books are finally balanced, it may prove to be the other way around.
Lord Davies of Coity
My Lords, in answer to the noble Lord, Lord Bach, the Minister said that he had to strike a balance. He also said that he did not know what it was going to cost. How does he strike a balance when he does not know what it is going to cost?
Lord McNally
Because Ministers have to take a view on whether paying out money to an organisation that has gone into administration is a better deal for the taxpayer than making the adjustments necessary to give the clients—as I said at the beginning, the clients are our first priority—the legal coverage that they deserve. Of course, during this period of adjustment, we do not know the final cost, but a decision had to be made. As I said, sometimes Ministers have to make hard decisions and we made this one.