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Reading Borough Council Bill
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City of London (Various Powers) Bill [Lords]
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City of Westminster Bill [Lords]
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Hon. Members
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To be considered on Tuesday 19 June.
Transport for London Bill [Lords]
Motion made,
That so much of the Lords Message [21 May] as relates to the Transport for London Bill [Lords] be now considered.—(The Second Deputy Chairman of Ways and Means.)
Oral Answers to Questions
(12 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Claire Perry (Devizes) (Con)
1. What progress clinical commissioning groups have made in improving care for patients.
Nadhim Zahawi (Stratford-on-Avon) (Con)
17. What progress clinical commissioning groups have made in improving care for patients.
The Secretary of State for Health (Mr Andrew Lansley)
This year, developing CCGs have delegated responsibility for more than £30 billion of local commissioning. Clinical leadership is using NHS resources more effectively, as part of improvements in care. In particular, we are seeing many improvements in community-based services—for example, a pulmonary exercise programme in Durham; a community spinal service in Reading; and a new musculoskeletal service in the Vale of York CCG.
Claire Perry
I thank the Secretary of State for that reply. During the Easter recess, I helped to organise a number of health question times in my constituency, where we brought together the commissioning groups, doctors, people from acute hospitals and hundreds of interested constituents to talk about how we would improve local health care. The good news was that doctors and clinicians—
Mr Speaker
Order. Let us just have a quick question and then we will move on.
Claire Perry
Will the Secretary of State help by telling me how we can communicate out this example so that other MPs can repeat this valuable exercise?
Mr Lansley
I am very grateful to my hon. Friend for demonstrating how these new developing relationships that CCGs and local authorities are creating with NHS providers and care providers are delivering improvements in care for the constituents we all represent. I urge other hon. Members to follow her example in stimulating exactly those relationships.
Nadhim Zahawi
The CCG covering my constituency is interested in improving patient care by looking at new methods of contracting and management, but it has been told that it must use a clinical support service set up by the primary care trust, staffed by ex-PCT staff and most likely based in Birmingham, rather than south Warwickshire, at a cost of £4 million a year. Could the Secretary of State—
Mr Speaker
Order. Let us just have a question—not the preamble, but the question.
Nadhim Zahawi
I apologise, Mr Speaker. Will the Secretary of State confirm that there is no need for the CCG to use such an organisation and that it is free to form its own commissioning structure without incurring redundancy and wind-up costs from the PCT?
Mr Lansley
Yes, I can confirm that CCGs have the freedom to decide which commissioning activities they will do themselves and which they choose to secure from external organisations, thus enabling them to carry out their functions effectively. They can, if they wish, develop their own organisations and staff or contract with other organisations, and they are not required to contract with the commissioning support services hosted by the NHS Commissioning Board.
Derek Twigg (Halton) (Lab)
In order for the CCGs to be able to carry out and improve their services, they need appropriate funding. Will the Secretary of State therefore tell me why the Halton CCG has had less funding than it was promised originally?
Mr Lansley
If the hon. Gentleman is talking about the management budget for CCGs, I can tell him that we set out clearly that it would be up to £25 per head across England, and that is indeed the sum that will be made available.
Keith Vaz (Leicester East) (Lab)
Has the Secretary of State seen the letter to The Times this morning from six diabetes experts? What steps are the local groups taking to do more to prevent diabetes?
Mr Lansley
Yes, I read that letter this morning. Today, elsewhere in the House, the permanent secretary to my Department and the chief executive of the NHS will give evidence to the Public Accounts Committee on precisely that issue. In the context of doing so, they will demonstrate how we have continued over the past two years to achieve a substantial year-on-year increase in the number of patients with diabetes who are accessing best-practice services.
Mr Stephen Dorrell (Charnwood) (Con)
I welcome the successful development of clinical commissioning groups, but does my right hon. Friend agree that their success in refashioning care throughout the whole of the health and social care system will depend on close relationships not just in the health service but across into social care and the world of social housing, too?
Mr Lansley
I do believe that and the legislation requires it of clinical commissioning groups and health and wellbeing boards. The relationship being built up between clinical leadership in the NHS and democratic leadership through health and wellbeing boards is an instrumental part of delivering that integrated care.
Andy Burnham (Leigh) (Lab)
The year 2011 saw the biggest ever fall in public satisfaction with the national health service. It was also the right hon. Gentleman’s first full year in office. Does he think that those two facts are in any way related?
Mr Lansley
No, I do not. The right hon. Gentleman might also care to note that the same survey demonstrated a lower level of satisfaction with the NHS in Wales than in England, but let us leave that to one side.
That survey of 1,000 people asked whether they were satisfied with the way in which the NHS was being run. I was not satisfied. We were in the midst of reform, and we are changing how the NHS is run. Government Members were demonstrating to the public that improvement is necessary and possible in the NHS and that we should not be satisfied with the situation. What is more interesting is that a survey of 70,000 people that we published today demonstrates that 92% of the public—an unprecedentedly high level—who received care from the NHS said that it was good, very good or excellent.
Andy Burnham
How out of touch can he get, Mr Speaker? I would have suggested some work shadowing on the NHS front line to get him back in touch, but I forgot that he cannot go into a hospital without a police escort these days. Let me tell him why satisfaction with A and E is down: he lowered the target and missed it repeatedly, leaving nearly a quarter of a million people waiting longer than four hours. Today we have found out why his waiting list statistics do not match people’s real experience: managers are changing clinical criteria and removing people from lists. If he wants to regain people’s trust, why not start today by ordering an immediate inquiry and ending this unacceptable practice of waiting list recategorisation?
Mr Lansley
I spend more time in hospitals than the right hon. Gentleman has hot dinners, I suspect—[Interruption.] The weekend before last, I spent two days in hospitals and I did not require any policemen to be there.
Let me make it clear. In A and E, we have 96.6% of patients being seen, treated and discharged within four hours. More to the point, the latest data on A and E show that the average time spent there came down from 57 minutes to 49. On the question of referral to treatment, we inherited more than 209,000 patients across the NHS who were waiting beyond 18 weeks for their treatment. According to the latest data, that figure went down by nearly 50,000. We are delivering for patients better and improving care. I wish the right hon. Gentleman would get on his feet—perhaps he will do it now—thank the NHS and congratulate it on the improving care, rather than trying to find the one thing wrong with it—
Mr Speaker
Order. I do not want to be unkind, but every month the Secretary of State’s answers are too long. Perhaps he can make this the first month in which he is rather more economical.
Alex Cunningham (Stockton North) (Lab)
2. What the cost to the public purse was of NHS staff redundancies in 2011-12.
Rushanara Ali (Bethnal Green and Bow) (Lab)
3. What the cost to the public purse was of NHS staff redundancies in 2011-12.
The Minister of State, Department of Health (Mr Simon Burns)
Audited 2011-12 figures on NHS exit packages, including redundancies, are not yet available. The data will be available in the summer, once the Department’s annual report and accounts are laid before Parliament.
Alex Cunningham
The latest figures from the Department show that the cost of reorganising the NHS on Teesside is more than £50 million, including £9 million in redundancy payments to hundreds of staff who have lost their jobs. At the same time the Minister is demanding massive cuts of £40 million from the local hospital trust. Will he apologise to the people of Teesside for wasting their money and confirm that none of those made redundant will be re-hired in the new structures?
Mr Burns
No, of course I will not. What the hon. Gentleman fails to recognise is that the NHS must continually evolve to meet challenges and that this is the best chance the NHS has to improve and drive up standards. What he fails to mention in his question is that the £1.2 billion to £1.3 billion cost of the reform will lead, between now and the next election, to £4.5 billion of savings, £1.5 billion every year thereafter until 2020, and every single penny of that money will be reinvested in front-line services.
Rushanara Ali
We already know that this Government spent more than £168 million nationally making NHS staff redundant over 2010 and 2011, and more than £3.8 million in Tower Hamlets, where my constituency is based. Can the Minister tell the House how many of those staff were re-hired in the new system?
Mr Burns
Yes, there have been redundancies in the NHS, but 15,500 managers and administrators have ceased to work in the NHS, where the savings are reinvested in front-line services. There are also 4,161 extra doctors, 934 more midwives and 151 more health visitors. That is where we are concentrating the money—more front-line staff, fewer administrators.
Andrew Gwynne (Denton and Reddish) (Lab)
At a time when almost 4,000 nursing posts have been axed, the Sandwell and West Birmingham Hospitals NHS Trust is using unpaid jobseekers through the Government’s Work programme to perform duties such as collecting drugs and giving food and drinks to patients. Does not the Minister understand that whatever the good intentions of the scheme, most people will see this as staffing on the cheap, and that there can be no substitute for the necessary number of nurses and health care assistants in our NHS?
Mr Burns
First, the shadow Minister is incorrect in the number of nurses who he says have left the NHS. The figure is nowhere near 4,000, as he mentioned—[Interruption.] It is 2,693. Secondly, he denigrates a scheme where people have the opportunity, through the jobcentres, to gain familiarity with the workings of the NHS so that they can take a view as to whether they want to invest their future talents in a career in the NHS. I should have thought that that was to be welcomed, rather than snidely denigrated.
Mr Rob Wilson (Reading East) (Con)
4. What estimate he has made of the cost of alcohol-related admissions to accident and emergency departments in (a) England, (b) the south-east and (c) Reading East constituency in the latest period for which figures are available.
The Parliamentary Under-Secretary of State for Health (Anne Milton)
We estimate that alcohol misuse cost the NHS in England about £3.5 billion in 2009-10. The published estimate for the number of alcohol-related admissions was 1,168,300 in 2010-11. However, that is admissions to hospital. We reckon that the cost of alcohol-related accident and emergency visits was about £696 million in 2009-10.
Mr Wilson
As my hon. Friend is aware, the Government’s alcohol strategy proposes that more hospital staff have powers to fine troublesome drunks. Will she work with the Home Office to ensure that these fines are not just punitive, but work to recoup a reasonable part of the £700 million cost that she mentioned, so that A and E departments in places such as the Royal Berkshire hospital in my constituency can recoup some of that money?
Anne Milton
Indeed, that is why we have a cross-Government strategy. We will be working with the Home Office and many other agencies and Departments to ensure that we deliver the savings. It is not just about the financial cost; it is also about the human cost. Identification, brief interventions and alcohol liaison nurses are all part and parcel of making sure that we reduce the harms of alcohol.
Mrs Jenny Chapman (Darlington) (Lab)
Again, the north-east tops the league of alcohol-related admissions to hospital. Availability, advertising and price all seem to be encouraging more and more people to buy more and more alcohol in supermarkets. When will the Government do something about the pricing and advertising of alcohol? In case the Minister is worried about the politics of this, she should know that she has the support of drinkers in Darlington’s working men’s clubs.
Anne Milton
I can assure the hon. Lady that I am not at all worried about the politics of the issue. To ensure a brief answer, I refer her to the Government’s alcohol strategy, which mentions all those factors and draws attention to the substantial progress we expect to see on those figures.
Mr David Burrowes (Enfield, Southgate) (Con)
I welcome the Government’s commitment to supporting GP screening for alcohol misuse, but given that less than a third of GPs use an alcohol screening questionnaire, and of those a third use them for an average of only 33 patients a year, how can the reformed national health service incentivise those GPs to ensure that they support early intervention and minimise alcohol harm?
Anne Milton
We will introduce an alcohol check within the NHS checks for adults from April 2013. My hon. Friend is right to highlight the substantial impact that identification and brief interventions in the GP’s surgery and elsewhere can have.
Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)
Labour Members share the hon. Lady’s concern about the human, economic and public order cost of alcohol abuse. We understand that the question of a minimum price per unit, to which the Secretary of State is a belated convert, has gone out to consultation, but does the Minister recognise the need to align our minimum price with that in Scotland, because otherwise there will be problems with cross-border smuggling?
Anne Milton
I can assure the hon. Lady that we will be talking with the devolved Administrations, and indeed all other agencies, and welcome any input on this. It is good to hear her welcome our strategy, and I am sure she will agree that the only way we can reduce alcohol harm is by working across Government.
Mr Jim Cunningham (Coventry South) (Lab)
5. What recent progress he has made on the evaluation of the thalidomide grant pilot scheme.
The Minister of State, Department of Health (Paul Burstow)
The thalidomide grant is a three-year pilot, running from April 2010 until March 2013, to explore how the health needs of thalidomide survivors can best be met in the longer term and how such a scheme might be applied to other small groups of geographically dispersed patients with specialised needs. Officials have discussed the evaluation of the first year of the pilot with members of the Thalidomide Trust and its national advisory council and we await the evaluation of the second year.
Mr Cunningham
The thalidomide grant was introduced by my right hon. Friend the shadow Secretary of State under the previous Labour Government and has been going on for many years. Can the Minister assure me that it will continue until a decision is taken on whether to carry on with the scheme beyond the pilot stage or to do something else?
Paul Burstow
I can certainly assure the hon. Gentleman that we are in earnest in making sure that we learn the lessons from this evaluation and work actively with the Thalidomide Trust to ensure that we implement the lessons in future schemes.
Paul Maynard (Blackpool North and Cleveleys) (Con)
My constituent Mr Joseph Bannon of Cleveleys, who is a thalidomide patient, has made clear to me the great importance of continuing the scheme. They are a declining group of people with increasing needs and any failure by the state to meet those needs would be absolutely unconscionable. Will the Minister reassure me that there is no prospect of that occurring under this Government?
Paul Burstow
What I can reassure the hon. Gentleman about is that the Government are carrying on with the evaluation. We are waiting for the evaluation of the second year to see how the scheme is working. The grant is not intended to meet all the additional costs that thalidomiders face. Aside from the grant, there are other sources of public funding and, of course, the funds that the Thalidomide Trust administers on behalf of those survivors of this catastrophe.
Mr Mark Spencer (Sherwood) (Con)
6. What improvements in health outcomes relating to cancer he anticipates by the end of the decade.
The Minister of State, Department of Health (Paul Burstow)
Our cancer outcomes strategy sets out the ambition to save an additional 5,000 lives every year by 2014-15, which would halve the gap in survival rates between England and the best in Europe. Looking further ahead, our aim is to have survival rates among the best. To realise our goal, we are acting across a broad front: raising public awareness of the symptoms of cancers and supporting GPs; extending screening and the introduction of flexible sigmoidoscopy; improving access to diagnostic tests; expanding radiotherapy; reducing variation in treatment; and improving quality of life for cancer survivors.
Mr Spencer
Given the importance of early detection, does my hon. Friend share my concern that young women under the age of 25 in Sherwood are currently being refused smear tests?
Paul Burstow
The important point about the extension of any screening programme is that it is based on evidence. The most recent review of cervical smear and screening campaigns took place in 2009, and on the basis of all the available evidence at the time the Government’s advisory committee on cervical screening concluded that it would do more harm than good to extend screening below that age, but it is a standing item on the committee’s agenda. It looks at any new evidence and will continue to do so.
Dr William McCrea (South Antrim) (DUP)
Pancreatic cancer is greatly feared by many of our constituents. What funds are going to be made available to assist in its research, and how will the Minister measure improvements in that field?
Paul Burstow
I am afraid that I did not entirely hear the hon. Gentleman’s question, but it was about research, and the Government are certainly committed to substantial investment, working with partners to ensure that we have among the best research in the world so that we have access to treatments at the earliest opportunity.
Mr John Baron (Basildon and Billericay) (Con)
Does the Minister agree with the recent report by the all-party group on cancer, which found that, if we are to drive improvements and outcomes consistently throughout the NHS, both the one-year and five-year cancer survival rates should be included in the NHS outcomes framework and in the commissioning outcomes framework?
Paul Burstow
My hon. Friend, who chairs that all-party group, met me recently to make those points, and as a consequence of that meeting and his excellent note of it I undertook to write to him in greater detail. He will understand that some of those issues go to the heart of data collection and to the quality of the data currently available throughout all cancer sites, and that is the reason why we may not be able to do quite what he wants at the pace that he wants.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Why do the tests for bowel cancer and breast cancer have an age cut-off? Just when people are more likely to have either condition, they are not regularly tested. Why is that the case in many parts of our country?
Paul Burstow
On the day that the Government have confirmed that from October there will be a complete ban on age discrimination within the national health service, except when it can be objectively justified, the answer to the hon. Gentleman’s question is that the evidence used to determine who is eligible for a screening programme is the basis on which recommendations are made to the Government, and they will be extended in future.
Robert Flello (Stoke-on-Trent South) (Lab)
7. What assessment he has made of the potential effect of regional pay on recruitment in the NHS.
Shabana Mahmood (Birmingham, Ladywood) (Lab)
16. What recent representations he has received on regional pay variation in the NHS.
The Secretary of State for Health (Mr Andrew Lansley)
I have not received any such representations. The Government’s evidence to the NHS Pay Review Body shows that market-facing pay has the potential to enable NHS organisations better to achieve their need to recruit and retain staff within the “Agenda for Change” framework for pay. The pay review body will take evidence from all parties and make its recommendations in July.
Robert Flello
It can often be harder to work on the NHS front line in more deprived parts of our country, so would the Secretary of State like to join me on a busy Friday night in A and E in Stoke-on-Trent, where he can explain to the staff why their work is worth less than that of someone working in a more affluent part of the country?
Mr Lansley
I had the privilege and pleasure of visiting the University hospital of North Staffordshire about eight weeks ago. I very much enjoyed being there, meeting the staff, who I thought were doing a terrific job, and talking in particular to a substantial number of nurses. We did talk about that issue, and implicitly the hon. Gentleman is criticising the existing “Agenda for Change” framework, because there are high-cost areas in some parts of the country. The proposals and my evidence to the NHS pay review body do not recommend cutting anybody’s pay; they suggest that within the “Agenda for Change” framework we should extend high-cost areas.
Shabana Mahmood
Will the Secretary of State confirm that highly paid senior managers working in the new bodies established by the NHS reorganisation will be exempt from his plans for regional pay variation? Does he think that that is fair?
Mr Lansley
Yes, I do—in the same way as, for example, we are not including doctors and dentists in the same market-facing proposals. The reason why is that they do not work in what are essentially local labour markets; rather, they work in national labour markets.
John Pugh (Southport) (LD)
The most recent available statistics show that 50% of public sector jobs outside London were vacant for more than eight weeks, compared with 13% in the private sector. How will lower regional pay improve that situation?
Mr Lansley
I simply reiterate to my hon. Friend the point that I have already made. We are not proposing to cut anybody’s pay; we are proposing to give NHS organisations a greater mechanism through the “Agenda for Change” framework so that they can secure the recruitment and retention of staff. That is precisely the issue. Whatever their needs may be in terms of the recruitment and retention of staff, their pay should be better able to adjust to that.
Ms Margaret Ritchie (South Down) (SDLP)
Given the extent of social deprivation and the fact that £450 billion will be taken out of the pockets of people in Northern Ireland, particularly those on low incomes, will the Secretary of State confirm that there are no plans to introduce regional pay into the national health service in Northern Ireland during this parliamentary term or in future, as this would have a detrimental impact on the economy?
Mr Lansley
Clearly, that is a matter for the devolved Administration in Northern Ireland, not for me.
Andrew George (St Ives) (LD)
If, as the Secretary of State says, it is not his intention to see pay cut, does he hope that as a result of this measure lower-paid health workers in poor regions will be paid more?
Mr Lansley
At the risk of repetition, let me say that in any part of the country NHS organisations, like organisations in other fields, should have the ability to set pay levels that reflect to a greater extent local labour market conditions and their need to recruit and retain staff. My hon. Friend will recall that a number of south-west trusts are looking at going down the path of setting their own pay arrangements. It was in fact the previous Administration who in 2004, under the “Agenda for Change” pay framework, gave trusts and foundation trusts precisely the freedoms that they are proposing to use, so I cannot understand how Labour Members can possibly object to those freedoms now.
Mr Jamie Reed (Copeland) (Lab)
The Secretary of State may wish to call this market-facing pay, but he has rather let the cat out of the bag with his previous answers. In fact, he has proposed lower pay for NHS staff in poor areas—a move that would create a deeply divided, two-tier NHS and undermine the NHS in the communities that need it most. We know that the Secretary of State does not take advice from medical professionals, but will he perhaps take some from one of his own Back-Bench colleagues, the hon. Member for Hexham (Guy Opperman), who said that
“someone working in the NHS in a deprived part of the North East probably deserves more pay, certainly not less, than a nurse in leafy Surrey”?
Will the Secretary of State commit today, yes or no, to withdraw these disastrous proposals?
Mr Lansley
If I may say so, I think that the hon. Gentleman wrote his question before he had listened to my earlier answer. I am not proposing to reduce anybody’s pay. It is very simple. The NHS Pay Review Body will have the opportunity to make recommendations. I gave evidence to it on the basis that we should retain a national framework for pay through the “Agenda for Change” framework. However, it is transparently the case that the “Agenda for Change” framework has not thus far enabled NHS organisations, as they say themselves, to adopt a pay structure locally which better reflects the market in which they are employing.
Andrew Jones (Harrogate and Knaresborough) (Con)
8. What steps he is taking to improve the sustainability of NHS trusts.
The Secretary of State for Health (Mr Andrew Lansley)
We are working directly with all NHS trusts to enable them to achieve foundation trust status—for the great majority, by April 2014. Achieving foundation trust status means that NHS trusts have achieved high and sustainable levels of clinical quality and financial governance.
Andrew Jones
It is possible that North Yorkshire and York primary care trust will this year declare a deficit based on inherited debt from the merger of PCTs several years ago. I am concerned that the new clinical commissioning groups might have to pick up that deficit. Will my right hon. Friend look at all the options to ensure that clinical commissioning groups can be given the best possible start by having a clear balance sheet?
Mr Lansley
No primary care trust should plan for a deficit in 2012-13. Primary care trusts carrying legacy debt into 2012-13 must clear it in accordance with the 2012-13 NHS operating framework. As at the end of 2011-12, the primary care trust my hon. Friend mentions had legacy debt that has been managed and absorbed locally by the strategic health authority. As at the end of 2011-12, the PCT is not forecasting any legacy debt.
Nicholas Soames (Mid Sussex) (Con)
No-shows and people failing to keep appointments in out-patient departments are costing Brighton and Sussex University Hospitals NHS Trust nearly £6 million a year. Does my right hon. Friend agree that this is extremely selfish, and would he propose sanctions on those who fail to show up for their appointments?
Mr Lansley
I am grateful to my right hon. Friend. I have no proposals for sanctions, but I commend to him and his trust the many mechanisms that are available, which they may know about, such as sending text messages to mobile phones. I have seen them in practice, and they do stimulate patients to attend their appointments and so reduce what has been an unacceptable level of non-attendance.
Andrew Selous (South West Bedfordshire) (Con)
9. What recent progress the NHS has made in improving outcomes for orthopaedic patients.
The Secretary of State for Health (Mr Andrew Lansley)
Substantial progress has been made through innovative approaches and improved risk management, leading to increased survival after fragility fracture, improved trauma care and better governance of hip implants. The latest results to December 2011 show improvements in patient reported outcomes for both hip and knee replacements.
Andrew Selous
Does my right hon. Friend share my concern about the significant increase in hip and knee revisions over the past five years or so? Does he support Professor Tim Briggs’ proposals to deal with that in his report, “Getting it right first time”, which is supported by all the professional associations and which NHS London is looking to adopt?
Mr Lansley
An increased number of hip and knee revisions is one of the consequences of an ageing population. I welcome Tim Briggs’ report, “Getting it right first time”. His recommendations are sensible. I am pleased to note that it has the support of the British Orthopaedic Association, as well as clinicians in London. It will help us build on the progress that is being made, to which I referred. The latest figures show that the proportion of hip fracture patients who receive all elements of the best practice tariff has risen from 24% in 2010 to 37% in 2011, and to 55% in 2012. That achievement has attracted international interest and is undoubtedly saving lives.
Alec Shelbrooke (Elmet and Rothwell) (Con)
10. What improvements in public health outcomes he anticipates by the end of the decade.
The Parliamentary Under-Secretary of State for Health (Anne Milton)
This year, we published our public health outcomes framework, which will last from 2013 to 2016. It sets out two high-level outcomes: to increase healthy life expectancy and to reduce differences in life expectancy and healthy life expectancy between communities. This is the first time that a Government have published a public health outcomes framework, and the first time that there has been ring-fenced money for public health.
Alec Shelbrooke
On 31 July 2010, I smoked my last cigarette. Every day since then has been a struggle and I still consider myself to be a smoker. Will my hon. Friend outline for the House what support the hundreds of people in my constituency and the tens of thousands of people around the country who are in the same boat are getting to improve public health outcomes?
Anne Milton
I heartily congratulate my hon. Friend on his considerable success, which he has put on the record. We have a number of initiatives, not least the NHS’s quit helpline. There has been a rise in the number of people phoning it and in the number of people who are attempting to quit. He is an example not only to his constituents, but to many Members around the House.
Mr Speaker
On both the Front Benches and the Back Benches in all parts of the House, I suspect.
Valerie Vaz (Walsall South) (Lab)
How do the Government intend to ring-fence the public health money that will be given to local authorities?
Anne Milton
Quite literally, by putting it in a ring fence. That money can be spent only on improving public health among the local population. There are 66 supporting indicators in the outcomes framework. The money will be given to local authorities on the basis that they will make progress towards achieving those outcomes.
Stephen Mosley (City of Chester) (Con)
11. What his policy is on the national authorisation process for clinical commissioning groups; and if he will make a statement.
The Minister of State, Department of Health (Mr Simon Burns)
The NHS Commissioning Board is responsible for considering applications from clinical commissioning groups to be established and for determining those applications. The process of authorisation is an important element of ensuring that CCGs are ready to take on their commissioning responsibilities. There are 212 aspiring CCGs that are preparing to apply for authorisation.
Stephen Mosley
West Cheshire clinical commissioning group is making excellent progress towards taking control of all NHS services in April next year. It is one of the first wave to undertake the national authorisation process. When can first-wave groups, such as West Cheshire, expect to hear whether they have been successful?
Mr Burns
I congratulate West Cheshire and other CCGs on the progress that they have made by aspiring to CCG authorisation. We expect first-wave applicants to be informed of the outcome of their authorisation applications by November. Once the outcome is known, the focus will be on ensuring a safe and managed transition from primary care trusts to CCGs on 1 April 2013.
Nick Smith (Blaenau Gwent) (Lab)
12. What assessment he has made of the effectiveness of the public health responsibility deal.
The Secretary of State for Health (Mr Andrew Lansley)
The responsibility deal has brought together 392 partners, a doubling in number since its launch a year ago. Working together, we have removed artificial trans fats in foods, reduced salt content, put calories on high street menus, improved alcohol labelling, set out ambitious future plans for calorie and alcohol reduction, promoted enhanced physical activity and strengthened employers’ support for health in the workplace. Transparent monitoring and evaluation are vital, and our partners’ assessment of the delivery of their pledges will be published on our website. We are making up to £l million available to fund an independent evaluation of the responsibility deal.
Nick Smith
The Mayor of London supports a ban on the sale of mega-sized sugary soft drinks at entertainment venues, which will help fight obesity. Will the Government consider such a measure as part of their nationwide responsibility deal?
Mr Lansley
As I said to the hon. Gentleman, as part of the responsibility deal we are considering an ambitious programme of removing 5 billion calories a day from the diet in England. A range of programmes, such as behaviour change programmes and the reduction of saturated fats and sugars in foods by the industry, will make that happen. All those issues will be considered as part of how we can deliver that ambitious programme.
David T. C. Davies (Monmouth) (Con)
22. I congratulate the Secretary of State on yet another initiative that has helped to ensure that patients in England have a better standard of health service than their counterparts in Wales. What is his message to Welsh Members of Parliament who call on him to stop various reforms and expect him to impose the second-class standards of health service that we see in Wales thanks to the Welsh Assembly?
Mr Speaker
With reference purely, of course, to the public health responsibility deal.
Mr Lansley
Yes indeed. There are serious public health challenges to be faced up to in Wales, and it would be much better if the Labour Government in Wales, instead of cutting the budget by 6.5% as they are planning to do, increased it in real terms as the coalition Government are doing in England.
Nadine Dorries (Mid Bedfordshire) (Con)
13. What improvements in health inequalities he anticipates by the end of the decade.
The Parliamentary Under-Secretary of State for Health (Anne Milton)
The legal duties that we have introduced will ensure that health service commissioners have regard to the need to reduce health inequalities. The NHS and the public health outcomes framework will set out ambitions to reduce those inequalities in both health services and the health of the population. That is an ongoing area of work. We already have the indicators in the framework, but we also need the ambition to work on those inequalities.
Nadine Dorries
Central Bedfordshire council has a number of public health challenges such as establishing health and wellbeing boards. Does the Minister agree that those challenges would be much easier to achieve and more effective if agencies such as social services, education services and others worked together? Are the Government doing anything to help facilitate that?
Anne Milton
My hon. Friend is absolutely right that education, social services and health services need to be brought together. That is exactly why bringing public health into local government is critical. If we add to that list housing and local business services, we have the mix to turn around many people’s fortunes. Some of the 66 indicators in the framework are school-readiness, social connectivity, air pollution and chlamydia, and they will all require local government to work at every level with all agencies to reduce inequalities.
Nic Dakin (Scunthorpe) (Lab)
What steps is the Department of Health taking to address the inequalities in regional health outcomes for pancreatic cancer?
Anne Milton
We are doing a number of things, and the most important is devolving responsibility for public health to local areas. It is clear that delivering improvements in diagnosis, outcomes and so on for people with pancreatic cancer relies on different actions in different areas. The important thing is to give local people the power and money to do what they know is right.
Patrick Mercer (Newark) (Con)
I am sure the Minister would agree that Newark hospital is performing outstandingly in stamping out inequalities. However, given the expansion of population in Newark that is expected by the end of the decade, will the Minister allow me and some of my constituents to meet her to discuss the inequalities we anticipate?
Anne Milton
I am always delighted to meet any hon. Member or hon. Friend and their constituents, particularly if they face inequality concerns.
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
14. What his policy is on the resource distribution formula for primary health care commissioners.
The Minister of State, Department of Health (Mr Simon Burns)
From 2013-14, the NHS Commissioning Board will allocate resources to clinical commissioning groups. The Health and Social Care Act 2012 contains the first ever legal duties on health inequalities for NHS commissioners and the Secretary of State. This applies to everything the NHS Commissioning Board does, including allocating resources.
Mr Burns
Yes, I can give that assurance. I know this has been of some concern to the right hon. Gentleman and the north-east, but I can tell him that we are not planning to alter resource allocation to transfer funds from the poorest parts of the country. There is also no mandate to propose a formula based purely on age. As he may or may not know, although age is the primary driver of an individual’s need for health services, the most recent primary care trust formula uses a range of factors to determine fair shares, including the age structure of the population, levels of deprivation and the unavoidable costs in providing services between areas.
Duncan Hames (Chippenham) (LD)
The last of those factors is relevant because community health care increasingly allows people to live at home for longer and to go home sooner after hospital admissions. However, that means that sparsity is a factor in the cost of providing health services in rural areas such as Wiltshire. Will the Minister therefore find a way of recognising that within funding allocations?
Mr Burns
Yes. I hope I can reassure the hon. Gentleman. As he may be aware, the Advisory Committee on Resource Allocation is currently reviewing the formula by which funding is allocated. We await its recommendations and will look at them carefully before making any announcements.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The reason the funding formula is causing such concern in the north-east is that we have some of the worst public health outcomes in the country, including on obesity, liver disease, vascular disease and so on. Given that there is to be no change to the funding formula, why has the Faculty of Public Health said that the inequalities will get worse because of the reforms the Minister proposes?
Mr Burns
No. I do not think the hon. Lady is right in that—[Interruption.] As she will appreciate if her hon. Friends on the Opposition Front Bench would just hush and listen for minute, there will be allocations for public health, but there will also be allocations for acute care in clinical commissioning groups. Those will be done to reflect the needs of areas up and down the country. No one area will be penalised at the expense of another. What is more, they will be done on the basis of independent advice, as I said to the hon. Member for Chippenham (Duncan Hames) in my earlier response.
Steve Brine (Winchester) (Con)
15. What progress his Department has made in introducing fully digital breast screening; and if he will make a statement.
The Minister of State, Department of Health (Paul Burstow)
As at 1 May 2012, 74 out of 80 local breast screening services had at least one digital X-ray set, and 53 were fully digital. All services must have at least one digital X-ray set in order to enter the breast screening randomisation project and extend screening to women aged 47 to 73.
Steve Brine
I thank the Minister for his reply, but may I press him on making digital happen in my constituency? Where is funding responsibility in the new NHS for investment in new digital equipment and for making the switch? Does it fall 100% with the foundation trust wishing to be commissioned to provide the service, or with the body wanting to commission it, or—dare I say?—is there a third way?
Paul Burstow
There are three aspects to that question. The first is that we need to ensure that providers can purchase equipment at the lowest possible price. That is why NHS Supply Chain is making arrangements to ensure that digital mammography is available at the lowest possible price to providers through the various initiatives it is taking. The primary responsibility sits with the provider to provide the equipment against which they have been commissioned to provide services. Of course, in the specification it makes for the service, the commissioner will make it clear that digital is required.
Mark Lancaster (Milton Keynes North) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Health (Mr Andrew Lansley)
My responsibility is to lead the NHS in delivering improved health outcomes in England, to lead a public health service that improves the health of the nation and reduces health inequalities, and to lead the reform of adult social care, which supports and protects vulnerable people.
Mark Lancaster
The strategic health authority has ruled out the locally preferred option for the transformation of community health services in Milton Keynes. Given the Government’s commitment to localism and their preferred approach to the integration of services, will the Secretary of State look at this matter again?
Mr Lansley
It is for the primary care trust to appraise the options and decide which is best for local people. The SHA has a role in providing assurance in that process, but I would urge both the PCT and the SHA to ensure that they meet the test that we are looking for, which is that any decision must be in the best clinical interests of patients and must meet the views of clinical commissioners in the future and, indeed, those of the public, not least as expressed through the local authority. I would urge the PCT and the SHA to make progress on that, and, if it would be of any assistance to my hon. Friend, I would be glad if he were able to meet me, the PCT and the local authority to help to resolve the issue.
Liz Kendall (Leicester West) (Lab)
In their 2010 NHS White Paper, the Government promised legislation on a new legal and financial framework for social care. However, last month’s Queen’s Speech included only a draft Bill, on social care law alone. We cannot tackle the care crisis without tackling the funding crisis, so will the Secretary of State now agree to Labour’s call for legislation on a new system for funding social care in this Parliament? Yes or no?
Mr Lansley
The hon. Lady will know very well that last year we made it clear that we intended to publish both a White Paper on the reform of social care law and, alongside it, a progress report on the reform of the funding of adult care. We still intend to do both those things, and to do so soon.
Gareth Johnson (Dartford) (Con)
T4. The Minister is aware that a form of postcode lottery operates in the provision of IVF treatment at the moment. Does she agree that the Health and Social Care Act 2012 provides an excellent opportunity to end this lottery and allow a more equalised approach to IVF treatment?
The Parliamentary Under-Secretary of State for Health (Anne Milton)
Yes, and may I commend my hon. Friend on the work he has done in this area? In the reformed NHS, infertility treatment services will be commissioned by clinical commissioning groups, with the NHS Commissioning Board providing oversight and support. That will include the provision of resources and tools to enable CCGs to collaborate to commission infertility services. We will continue to expect those commissioning infertility treatment services to be fully aware of the importance of having regard to the National Institute for Health and Clinical Excellence fertility guidelines.
Paul Blomfield (Sheffield Central) (Lab)
T2. Speaking on 24 April, the Secretary of State indicated that the NHS distribution formula should no longer take account of deprivation. That would have cost Sheffield £73 million a year and benefited Surrey by £400 million. His ministerial colleague, the Minister of State, the right hon. Member for Chelmsford (Mr Burns), seems to have denied that that is the case. Will the Secretary of State therefore confirm that this is the Government’s latest U-turn?
Mr Lansley
No, I will do no such thing, because the premise of the hon. Gentleman’s question is completely wrong. I never said any such thing. What I made perfectly clear is that, as has been the case in the past, age will continue to be the principal determinant of health need, and therefore, by extension, that age will be the largest factor in determining the allocation of resources to the NHS. That was true under the last Government; it will continue to be true under this one.
Dr Sarah Wollaston (Totnes) (Con)
T5. On 21 June, conscientious, hard-working doctors will be putting their patients before the British Medical Association’s ill-judged call for industrial action. Can the Secretary of State confirm to the House, however, how many surgeries, operations and clinics will be needlessly cancelled, and how much all this will cost the NHS?
Mr Lansley
I entirely understand my hon. Friend’s concern, and I applaud the way in which she has expressed it. The BMA’s proposed action could result in up to 30,000 operations being cancelled, as many as 58,000 diagnostic tests being postponed, and more than 200,000 out-patient appointments being rescheduled. I do not think that the House will understand why the BMA would risk patient safety in that way, when it knows perfectly well that its action will have no benefit and that we cannot now go beyond the basis for pension reform that has been agreed with the majority of the NHS trade unions, especially in circumstances in which doctors will continue to receive an extremely generous pension worth up to £68,000 a year at the end of their working lives. I think that the right hon. Member for Leigh (Andy Burnham) and I share the view that this is not a justified position for the NHS to take. The pension is intended to be a generous one. Through the negotiations with the BMA and the other trade unions, we arrived at a very generous pension scheme.
Bill Esterson (Sefton Central) (Lab)
T3. Thanks to the staff at St Thomas’ hospital in London, and at Aintree in Liverpool, I have had excellent health care myself in the past three weeks, but, in order to build the morale of staff across the NHS, will the Secretary of State instruct all NHS trusts not to cut anyone’s pay?
Mr Lansley
I am glad that the hon. Gentleman has had excellent care; he might like to tell those on his own Front Bench about it, as they are constantly denigrating the NHS. I will simply reiterate what he will have heard me say previously, which is that I have made no proposals to cut anybody’s pay in the NHS.
Julian Smith (Skipton and Ripon) (Con)
T6. What progress has been made in discussions with primary care trusts on the transfer of assets to NHS Property Services Ltd?
The Minister of State, Department of Health (Mr Simon Burns)
The Department is currently reviewing updated lists of properties for proposed transfer. Thereafter, the boards of the sending and receiving organisations will endorse the transfers and give their final approval in the next few weeks to allow the legal transfer process and human resources consultations to commence. The legal transfer of assets to either NHS providers or NHS Property Services Ltd will take place on 31 March 2013.
Heidi Alexander (Lewisham East) (Lab)
T7. We have learned today that public satisfaction with the NHS has fallen dramatically. We also know that satisfaction with GP services has fallen for the second consecutive year, and that satisfaction with accident and emergency services is going down by 7% each year. The Prime Minister promised that the NHS would be his priority. Is it not about time that this Government lived up to that promise?
Mr Lansley
We have learned no such thing. Indeed, we published on the Department’s website today a survey that asked people who had been looked after by the NHS how well they thought their care had been provided to them. It showed that 92% of the patients said their care had been good, very good or excellent. In my view, that survey of 70,000 patients who had received care from the NHS completely trumps a survey that asked 1,000 people what they might have thought about the NHS in relation to the media activity that took place last year.
David Mowat (Warrington South) (Con)
T8. The Cheshire and Merseyside treatment centre has been closed for just over a year, since the private sector contract let by the last Government expired. Can the Minister confirm that the centre is now going to be brought back into the NHS as a fully fledged part of the Warrington and Halton hospitals trust, and will he give me an indication of the time scale involved?
Mr Simon Burns
I am grateful to my hon. Friend for giving me the opportunity to explain that the NHS trust and the PCT have made plans for the building to be used by the Warrington and Halton Hospitals NHS Foundation Trust for orthopaedic out-patients and surgery. Those plans should enable clinicians to provide the NHS services needed by local people in much-improved buildings, and I understand that services will be recommenced from those buildings in weeks.
Rosie Cooper (West Lancashire) (Lab)
In written responses to questions about clinical commissioning groups, the Minister of State, Department of Health, the right hon. Member for Chelmsford (Mr Burns) incessantly replies—most recently on 18 April—that CCGs do not yet exist, so how can he offer assurances, as he has done today, that any real progress is being made by the CCGs, when they are currently being supported by PCTs? And will he explain his “now you see them, now you don’t” response?
Mr Lansley
I will tell the hon. Lady how we can talk about the progress made by CCGs—because we actually go and talk to them. I recall visiting the Blue Coat school in Merseyside a few weeks ago and speaking to the leaders of clinical commissioning groups—from Liverpool, Lancashire, Manchester, Warrington, Knowsley and St Helens—and many of them had 100% delegated responsibility for budgets this year. They explained to me the opportunities they were taking to improve the care of their patients by using that responsibility.
Mr Douglas Carswell (Clacton) (Con)
T9. Clacton was promised a new renal unit several years ago. While they are waiting, local people have had to travel long distances for treatment. I am due to meet the commissioning authority to discuss the endless delay. If it fails to make progress soon-ish, could I meet the relevant Minister and his officials to work out what we can do to prod the commissioning authority into getting a move on?
Mr Lansley
My hon. Friend will be aware—and, I am sure, will understand and support—the devolution of commissioning responsibilities locally. He is right to pursue the matter in the way he proposes. Over a number of years, including under the previous Administration, efforts were made to secure additional access to dialysis. For a long period, we in this country had lesser access to dialysis than in other countries—particularly when people were not only working but likely to be on holiday. I welcome the point my hon. Friend is pursuing and, when he has had his conversation locally, perhaps he would like to tell me the outcome.
Diana Johnson (Kingston upon Hull North) (Lab)
The Government blocked Labour’s plans to introduce public health as one of the licensing conditions. I wonder whether, in the spirit of localism, this power should now be given to health and wellbeing boards.
Anne Milton
As I am sure the hon. Lady is aware, we have proposed in the alcohol strategy to make sure that public health and other health considerations can be used in making decisions about licensing applications. This is what we have achieved from having a cross-government strategy and approach, moving public health responsibilities back into local government.
Iain Stewart (Milton Keynes South) (Con)
May I emphasise to my right hon. Friend the strength of local feeling in Milton Keynes that we should retain our integrated community health service, which has worked incredibly well and provides a good role model for elsewhere in the country?
Mr Lansley
I am grateful to my hon. Friend. The four tests for service change that we have set out—I think rightly—are not just about the tests that must be met before changes can be introduced; they also involve the same considerations that should drive the design of services. If local commissioners, the local authority and local people are supportive of a particular form of organisation, including community services, I would hope that that would provide the basis on which the design of services would proceed.
Grahame M. Morris (Easington) (Lab)
Last evening, I attended the launch of UKCK—a group of charities coming together to raise funds to purchase advanced radiotherapy equipment. Will the Minister explain why, despite his previous assurances, regions like the north-east are having to turn to charities to raise funds to buy this potentially life-saving equipment?
The Minister of State, Department of Health (Paul Burstow)
If the hon. Gentleman would like to supply me with the details of regions that are having to do that, I will certainly write to him on the matter. What we are doing is making an extra £750 million available to the NHS during this spending period to support the investment in radiotherapy services. I will certainly come back to the hon. Gentleman on his particular point.
Greg Mulholland (Leeds North West) (LD)
In an Adjournment debate last year on the safe and sustainable review, the Minister of State, Department of Health, the right hon. Member for Chelmsford (Mr Burns) confirmed the minimum number of operations at 400 a year, saying that it was based on the level of activity needed to provide good quality care around the clock. Does he share my astonishment that the chairman of the joint committee of PCTs has said that he can give no assurance that that will be included in the final review? Does that not undermine this unhappy process?
Mr Lansley
My hon. Friend will be aware, as other Members are, that this is an independent review conducted by the joint committee of primary care trusts. On that basis, I will not comment directly on anything said in that context. I simply reiterate what was made clear in last year’s debate that the joint committee will not conduct its review solely on the basis of the options set out in its original consultation.
Barbara Keeley (Worsley and Eccles South) (Lab)
Regarding the answer given to my hon. Friend the Member for Leicester West (Liz Kendall), the Government did not promise to give us a progress report on funding, but to legislate in this Session to reform social care funding. Social care is now widely seen as being in crisis. When will the Secretary of State commit to acting urgently—because urgency is needed now—to tackle this crisis?
Mr Lansley
I must correct the hon. Lady. We did not say that we would legislate in the current Session. What we made clear was that we would publish a White Paper—which we will do—and that we would publish a progress report on funding reform. We were also clear—as we still are—about the fact that, as part of the coalition programme, we would act urgently, and we will continue to do so.
Miss Anne McIntosh (Thirsk and Malton) (Con)
The Department of Health is to be asked to sign off the business case for the transfer of services from Lambert Memorial community hospital to the new extra care housing scheme—sometimes called an extra sheltered accommodation scheme—in updated community facilities. Will the Secretary of State give me a personal assurance that there will be no sign-off until the future of Thirsk’s community hospital is guaranteed for its current purposes?
Mr Lansley
I cannot give my hon. Friend that assurance, not least because such decisions are led locally by local organisations. However, if the tests for service change were not met and the local authority referred the matter to me, I would of course take advice through the independent reconfiguration panel, and consider it in the light of that advice.
Rural Transport (Brafferton, Darlington)
Phil Wilson (Sedgefield) (Lab)
The petition has been signed by 85 of the 150 residents of the small but beautiful village of Brafferton in my constituency, from which Arriva has decided to withdraw the only bus service, meaning that the only shop within walking distance is the motorway service station.
The petition states:
The Petition of residents of Brafferton,
Declares that the Petitioners believe that in order to maintain a reliable rural transport network in Darlington Borough, additional funding needs to be provided for rural bus services.
The Petitioners therefore request that the House of Commons urges the Government to ensure that there is funding in place to maintain the provision of reliable rural bus services in the Darlington Borough.
And the Petitioners remain, etc.
[P001096]
Dangerous Dogs
Jacob Rees-Mogg (North East Somerset) (Con)
I must declare an interest in this petition, because the event that led to it occurred in my garden, where a dog was savaged—brutally—by a pack of 10 dogs. I said to the owner of the dog that I would present the petition only if it achieved at least 1,000 signatures, because I thought it would be improper for me to benefit from a parliamentary procedure on my own account. Instead, we received thousands of signatures, not only from my constituency, the village of West Harptree and neighbouring villages, but, thanks to The Daily Telegraph, from across the country.
The petition states:
The Humble Petition of Deborah Bowler,
Sheweth,
That the Petitioner believes that attacks by dogs made on all other animals should be made illegal and that owners should be legally responsible for their dogs’ actions.
Wherefore your Petitioner prays that your Honourable House shall urge the Government to consider legislating to make owners accountable for their dogs’ actions in the case of attacks on other animals.
And your Petitioner, as in duty bound, will ever pray, &c.
[P001097]
Points of Order
(12 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andrew Gwynne (Denton and Reddish) (Lab)
On a point of order, Mr Speaker. During Health questions, I gave a figure for nursing redundancies. It would appear that the Minister of State gave an incorrect figure in his reply, inadvertently including midwifery and health visitor posts as well as nursing posts. If that is the case, may I please ask the Minister to correct the record?
Mr Speaker
The Minister is literally falling over himself to do so. We must hear from the Minister.
Mr Burns
I hope that I am not falling over, Mr Speaker.
It may be useful to the House if I correct the shadow Minister’s misapprehension. What I gave, and what I stand by, were the latest figures for full-time equivalents in the NHS work force. Since May 2010, the number of qualified nursing staff has fallen by 2,693. That is the figure I gave the shadow Minister, and it comes from the category in the work force statistics headed “qualified nursing staff”—[Interruption]—which includes, as the chorus are echoing, midwives and health visitors.
Mr Speaker
I am reassured that the Minister has not fallen over, and I think that we are all better informed. What we cannot have, and what I am sure no one would seek, is a rerun of Health questions, but we have been given that clarification, for which we are grateful.
Sir Bob Russell (Colchester) (LD)
On a point of order, Mr Speaker. Have you had a request from a Defence Minister to be allowed to come to the House to explain today’s contemptible announcement that 4,100 members of Her Majesty’s armed forces are to be made redundant, that about a third of the redundancies will be compulsory, and that about 2,900 will be in the Army? I should be interested to know whether any of those being made redundant are in 16 Air Assault Brigade, which is based at Colchester garrison. Little over a year ago, they were fighting in Afghanistan and putting their lives on the line. Is there to be a ministerial statement?
Mr Speaker
No, but, knowing the hon. Gentleman as I have for the last 15 years, since we entered the House together, I have just a hunch that this is a matter to which he will return, possibly with notable frequelarity. Regularity? Frequency? I am getting there. [Hon. Members: “A lot.”] A lot: indeed.
Alec Shelbrooke (Elmet and Rothwell) (Con)
On a point of order, Mr Speaker. It would appear that this afternoon the right hon. Member for Doncaster North (Edward Miliband), the leader of the Labour party, accused the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) of perjuring himself yesterday. Is it in order, Mr Speaker, for members of the Privy Council who sit in this House to make such accusations without explaining themselves to you or to the House?
Mr Speaker
I am not aware of any such accusation having being made. Immediately after the hon. Gentleman had raised his point of order, he sat down with a very bright grin on his face, so I shall take his remarks as having been made in a spirit of levity on which no further comment is required.
Defamation Bill
(12 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)
I beg to move, That the Bill be now read a Second time.
I am confident that everybody in this Chamber agrees that freedom of expression is the cornerstone of our democracy. In an open society, people should be at liberty to debate a subject without fear or favour, whether the matter be political, scientific, academic or anything else. That is how power is held to account, abuses of authority are uncovered and truth is advanced. But freedom of speech does not mean that people should be able to ride roughshod over the reputations of others without regard to the facts. Life and career can be destroyed by false allegations that go unanswered. The issue for our defamation laws is ultimately one of striking the right balance between protection of freedom of expression on the one hand and protection of reputation on the other.
I share the mounting concern of recent years that our defamation laws are becoming out of date, costly and over-complicated, and that they are at risk of damaging freedom of speech without affording proper protection. No one can be satisfied with a situation where the threat of lengthy and costly proceedings has sometimes been used to frustrate robust scientific and academic debate, to impede responsible investigative journalism and to undermine the good work undertaken by many non-governmental organisations. The practice of issuing gagging writs has been resorted to by many people over the years. I once had the privilege of receiving one myself from Mr Robert Maxwell, but we must make sure that the practice is not encouraged to spread further. Nor can it be a matter of pride when powerful interests overseas with tenuous connection to this country use the threat of British libel laws to suppress domestic criticism in cases of so-called libel tourism.
Turning to what is the most innovative and difficult part of the Bill, I am also very concerned that our current libel regime is not well suited to dealing with the internet and modern technology. Legitimate criticism sometimes goes unheard because the liability of website operators, as providers of the platform on which vast amounts of information is published by users, puts them in the impossible position of having to decide when to defend or censor information. Meanwhile, individuals can be the subject of scurrilous rumour and allegation on the web with little meaningful remedy against the person responsible. We need to refocus and modernise the system so that it offers effective protection, whether offline or online, both for freedom of speech and the reputation of those who have been defamed.
Those are the main reasons for the introduction of the Defamation Bill. It fulfils the commitment in the coalition agreement to review the law of libel while protecting legitimate free speech. It also, of course, draws heavily on the draft Bill published last year. I do not want to tempt fate, but I must say that I think that thus far producing a draft Bill and consulting has proved to be a very good way of proceeding on what could otherwise have been an extremely contentious issue.
The draft Bill benefited from detailed, and very helpful, scrutiny by a lot of interested people. We were particularly helped by the Joint Committee, and I am grateful to all who contributed to it, especially my old friend and colleague Lord Mawhinney and his fellow Lords for their extremely helpful contribution, which we have reflected in the Bill.
Sir Peter Bottomley (Worthing West) (Con)
On the subject of that Committee, may I say that it was my experience—which I think was shared by others who served on it—that the attitude of the Minister, Lord McNally, especially in answering questions and being very open about what was in his mind and in the mind of the Department, was very useful? Such openness brings results.
Mr Clarke
I am grateful to my hon. Friend for those comments, because it is one of the ironies of this Bill starting in the Commons that the member of my ministerial team who has devoted the most time to producing it is unable to introduce it. My ministerial colleague, my hon. Friend the Member for Huntingdon (Mr Djanogly), will wind up this debate, and both he and I would acknowledge that our noble and right hon. Friend Lord McNally played a leading part in the whole consultation and scrutiny process.
Before I discuss the detail of the Bill, let me say that parliamentary debate always elicits a broad spectrum of opinion, and defamation reform is no exception. At one end of the range of views are still some who would like this country to move towards the United States’ model, with free expression always trumping other considerations and with little or no legal redress for those who have been defamed. I find that idea unattractive and think that the current process of American electioneering shows the dangers. The well-financed production of untrue or dubious personal allegations can be taken to great length if there is no adequate protection. At the other end of the range are a few people who think, particularly in light of recent media excesses, that we should teach newspapers a valuable lesson by encouraging anyone whose feelings have been hurt to sue them. I am not sorry to say that the Bill will disappoint those with either extreme of opinion, which I hope will be echoed very little by hon. Members on any Benches in this House.
Ian Paisley (North Antrim) (DUP)
I agree that no one wants to see the Americanisation of our libel and slander laws. However, the right hon. and learned Gentleman referred to Lord Mawhinney’s report and chairmanship of the Joint Committee. Lord Mawhinney made it very clear that access to justice was critical for the ordinary citizen. Does the Secretary of State agree with me that raising the “substantial harm” test raises the bar so high that the ordinary citizen will never go into the libel courts to defend themselves?
Mr Clarke
No; I shall try to address that issue throughout my remarks. The package that we have produced is aimed at reducing costs and producing more effective remedies for a wide range of people, as well as at reducing the burdensome cost for those trying to defend themselves against actions. I shall keep making remarks that address the hon. Gentleman’s concerns, because I am anxious to ensure that we are not making things more expensive or difficult for any litigant.
Our intention is to correct the worst excesses of our current system in which, particularly for the powerful and wealthy, the law makes it rather too easy to menace responsible publishers with libel proceedings. However, we do not want sensible mainstream reform to come at the cost of giving further licence to parts of the media to publish whatever they like without regard for the truth. Equally, we want to ensure—this is relevant to the point made by the hon. Member for North Antrim (Ian Paisley)—that it is possible for ordinary people to get a remedy, but only where their reputation has been seriously harmed. We do not want to open the floodgates to endless litigation in our courtrooms by people whose feelings have been hurt but who have not suffered any particular damage. Of course, the Bill is only part of the story. No doubt the conclusions of Lord Justice Leveson’s inquiry will inform broader reforms to press regulation in due course.
Zac Goldsmith (Richmond Park) (Con)
It seems that a person would be able to take action only if a single statement caused serious harm to their reputation, but it is usually the case that people find themselves being mercilessly bullied, harassed and hounded by newspapers over a long period. There might not be a single statement that would definitively destroy their reputation, but they nevertheless find themselves being dragged through the mud without there being any individual act meriting the kind of action that the reforms would allow. In those circumstances, what kind of defence would an individual have against a £100-million organisation that is committed to shredding their reputation?
Mr Clarke
I think the law of libel offers equal protection in both situations. One single statement can be very defamatory, but so can a series of statements as my hon. Friend rightly says. That has always been the case and I do not think that anyone has ever drawn such a distinction in the law of defamation. The test will be applied to the total conduct of which the plaintiff is complaining and against which he is seeking a remedy. I have alongside me my hon. and learned Friend the Solicitor-General, who used to practise privately in this particular field. He seems to agree with my judgment on this matter, so I think we can put that fear to rest.
Let me deal with the point made by the hon. Member for North Antrim, because the next part of what I have to say is very relevant here. As I have said, alongside the Bill we are seeking to bring about a significant reduction in the sometimes punitive costs in libel cases by introducing a series of procedural changes. Those changes come on top of the Jackson reforms—this involves the Legal Aid, Sentencing and Punishment of Offenders Act 2012—to the no win, no fee conditional fee arrangements. The reforms will reduce the burden on both plaintiffs and defendants and help to reduce overall legal bills, without preventing claimants with strong cases from finding lawyers to represent them.
Our first priority has been to reform the law so that trivial and unfounded actions for defamation do not succeed. Clause 1 therefore raises the bar, by a modest extent, for a statement to be defamatory by proposing that it must have caused or be
“likely to cause serious harm to the reputation of the claimant.”
That was carefully considered in consultation by a lot of respondents. Whereas the draft Bill sought views on a test of substantial harm, which was intended to reflect current law, the new clause drew on the views of the Joint Committee on the draft Bill and the balance of opinions received in the consultation by nudging the threshold up by a modest extent. It will be for the courts to determine, in the light of the individual circumstances of a case, whether the test has been met. However, we hope it will give more confidence to defendants in, for example, the sorts of cases brought against non-governmental organisations and scientists in recent years.
Alongside a stronger test, we also want to simplify and clarify the defences available to those accused of libel. As they stand, the defences are sometimes unnecessarily complicated and too narrowly focused on cases relating to mainstream journalism, rather than the online world, NGOs, academics, scientists and so forth.
Mr Edward Leigh (Gainsborough) (Con)
Everyone wants a vigorous press commenting robustly on matters of public interest. Too much of our press, however, has sought to earn a living in recent years by destroying people’s reputations. Will the Secretary of State reassure the House that his new defences of “honest opinion” and “in the public interest” will not allow the likes of the Murdoch press to drive a coach and horses through any person’s private life?
Mr Clarke
I agree with some of what my hon. Friend says. No doubt we all get infuriated by much of what appears in the newspapers. I personally find that much of the popular press express views that I regard as ridiculous, right-wing and extremely annoying to my view of political debate, but it is important in a democracy that people such as me are subjected to that. Our test of whether we live in a society where free speech is allowed is whether we allow free speech to people with whom we disagree. That can involve matters of taste. Some of what my hon. Friend complains about concerns the ridiculous offshoots of the celebrity culture in which we now live. We can all freely express opinions about these things, but I would be hesitant indeed if any Government came to the House to legislate on such matters. In my judgment, if our press wish to be scurrilous and irresponsible, up to a point they are entitled to be so.
Kevin Brennan (Cardiff West) (Lab)
Is the Secretary of State’s position, then, that an ordinary citizen who has had an untruth published about them should have no remedy unless they can prove that it has caused substantial harm to their reputation?
Mr Clarke
It must be a serious matter causing serious harm to their reputation. Most Members have things printed about them twice a week that cause them annoyance and which they would vehemently start arguing about if they had the opportunity to do so in front of readers. It is serious matters that must be subject to the serious process of defamation law in the pursuit of a remedy—a financial remedy, an apology or whatever—in a court of law.
Mr David Lammy (Tottenham) (Lab)
Will the Secretary of State say a little more about this matter? He will understand that once the law is codified, judges will interpret what he has said. Does he recognise that for ordinary members of the public—for example, someone running a small business to whom harm can be caused if a local paper runs a particular story—what is serious is quite different from what is serious for celebrities and those in public life?
Mr Clarke
I agree. I stress that it will be for the courts to determine what amounts to serious harm in an individual case, but I agree that someone whose business is damaged—albeit by a local allegation in a local newspaper—could almost certainly demonstrate serious harm. Any citizen against whom a serious and unfounded allegation of personal misconduct is made will probably be able to demonstrate that it has done serious harm to his reputation. The hurdle is raised a little, but I trust that it will not bar any plaintiff who has had serious problems as a result of a publication.
I was moving on to deal with the defences. Clauses 2 and 3 replace the common law defences of justification and fair comment with new statutory defences of truth and honest opinion. These are areas where the law has become increasingly complicated and technical over the years. In our opinion, the revised approach should simplify the situation, ensuring that the defences are available without so many endless and costly disputes over detail and interpretation. Alongside the new defences of truth and honest opinion, we are introducing, for the first time, a statutory defence of responsible publication in the public interest. This is based on the common law defence that has been developed by the courts in recent years following the case of Reynolds v. Times Newspapers but expressed in clear and flexible terms. It provides a defence where the defendant can show that the allegedly defamatory statement is, or forms part of, a statement on a matter of public interest, and that he or she acted responsibly in publishing it.
The relevant clause identifies specific factors to which the court may have regard in deciding whether the defendant has acted responsibly, based on current case law. However, we do not want those to be interpreted as a checklist or a set of hurdles for defendants to overcome, and the list is intended to set out factors in an illustrative, non-exhaustive way so courts will retain flexibility. It is not our intention to change the Reynolds defence; we have sought to set it out in statutory form in a way that we hope will help.
Mr Robert Buckland (South Swindon) (Con)
I am listening carefully to what the Lord Chancellor is saying about the dangers of the non-exhaustive list setting a series of hurdles. Does he not think that a catch-all clause allowing the courts to look at all the circumstances of the case would cure that potential mischief?
Mr Clarke
As I said, we are not intending to fetter, as it were, the discretion of the court in the end to apply reasonable judgment to the particular circumstances of a particular case; this is meant to be illustrative. This is work that we have set out, and we will reflect on my hon. Friend’s point as we continue to scrutinise the legislation as it goes through this House.
Finally in this area of defences, we are extending the circumstances in which absolute and qualified privilege can be asserted. The defence of privilege is based on the principle that there are certain situations in which it is for the public benefit that a person should be able to speak or write freely, and that this should override or qualify the protection normally given by the law to reputation.
Clause 7 extends privilege to summaries of material as well as to reports and copies; broadens the international scope of the circumstances in which privilege applies; and clarifies that qualified privilege extends to reports of scientific and academic conferences and of press conferences. In a further important step forward for the protection of scientists and academics, clause 6 creates a defence of qualified privilege for peer-reviewed material in scientific and academic journals, as recommended by the Joint Committee on the draft Bill. The clause defines key elements of the peer-review process to ensure that publications with appropriate procedures will now be given the protection of this new defence.
All told then, I would argue to the House that the Bill is introducing sensible reform to protect freedom of expression by raising the bar for a claim and bolstering the defences available, with specific benefit for scientists and journalists. But we want to go further in some of the main areas of public concern, in particular by addressing libel tourism, which has sometimes caused damage to this country’s reputation around the world, as we are normally regarded as advocates of freedom of expression, in particular. Relatively few foreign libel cases ultimately end up in a British courtroom, but I am concerned by the use of threatened proceedings by wealthy foreigners and public figures to stifle investigation and reporting. Clause 9 addresses the issue in a measured and proportionate way, although it has had to be drafted to avoid any conflict with European law. It clarifies that a court will not hear a case against someone who is not domiciled in the UK or an EU member state unless satisfied that England and Wales is clearly the most appropriate place to bring an action. It should help ensure that powerful interests around the world will not so easily be able to use British justice to gag their critics —a move that I hope will be welcomed across the House.
Ian Paisley
I appreciate the Secretary of State’s generosity in giving way on this point. He said that our courts are becoming—or could become—a laughing stock as regards libel tourism. Does he not agree that if someone is libelled or slandered by a British person or a British publication, the victim of that libel or slander has the right to seek remedy in this jurisdiction given that they have been victimised by that publication? Indeed, the accusation of libel tourism amounts only to about a dozen cases over past years and it really is not as big a problem as some people are suggesting.
Mr Clarke
I did not say that I thought our courts would be a laughing stock; I think that our libel and defamation laws are rather good and that is no doubt one reason people try to access them. We are trying to improve them. I do not think that our standards of justice are being hurt, but different societies will form slightly different judgments of where the balance lies between freedom of expression and giving a remedy to people who are defamed. I have already said that the United States of America, which resembles this country in some ways, takes a very different view of what is actionable and defamatory if it is produced in that country.
The problem arises when people come to this country because our system is more generous to their point of view to bring cases that have little or nothing to do with the United Kingdom. I give the example of a Saudi business man, say, threatening an American publication with an action because of an article that has had tiny circulation in the United Kingdom. That is a hypothetical case, but the Saudi would be using the nature of British law to threaten a publication in an entirely different jurisdiction. That is the evil we are trying to address. We are not trying to stop British publications being sued by anybody who can come here and show that we are the right jurisdiction.
Ian Paisley
I again appreciate the Secretary of State’s generosity. The Saudi gentleman does not exist, as the Minister has said, so let us consider the cases that do exist. A governor of the state of California sued a British newspaper because it carried inaccuracies about him and sued the publisher of a British book that claimed he was a Nazi sympathiser. Other prominent individuals come to this country who have been seriously slandered by publications; surely they have the right to seek a remedy here.
Mr Clarke
If anybody is defamed by a publication in this country or wants to act against a defendant who is domiciled in this country, they will be able to bring an action. I do not regard that as libel tourism. The problem arises when two people in the same country start suing each other because half a dozen copies of some foreign language publication have in theory been available on some bookstall in London and this jurisdiction is chosen to try to get a remedy. I hope that what we have done will ensure that people with powerful interests around the world will not so easily be able to use our courts.
Mr John Whittingdale (Maldon) (Con)
Can the Secretary of State confirm that the Saudi business man almost certainly exists? The Rachel Ehrenfeld case was heard in this country when there was no connection other than the 23 copies of her book that were sold, yet it resulted in the passage of the Libel Terrorism Protection Act in New York. It is a mark of shame against this country that New York state thought it necessary to pass an Act specifically aimed against this country.
Mr Clarke
I made my remark about the case being hypothetical to avoid being drawn into arguments about that case, which is rather familiar to people who know this subject. There are arguments about how far the plaintiff had connections with this country and a reputation here, but as it happens I was producing the example of a Saudi and an American purely hypothetically and I do not think I should get drawn into the merits of a past case. My hon. Friend, who is an expert in this field, rapidly understood why those particular nationalities had leapt to my mind when I gave the example.
Alongside these adjustments in the law to help support freedom of expression, I want to ensure that effective remedies are available for those defamed. Often what most concerns claimants is not financial compensation, but meaningful public clarification that a story was wrong. We have therefore included provisions in clause 12 extending existing powers to enable the court to order publication of a summary of its judgment. Parties will be encouraged to reach agreement, where possible, on the contents of the summary and issues such as where, when and how it is to be published. However, in the absence of agreement, the court will be empowered to settle the wording of the summary and give directions on those other matters.
In addition to protecting freedom of expression and reputation, the Bill seeks to modernise the law. Our biggest difficulty has been in relation to the web, the internet and so on. Currently, website operators are in principle liable as publishers for everything that appears on their site, even though the content is often determined by their users, but most operators are not in a position to know whether the material posted by their users is defamatory or not, and very often, faced with a complaint, they will immediately remove material. The Government want a libel regime for the internet that makes it possible for people to protect their reputations effectively, but which ensures that information online cannot be easily censored by casual threats of litigation against website operators.
Steve Rotheram (Liverpool, Walton) (Lab)
Will the Secretary of State give way?
Steve Rotheram
I broadly support the Bill, especially clause 5, which the right hon. and learned Gentleman is explaining. Can he give any comfort to the parents of Georgia Varley, a Liverpool youngster who was tragically killed and whose family and friends set up an RIP website, which trolls then used to abuse and disparage her death in a sickening and vile way? Can he outline specifically the proposals to tackle such abuse by internet trolls who hide behind the anonymity of a computer to abuse those remembered on RIP websites?
Mr Clarke
I cannot possibly comment on an individual case and individual possible action. I anticipate that the difficulty may be that the defaming of a deceased person always gives rise to questions of whether any action is possible. Trolling is an extremely unpleasant, curious activity which some very nasty people appear to be going into. There have already been quite a lot of prosecutions for trolling, but we think the public are entitled to proper protection against it.
Our proposed approach, under clause 5, will provide website operators with a defence against libel, provided they follow a procedure to put complainants in touch with the author of allegedly defamatory material. This will strengthen freedom of expression by ensuring that material is not taken down without the author being given an opportunity to defend it. Conversely, it will strengthen protections by enabling people who have had their reputation seriously harmed online to take action against the real author and bring proceedings against them if the matter cannot be resolved by other means.
Dr Julian Huppert (Cambridge) (LD)
This is indeed a complex issue. Can the Justice Secretary confirm that this is an optional defence and that web operators would be entitled not to follow those regulations and not to use the defence, and that they would still be covered by the defences available under the e-commerce directive if they so chose?
Mr Clarke
That is entirely correct, but of course those web operators would also be vulnerable to possible action because they had not availed themselves of the process, which would give them one way of proceeding if they chose to do so. We are not replacing other remedies which might well be available against a publisher who took no steps to inform the defamed person of where the defamatory matter was coming from.
It will be very important to ensure that these measures—clause 5 and those associated with it—do not inadvertently expose genuine whistleblowers, and we are committed to getting the detail right to minimise that risk. We will continue to consider that and eventually some of it will have to be covered by regulation.
Concern has also been expressed about the impact of the current law on secondary publishers more generally, including booksellers and newsagents. In accordance with our aim of ensuring that secondary publishers are not unfairly targeted and action is taken against the primary publisher wherever possible, clause 10 removes the possibility of an action for defamation being brought against a secondary publisher except where it is not reasonably practicable for the claimant to bring the action against the author, editor or commercial publisher of the material.
A further related proposal to modernise the libel regime is the introduction of a so-called single publication rule. Information online can be copied instantly, stored indefinitely and accessed long after physical forms of publication, yet the current regime allows additional claims for such cases of “republishing”. The proposed rule seeks to reconcile the need to protect individuals from repeatedly having to face the same defamatory comments with the need to avoid open-ended liability for publishers when old material is accessed years later, which has the potential severely to inhibit freedom of expression. Therefore, the Bill includes a provision that will prevent an action being brought in relation to publication by the same publisher of the same, or substantially the same, material after a one-year limitation period has passed.
Agreeing a libel regime fit for the realities of the 21st century is not straightforward, but these steps constitute sensible reform to ensure that freedom of expression and protection of reputation are possible both online and offline. Modernisation, however, must also extend to the cost and length of libel cases, which are increased in current law by the presumption of jury trial. I am normally a strong defender of the principle of jury trial in criminal cases and always have been—I assure my right hon. and hon. Friends and everyone else that my political arteries have not suddenly hardened and affected my views on that.
In practice, jury trials have been infrequently used in libel cases in recent years and the majority of cases are now heard by judges alone. I believe that it makes sense to recognise that reality in law by discontinuing the presumption of jury trial, which in this case has become a kind of noble fiction that creates real practical problems for one or other of the parties. It greatly increases the cost and time taken in defamation proceedings, which can be done deliberately to advantage one or other of the parties in negotiations and bargaining. Many basic legal issues that could otherwise quickly be sorted out by a judge sitting alone, such as deciding the meaning that allegedly defamatory material can have, cannot be resolved until full trial, whether or not a jury is ultimately used. That causes unnecessary delay and expense, to everyone’s detriment.
Recognising that judges should normally rule on libel cases is also part of the wider package of procedural proposals, to which I referred a few minutes ago, that we are taking forward alongside the Bill to help reduce costs and encourage settlements. It goes hand in hand with a new preliminary procedure that we are developing to resolve key issues, such as meaning, at as early a stage as possible. Of course, there might remain occasions when jury trial is appropriate, so the Bill retains the court’s discretion to order that when it considers it appropriate to do so.
Mr Clarke
A great deal of the argument in defamation action often turns on preliminary points, such as whether a particular statement is capable of having the meaning that one of the parties attributes to it. It is much easier if a judge can deal with those preliminary matters so that the whole thing does not have to go to a full trial. Also, there is absolutely no doubt that a great deal has to be done to explain to a jury what this particularly difficult area of law is all about. The whole thing takes longer—it has to when 12 lay men and women are hearing it—which adds to the expense. Not only does that add to the costs and delays when somebody is involved in an action, as I have said, but because they sometimes threaten bringing claims before they go to court, once we start getting into the costs that might be involved in a jury trial the threat is made much more substantial by holding all this—
Mr Speaker
Yes. I have been listening to the right hon. and learned Gentleman with great interest and respect for the best part of a quarter of a century, as he knows, but the Secretary of State is a compulsive “swiveller”. Whenever he is intervened on by one of his right hon. or hon. Friends, he invariably swivels round. But the rest of the House does not want to lose him; we are hanging on his every word.
Mr David Davis (Haltemprice and Howden) (Con)
I, like my right hon. and learned Friend, am hoist with two petards: one is my belief in the principle of jury trial; the other is the practicalities that he quite rightly outlines. What I want to understand in his description of the Bill is under what circumstances a jury trial will be triggered. What are the criteria that will trigger a jury trial instead of a judge-only trial?
Mr Clarke
The decision is deliberately left to discretion, so in the end an experienced judge will have to decide whether a case is suitable, but one can conceive of a few exceptional cases whereby the whole thing depends on a question of the veracity of two teams of hard-swearing witnesses, and whereby the judge is persuaded that, because of the particular nature of the case, he would be helped by the judgment of a range of men and women, from a variety of backgrounds, who would bring their collective wisdom to deciding which side to believe.
That is simply one off-the-cuff example which comes to my mind, but if the whole thing turned on an elaborate argument about the application of the defamation laws to the particular circumstances of the publication of a scientific journal, for example, that would be a wholly unsuitable case to leave to a jury, and the whole thing would take longer and cost a lot more, even if the jury got it right in the end. That is the problem we are trying to address.
Mrs Helen Grant (Maidstone and The Weald) (Con)
Does my right hon. and learned Friend agree that the proposal could assist with earlier settlement, not just with reducing the length or cost of a hearing?
Mr Clarke
I agree strongly with that extremely good point. The more these things can be dealt with by way of a preliminary judgment by a judge, the more settlements we will get, because sometimes the whole thing really turns on one point, which can be dealt with much more quickly if a jury is not involved.
Mr Clarke
I think I had better conclude, because I have taken—as I usually do—quite long enough.
This Bill is, in our opinion, a sound piece of modernising reform that we have approached in a balanced way. We have sought in particular to defend the interests of free debate. Accordingly, the Bill contains a range of measures which will greatly strengthen the environment for open and robust scientific and academic debate, including measures to apply across the piece, such as the introduction of the serious harm test, the simplification and clarification of defences and a single publication rule, together with specific ones, such as the extension of qualified privilege to peer-reviewed material and to reports of scientific and academic conferences.
I believe that this package of measures rebalances the law in a fair and effective way so that free speech is not unjustifiably impeded and debate about issues of public importance is able to thrive, while still providing appropriate remedies for those who have been defamed. It also updates the law for the first time to address properly the most pressing challenges raised by the internet and social media in relation to defamation. I commend it as a sound, reforming Bill.
I tempted fate earlier, and the Solicitor-General, my hon. and learned Friend the Member for Harborough (Mr Garnier) and I will tempt fate again, because we believe that the process of producing a draft Bill and getting this far has produced a quite extraordinary degree of consensus that I, for one, would not have thought possible to achieve when we first embarked on modernising the law on defamation. So little interest has been attracted abroad that even the media, which one would have thought would be obsessed with the issue, are paying little attention to the debate.
There is still a debate to be had, and this House will demonstrate its usefulness in scrutinising the legislation, just as the Joint Committee on the draft Bill has shown what can be achieved in consultation so far, but I hope that in the end we will continue to command cross-party support in our efforts to address long-standing weaknesses in our defamation regime, and I commend the Bill to the House.
Sadiq Khan (Tooting) (Lab)
We welcome a Bill that seeks to modernise our outdated libel laws. The Bill is very much built on the groundwork done under the previous Government. Indeed, all three main political parties included in their manifestos a commitment to reform our defamation laws. I commend the Justice Secretary for his speech and for taking so many interventions, which means that my contribution will be a lot shorter than it otherwise would have been. The House is in a position of near unanimity in supporting the principle behind the Bill, and we will support the motion to give it a Second Reading.
I will deal specifically with the clauses in the Bill shortly. First, I would like to put on record the thanks owed to a number of key people and organisations who helped to get us where we are today, and whose further help we will need over the coming period to improve the Bill further. I am sure that the whole House will join me in expressing our appreciation to Dr Simon Singh, whose experiences of struggling with unbalanced and outdated defamation law stimulated a coming together of many scientists, academics, science campaigns, and national academies and institutes. We need to ensure that the threat of libel proceedings is not used to frustrate robust scientific or academic debate or to impede responsible investigative journalism.
The Libel Reform Campaign, in which Simon played a key role, has also driven forward the work on defamation reform. Having met people involved in the campaign on a number of occasions, I know just how determined they are to achieve the task they have set themselves. All the constituent members of the campaign—Sense About Science, English PEN and Index on Censorship—deserve praise for their hard work and determination in keeping the pressure on us here in Parliament to sort out our antiquated libel laws. Their petition of 2010 gathered more than 50,000 signatures of support—testament to the success of their campaigning and the level of support for what otherwise might be seen as a minority issue.
I pay tribute to my right hon. Friend the Member for Blackburn (Mr Straw) for the work that he did as Justice Secretary in the previous Labour Government. It was he who established the working party that started on the task of updating our libel laws. Indeed, that group led the groundwork for this Bill. His approach of working in a collegiate and non-partisan manner was instrumental in all three main parties committing themselves to completing the task started under his watch. Without him, the Bill would not be here today.
Sir Peter Bottomley
The right hon. Gentleman is right to direct the House’s attention to Simon Singh and others. If he will allow me, I would like to commend the evidence given to the Joint Committee by the editors of Nature and the British Medical Journal. Will he also allow me to add the name of Dr Peter Wilmshurst, who faced an unending campaign from a foreign manufacturer of bogus products? We should also remember that the Trafigura case was not just about libel. A lot of others in the media ought to learn to pile in behind people. If they think that their claims are right, they should help to expose the people who are taking these kinds of actions, who would then be laughed out of them.
Sadiq Khan
I associate myself completely with the hon. Gentleman’s comments. I will come to Dr Wilmshurst, the cardio surgeon he mentioned, shortly.
I pay tribute to the work done by the Joint Committee that considered the draft Bill under the chairmanship of Lord Mawhinney. I will come later to some of the excellent conclusions reached by the Committee, some of which have not been adequately addressed in the Bill. I also recognise the hard work of Lord Lester in his original private Member’s Bill.
Finally, I pay tribute to this Government for running with libel reform despite a change of Administration. New Administrations do not often stick with plans that are not wholly their own; this one has. This is not a partisan issue but a problem that needs rectifying. I commend the way in which the Government have gone about doing so and the pre-legislative scrutiny that has been carried out. I commend the Justice Secretary for taking on the baton of reform and ensuring that time was made available in this Session for a Bill to be brought before us.
Time in this House is precious, and using that time for legislation should be done only when there is a clear and demonstrable problem that needs new laws or a change in existing laws, especially when the subject is uncontroversial. Our libel laws deserve this attention, and it is right that we seek to update them. Libel laws were first established in statute through the Libel Act 1843. Since then, only limited changes have been made through the Defamation Act 1952 and the Defamation Act 1996. The law on defamation has primarily been developed by judges via case law.
As with many elements of our legal system, legislating on defamation is about calibration. We must calibrate correctly the balance between freedom of expression and the protection of reputation. Freedom of expression is one of the essential foundations of a free and open democratic society: citizens must be free to express their opinions and views on issues, people and organisations. However, there are limits to the freedom to express opinions. Freedom of expression does not trump everything else. Indeed, in the Human Rights Act 1998, it is a qualified right. It must be balanced against the impact that the expression may have on the reputation of those affected. That is obvious.
The besmirching of reputations without supporting evidence, perhaps for vindictive reasons, is something that society should rightly guard against. That is why we have defamation laws. They are a deterrent against the unwarranted or vindictive expression of opinion, and provide recourse for those who have suffered damage to their reputation. Exactly where the line is drawn between what causes injury to reputation and what is simply the expression of free opinion is not clearly defined, nor could it be. There will always be the need for discretion at the interface of those two opposing tenets.
That said, there has been growing concern in recent years that our libel laws have not kept pace with the changing nature of society. Some have expressed concern that the balance has become too tilted towards protecting reputations, at the expense of free speech, leading to a chilling effect whereby the legitimate right to speak freely and openly is inhibited or discouraged by the threat of legal sanction. Others are worried that England and Wales have become a destination for libel tourists because our perceived claimant-friendly environment attracts litigants who are unwilling or unable to pursue cases in Europe or the USA. Technology, through the expansion of the internet, has transformed the way in which comment and opinion are disseminated in a way that the world has never before witnessed.
Our overriding objective must be to ensure that people from all backgrounds have access to the legal system, should they be genuinely defamed. The chilling effect is underpinned by the system appearing to be out of reach for many people. We therefore risk a dangerous skewing of the balance away from freedom of expression and towards those seeking to protect reputations. The Defamation Bill should leave us with laws that are clearer and more proportionate.
I will now discuss specific provisions of this relatively short Bill, which contains only 16 clauses. Clause 1 will introduce the hurdle of “serious harm” and states that a statement does not defame
“unless its publication has caused or is likely to cause”
serious reputational harm. That is sensible. That hurdle is intended to prevent mundane actions that can cost considerable amounts of time and money to head off. We want to discourage trivial claims.
However, how does “serious harm” differ qualitatively from harm? On that, the Bill is not clear. My right hon. Friend the Member for Tottenham (Mr Lammy) has illustrated some of the problems. Case law refers to a “threshold of seriousness” in determining what is defamatory. To provide genuine protection against trivial cases, we need greater clarity. Otherwise, vexatious claims will not be tackled. The Law Society, of which I am still a member, is concerned that this higher hurdle is likely to inhibit many people in making valid attempts to protect their reputation. That is one issue that I hope the Committee will clarify when the Bill moves upstairs.
Mr David Davis
This matter was raised with my right hon. and learned Friend, the Secretary of State by the hon. Member for North Antrim (Ian Paisley). Does the right hon. Gentleman agree that the measure of serious harm for a corporation or large profit-making body should be very different from that for a small company or less well-off individual, and that as a result the provision should act as a deterrent against big companies using libel laws as a bullying mechanism?
Sadiq Khan
As the right hon. Gentleman will know, the Joint Committee looked into that issue and wanted a first hurdle before a corporation could sue. The Government decided not to accept that recommendation. He raised the example of corporations. The use of defamation laws by corporations has a chilling effect, especially given the inequality of arms. I am sure that that issue will be teased out and clarified in Committee, given the expertise that it will have.
As has been said, clauses 2 to 7 set out the defences that will be available to a claim for defamation. Some simply replace and codify common-law defences, while others provide new defences. I wish to touch on some of those defences.
Clause 4 is intended to address responsible publication of matters of public interest, the so-called Reynolds defence. That is a defence of responsible journalism in the public interest. The clause will abolish Reynolds and codify the factors that a court may consider when judging whether a defendant has acted responsibly.
I am aware that some groups, including the Libel Reform Campaign, are unhappy with the clause, believing that the Government have not gone far enough, that the defence is too time-consuming and expensive, and that it is unreliable because defendants are often required to clear a series of complex hurdles to gain legal protection. They also believe that it will simply freeze the Reynolds defence at the current point in time. There is genuine concern that subsequent case law may develop based on what is in the Bill. Would a “son of Reynolds”, as it were, be in the best interests of our defamation laws? We will need further debate and discussion on that important issue, and I look forward to that in Committee.
As has been said, clause 5 is intended to address defamation involving websites. It creates a new defence for operators of a website when a defamation action is brought against them in respect of a statement posted on that website by a third party.
Steve Rotheram
Despite what the Secretary of State said earlier, only a handful of people have been convicted of trolling. It is difficult to prosecute, because of the gaps in the relevant legislation, the Telecommunications Act 1984 and the Communications Act 2003. Does my right hon. Friend believe that clause 5 will do what it is intended to do and discourage and deter people who post sickening messages on RIP websites?
Sadiq Khan
I thank my hon. Friend for giving the important and outrageous example of people being trolled. It is worth saying for clarity that the clause deals only with defamation cases. I would not want the public to think that it was a panacea for all sorts of outrageous behaviour that takes place on the internet. He is right to remind us that other legislation, including criminal law, needs to be updated to allow authorities to take action against those who troll against innocent victims. We are all aware of the case of our colleague, the hon. Member who had outrageous words said against her, leading to a successful prosecution. If there is a lacuna, it needs to be filled, but we should be clear that clause 5 deals simply with cases in which a defamation claim is made.
Helen Goodman (Bishop Auckland) (Lab)
The situation that my hon. Friend the Member for Liverpool, Walton (Steve Rotheram) mentioned has two aspects to it. One is the aspect of comments appearing on a website, with which my right hon. Friend has dealt, but there is also the question whether defamation can be against a deceased person. The Bill does not address that. Does my right hon. Friend believe that it should be considered in Committee?
Sadiq Khan
As my hon. Friend will know, it has always been the case that a dead person’s estate cannot sue for defamation. It is worth the Public Bill Committee considering the issue of deceased people’s reputations and the injury that defamation causes to their family. I am not sure whether the Joint Committee did so. However, there are very good reasons why a deceased person’s estate has never been able to sue for defamation.
Ian Paisley
I want to take the point that the hon. Member for Liverpool, Walton (Steve Rotheram) made slightly further. The right hon. Gentleman must be aware of the amount of intimidation of ordinary people on the internet, particularly schoolchildren. There are tweets that lead young people to feel so devalued that they attempt to take their own lives. I do not want to exaggerate the situation, but that is becoming a more regular occurrence. Something has to be seen to be done so that “trolls”, as Members have described them, are stopped in their tracks from hurting people to such a degree that they attempt to take their own lives.
Sadiq Khan
I thank the hon. Gentleman for raising that concern. I am afraid that many colleagues will be familiar with the type of bullying, harassment and intimidation that he talks about, which ultimately leads to people considering taking their own lives. When the Government drafted the Bill, they were keen to address a void that has not previously been filled. Clause 5 will allow websites to have action taken against them, but websites will be given greater protection from being sued if they help to identify those posting defamatory messages. It is hoped that that will lead to greater responsibility among both those who operate websites and those who post messages. People will know that they when they put a post on a website, it is possible that their details will be passed on to a potential claimant bringing an action.
Mr Kenneth Clarke
Does the right hon. Gentleman agree that it would be helpful in that context to look at what else can be done about bullying, as opposed to defamation? The House should bear in mind section 127 of the Communications Act 2003, which creates an offence of sending or causing to be sent
“by means of a public electronic communications network a message or other matter that is”
genuinely
“offensive or of an indecent, obscene or menacing character”.
That gives rise to many prosecutions, but the right hon. Gentleman is probably right that it does not give rise to many defamation actions. It must be looked at in the round. We agree that people abusing the internet to abuse people to whom they happen to have taken a dislike is an increasing problem.
Sadiq Khan
A chilling effect can sometimes be a good thing. A prosecution brought against someone involved in such behaviour can lead to others not doing the same thing for fear of prosecution. The Justice Secretary is right to remind the authorities, who might be watching the debate or might read of it, that they have tools at their disposal to bring criminal prosecutions.
Subsections of clause 5 set out the circumstances in which the defence could be defeated. This is a key area in which technological developments have outstripped our laws. As has been said, a duty will be placed on internet service providers to identify internet trolls without victims needing to resort to costly legal action. The Opposition welcome that development, but the detail will be provided in regulations that we have not seen. It is important that this well intentioned clause does not inadvertently lead to a website being required to disclose the identity of a whistleblower when they are the source of a post on a website, or to websites being easily censored by casual threats of litigation against their operators.
Dr Huppert
All hon. Members accept that getting this right is complex. Does the right hon. Gentleman accept that he was not quite accurate in saying that there will be duty on websites to reveal who trolls are? If operators choose to use the defence in clause 5, they will be required to follow the regulations. If they choose not to use that defence, there would be no such duty, and therefore some protection.
Sadiq Khan
The hon. Gentleman is probably right, but as we have not seen the regulations—they have probably not been drafted—I am not sure. I commend him for his work on this. He has been involved in this issue since he was first elected, as have many colleagues on both sides of the House.
As has been said, many proposals in the Bill, including clause 5, will be introduced by regulations, probably via a negative resolution of the House, meaning, as I have just said, that we are in the dark on exactly how the measure will operate in practice; how a website operator is expected to respond, which was the point raised by the hon. Gentleman; and what protections are given to whistleblowers. For the sake of proper parliamentary scrutiny, it is imperative that the Government publish their regulations before Committee and subject resolutions to the positive procedure. That will allow Parliament properly to consider detailed plans that will have huge impacts on the operation of the Bill and defamation procedures.
Clause 6 creates a new defence of qualified privilege on peer-reviewed material in scientific or academic journals. We welcome the adoption of that recommendation from the Joint Committee.
Clause 8 introduces a single publication rule so that the one-year limitation period in which libel action can be brought will run from the date of the first publication of material, even if the same article is subsequently published on a website on a later date. The reform intends to end the current situation in which material in online archives is regarded as being re-published every time it is downloaded, which, in effect, leaves the archive operator with a limitless risk of being sued.
The Opposition also welcome clause 9, which seeks to deter those eyeing London as a location to pursue libel actions that they would not dream of pursuing in other jurisdictions. In recent years, our courts have clamped down on libel tourism, and I hope the measure, which gives courts more power to decide whether a case can be heard, will help. We need to reduce the potential for trivial claims and address the perception that English courts are an attractive forum for libel claimants with little connection to this country. We welcome steps to tighten the test to be applied by the courts in relation to actions brought against people who are not domiciled in the UK. I am, however, concerned about cases brought by EU citizens or in a state that is, for the time being, a contracting party to the Lugano convention.
Ian Paisley
This is a minor point about libel tourism, but if the law does not apply to the jurisdiction of Northern Ireland, those who would be precluded from taking an action and seeking a remedy in England could do so in Northern Ireland. Therefore, there needs to be consultation across the jurisdictions of the UK to get this right and tie it up completely.
Sadiq Khan
I am sure that the Justice Secretary has heard the hon. Gentleman’s intervention and will take on board the point he has made.
It is not clear either whether high-profile cases, such as that of Dr Peter Wilmshurst, to which the Chair of the Select Committee on Culture, Media and Sport referred, or that of Rachel Ehrenfeld, would have been prevented if clause 9 had been in place at the time. If the Justice Secretary or the Minister winding up the debate cannot address this issue, it will need to be looked at further in Committee.
Clause 11 removes the presumption in favour of jury trials in defamation cases. Although this reversal will, we hope, help to reduce costs and improve clarity, there is a danger in restricting jury trials, particularly where the key issue is who is telling the truth. However, the Bill still gives the court the discretion to order a jury trial where it considers that to be appropriate, which is an important safeguard. I note the comments made by the right hon. Member for Haltemprice and Howden (Mr Davis), and we expect that the Committee might want to explore the criteria for the judge to consider when deciding whether a jury trial should be ordered.
Mr Lammy
Although much has been said about the cost of jury trial, does my right hon. Friend agree that we would not want to give an indication in the House that this is a slippery slope or that we ought to start thinking about cutting jury trials in criminal cases? The matter was debated at length in the Joint Committee, and there are circumstances where jury trials should remain in defamation cases.
Sadiq Khan
I thank my right hon. Friend for his intervention and for his contribution to the Joint Committee. Of course, he is right, and the Justice Secretary will have reassured the House with his comments about criminal cases. My right hon. Friend will be aware that there are still jury trials in civil cases involving what are known as constitutional torts—malicious prosecution and false imprisonment. The provisions in clause 11 still allow a trial by one’s peers in appropriate cases. What the Committee should look into is the comments of the right hon. Member for Haltemprice and Howden about the criteria that one would expect a judge to apply. The key thing is that the presumption of a jury trial has now been removed, which will lead to a reduction in costs and, one hopes, less of a chilling effect than where the “threat” of a jury trial is hanging over a defendant, with all the additional cost that could lead to.
Sir Peter Bottomley
On clause 11, if the judge is making the decision alone, and if the case is determined by meaning and there is a range of meaning, does the right hon. Gentleman agree that it is far better that the judge should say to the parties at an early stage, even before the case gets to court, that where the person who has published has used a word with a hard meaning and a soft meaning—for example, in the case of the Hutton report, “sexed up”—they have an opportunity to say, “I actually meant the soft meaning, not the hard meaning,” and thereby have the whole case disposed of, rather than having it fought out, even in front of a judge alone?
Sadiq Khan
For the second time the hon. Gentleman has made an intervention about a point that I am coming to. I shall come to the procedural pre-action work that I think is missing from the Bill and which the Committee should look into.
Let me move on to concerns about access to justice. The Justice Secretary will not be surprised to hear me say that under this Government we have seen access to justice seriously curtailed. The recently passed Legal Aid, Sentencing and Punishment of Offenders Act 2012 will have an impact on defamation cases. Claimants in defamation actions will no longer be able to insure themselves against costs, and even if they are successful, they may have to pay some or all of their damages in lawyers’ fees. Although some other claimants—for example, in personal injury cases—will be protected against costs, no such protection is in place in libel cases. It is not clear whether high profile cases brought by individual members of the public—such as that brought by the McCann family against tabloid newspapers—would now happen. We would like to see similar protection for such cases as that given to personal injury cases, rather than simply limiting defamation cases to the most wealthy.
The Justice Secretary will be aware of the campaign co-ordinated by Hacked Off and the Libel Reform Campaign, which included a letter that the McCanns recently sent to the Prime Minister expressing their concern about access to justice. I want to quote part of that letter, which is very powerful, and which I hope will be considered by the Committee during the passage of the Bill.
“A successful libel defendant obviously does not get any damages so these reforms will prevent all but the rich from being able to defend their right to free speech against wealthy libel clients…In future, ordinary defendants, like Peter Wilmshurst, Hardeep Singh and Heather Brooke would also be unable to get support for legal action against them often by large institutions with deep pockets trying to silence them. That will be bad news for science and medicine, for free religious debate and for transparency in the public interest...And victims of the tabloid press like Christopher Jeffries, Bob and Sally Dowler, Kate and Gerry McCann, and Robert Murat will not be able to take legal action against the tabloids for hacking into their phones, for false accusations and for gross misrepresentation”.
On that subject, my colleague Lord Prescott made it clear during the progress of the Legal Aid, Sentencing and Punishment of Offenders Bill in the other place that his successful defamation claims against newspapers would not have been possible if the Government’s proposals on civil litigation had come into force. In response to Lord Prescott’s remarks, the Minister, Lord McNally, assured the other place:
“I cannot imagine that the kind of issues that the noble Lord, Lord Prescott, has raised tonight will not be dealt with fully in that Defamation Bill.”—[Official Report, House of Lords, 27 March 2012; Vol. 736, c. 1332.]
Yet I do not see those issues being dealt with anywhere in the Bill. If the Government do not bring forward proposals to address this deficiency in Committee, we will have to do so.
Guy Opperman (Hexham) (Con)
Does the shadow Minister agree that, as a result of Lord Leveson’s review into press intrusion and the ability of the man in the street to get access to justice in libel, the issues that he is now raising could be readdressed?
Sadiq Khan
I thank the hon. Gentleman for his intervention; I know that he practises in this area of the law. In answer to his question: there is no guarantee that that will happen. This Defamation Bill gives us an opportunity to ensure that access to justice remains a possibility for all our citizens, and we ought to take that opportunity in the hope that another judge in another inquiry might come up with a solution. Let us bear in mind that there were two defamation Acts in the last century, and just one in the century before that. It is possible that there will not be another during our parliamentary careers, so it is appropriate for us to take this opportunity to ensure that this Bill is as perfect as possible.
Paul Farrelly (Newcastle-under-Lyme) (Lab)
I support the thrust of the Bill, but does my right hon. Friend agree that there is a danger in carrying out piecemeal reform, and in saying that certain tasks will be dealt with by Leveson and others by the Civil Procedure Rule Committee, because, as he rightly says, there is no guarantee that they will be dealt with?
Sadiq Khan
Absolutely. Before we reached this stage, a huge amount of pre-legislative work was carried out, by the Joint Committee and in relation to the draft Bill. It would be a wasted opportunity if that work were not taken up during the Bill’s Committee stage or, failing that, when it reaches the other place.
I have referred to the huge work done by the Joint Committee. We welcome some of the reforms suggested by the Government, but the Committee argued that the reduction in the extremely high cost of defamation proceedings was essential to limiting the chilling effect and making access to legal redress a possibility for the ordinary citizen. It proposed an approach based on strict enforcement of the pre-action protocol governing defamation proceedings, which has three elements. The first involves a presumption that mediation or neutral evaluation will be the norm. The second involves voluntary arbitration, and, if the claim has not been settled, the third element would involve court determination of key issues using improved procedures. Once again, the Bill is silent on this matter. I remind the Government that Desmond Brown QC, a leading libel barrister, said recently that
“it is no good amending the substantive law unless serious attention is paid to costs and judicial case management”.
I reiterate that we welcome moves to drag our defamation laws into the modern age, but that we, on this side of the House, believe that more can and should be done to make the Bill fit for the challenges ahead. We will be looking for greater clarification in a number of key areas, and for new clauses to address other omissions, some of which I have touched on. The Committee stage provides us with the opportunity to improve on and refine the Bill.
Given that there have been only three libel Acts since 1852, we need to grasp the nettle on this occasion as there may not be another chance to update our defamation laws for generations to come. Labour Members look forward to doing our bit to improve this Bill, and hope that the cross-party and collegiate manner in which libel reform has been pursued over the last four years will continue and move forward with the passage of the Bill.
Nadine Dorries (Mid Bedfordshire) (Con)
I have to attend an all-party parliamentary group annual general meeting, so I apologise if I have to leave before the next speech has finished.
I particularly welcome clause 5 and I shall speak mainly to it, addressing the issues of social media, trolls and the damage that can be caused to individuals, particularly to young people.
Some in public life accept the consequences of engaging with social media. For many of us in this House, our job and our way of life necessitate engagement with such media, but we are, I suppose, big, bad and ugly enough to be able to deal with the consequences.
It was interesting that the hon. Member for Liverpool, Walton (Steve Rotheram) highlighted issues concerning children and deceased individuals, and the fact that an estate cannot have any redress in internet trials of children and young people. I have experienced a couple of cases myself. As the hon. Gentleman also said, there are already laws, but there are two types of internet trolls. There are those who know very well indeed how to negate those laws and how to dodge them so that they do not get prosecuted. They troll and post on the internet in a way that ensures they are protected from prosecution. I know this from people who have contacted me and from two police investigations that I instigated. There are some very clever people out there. There are also people—otherwise sensible, learned and normal people—who, when they sit in front of a computer and veil themselves in a cloak of anonymity, can turn into a troll or almost some kind of monster. These are the people who occasionally get caught and are occasionally prosecuted, but it does not happen very often.
Opening my front door one morning, I was surprised to find three Bedfordshire police officers lying on their backs with their faces under my car. This was because a student from Oxford had posted on the internet that he was going to bomb it. The Bedfordshire police were assiduous, but at the point of prosecution I decided not to go ahead. I considered the fact that a 20-year-old sitting in front of a computer who suddenly made a spontaneous comment possibly did not deserve a lifetime criminal record for a foolish act. I thought that his having been contacted by the police was probably enough of a deterrent to stop him doing such a thing again. Given that this was a student from Oxford, one imagines that he was an intelligent individual.
In another case, a man who I believe worked in the civil service whose wife was pregnant posted on the internet that he would like to lock me in a car, set it on fire and watch my flesh melt from my bones. I thought that was pretty graphic, but again I chose not to prosecute, as this was a family man with a good career whose wife was about to have a baby and I thought that the police’s intervention might be enough to prevent him from doing something similar again. As a Member of Parliament, I accept that when I speak about various campaigns and issues, it may elicit this kind of response from people who do not agree with my point of view.
Other people are not in the public eye and do not expect to receive the condemnation that we receive for the positions we take. Some people spend their life building a reputation—it might not be a major one, just one in their field, perhaps that of a teacher, a health worker or someone working commercially—based on their integrity, expertise and ability. In building that reputation, they also build their own persona and status, and identify themselves through whom they have become.
When a newspaper prints a story about an individual, or there is an altercation between two individuals, all that those people identify themselves with—all that they believe themselves to be—can be destroyed by one posting by an internet troll. For some people that is incredibly serious, and carries psychological consequences. Their identities may be challenged to the extent that they doubt that they are who they thought they were. There is a famous example of, I believe, a European Prime Minister who suffered and committed suicide, because the person he had built his life up to be had been suddenly taken away from him by what people had written on the internet. There are many consequences about which we never hear, so we sometimes do not know what people have to deal with on a daily basis.
Let me give another example, from my own experience. I was on a live television show this morning. The first question that the presenter asked me was, “Is it true that your ex-husband gave you an ultimatum—that if you did not give up politics, he would leave you?” My ex-husband is quite poorly. Anyway, he would not have dared to give me such an ultimatum, and the fact is that he did not. I was asked the question because of the lie that someone had posted on the internet seven years ago. My ex-husband is actually quite ill, but I could not filter the question on live television. That is one of the consequences of indiscriminate postings, comments left on websites that can be regurgitated years later.
Steve Rotheram
The hon. Lady has raised a very important point. There are people I, being a scouser, describe as idiots, who get involved in this sort of activity thinking that it is a bit of banter, which it is not. However, there are also people who are professional trollers. There is something called The Trolling Academy, which gives advice, specifically “Target MPs”. I have been targeted, and I think that others have as well. Someone said on Twitter that they wished I had AIDS, for instance. As the hon. Lady says, it is fine for those of us with thick skins, but there are ordinary, innocent people out there whose lives are detrimentally affected by trolls. That is why I suggested that clause 5 might need some additional work.
Nadine Dorries
As always, the hon. Gentleman has made an excellent point. I have discovered that Twitter has a block button. All that you need to do is block someone, and I do it all the time. A parody account called Blocked By Nadine has been set up on Twitter because I have blocked so many people. However, I think that most social media networking sites are very responsible. They respond to complaints and work with the police. Although clause 5 is welcome, I think that there is a degree of responsibility among the more well-known and well-used sites, where people are very much aware of the professional trolling that the hon. Gentleman has mentioned, and of the fact that MPs are being targeted. Besides, there is always the block button: we do not have to see what anyone has said if we do not want to.
One of the big issues is how clause 5 will protect young people from the cyber-bullying which I am sure we have all heard about from parents in our constituencies. Young people are bullied on the internet—on Facebook, and on other social networking sites. That was always going to be a consequence of the establishment of social media. As was pointed out by the right hon. Member for Tooting (Sadiq Khan), technology of that kind has moved way ahead of UK law. It has left the law wanting, because it is unable to protect some of the most vulnerable people, particularly the young. The right hon. Gentleman also said that we might not have a chance to debate the matter again for another generation. I hope that that is not true, because technology will continue to move apace. In fact, I almost feel that this legislation should be returned to the House annually, because technology will continue to develop and new problems and challenges will regularly arise.
As I know from constituency cases, young people without the ability to deal with insults, defamation and the rubbishing of their young and precious reputations on the internet are far more vulnerable than any adult. When someone posts a message on the internet saying that a certain young girl is fat and ugly and so forth, it can take the victim a lifetime to get over those words. They are often not words that somebody would say to another person without hiding behind the cloak of anonymity, which is why they use an anonymous persona on the internet. In some cases they might be known, however, but what is said on the internet is like sending an e-mail, which is different from saying the words directly to the other person; it is much easier to type something and press “send”, and then it is gone, but what has been written can have huge consequences.
As we know, in some areas of the country there have been suicide pacts and groups of suicides among teenagers, and social networking and social media have played a part in all those cases. It is probably best not to go into the details, however. We must put in place a mechanism by which social networking sites and websites can be contacted so that they respond to such cases quickly.
I rose to speak in order to highlight some of the problems that exist, based on my own experience and the experiences of some of my constituents, and to explain why I believe clause 5 is important. This Bill is now before the House, but we must not wait another 10 years or another generation before we look at this matter again. I ask the Secretary of State to make a commitment that it will be looked at more regularly, as the internet is constantly evolving and developing and young people and the vulnerable must be given protection.
Helen Goodman (Bishop Auckland) (Lab)
It is a pleasure to follow the hon. Member for Mid Bedfordshire (Nadine Dorries), who has spoken a lot of common sense this afternoon. I recognise her descriptions of constituency cases. A constituent of mine who was a victim of domestic violence has been defamed in a newspaper, the family of a murder victim was trolled by the offender’s family, and there is also the case of the family of a soldier who died in Afghanistan, about whom remarks were made which, had he lived, would have been defamatory. All these cases are very alarming and serious.
The police are not up to speed on such internet crimes. When we go to the police with such issues, their mentality is such that they in effect say, “Well, it’s on the internet, so it can’t be too serious. Don’t worry about it.” As the hon. Lady pointed out, however, such cases are very serious.
The previous Labour Government initiated post-legislative scrutiny. I do not know whether the coalition Government are continuing with it, but it provides an opportunity for checking and reviewing the effectiveness of legislation.
While at the other end of town Lord Leveson is examining the practices and ethics of the press and is mainly focused on its misbehaviour, it is a pleasure to have before us a Bill which will perhaps offer a more positive agenda and support good quality journalism.
Change is undoubtedly needed, which is why the manifestos of all three main parties contained commitments on libel reform. There are four glaring problems. The first is access to justice, which is clearly lacking for most people. I do not know why, but libel in the UK is much more expensive than it is in other countries. Secondly, there is the problem of libel tourism, when cases that have nothing to do with British citizens are brought through the English courts. Thirdly, there is the chilling impact on scientific debate when legitimate criticism, especially of large companies and their products, is sometimes suppressed. Other Members have referred to the cases of Simon Singh and Peter Wilmshurst. Finally, the law needs to be brought up to date to address the new technologies and the internet.
I welcome the Government’s intentions in bringing forward the Bill, but I have some doubts about whether it goes far enough. I hope that the Bill Committee will consider making changes so that we do not miss the opportunities that the Bill presents. Ministers need to make it clear what they mean by “serious harm”: it must relate to reputation and not just to material harm. I agree that the threat of bringing libel proceedings as part of reputation management must end, but we need greater clarity from Ministers than we have had so far.
The Bill introduces a defence of “Responsible publication on matter of public interest”, in clause 4. That is an improvement and should strengthen journalists’ freedom to undertake serious investigations. Of course, everyone in the House favours a free press and wants it to fulfil one of its key roles in an open society of uncovering corruption and wrongdoing. Quite rightly, this defence should facilitate that. I am sympathetic to Ministers’ unwillingness to define “public interest” but I hope that they will be able to give some examples. For example, do they share the definitions in the current Press Complaints Commission code and Crown Prosecution Service guidance? It would be helpful to acknowledge that public interest covers both substance—the importance of the issue being debated—and process: how thoroughly journalists have checked the story they are publishing. What is not quite clear is why and in what respects the Bill has departed from the Reynolds defence. It does not match the Reynolds defence exactly and it would be helpful if Ministers explained why they have chosen to change the Reynolds defence in a number of respects.
Clause 5, “Operators of websites”, looks too weak in the sense that by abandoning the publishing role that exists for parallel situations in other media—for example with the letters column of a newspaper or the broadcasting of a TV chat show—clause 5(2) makes things very hard for a person who is defamed on the web because they would have to track down the originator even if they had been given the address by the website’s operator. That seems rather unfair. Surely it should be a basic principle, which we should establish across the board, that the net is not outside the law and cannot be, like the forest in the 14th century and the time of Robin Hood, a place of pure anarchy. The rights and responsibilities that we have developed in the real world should be reproduced in the virtual world. In some respects the net is different in that it is large, vast and global, so we cannot simply have the same rules to secure the same outcomes, but unless we tackle websites rather more effectively than the Bill appears to, I fear that a massive loophole will remain. One problem is that the measures produce unfair competition for newspapers, which are bound by more restrictive and tighter definitions.
Zac Goldsmith
Does the hon. Lady agree that there has to be a sense of realism in relation to the web? If every defamatory comment posted on Twitter, Facebook and so on was followed up with some kind of state action we would need a new Government just to police the web. That would be structurally and practically impossible. There has to be a sense that if a lonely Twitter tweeter with 15 followers were to make an insulting comment, that could not be anything like as serious as its being made by someone with 1 million followers. There has to be recognition of the fan base or platform at which insults are hurled.
Let me make one further point about the internet.
Zac Goldsmith
Apologies. Very quickly—this goes back to the point made in the previous speech. When a law is broken and someone is threatening someone’s life, for example, it is incumbent on those who receive such threats to pursue the matter to the maximum possible penalty regardless of whether they are 16, 20 or 25. If they do not, people will continue to be able to inflict that threat and pose real dangers to other people. Even—
Madam Deputy Speaker
Order. That was a very long intervention, much as it might have been appreciated by hon. Members. If the hon. Gentleman wants to make a longer intervention—it is called a speech—he can try to catch my eye.
Helen Goodman
The hon. Gentleman’s intervention was so long that I cannot remember what he said, but I know that when I was listening I agreed with both his major points.
The solution of notice and takedown proposed by the Joint Committee on the draft Bill is a good, pragmatic one, recognising that although we cannot legislate for the net in exactly the same way as we do for other areas, we can reproduce the rights and responsibilities in the real world. I must say to Ministers, however, that given that the Joint Committee report was produced last October, they ought by now to have got parliamentary counsel to have drafted the regulations, so that we could see them and be confident that they were right.
Clause 10 is extremely welcome. We should probably call it the Private Eye clause. For years, high street newsagents refused to stock the Eye because they thought they might be sued over its potentially litigious content. The clause is welcome, therefore, given that we are all deeply dependent on the Eye for keeping up to speed with what is going on.
As is often the case with this Government, however, the problem is not so much with what is in the Bill as with what is not in it. There is nothing to tackle the lack of access to justice for ordinary people, whether as claimants or defendants. That inequity was demonstrated in the case of Trafigura, which damaged the environment in Ivory Coast, and in the case of Barclays and Freshfields concerning tax avoidance. Those large corporations were able to hide and threaten The Guardian, which was trying to publish stories about them. I hope that my hon. Friend the Member for Newcastle-under-Lyme (Paul Farrelly) will say more about those cases. When I am told, not by the editor of The Guardian but by the editor of another quality national newspaper, that his major, No. 1 problem is oligarchs threatening to sue his newspaper when he tries to report on them, I know we have a problem that needs addressing. The Libel Reform campaign, which campaigned for the Bill, has called for it to include a clause requiring non-natural persons to show actual or likely financial harm. The campaign is right. Such a clause should be inserted and would be a helpful strengthening of the Bill.
As my right hon. Friend the Member for Tooting (Sadiq Khan) said, the Government have done nothing to right the wrong of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 through their failure properly to implement the Jackson proposals on no win, no fee cases. The McCann and Dowler families would not have been able to take the newspapers to court under the laws that the Government have implemented. That is a complete disgrace. We want a justice system available to all and a free and responsible press, but we will not achieve the latter without the former.
Sadiq Khan
My hon. Friend is talking about access to justice. Does she accept that if the Government took on board the Joint Committee’s recommendation to have alternative dispute resolution much earlier, it would reduce costs and improve access to justice, notwithstanding her concerns about the changes in the Legal Aid, Sentencing and Punishment of Offenders Act?
Helen Goodman
My right hon. Friend is absolutely right about that. A further thing that we need to tease out is whether as much as possible has been done in the Bill to bring down the costs of libel cases. I very much hope that the Minister will be able to respond positively—if not this afternoon, in Committee.
David Morris (Morecambe and Lunesdale) (Con)
Thank you, Madam Deputy Speaker, for allowing me to contribute to this important debate. It is a convention of this House that right hon. and hon. Members declare an interest at the beginning of their speech, but today I will do the opposite and state, for the record, that I was not the David Morris who was co-defendant in the “McLibel” case. It remains the longest running English civil law case.
It has been said that the law of defamation has a chilling effect on freedom of speech. Trials can be complicated, expensive and, particularly in the “McLibel” case, lengthy. Perhaps the exclusion of jury trials will assist, as facts can often be technical and generally complicated. Legal costs often run into tens of thousands of pounds, and it is not uncommon for those defending their reputation to declare bankruptcy as a result of the costs. In my view, that is not fair.
As this House is aware, defamation actions originate before the High Court. Some right hon. and hon. Members have argued that, certainly in the case of privacy actions, more accessible and cheaper actions should be available in the lower courts, and I can see no reason why the same should not apply to defamation. Perhaps there could be a fast track within the county court that allows for apologies to be issued and low value damages to be awarded.
When I read the Bill, I was pleased to find that my right hon. and learned Friend the Lord Chancellor had incorporated a provision in respect of serious harm. Our libel laws have been described as “claimant friendly”; the burden of proof currently lies with the defendant, which, of course, is the exact opposite of the situation applying to any other legal action. I hope this change will redress the balance, eradicating unnecessary litigation.
In recent years, so-called “libel tourism” has been a burden on our civil legal system. According to media lawyer Ursula Smartt,
“in September 2010 the Daily Telegraph reported that libel challenges by actors and celebrities in the London courts had trebled over the past year.”
London is often described as the “libel capital” of the world. Libel tourism, at its simplest level, is when foreign citizens conduct actions against foreign citizens in British courts. One notable exception in this regard is what happened in the United States of America in August 2010, when President Obama signed an agreement that protects US citizens from British libel decisions. Libel tourism perhaps occurs as a result of the extraordinarily high damages that are often awarded, and I would like assurances from the Minister that he will take all possible steps to eradicate libel tourism.
Many of us have watched with great interest the development of the case law in relation to the internet. Right hon. and hon. Members will be aware that the social network website Facebook is within the scope of this jurisdiction as a result of the Applause Store case, yet Twitter is not. Indeed, according to the Twitter statement on the website of the Leveson inquiry, Twitter
“does not respond to complaints regarding the content of the Twitter service”.
That appears to directly contradict the case law established in both the Demon Internet and the Applause Store cases, although, as previously stated, there is no case law that brings Twitter within the jurisdiction of our courts. Some would argue that this is a victory for freedom of speech, whereas others would say that one cannot fit defamatory statements within Twitter’s 147 characters. We must balance the protection of reputation with the ability to have free speech, while keeping in mind that we do not wish to encourage so called “libel tourism”.
It is not just libel tourism that is increasing. In 2009-10, 30 celebrities brought libel claims, including Peter Andre, Sir Elton John and David Beckham, compared with a figure of 11 in 2008-09. I was pleased to read in clause 4 that what has become known as the “Reynolds defence” has been incorporated into the Bill; this is a very useful defence that encourages investigative-style journalism. It is an important part of our democratic process that politicians and those who hold public office are held to account—a point that Greg Lambert at my local newspaper, Morecambe’s The Visitor, appears to have taken to heart.
There has been much debate about the Duke of Brunswick rule. The rule suggests that re-publication of a defamatory statement is also defamatory. I accept that that rule, decided more than 150 years ago, is out of date, but journalists should be encouraged to check their sources for accuracy rather than allowing the reproduction of inaccurate statements or photographs that can often have an effect on their victims’ personal lives that outweighs the price to the public of a cheap tabloid paper. Perhaps that is why we do not see the serial sackings of editors when they are found out for their disreputable practices.
I thank my right hon. and learned Friend the Secretary of State for bringing this Bill to the House.
Ian Paisley (North Antrim) (DUP)
I must say at the outset that I agree with the Secretary of State’s point that introducing law fit for the 21st century in this subject area is not straightforward. I think we would all say a hearty “Hear, hear” to that. It is not straightforward and it is right that this House should start to tackle it. I also believe that we should ensure that our defamation laws are not subject to abuse by those who bring forward trivial matters to block proper freedom of speech and freedom of expression on very important issues.
Like some Members, however, I am concerned by clause 1, which introduces the serious harm test. We should recognise that no matter how we cut this, a serious harm test will raise the bar for bringing a claim so that any case involving serious harm to the reputation of an individual can be brought only once serious harm is clearly established. That raises the bar for many people.
I asked an eminent lawyer in Belfast about that particular issue. Paul Tweed is the author of a seminal book called “Privacy and Libel Law” and practises in three jurisdictions. I asked him about that specific point and his answer was quite chilling. He said that
“anything short of being called an axe-murderer probably falls short of the requirement”.
We should therefore seriously consider the serious harm test, because it will have significant consequences not for people of reputation but for ordinary people who will have to consider very carefully whether to invoke the law to protect themselves.
Mark Twain wryly observed:
“There are laws to protect the freedom of the press’s speech, but none that are worth anything to protect the people from the press.”
We should enact laws that actually protect people, but the press has become so powerful across the United Kingdom that ordinary people feel that they have no protection when they are smeared or slimed by the media, which has all too often been the case. We regularly see the withdrawal of a statement or a front-page story resulting not in a front-page apology but in a postage stamp of an apology beside the advertisements. Many ordinary folk feel that that is grossly unfair.
This law could have the effect of creating even greater freedom for the press. The general public find it more difficult to secure access to justice at present and I am concerned that we should ensure that access to justice is liberated and that people feel that they can use the courts to protect them when they are under attack.
Let me quote again from the letter I received from Paul Tweed, the solicitor in Belfast. He said:
“As a media lawyer of more than thirty years standing, and practising in three jurisdictions from offices in London, Belfast and Dublin, I can testify that it is now becoming almost impossible for a Claimant without substantial financial means to contemplate a libel action. Even before the introduction of any new legislation, the financial odds are stacked heavily against the ordinary man”
and they will not go to court.
Before changing our defamation laws, the Government should consider other matters. They should, for example, consider our privacy laws and try to clarify, consolidate and codify them. The press has the modus operandi that they can publish and be damned, knowing that many individuals are too intimidated to take, or financially deterred from taking, legal action, leaving their reputation sullied and scarred by the further accusation, “Sure, if it’s not true, sue them.” If people cannot afford to take legal action or are too intimidated by the prospect of going to court, the scar is all the deeper.
Not only should we codify our privacy laws, but we should have statutory regulation of the press. That should be considered in tandem with these changes to defamation law. This should be done completely, not piecemeal, as was suggested. The Press Complaints Commission has been a complete failure for individuals, whether people have an inflated reputation or otherwise. Ofcom has demonstrated that it can regulate slightly better than the PCC. The broadcast media generally are more responsible, as a result of the robust stance of Ofcom, not of the media.
Internet service providers operate in jurisdictions where they are immune from prosecution, so many ISPs are moving their activities to the United States of America, where they can publish whatever the heck they want and get away with it in the full knowledge that they will not be sued and that they cannot be touched. That breaches our law and undermines the rule of law in this country. We need some sort of cross-jurisdictional approach that allows us to approach our American neighbours and create a pact that prevents such abuse of our laws.
Dr William McCrea (South Antrim) (DUP)
When my hon. Friend speaks about the scar that people can endure through defamation, does he realise that that scar can be so deep for some people that they are driven to suicide?
Ian Paisley
That point is worth dwelling on. Another speaker today mentioned that they had been trolled by certain individuals and had decided not to pursue them. Another Member of Parliament made clear their view that trolls should be pursued to the nth degree. I agree with the latter view and with my hon. Friend.
My hon. Friend the Member for East Londonderry (Mr Campbell) was trolled on an internet site. It was said that he should be shot. In Northern Ireland such things carry a certain weight. I am glad that that person was prosecuted by the courts and fined. I do not believe that they received a custodial sentence, but I believe they were seriously fined. There needs to be deterrent activity, because people abuse the internet. When my father was in hospital recently, someone thought it was good fun to take a picture of him while he was on a life support machine and to try to publish that on the internet. That person has lost their job and I hope that they go to jail. I believe that that is a gross infringement of people’s privacy and people’s rights.
Such things have an impact on young people in particular. Young people are driven to suicide because of accusations such as that a girl is too fat, or about how they look in school, the job they do or the way they have combed their hair. That can have a debilitating effect on a person’s life, especially in the light of the all-prevailing and all-invasive presence of the social media. We need to take steps to protect people from that.
Lord Mawhinney offered some commendable suggestions in the other place in relation to the requirement for significant penalties for defamation. The law must provide protection against unwarranted or serious damage—in other words, gossip. Gossip has a very damaging impact on the lives of ordinary people and we have to find a way of protecting individuals from that. We must make access to justice a priority and a possibility, but the costs involved currently prevent that from happening. Apologies must be printed in a way that is a deterrent. As I said, a front-page slander, when it is proved to be so, often results in a postage stamp-size apology. That is wrong. Apologies must be printed in a meaningful size, style and weight. I also believe that there should be prior notification before publication, because damages are largely inadequate as a remedy when a person’s reputation has been damaged.
Neil Carmichael (Stroud) (Con)
The hon. Gentleman is right about gossip, defamation and the connection to harm, but does he agree that the Bill quite properly expects there to be a definition of serious harm behind a successful prosecution?
Ian Paisley
I would like to see the definition of serious harm and think that we might do so in advance of the details in Committee or on Third Reading.
It was Oscar Wilde who said that the truth is rarely pure and never simple, and I think that is why we need a good, sensible and practical law in this field. It is not just a simple matter of something being a lie and someone therefore being able to sue and get a claim; it is the innuendo that the press often uses, the “nudge nudge, wink wink” interpretation that can ruin a person’s reputation and often does more damage than a blatant lie can do. Blatant lies, because they are normally so blatant, are not always believable, but the “nudge nudge, wink wink” innuendo, which is almost a lie but not quite, does more damage and is more reckless. We need to ensure that these laws properly address that type of abuse. As children we often sang the little chorus, “Be careful little tongue what you say,” but the fact of the matter is that the press are not careful in this regard.
Michael Ellis (Northampton North) (Con)
The hon. Gentleman is making powerful points, many of which I agree with, but does he also bear it in mind that there are limited forms of redress against “trolls”, as they are now colloquially described, who perhaps have 15 followers? The action taken against them for some scurrilous remarks they might have made could itself bring more attention to those remarks.
Ian Paisley
As with all these matters, it is a question of balance. Those 15 followers could be influential individuals who are hiding under their anonymity—perhaps they are journalists—and could use their standing and anonymity in different ways, so that has to be addressed. We must consider the balance of who the 15 individuals in the hon. Gentleman’s example are, because there could be abuse of other individuals through the internet system. Indeed, in the example I cited earlier only nine people saw the photograph, but it was so damaging for the person concerned that, in my view, the person responsible deserves to be severely punished. It is not necessarily the quantity that we need to look at, but the quality.
I want to look at the issue of anonymity in relation to clause 5. Currently, websites operate with impunity. I do not know whether the proposed change will prevent that abuse of the internet. If someone is able to hide away and become anonymous so that the internet operator is unable to find them, I do not believe that the operator should have an excuse. We need to be very careful about making sure that website operators take control of what is said on blogs and the other things that appear on websites. I should declare that I once sued the BBC for a comment that appeared on a blog—successfully, I might add. We need to ensure that someone operating a website recognises that the buck stops with them if they are going to mediate these comments. I am yet to be convinced that clause 5 will have a significant effect on the abuse that can follow.
Dr Huppert
The hon. Gentleman suggests that websites can currently act with impunity, but does he recognise that a huge number of sites, whether Mumsnet or almost any other, face a constant deluge of unfounded claims, which they simply do not have the resources to defend, so they are forced to take down things that may not be defamatory in any way, shape or form? Does he think that that is appropriate?
Ian Paisley
Again, it is a question of balance, but I would far rather such sites were more defensive of their own reputation and standing than they allowed something to slip through which damaged, lied about or hurt someone in an unfounded or unfair way. I understand that there are huge difficulties, but, if someone is going to set themselves up as a website operator in the 21st century, in the new media, they have to take responsibility for their actions. That is the responsibility that should fall to people and make them consider what they do. Members of my party will support the general thrust of this change to the defamation laws, but we are yet to be convinced on some points, which we look forward to being thrashed out in more detail in another place.
Mr Robert Buckland (South Swindon) (Con)
It is a pleasure to take part in this Second Reading debate about a Bill that has been long and careful in the making, and I pay particular tribute to the pre-legislative scrutiny process that has been used. There is an increasing tendency in this Parliament to use that mechanism, which I welcome, because it gives not just parliamentarians but interested members of the public and experts outside the House ample opportunity to have the fullest input into the development of important legislation.
In Public Bill Committees there are already sessions that allow for the giving and taking of evidence, but, admirable though they are, one is always left feeling that more time was needed, far too many things were left unsaid, far too many questions were left unasked and unanswered, and, however good the sessions were, more were needed.
The pre-legislative process allows for valuable time to be allocated, for more evidence to be submitted, for freer debate and discussion and for the Government to listen maturely, to reflect and to respond. It avoids the striking of false positions, the entrenchment of unsustainable positions and the to-ing and fro-ing that is sadly all too often associated with the passage of Bills through this House.
In this Session a number of other pieces of legislation will be subject to the procedure, and that is good and welcome, particularly in areas where consensus and a striking degree of cross-party co-operation, understanding and support are needed. In this area, where we are talking about the reputation of the individual versus the right to freedom of expression, it is essential that this House speaks as much as possible with one voice.
Amber Rudd (Hastings and Rye) (Con)
Does my hon. Friend agree that it is testament to the need for this Bill, and to the way in which it has been handled and prepared, that there is so much unity among Members and among parties on the need to do something and to address the issue urgently?
Mr Buckland
Very much so. As I said, the Bill has been long in the making—some would say, generations. The right hon. Member for Tooting (Sadiq Khan) reminded us that in the 160 years since the Common Law Procedure Act 1852 there have been only two subsequent pieces of legislation—pieces of legislation that have dealt with the law in a piecemeal way.
The Defamation Act 1996, as some who were Members when the measure was passed will recall, dealt with a particular context and a particular case. A former Member, Neil Hamilton, found that his case was stayed by the court because it was felt that the defendant newspaper could not prepare its defence adequately without infringing parliamentary privilege. That resulted in section 13 of the 1996 Act, allowing a Member of either this House or the other place to waive for the purposes of the defamation proceedings
“the protection of any enactment or rule of law which prevents proceedings in Parliament being impeached or questioned in any court or place”—
parliamentary privilege.
At the time, I was a little uncertain about the passage of that provision, which seemed to represent yet another piecemeal approach to a fundamental right that has been exercised ever since article 9 of the Bill of Rights of 1689—parliamentary privilege. Another Committee of this House has considered parliamentary privilege carefully, and there may well be legislation to deal with it. In doing so, I would urge the utmost caution. Reform and refinement of such a basic and well-understood principle could lead to further confusion and potential court interference. It is essential that all of us in this place and in the House of Lords understand that changes to parliamentary privilege, whether in the context of the 1996 Act or subsequent proposals, could lead to the erosion of that privilege, which would be a regrettable and undesirable outcome.
In my view, section 13 of the Act should be repealed, and we should consider instead a more general right of waiver that not only would apply to defamation but to a range of court actions in which Members of Parliament or Members of the House of Lords may become involved. This Bill could have taken that step, but I quite understand Ministers’ desire to get on with the job in hand and to avoid being potentially sidetracked by questions of privilege that may have to be returned to.
Michael Ellis
Does my hon. Friend recognise that Her Majesty’s Government intend to work on a Green Paper that will deal in a lot more detail with parliamentary privilege, and that by separating the issue and giving it the advanced status of its own Green Paper and potentially a separate Bill, they are showing that they are giving it a high priority?
Mr Buckland
My hon. Friend is right to outline, in a better way than I could, the intended progress of any reform to the law of privilege. However, I reiterate that we tamper with article 9 at our peril and should listen carefully to those who urge caution.
I raise this issue to illustrate the piecemeal way in which defamation law has been dealt with. We have let the courts, in their wisdom, develop common law, and that has happened in what many of us would regard as an acceptable way that reflects evolving views about reputational damage but is fundamentally not as directly accountable to the people we serve as it should be. That is why introducing primary legislation of this nature is the right and just thing to do. It shows the people of this country that Parliament is prepared to take a lead on an important issue such as defamation.
Neil Carmichael
My hon. Friend is making a good point in connection with the whole basis of the Bill. One of the dangers that we can enter into is to talk too much about technologies and systems, which will move on, change and develop as we go along. I hope he agrees that we need not necessarily just common law but primary legislation that will give us a sound legal footing to deal with defamation.
Mr Buckland
My hon. Friend is right. However, we must always bear in mind the ineluctable fact that primary legislation, however useful it is, can often be seen as setting in stone, or setting in a particular moment in time, the law as it then stood. Because of the inevitable pressures in this place of the other priorities that we have to deal with, there is a danger that legislation does not keep pace with change and is not as flexible as judge-led law.
Helen Goodman
Surely the point made by the hon. Member for Stroud (Neil Carmichael) was that if we have the right architecture in the legislation, we can change the secondary legislation in a more flexible way as technology changes. I think that we can deal with technological development and that we should not be so nervous about it.
Mr Buckland
There is always tension in the minds of parliamentarians between wanting, quite naturally, to see as much detail as possible in primary legislation, because not only is that an accountable and democratic way of dealing with things, but it allows for full and fair debate, and the need to allow for flexibility through the use of secondary legislation. The hon. Lady’s point is an important one. Often in this place, in our enthusiasm to make primary legislation as prescriptive as possible, we fall foul of the danger that I highlighted just before her intervention.
The evolution of the law of reputational damage is interesting to note. In the 19th century, damage to reputation was seen as a very significant factor indeed. Reputation was seen as part of the property of an individual and something to be highly valued. It is interesting to note that at that time, when the privacy of the rich and powerful was easily protected—much more easily than it is now—the only windows into the private lives of the rich and influential were trials for libel. The evidence would be heard, sometimes by a shocked jury. Notable members of society would be brought to court to give evidence. The Prince of Wales gave evidence in a trial in the 1890s during the famous baccarat scandal. That arose from a libel action.
We have a somewhat romanticised view of libel, which stems to a large degree from the Oscar Wilde trials. It is important to remember that the first trial involving Oscar Wilde was the prosecution for criminal libel of the Marquess of Queensberry. It was not a civil case, but a criminal one. Through what would be regarded, on any objective analysis, as the clever advocacy of Sir Edward Carson, that criminal prosecution failed and, famously, the tables were turned on Oscar Wilde. We all have views about the injustice that was meted out upon that gifted poet and author. His words echo down the years and are a reproach to a generation that sought to criminalise the acts that were the subject of those trials. Those trials have contributed to the romance that surrounds libel trials and the involvement of juries.
That is why, although the interventions on my right hon. and learned Friend the Lord Chancellor about the right to trial by jury were interesting, I believe that clause 11 is an overdue measure that reflects the reality of the modern situation when it comes to civil libel trials in England and Wales.
Amber Rudd
What can my hon. Friend say to reassure us that the noble and proud tradition of trial by jury, which is held so much to heart by British people, will not be lost through this proposal?
Mr Buckland
I am grateful for that question. I think that we can reassure ourselves and the people whom we serve by saying the following: when the liberty of the individual and the criminal law are involved, the right to trial by jury should be preserved and enhanced. That is why I was pleased by the provision in the recently enacted Protection of Freedoms Act 2012 that rolled back restrictions on the right to trial by jury in criminal fraud trials. However, we are dealing here with the civil context. If damage to reputation is so important as to merit trial by jury, why is not physical personal injury equally worthy of it? There is a utilitarian argument that demands a system using scant resources and taking scant time, which means that we should be very cautious about extending jury trials to a whole range of civil cases.
I believe that the removal of libel cases from the right to trial by jury leaves us with only malicious prosecution, false imprisonment and a limited number of other civil cases in which one can argue that there is a legitimate public interest in still involving juries in making decisions about the acts or omissions of public authorities. Malicious prosecution cases could involve an act of a prosecuting authority, and we should bear in mind the power that such an authority has vis-à-vis the individual. False imprisonment cases may involve the acts of police officers or a police force in unjustly imprisoning an individual.
Neil Carmichael
The question of trials with juries is interesting, because it is about whether a judge is the right person to define and decide what constitutes defamation. He is likely to reach a swifter decision than in a jury process. Surely the quicker that cases about people’s reputation are resolved, the better.
Mr Buckland
My hon. Friend is right, and one has to draw a distinction between matters of law, which are always the province of a judge irrespective of whether a jury is involved, and matters of fact. The Lord Chancellor made the point that there may well be cases in which there are classic conflicts of account between individual witnesses. Such cases may require the shrewd judgment of a randomly selected jury of members of the public, who use their experience of the world and their good sense to judge whether, on the balance of probabilities, the claimant’s case is made.
Michael Ellis
My hon. Friend is conscious of the fact that the Bill envisages not removing the right of jury trial in defamation actions but simply lessening the presumption that jury trials will take place. It will be for the judge to decide. Does he believe that judges are likely to decide on jury trials very frequently? What criteria does he think a judge might use, or what common law does he think might evolve, for deciding on the use of jury trials?
Mr Buckland
The Bill is silent on that. Clause 11 merely amends the relevant parts of the Senior Courts Act 1981 and the County Courts Act 1984, which allow a trial by jury unless the trial requires prolonged examination of documents and so on. The practice could develop in secondary legislation, but I doubt whether that would be seen as an appropriate mechanism to guide judges. I rather think that it will evolve as a matter of judicial discretion. I would be cautious about supporting secondary legislation that sought to prescribe the circumstances in which a jury trial ought to be ordered.
The point that my hon. Friend the Member for Stroud (Neil Carmichael) made about streamlining procedures is important. As the Joint Committee on the draft Bill pointed out, whether or not there are jury trials, there has to be proper reference to alternative dispute resolution methods such as mediation and neutral evaluation by a third party—all the mechanisms that serve to deliver justice and the redress of grievance not just to the millionaire in his Belgravia townhouse but to Mrs Trellis of 22 Acacia grove, who does not have the means to spend a lot of money on expensive litigation but who has been the victim of a wrong that needs to be corrected.
Paul Farrelly
Does the hon. Gentleman agree that because we need speed, which reduces costs, and because we need streamlined procedures and better case management, it would be useful to adopt the draft changes to the civil procedure rules that the Joint Committee recommended? They would give effect to the changes proposed in the Bill and could be amended further as the Bill progresses.
Mr Buckland
Such changes to the civil procedure rules could, and I think should, take place. They would not affect the passage of this primary legislation, so they would not require amendments to the Bill, but I agree with the hon. Gentleman’s point about the need for minds to be concentrated so that the Joint Committee’s noble aspirations can be translated into reality. That point is well made and entirely relevant in the context of the Leveson process. If Leveson achieves nothing else, I want it to provide a mechanism by which the ordinary person in the street can obtain redress of grievance with the minimum cost and at the maximum speed.
Before I was slightly diverted by interventions, I was making a point about the changing context of libel. In the 19th century, the only window into the private lives of the rich and famous was often through the device of the libel trial. How the world has changed. We live in a world in which we have an open door into celebrities’ private lives for the instant gratification of millions of readers, in many cases by the choice of the celebrity concerned. For many celebrities, that is a means by which they make a living. I do not seek to make any pejorative comment about that, but it is a simple fact of modern life.
Not only does the risk to reputation continue to be important, but joined with it is intrusion into people’s private lives. The two issues are different, and I accept that privacy cases are not about correcting falsehoods, as defamation proceedings are. However, they become inextricably linked in many ways when we examine the issues that characterise the debate in both scenarios.
I was part of the Joint Committee on Privacy and Injunctions, along with the hon. Member for Newcastle-under-Lyme (Paul Farrelly) and others. We were grateful to have among our number the noble Lord Mawhinney, who chaired the Joint Committee on the draft Bill, and his input was invaluable in informing us speedily of the progress and deliberations of the latter. The outcome of the investigation by the Joint Committee on Privacy and Injunctions was somewhat less co-ordinated than that of the Joint Committee on the draft Bill. There were a number of views and a multiplicity of divisions, but at the end of the process I believe that our contribution to the debate about privacy was important. We characterised some of the issues that have been raised today.
The hon. Member for North Antrim (Ian Paisley), who is not in his place now, made remarks about changing and codifying the law. I would not go so far as to support his assertion that we need statutory regulation of the press, but I thoroughly agree with his observation that now is the time for Parliament to take a lead on codifying the law of privacy. Indeed, I put that proposal to the Joint Committee on Privacy and Injunctions at the end of its deliberations. I was not successful in persuading the majority of members of its merits, but I make no apology for returning to the subject today. I believe not only that the law of defamation should be codified, as it is in this welcome Bill, but that Parliament should take a lead and do likewise to the law of privacy. We should bring together data protection legislation and all the other areas of legislation that deal with intrusion into individuals’ private lives.
Neil Carmichael
I am grateful to my hon. Friend for giving way for the third or fourth time. I want to talk about an important aspect of the Bill—
Madam Deputy Speaker (Dawn Primarolo)
Order. The hon. Gentleman may have read the conventions of the House, which have been re-circulated. An intervention is on a point relevant to the one that the speaker who holds the floor has just made, not a list of abstract points that the hon. Gentleman might want to make. His intervention should be relevant to the point that Mr Buckland has just made.
Neil Carmichael
Thank you, Madam Deputy Speaker. I apologise. The point I was going to make—it is relevant—is that the Bill is not just about defamation and privacy, but about protecting freedom of speech. Does my hon. Friend agree that that must be considered in the debate?
Mr Buckland
I shall not disagree, because my hon. Friend supports my point that, in many ways, privacy and defamation are inextricably linked.
I made the point about support for codification of the law on privacy because I believe in Parliament. I come from a legal background and have spent many years dealing with cases in the courts of this land, but I believe it is incumbent on legislators to take a lead and to represent the people of this country by saying, “The law needs updating. It needs to be brought into the 21st century and it needs to reflect the reality of life.” On a daily basis, individuals—famous, infamous or obscure—find that their fundamental rights to privacy are being interfered with, intruded upon and trampled over, not just by an over-mighty press, but by individuals who use social networking tools and the internet, as we have heard.
Amber Rudd
Does my hon. Friend agree that the Bill will help to protect the privacy of Mrs Trellis of Acacia road, to whom he rightly referred? Does not the Bill partly cover such issues?
Mr Buckland
There is an element of crossover, but the Bill does not go far enough in addressing fundamental issues of privacy. Some provisions of the Human Rights Act 1998 give a nod to the law on privacy, but the Act comes to a rather inelegant conclusion by allowing freedom of expression to have a greater priority over the right to privacy. I defend to the death the freedom of expression—that is why I came to Parliament, thanks to the good grace of the people of my constituency, who have given me this opportunity—but we must get the balance right. The Act does not faithfully reflect the reality of human rights: there is no hierarchy of rights, and each right must be balanced against others. Certain rights are unqualified, but most rights have qualifications. There is no hierarchy of public rights—
Madam Deputy Speaker (Dawn Primarolo)
Order. This is a very long nod to human rights. Perhaps the hon. Gentleman can come back to the Bill.
Mr Buckland
I was trying to illustrate the point by saying that there is a fine balance to be struck between freedom of expression and the rights of individuals to protect not only their privacy, but their reputation.
It has been said that reputation is a question of taste, but it is also a question of approach. Some take a very relaxed approach to attacks on their reputation. For example, when in his old age the Duke of Wellington heard about a book that was to be published about his private life, he famously said: “Publish and be damned.” That might well have been because he realised that most of the allegations in the book were true—I can say that only because the noble duke is long gone. Some take Groucho Marxs’s attitude. To Confidential, the infamous magazine published in the US from the ’50s onwards, he wrote:
“If you don’t stop printing scandalous articles about me, I’ll be forced to cancel my subscription.”
Sometimes, however, when there is no alternative, the only reasonable response to defamatory or libellous representations is for the individual to seek legal advice and to take action. That very much depends on the individual, the circumstances and the context. The Bill addresses, as well as primary legislation can, the nuances and the infinite range of contexts within which libel and defamation actions can be brought.
On alternative dispute resolution, to which many hon. Members have referred, no matter what we do to reform the law, the question of the cost of the legal procedure will remain. Like the Ritz, the law remains open to all, to adapt a well-worn phrase. The Jackson reforms were much criticised in the context of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, but they will not serve to change significantly access to justice in libel cases. Legal firms seeking to build their reputation will always be interested in taking the cases of well known individuals who have had their reputations besmirched, such is the way of practice.
Guy Opperman
Does my hon. Friend agree that the practice of libel is such that a potential claimant will be massively dissuaded from seeking to bring an action without some degree of cover for the costs they could incur? Does he also agree that the way out of that situation is to institute protective costs orders for actions brought in the public interest?
Mr Buckland
I am grateful to my hon. Friend for his constructive suggestion on what—I concede—is a problem. Jackson has recommended an uplift in damages to help to deal with the non-recoverability of after-the-event insurance and success fees. I accept that that will not be enough in some cases to deal with the loss to the individual that the recouping of costs and the plaintiff’s damages will mean. That is why alternatives such as the one he suggests have great merit. I would like to think that we will see a more sophisticated development, such as a before-the-event insurance market. Perhaps a person who becomes a celebrity or goes into public life could gain an advantage by taking out before-the-event insurance, but I accept that we are in the early days of such a market, if one can exist.
On the public interest defence in clause 4, I support the understandable reluctance of the Joint Committee on the draft Bill and the Government to seek to define the term in law. The Joint Committee on Privacy and Injunctions found that what “public interest” means evolves from year to year and from case to case. It is far better to leave the term to be defined according to the case in which it is invoked.
The question of determining whether the defendant has acted responsibly in the public interest is dealt with in the Bill; the Bill suggests that the court may have regard to a non-exhaustive list of factors. My right hon. and learned Friend the Lord Chancellor dealt with that in his speech, but in my intervention on him, I highlighted the danger of such a list becoming a set of hurdles over which defendants would have to jump before establishing their defence. My view is that if the Bill contained a catch-all consideration—namely, a provision that allowed the court to consider all the circumstances of the case—the danger of that non-exhaustive list becoming a set of hoops through which defendants had to jump would be adequately addressed. With that caveat, therefore, I support clause 4.
Much has been said about the internet. I do not need to rehearse those arguments, so I will turn instead to clause 12, an interesting clause that gives the courts the power to order publication of the summary of a judgment made in a defamation case. That is a welcome change, which is a reflection of the public interest not only in allowing damages to be claimed by people whose reputations have been unjustifiably besmirched, but in obtaining proper restitution for that individual—in other words, in restoring, as much as possible, the reputation of the person aggrieved to its previous state. However—coming back to dear old Mrs Trellis—let us face it: that is what the object of the law should be all about. It is not just a question of damages; sometimes—I would say in most cases—damages should be a secondary consideration. It is all about trying to restore the wronged reputation of the individual concerned, although in privacy cases, once the secret has been brought out into the public domain, it is impossible to put the cat back into the bag, so to speak. Nevertheless, the question of intrusion remains and, in that context, there can be proper redress of grievance for the individual concerned. Once again, the two issues come together in an inevitable way.
This Bill is the product of much careful consideration. It is the better for it, which is why I am happy to support it on Second Reading. I commend the Bill to the House.
Mr David Lammy (Tottenham) (Lab)
I am grateful for the opportunity to speak in this debate, following the small role that I played on the Joint Committee of both Houses that looked into this issue. I begin by paying tribute to the noble Lord Lester, who made a considerable contribution to this debate, and the noble Lord Mawhinney, who chaired the Committee successfully and kept our views together. We were able to produce a good report.
I want to return to some of the issues that have been left out of the Bill that is before the House, but I should begin by saying that we had a lot of debate on whether there was a need to codify the common law as it has existed on defamation. That was right and appropriate, because we should not pretend that somehow, just because we have a Bill—a Bill that looks like it has the broad support of the House, and most likely the other place too—the job will be done once it has passed through both places and the process is complete. Of course, the job will not be done. Putting the common law on a statutory footing will make it subject to much interpretation by the courts. Certain areas—in particular, serious harm and justification—will need a lot of teasing out over the months and years ahead. Therefore, the degree of certainty that we might think is contained in the legislation will probably not be in place for some time.
Nevertheless, it is right to codify this area of law at this time, if only so that ordinary citizens who are not in public life—those who are not celebrities and are not famous—who find their reputations tarnished or damaged can, as a result of what we are doing today, at least go to a piece of paper and determine for themselves what the law looks like in Britain, without having to rely on costly lawyers to interpret several different cases in order to determine whether they have any kind of claim. That must be a good thing for the general public as a whole.
This is a careful balance, and it is important absolutely to underline the freedom of expression that must cut to the heart of a democratic and civilised country. However, it is also right to say that we are living in an age in which our liberalisms need to be fully scrutinised—an age in which it is possible to be very conscious of our rights to say what we want, but not terribly conscious of our responsibility in exercising those rights. It is into that juncture that this Bill falls. We are also, I might add, living in age in which we see the results of excessive economic liberalism. We have therefore also seen companies, corporations and oligarchs use this area of law to exercise a lot of control, it seems to me, in the other direction. I want to come to that later.
We should scrutinise very carefully—and put that scrutiny on the record in Hansard—the serious harm test. It is probably more straightforward for someone in public life or a celebrity to demonstrate and explain what serious harm is to their reputation, which will have been built up and is in the public domain. However, I am concerned that the hurdle should not be so high for the average, ordinary member of the public that they have to establish the same calibre of serious harm. We ought to remember that most cases concern ordinary folk who feel defamed by, for instance, their local newspaper or a website whose focus is confined to a local area. We are talking about someone who runs a small business whose products are tarnished in public. We are talking about two partners—about an older woman, for instance, who falls in love with a younger man and lives in a village, and where things are said about the extent of that relationship. Such cases may feel parochial, but to the individuals involved they can feel major. In that sense, we need to ensure that the serious harm test is not set so high that the ordinary person trying to overcome the damage that has been done to them cannot get access to the justice they feel they deserve. I therefore hope that we see some debate in Committee, as well as on Report and in the other place, about what constitutes serious harm.
There has been a rush to push jury trial out of the door to save us money, but it is important to put on the record the fact that the public who serve on juries, and who rely on this important area of our law, are not responsible, on the whole, for those costs. They have largely been driven up by law firms, lawyers and barristers. We are now embarking on a process of no longer having a presumption of jury trial in this area of law, which is a major departure. Broadly, the decision was debated a lot in the Joint Committee, and I will go along with it. However, in an age of austerity, when we are all concerned about finances, I do not want the departure of jury trials to start creeping into the criminal law or for the argument to be extended to what must be the bedrock of our democracy. We must bear in mind that it is not the public who have driven up the costs. We should have heard more on this matter from the Secretary of State, and I hope that we will hear more at the end of the debate or in Committee about the circumstances in which jury trials will be retained. For example, if a High court judge were defamed, would we expect a jury to be retained in that case, given the presumption that it might be inappropriate to ask another judge to adjudicate in those circumstances? The Government need to set out the circumstances in which they think it appropriate to retain juries in these cases, given that reputation is a matter of public interest.
The gaping hole in the Bill, which Lord Lester examined thoroughly and which the Joint Committee debated, is the way in which it relates to corporations and companies. I am convinced that the Bill should act to limit some of the excessive powers of companies and corporations that often use these means to terrorise publications into not getting underneath the truth of what is going on in those companies. I am not convinced that a corporation or big business company is the same as an individual, or that the reputation of such institutions is the same as that of an individual. I certainly believe that, if we are to allow companies and corporations to use defamation law in this way, we ought at least to ask them to establish that they have suffered substantial financial loss, as was set out in the original Bill proposed by Lord Lester.
Paul Farrelly
I agree with my right hon. Friend on that point. Does he agree that equality of arms is one of the main issues in regard to the law of libel, and that there are remedies available to judges in the Defamation Act 1996 that have not been used effectively to achieve the early resolution of libel cases in order to avoid the inequality of arms being fully brought to bear in such cases, particularly those against investigative newspapers?
Mr Lammy
My hon. Friend is absolutely right to mention alternative dispute resolution in this regard. He will be aware that the Bill as it stands would not alter the situation that Dr Simon Singh found himself in, in the case involving the British Chiropractic Association. That should be a matter of concern to the House, and it demands debate and discussion in Committee. He will also be aware of the case of Ben Goldacre, a doctor and health writer, that of the cardiologist, Peter Wilmshurst, and that of Hardeep Singh, a journalist writing on Sikh issues. It is not entirely clear from those cases—although we have codified this area of the law, tidied up the justifications and raised the bar quite appropriately—that the position of the oligarch or corporation to challenge the idea of a balance of equity has been dealt with. The matter has been sidelined in the Bill; it has been forgotten about and we will probably not get the opportunity to return to it for some time. That is the biggest area of concern.
Paul Farrelly
The case of Simon Singh is a poignant one. Does my right hon. Friend agree that, in relation to that case, it was a quirk of the British legal system that allowed the British Chiropractic Association to sue in the first place? It could do so because it was an incorporated body, yet unincorporated bodies could not sue in their own name and would have had to leave it to individual members to bring a defamation case if they felt that they had been defamed individually.
Mr Lammy
That is a good point. It makes me think that, if we are unable to deal with the issue in this Bill, we might be able to return to it in the form of amendments to another Bill that is passing through the House. This is an important area, and it requires further scrutiny.
It is unfortunate that the Bill does not make a greater attempt to enable more alternative dispute resolution. Such practices are essential in relation to costs. What do most people want, when it has been established that they have been defamed? Most of them are not after lots of money; they simply want an apology that is visible and can be well seen. They want to establish negotiations, early on, and to come to an agreement through co-operation. It is a missed opportunity not to do more in the Bill to force people down that road, so that they can come together far earlier and avoid the costs that build up later. That is why I am concerned that everything is blamed on the jury; actually, there are other mechanisms available to reduce costs.
In the Joint Committee, we talked extensively about the level of exposure, in a civilised country, that we should expect the defamer—often a newspaper—to give to the apology that it makes, once it has been established that someone has been defamed. I am concerned that, when such apologies are published, particularly to members of the public, they occupy only the tiniest column space, lost in a wealth of other words. They are given nothing like the prominence of the original story that caused the harm.
Zac Goldsmith
Clause 12 goes some way to addressing that issue, in that it provides the court with the power to order a summary of its judgment to be published. Does the right hon. Gentleman agree that that clause could be strengthened if the issue of due prominence were to be included?
Mr Lammy
The hon. Gentleman makes that point well. This is about the prominence given to the decision, and the fact that it is often nothing like as prominent as the original story. I do not think that the Bill has cracked that problem, but I hope that, as it passes through the Committee and goes to the other place, the matter will receive further scrutiny.
Much has been said about the internet, and I shall not add to it except to say that I am truly concerned about the position of young people, and young adults, in this regard. Many of us will be aware of Facebook bullying, for example, and I remain concerned that much of what is said about young people and young adults in such forums remains out there. The ability to fail, to make mistakes and to grow up in a private arena seems to have disappeared from our society. All of that now seems to be done in public. A lot of what used to be said by young people in the pub at the age of 17 or 18 would just disappear. Now, nothing disappears. It is visible for all to see. Many of us might have exercised this when employing a researcher. It is all there, and that is a matter of huge concern. Kicking this matter into secondary legislation is a concern, because it merits hard discussion. This relates to some of the issues being raised in Leveson, and those being raised in relation to privacy. The Joint Committee conducted its deliberations against the backdrop of super-injunctions and the issues that had arisen on the Twitter network just a few months ago.
The Bill is obviously needed, and it is good, but there are elements missing. Those elements were highlighted in the work of the Joint Committee and of Lord Lester, and I hope that they will garner greater scrutiny in the weeks and months ahead.
Stephen Phillips (Sleaford and North Hykeham) (Con)
Thank you, Mr Deputy Speaker and hon. Members on both sides of the House for that very warm welcome.
I rise to speak, having had the enormous privilege of sitting among significantly more distinguished colleagues from this House, including the right hon. Member for Tottenham (Mr Lammy), and indeed from the other place, on the Joint Committee that considered this Bill when it was subjected to pre-legislative scrutiny during the last Session. Let me indicate from the outset in a non-controversial way that the Bill enjoys my support as it enjoys the support of the official Opposition and of all parties.
Like other hon. Members, I have little doubt that the Bill is capable of being improved in Committee, where it will no doubt be debated appropriately, properly and, I hope, at length, particularly in respect of certain Joint Committee recommendations that the Government have not adopted. As it stands, the Bill supplies some, if not all, the certainty required regarding the deficiencies in our libel and slander law previously identified by the noble Lord Lester and others. For that reason, if for no other, I welcome the Bill’s support across the House, as I welcome the Opposition’s decision not to divide the House on the Second Reading of a Bill that evidently does and certainly should enjoy cross-party support.
This Bill is perhaps not the most eye-catching piece of legislation in this Session and perhaps not even the most eye-catching piece of reform in the arena of the ongoing debate on the balance that needs to be struck between free speech on the one hand and other fundamental rights on the other. For reasons that I will attempt to explain in the course of my remarks, it is none the less important.
Let me begin with the problems—not merely those inherent in the existing law, but those of a more fundamental nature concerning any law that seeks to address defamation, whether in this jurisdiction or elsewhere. The first of those problems is naturally the fact that the mere existence of a law of defamation is an intrusion into the area of free speech. Not one Member of this House can possibly begin to doubt the importance of free speech both as a principle of general application in any mature society and, more important, for the health of our democracy and our democratic institutions.
The powerful need to be held to account. They need to be answerable to those in whose name they seek to exercise power. They need to be exposed to hypocrisy or inconsistency, where necessary. Most certainly, as we all know they need to have the balloon of pomposity associated with their position punctured from time to time, perhaps even frequently, and without remorse. That is the nature of free speech. As I say, surely no one can doubt its importance.
But there are other important rights that need to be addressed in a civilised society—even if, on this point at least, I disagree with my hon. Friend the Member for South Swindon (Mr Buckland) that there is no hierarchy of rights and that there ought not to be. The right to a true reputation is particularly important to well-being, given the importance attributed to character in human affairs. The right of those who have not opened up their private lives to scrutiny to keep their affairs private is equally important. That is a right that used more ordinarily to be respected without the need for intervention of the law, but recent events and recent experiences point to those in the media no longer being able to respect that without appropriate restraints. Finally, there is a right not much talked about thus far in our debate—the right to redress, speedily and efficiently, when either of the rights I have already mentioned is dealt a blow from which in an age of immediate global communication neither may recover unless effective solutions to set the record straight are also available.
What the Bill is designed to achieve, as the preamble tells us, is to amend the law of defamation. In so doing, I understand it to be the Government’s aim—it was certainly the aim of the Joint Committee on which I sat—not only to balance the competing rights to which I have drawn attention, but to bring the law more into line with the world in which we now live. In that regard, the potent mechanism of the common law, able as it is to develop and deal with new situations, is not always enough. Occasionally, as in this area, development can run behind the times because of the lengthy processes associated with litigation and as a result of the disincentive afforded by cost to litigants who find themselves in novel situations. When that happens, it is for Parliament to act, triggered where appropriate by a Government’s legislative programme. That is necessary because it is not always the case that we can outsource the change that the common law might deliver, which would require litigants to dip into their own pockets to seek the intervention of the courts to adapt the law to their needs.
That, as I perceive it, is the position in which we find ourselves in relation to the law of defamation. The genuine and general support that Lord Lester’s Bill enjoyed both within and without Parliament demonstrated precisely that. Lord Lester and those who assisted him are to be commended for their initial efforts in this area in the last Parliament, even if they did not bear fruit. This Government, I have to say, are to be commended for having taken forward that work, having established a distinguished Committee—personal exceptions apart—to consider the matter, and having now brought forward appropriate legislation to address the issues in an area that is, as I have already indicated, unlikely perhaps to attract either headlines or even much credit.
Amber Rudd
We have heard much about this Committee and its various members, including my hon. and learned Friend. Is it correct that the Committee was unified on most of these points? It appears that the House is unified on the Bill, but did the Committee find itself unified on its key points?
Stephen Phillips
I am extremely grateful to my hon. Friend for her intervention. My recollection—it is only that—is that the Committee was unanimous on almost all points. I think there was one division—and one only—on the final report; I see my hon. Friend the Member for Cambridge (Dr Huppert) nodding. Unlike with the Joint Committee on Privacy and Injunctions, on which my hon. Friend the Member for South Swindon sat, there is considerably more cross-party agreement in this area.
The Bill of course comes at an interesting and even opportune time, as, indeed, we are all aware. A mile or so down the road—a little less far than the hon. Member for Bishop Auckland (Helen Goodman) suggested—Lord Justice Leveson is sitting in a far more high-profile environment, examining the culture, practices and ethics of the media. The legitimacy and desirability of what an untrammelled free press has recently been up to, for which we as politicians bear some measure of the blame, has rightly been called into question by recent events, which few can have viewed with anything other than horror and disgust.
As we have heard in this debate, another Joint Select Committee of this Parliament in the previous Session, on which my hon. Friend the Member for South Swindon sat, has now reported to both Houses on the subject of privacy and the use of injunctions. New technologies have thrown up new challenges in a number of areas. That they are being addressed piecemeal, although not entirely desirable, as hon. Members have indicated in their contributions, is understandable. That they are being addressed at all is a matter for congratulation, I venture to suggest, for all concerned. Where precisely we will find ourselves at the end of the process is no doubt a matter of debate, but the overall aim is clear: to preserve free speech while respecting other competing rights and the responsibilities that each of those rights entails. For my part, I merely add that this is unlikely to be the end of the process. As the report of the Joint Select Committee on which I sat indicated, there is still work to be done on the issue of parliamentary privilege, just as there remain loose ends to be tied up in relation to those parts of the common law of blasphemy and sedition which remain part of our law.
Thus far, I have dealt in generalities, but the greater raft of problems—at least in terms of number, if not seriousness—relates to the specific difficulties encountered with the mechanistic aspects of the law of defamation. The second issue with which it is necessary to grapple in any reform in this area is, therefore, the cost that is associated with defamation litigation and, when necessary, court proceedings. The evidence taken by the Committee demonstrated that those costs were prohibitive to the defence of reputation by the majority; but, even more important, they are inimical to free speech itself.
Few individuals, save perhaps the very brave such as Dr Ben Goldacre, have been prepared to put their lives and fortunes at stake and raise their right to express the truth above their own financial security and that of their families. As anyone who does not enjoy the luxury of parliamentary privilege is all too well aware, the powerful have deep pockets and frightening lawyers with heavy notepaper and even heavier language. The costs associated with defamation not only prevent ordinary people from defending reputations that are so easily damaged in an age in which anonymous posting online can wrongly create a rapist or a paedophile at the click of a mouse, but prevent public figures who lie, cheat and steal from being revealed for what they are.
How, one is driven to ask perhaps all too often—even if rhetorically—have the individuals who have been involved in many of the scandals that we have seen in the past got away with it for so long? The truth, frequently, is that they had, and continue to have, good lawyers who are adroit at putting those who might otherwise hold them to account through the preventive mills of cost and stress. Any reform of the law of defamation needs not only to take account of that, but to address cost at each and every turn. Yes, legitimate reputation is important in a civilised society, as is the prevention of false accusations which damage it; but such protections ought not to be purchased through prevention of the exposure of that which ought to be in the public domain, something which is perhaps all too often a result of the chilling effects associated with any defamation litigation. Indeed, as the Committee concluded in its report,
“the reduction in the extremely high costs of defamation proceedings is essential to limiting the chilling effect and making access to legal redress a possibility for the ordinary citizen.”
This is, none the less, an appropriate moment at which to pause and recognise a fact that—given the evidence taken by the Committee and the views of many commentators—may be obvious, at least to practitioners: the fact that the true problem with the costs associated with defamation proceedings is driven not by substantive rules but by procedure. Any significant reform to reduce cost is therefore not something that can be exclusively, or even primarily, driven by Parliament. As has been pointed out by Members on both sides of the House today, what we need are reforms of procedure to provide new and effective procedural mechanisms that will level the playing field as between those with deep pockets and those without them.
Much, in general terms, was achieved in that respect by the reforms of civil procedure for which we are eternally in the debt of Lord Woolf, but I should like the Minister to state categorically that the Government, in the person of the Lord Chancellor, will instruct the Civil Procedure Rule Committee—if, indeed, they have not already done so—to review the civil procedure rules relating to defamation proceedings, as well as the pre-action protocol, in an attempt specifically to strengthen the parts of the overriding objective that are directed to addressing the cost associated with litigation and the necessity of ensuring equality of arms between litigants.
The third difficulty, which both the Committee and the Government have sought to address, is one that I have already mentioned: the difficulty posed by technological and other advances. The last statutory intervention in that regard was made in 1996, under the Administration of Sir John Major, mention of whom is, perhaps, opportune today. Even I can remember vaguely what the world was like then, and it was different. For a start, there was no Human Rights Act—legislation on which, as many know, I have my own strong views, but which, in terms of general principle, has had a significant effect on the law of defamation by recognising privacy rights that have been used as a back door to circumvent free speech protections developed in the arena of defamation over centuries. That affords yet another reason why the 1996 Act is, at the very least—I put it neutrally in deference to my hon. Friends—problematic. We had human rights in this country before the Act was passed, but we did not recognise them in the way that we have now, which has enabled judge-made law in one area to trespass on the will of successive Parliaments and higher courts in others.
What is even more important in the present context, however, is the fact that when Parliament last considered this issue in 1996, the internet was in its infancy. Nothing was known of how matters would develop.
Heather Wheeler (South Derbyshire) (Con)
Given that technology is moving so fast, as others have pointed out, does my hon. and learned Friend think that, like anti-terrorism legislation, this legislation should be reviewed and renewed more often than annually?
Stephen Phillips
I should like to say that I am grateful to my hon. Friend, who has put me on the spot with a point that I do not think that the Government would like. I suspect that whatever legislation is in place, we will need to look at it from time to time to ensure that it correctly balances the right to free speech with the right to reputation in the light of the technological developments that will take place over time. How the Minister and his colleagues will want to do that, and whether it will be dealt with in the winding-up speech, is a matter for them. However, I see the force of the point that has been made by my hon. Friend and, indeed, other Members.
Mr Buckland
Might not a possible solution be for the Justice Committee to conduct some post-legislative scrutiny of the Act a couple of years down the line, as is currently happening with the Freedom of Information Act?
Stephen Phillips
What a fine idea. I am sure that my hon. Friend the Minister will be able to tell us whether that is the Government’s preferred solution—as, given the quality of my hon. Friend’s intervention, it may well be.
In 1996, Larry Page and Sergey Brin were still at Stanford university. They had met only the previous year, and Google was still two years away from being incorporated. For what it is worth, Mark Zuckerberg was 12 years old at the time. If any Members foresaw what the internet would do for the instantaneous communications that we now have, they were entirely silent in the debates that led to what became the Defamation Act 1996. I know that, because I have read the reports of those debates. We, however, are in a different position. We have the benefit of subsequent events, and—with the possible exception of my right hon. Friend the Member for Louth and Horncastle (Sir Peter Tapsell)—not one of us can now contemplate life without the technologies on which we rely for our daily existence. Perhaps it was ever thus with technological change, but, by the same token, change brings specific issues that must be addressed.
Chief among those issues here has been the ability not only to create defamatory material that is instantly accessible to millions of people with internet access, but to disseminate that material anonymously. Even this week, the common law has demonstrated the flexibility of existing mechanisms to assist those who are determined to protect themselves, but, as always, that has come at a cost. I believe that when Parliament intervenes in an area such as that addressed by the Bill, we must do what we can to help, and the Bill does that—although, like my hon. Friend the Member for Mid Bedfordshire (Nadine Dorries), I have not the slightest doubt that it is another area that we will have little option but to address again, certainly within the next decade, as user-driven change in internet and other technological architectures develops further.
The scale of the problems—the need to balance free speech against other competing rights, the need to address the costs associated with striking that balance correctly, and the need to deal with technological and other changes—is vast. In those circumstances it might well be thought that ambitious reform was called for, but, again, that sort of understandable reaction must be balanced with the caution that good legislators enjoy, and which has been the hallmark of the House from time immemorial. Too frequently, ambitious legislative change reveals itself not only to have unintended consequences, but to stultify the development of appropriate solutions by the courts to problems of which no one has yet dreamt. That point was made earlier by my hon. Friend the Member for South Swindon. Incremental change has been the hallmark of good legislation in this and other areas, and the Bill is rightly no exception. The Government are to be commended on that.
I want to deal with three specific aspects of the Bill: the provisions that seek to codify existing substantive law in a manner that is readily accessible and understandable to the layman, the provisions that deal with the defences for which free speech calls in a modern society, and the provisions that seek to bring reputational protection within the reach of those who have not the funds with which to instruct expensive lawyers.
As for the first—the attempted codification of parts of the existing common law as it has now developed, particularly in recent years—my colleagues who sat on the Joint Committee with me are aware that I and others, notably Lord Morris, had our reservations. The difficulty Parliament faces in this area is that our attempts to reduce the nuances of the common law to writing are on occasion ineffectual. The Marine Insurance Act 1906 was a codifying Act prepared by Sir Mackenzie Dalzell Chalmers when he was permanent under secretary at the Home Office. He was subsequently chief justice of Gibraltar. As the draftsman of both the Bills of Exchange Act 1882 and the Sale of Goods Act 1893, if anyone could achieve the codification of four centuries of common law, he was the man. Yet subsequent events tell us that he got things wrong, such as the test in relation to loss, which now differs between marine and non-marine insurance. Can he be criticised? No, but the experience teaches a valuable lesson: that codification is not always successful in reflecting either the existing law or its nuances or flexibility.
Attempted codification can, through drafting error, lead to uncertainty, change and stultification, all of which can lead to increased costs for litigants. However, I am persuaded that it is desirable in clauses 1 and 2—as well as in part of clause 3—only for two reasons: first, because the codification is modest in scope; and, secondly, because, as Lord Mawhinney, who chaired our proceedings, persuaded those of us who were sceptical about either the necessity or desirability of pursuing this path, if the protection of the law of defamation is to be made more accessible, it must be written down as simply as possible in a manner that most can understand. That point was made well by the right hon. Member for Tottenham. While I had reservations, therefore, I am now persuaded that these clauses have their rightful place in the Bill. Better and more erudite minds than mine will have addressed the question of whether or not they do what they are supposed to do. If they do not, it will not be for want of trying.
The second area I wish to discuss is the defences with which the Bill deals. One clause at least—clause 3—involves a slight amendment to the existing defence of fair or, as the Supreme Court seems to have taken upon itself to rename it, honest comment. We are now renaming “honest opinion”. It is my understanding that the change is minor—I would be grateful for confirmation of that from the Minister—and merely removes the necessity for it to be shown that the matter on which the opinion is expressed is in the public interest. If so, there seems to have been little justification for any such limitation in the first place. Any such limitation between public interest and private interest is unjustifiable and unprincipled.
That step is therefore to be welcomed, as is the new defence—in so far as it is a new defence—based upon, or clarifying, Reynolds v. Times Newspapers: responsible publication on a matter of public interest. That does much to clarify what would no doubt have been clarified by the common law in due course, but at vast expense and inconvenience to litigants and those defamed.
The third area on which I want to touch is those parts of the Bill that I perceive to be addressing substantive matters that affect cost and accessibility. Among those is the removal of the presumption of jury trial. In no other significant area of civil litigation has jury trial been retained, at least in practical terms, and the evidence that the Committee received appears to demonstrate that, even in the field of defamation, trials have increasingly been conducted before judges alone. However, the threat of jury trial—with the processes it involves and the reluctance of judges to intervene early to remove matters from a jury, with the consequent prolongation of litigation and considerable increase in cost—has long exacerbated the chilling effects of the existing law, and many of us are only just persuaded that it should even be possible to retain a discretion to permit a jury in a libel or slander case.
Paul Farrelly
I agree with what is being said. I have inquired into these matters for several years. The publishing industry and the newspapers have long pleaded for an early resolution of meaning, and the retention of juries is inimical to that. It plays into the hands of those litigants who have no interest in a resolution because their intention is to use force of money and arms to prolong the agony as long as possible.
Stephen Phillips
The hon. Gentleman makes a valid and compelling point, and I agree with him. I do not sit on civil cases, but I do still sit as a recorder for a few weeks each year. When judges know there is going to be a jury, they are reluctant to take anything away from the jury because it is supposed to be determining the factual issues. In order to reduce the costs associated with litigation, in most defamation cases there should be no jury, just as there is no longer a jury in other cases heard in the Queen’s bench division, whereas a century or so ago there was the discretion to order one, and, indeed, one was frequently ordered, with all the consequent increase in cost and delay.
The third area on which I want to touch is the one I consider to be the most important aspect of the Bill, clarifying or codifying as it may be: the requirement that in order to be actionable a statement must cause, or be likely to cause, serious harm to the reputation of the claimant. There is, of course, once again every indication that this is the direction in which the common law was moving in any event, but here, in an age when trivial statements are capable of being published immediately, we, as a Parliament, can give our sanction to this worthwhile development and enshrine it once and for all as part of our law. It will lead to fewer cases—certainly fewer trivial cases—being brought forward and therefore to a reduction in costs. It is consistent with the balance that I believe must be struck between free speech and the protection of reputation; it is consistent with the need to render the law accessible in a written form to ordinary individuals not versed in the intricacies of precedent; and it is consistent with enabling courts to act at an early stage in order actively to manage cases and to drive settlement and compromise in those which are serious and require early redress. Like the rest of this Bill, in my judgment—which I think the House shares—these provisions are to be welcomed. They deserve, and should command, our entire and full support.
Paul Farrelly (Newcastle-under-Lyme) (Lab)
First, I should declare my interests: I am chair of the all-party group on libel reform and a member of the Culture, Media and Sport Committee.
I hope there will be cross-party support for an improvement to our libel laws, and in keeping with that spirit I join other Members in congratulating the Secretary of State on making sure the Government have found time for this Bill, and in acknowledging the efforts of his ministerial colleagues, the hon. Member for Huntingdon (Mr Djanogly) and especially Lord McNally in the other place, greatly and expertly assisted by Lord Lester, who is a veteran of this campaign. Like the shadow Secretary of State, my right hon. Friend the Member for Tooting (Sadiq Khan), I am grateful that they so willingly took up the reins passed to them by my right hon. Friend the Member for Blackburn (Mr Straw), who is another true veteran of this place and who did so much in the last Parliament to pave the way for reform.
Clearly, no thanks would be complete without praising the efforts of the Libel Reform Campaign, which includes Index on Censorship, English PEN and Sense about Science. They came together in 2009 to lobby for a change, and they have lobbied very effectively both in terms of party manifestos and, importantly, through their organisation, which has served to amplify the voices of many of the victims of the excesses of our libel laws who were crying out for both help and change—people such as Simon Singh, Hardeep Singh Kohli and Dr Peter Wilmshurst. I shall refer briefly to some of those cases later, because one of the litmus tests of this Bill will be whether there will be any similar cases following its reforms. At each stage of the Bill’s passage we should ask ourselves, “What would this Bill change? What difference would it make to some of the worst excesses we have seen in recent years?”
As a former investigative journalist who was once sued myself—only once, I stress—I have been interested in libel reform since I entered the House in 2001, and I have certainly pushed the issue since joining the Select Committee in 2005. The Committee’s investigation into this subject started in earnest in 2008 and our 2010 report, “Press standards, privacy and libel”, contained several recommendations that have been pursued by both of the Governments since then and have, thankfully, found their way into this Bill.
Other people have been pressing for root-and-branch reform for much longer. Last autumn, I was privileged to sit down with one of the greats of British journalism, Sir Harry Evans. His investigation while he was the editor of The Sunday Times into the thalidomide scandal in the 1970s was a defining moment in the history of the quality end of the British press. It lasted six or more years in all and, in 1979, went all the way to a landmark European Court of Human Rights decision regarding free speech. As is recounted in Harry’s book, “Good Times, Bad Times”, Lord Lester was an advocate in that case. That affair showed this House in a great, independent light, because the then all-party group on disability, which was chaired by the much missed Lord Jack Ashley, the former Member for Stoke-on-Trent, South—a predecessor of my hon. Friend on the Front Bench, the Member for Stoke-on-Trent South (Robert Flello)—was right in the thick of the fight for justice regarding thalidomide.
As a spring chicken, I asked Harry, when I met him last autumn, whether he thought that serious investigation, given recent developments in libel laws and the state of our newspaper industry, would be harder nowadays. “Oh, easier, easier,” he replied, without a moment’s hesitation. “Nowadays,” spring chicken, he almost said, “you don’t have civil contempt.” Then, if there was civil action in the courts, as there was against the thalidomide drug company, investigation was off limits. After the European decision, the law was changed in 1982. Civil contempt, therefore, was out as a bar to investigation in the public interest, but our antiquated libel laws remain. In one sense, therefore, I had to disagree with Harry given my experience as a journalist. I stopped practising as a journalist in 2001, by which time, as previous speakers have said, Google had been founded in a Californian garage for fewer than three years. The change since then has been frantic and it now seems almost to have been around for a lifetime.
I remember that at the end of the 1990s, amid the upheaval of Yeltsin’s Russia, I was writing several investigative pieces about money laundering and the connections between Russian politicians, business and the Russian mafia, no less. In recent years, such investigations would have been harder to get past a news desk—certainly with every oligarch claiming a global reputation in this internet era, with aggressive libel firms touting their expertise in so-called “reputation management”, with London having been cemented as the libel tourist’s destination of choice and, frankly, with the sheer cost of defending an action. There might be a lull in the courts at the moment, given the effectiveness of the Libel Reform Campaign, but old habits and hostilities will surely return, given the chance, aided and abetted by how the court system has tended to operate in spinning out cases, spiralling up costs and spawning expensive uncertainty.
If the codification of existing law in this Bill adds to certainty, that will be worth while in itself, but if that is all it does it will be a real missed opportunity for deeper reform. Similarly, it will be a missed opportunity if changes to the law are not accompanied by resolute change to court practice and procedures and vigorously followed up and followed through.
Let me turn to what sensible reformers want from this Bill and this process. First, in the public interest, we would like the “chilling effect” to be properly addressed. A writ for libel requires no more than a rubber stamp, whereas to defend one, however trivial or vexatious it might be, takes precious time, effort and lawyers. As we have heard, lawyers and courts cost money—an awful lot of money in libel. Too often the system is weighted in favour of deep-pocketed claimants whose threats are an all-too-effective deterrent to investigation and publication in the public interest.
Secondly, and this is a corollary, we want to jettison London’s reputation as “A city named sue”. It tarnishes our country and our democracy. The situation is not overblown, as certain judges have suggested. One cannot measure the attraction and impact of our libel laws by the number of cases alone, but one can listen to the voices of publishers, non-governmental organisations, scientists, medics and academics in relation to what they will and will not publish, around the world, for fear of being sued in London.
Thirdly, as we have heard, there needs to be a proper balance between freedom of speech, especially in the public interest, and reputation. As the phone hacking scandal has once again shown, there is a world of difference between the quality press and the gutter press. There are responsible bloggers and evil people whom I understand are called trolls. Often, getting a simple correction or apology from the highest-minded newspaper is like pulling teeth. In the macho culture that has grown up, if one does not sue, newspapers often do not treat one seriously, but the costs of being taken seriously are ordinarily beyond most people. In the absence of real and proper reform, this will raise issues of access to justice.
Let me address the three issues I have raised in reverse order. On joining the Select Committee in 2005, I had a cast around Fleet street to gauge the appetite for a serious push on libel reform, but I found that the traditional concerns about libel had overwhelmingly been overtaken by consternation at the effects of conditional fee arrangements. CFAs had been introduced to improve access to the law, but had escalated the costs of defending claims enormously. Following the passage of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, the press has certainly had its way on CFAs, as neither success fees nor insurance premiums are recoverable from the loser, whether claimant or defendant.
Given the extremes of the press we have, I think—and I am a late convert to this view—that things have gone too far. The Government and the Bill must seriously address this issue. Our Select Committee’s 2010 report was prompted by a number of events, including Max Mosley’s privacy case, the libel pursued by Tesco against an old colleague of mine, Ian Griffiths at The Guardian—I shall refer to that case later—and, importantly, by the press’s disgraceful treatment of the family of Madeleine McCann. Following the settlement of the libel actions brought by the McCann family, a seminal article in the New Statesman by a former colleague of mine, Professor Brian Cathcart, entitled, “Scandal: How the Press Tried to Destroy the McCanns”, resonated with me as our Select Committee agreed to start our inquiry. As has been pointed out already, the McCanns would have been hard pressed to start their action or gain any settlement without CFAs. Similarly, without CFAs, people from the scientific and medical community would not have been able to defend themselves in some of the more recent, high-profile libel cases. Dr Peter Wilmshurst’s case is an example of that.
The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)
May I make a short intervention in what is an excellent speech to point out that there are no proposals, certainly not within the Legal Aid, Sentencing and Punishment of Offenders Act, to get rid of CFAs?
Paul Farrelly
I thank the Minister for his intervention, but it is the cumulative effect of the changes in the Act on people’s access to justice that we really need to look at as this Bill proceeds through Parliament.
The reality is that press self-regulation in this country is broken, and the reforms in the Bill are as yet unproven. A sensible balance that addresses the issue of access to justice needs to be struck. I hope that that can be done in our proceedings on the Bill. If it is not, I think we will lurch back to the bad old days—I am a former journalist—with newspapers simply asking, “How much are they worth? Can they afford to sue?” They might also use the system, the costs and the delays to their advantage, having trashed reputations on the way.
Let me address briefly issues of libel tourism, forum shopping and this city called sue. I welcome clause 9 and, importantly, the guidance notes, which address this area specifically. The terminology regarding consideration of where is
“the most appropriate place in which to bring an action”
leaves great scope for judicial interpretation. The Government promise to ask the Civil Procedure Rule Committee to consider “relevant factors” in more detail in respect of amendments to the civil procedure rules, but as with all these issues court practice is key and the Government have not published, as the Joint Committee on the draft Defamation Bill recommended, the detail and nature of those rule changes. It is incumbent on them to do so in order for us to have greater clarity. I hope that during the Bill’s progression the Government will provide more detail and comfort on this crucial aspect of reform.
In May 2010, in the High Court, Mr Justice Eady threw out a libel suit brought by an Indian so-called holy man against the journalist Hardeep Singh Kohli over an article he had written in The Sikh Times. His holiness—to give him his title—had never set foot in Britain, but this was not the end of the matter; lawyers were given leave to appeal, and it took until February 2011 for the Court of Appeal finally to strike out the case—after his holiness had failed to produce a £250,000 surety for costs. By then, the case had been going on for nearly three years, at a potentially ruinous financial cost to Mr Singh, and had had a terrible impact on his health and family life. Thankfully, Mr Singh has just got married, and I am sure that we all wish him well after what he has been through. As a wedding present, surely we can give him a commitment to early resolution and the strike-out of inappropriate, trivial and vexatious claims. Members will want the Government to give them comfort on this matter during the passage of the Bill.
Ian Paisley
I appreciate the hon. Member’s point, but he must also accept that it does not take Johnny Foreigner to abuse the system. There are many cases brought by UK citizens against other UK citizens in which the process of law is used and contorted under extenuating and tortuous circumstances to the point reached in the case he cites.
Paul Farrelly
The hon. Gentleman is absolutely correct. The point about early strike-out and early resolution is a general one, and not simply applicable to libel tourism cases.
I turn now to the public interest, responsible journalism and the chilling effect of our libel laws and their cost. I welcome clause 1 on the test of serious harm and the hurdle that claimants have to clear, although I hear clearly the voices calling for it to be further stiffened and clarified, not least with respect to corporations. Clause 7, which extends qualified privilege, especially to fair and accurate reports of scientific conferences, is especially welcome, as is clause 6, where the Government have listened to the Joint Committee and extended protection to peer-reviewed articles in scientific and academic journals. There is concern about the chilling effects of our libel laws on the medical and scientific community, and Sense About Science should be congratulated on bringing these arguments to the fore after several particularly disturbing cases.
Dr Peter Wilmshurst has been mentioned in passing. He is a respected cardiologist at the Royal Shrewsbury hospital and my own hospital, the university hospital of North Staffordshire. In 2007, he was sued for libel by NMT Medical, a company based in Boston, Massachusetts, over a report carried by a specialist Canadian website about critical remarks he made of one of its medical devices at a US cardiology conference. He was sued here for defamation not once but four times over four years. Dr Wilmshurst, quite responsibly, had been involved in proper trials of the effectiveness of the device. In April 2011, the emperor finally ran out of clothes and NMT went out of business months after failing to post its own surety for costs. The case caused untold stress and worry to Dr Wilmshurst and his family and should never have been allowed to go on for so long. The Bill’s reforms ought to prevent such abuse of process, be it from overseas companies or anybody domiciled in this country.
Robert Flello (Stoke-on-Trent South) (Lab)
I am most grateful to my hon. Friend for his extremely thoughtful speech. It is worth putting on the record the fact that Dr Wilmshurst was determined to continue and not to retract because he was concerned that, if he did, people might suffer and even die, if a medical device was used that he felt was inappropriate.
Paul Farrelly
I agree with my hon. Friend. This case concerned comments made at an academic conference, and the Bill will avert such litigation, but that does not abstract from the general case of people acting in the public interest and being deliberately put through the mill to take them out of the game, to sully their reputation and to bog them down over a long time. Our court system really must address that as part and parcel of these reforms.
Clause 4 addresses responsible publication on matters of public interest. I welcome the clause, but again, as the Bill proceeds, the test will be whether it is a generally progressive reform that overcomes the deficiencies of the so-called Reynolds, or Jameel, defence, which it seeks to codify. That defence was only reasserted this March, in a rare case to reach the Supreme Court—the so-called Gary Flood ruling. As the Bill progresses, I hope that we will see whether the codification in the Bill matches the latest circumstances and developments in common law. The Reynolds defence was a defence of last resort for journalists. It was to be used when a newspaper made an honest mistake in reporting on a matter of interest.
The difficulties in mounting the Reynolds defence have been well rehearsed. The list of 10 principles, first enunciated by Lord Nicholls in 1999, were not supposed to be exhaustive, but in practice they have been used by judges in lower courts as 10 hurdles over which journalists and newspapers must jump to use the defence. It turns out to be a very expensive defence, and it affects how non-governmental organisations compile their reports and decide what they are prepared to write. I hope that during the Bill’s progress the Government can give us comfort that their factors (a) to (i)—not one to 10—will not have the same effect. The House might wish to explore alternatives to bolster the public interest defence.
As I, to much relief, move to conclude my remarks, I want to cite one case concerning the deficiencies of Reynolds and some of the changes introduced in the Defamation Act 1996. On the face of it, The Guardian’s investigation in 2008 into the tax affairs of Tesco should have benefited from Reynolds and other remedies, such as the offer of amends procedure. The Guardian alleged that Tesco, through the use of overseas subsidiaries, was avoiding tax. The company was indeed avoiding tax, but The Guardian, not helped by a lack of co-operation from Tesco, identified the wrong tax—corporation tax, rather than stamp duty land tax. It was an honest mistake. The thrust of the article was absolutely correct: Tesco was involved in elaborate legal tax avoidance schemes, and further investigation by Private Eye showed that it was also elaborately avoiding corporation tax.
In practice, however, The Guardian found that it could not use Reynolds because of how it was being interpreted. Tesco pressed on regardless, despite a lengthy apology in the newspaper and offers of amends. For good measure, it sued the editor personally for malicious falsehood, and by the time it was settled out of court, the case cost a small fortune. Had it gone to the bitter end, some estimates would have put the total at £5 million. For a giant corporation such as Tesco, money was no object. It was perhaps the worst case of inequality of arms that I have come across and that our Select Committee investigation came across, and the worst case of the intimidatory use of the libel laws by a corporation against a publication that we could remember. The test for the Bill is whether such a case could occur again. I encourage the Government to consider the circumstances of that case and learn lessons from it.
That leads me to my conclusion, which concerns one aspect of the Bill where the Government have not accepted a recommendation advanced by both the Select Committee and the Joint Committee on the draft Bill—reforming the ability of corporations themselves to sue for libel. I hope that during the course of the Bill amendments will be tested in that respect.
This has not been an exhaustive comment on the Bill. I welcome it but hope that during its passage the Government, having spent so much time on it, will be receptive to improvements.
Tom Brake (Carshalton and Wallington) (LD)
It is a pleasure to make a short contribution in what, so far, has been a consensual debate. It has been consensual partly because of the experience of many of the people who have participated and the knowledge they have brought to bear. Like other Members, I pay tribute to the organisations, individuals and Committees that have pushed this issue over many years. It looks as though we are close to a resolution.
The Lib Dem manifesto in 2010 stated that we
“believe it is an individual’s right to live their lives as they see fit, without discrimination, with personal privacy, and with equal rights before the law.”
We went on to say that we will:
“Protect free speech, investigative journalism and academic peer-reviewed publishing through reform of…libel laws—including by requiring corporations to show damage and prove malice or recklessness, and by providing a robust responsible journalism defence.”
Clearly, as we have heard tonight, other parties also committed to reform of the libel laws, and it is with great pleasure that the coalition Government have picked up this issue and clearly stated that we will review the libel laws to protect freedom of speech.
Many hon. Members have set out the reasons for reviewing the libel laws, drawing attention to the fact that although our libel laws have developed over many centuries, they are now outdated and are struggling to keep up to date with technology. It is embarrassing that foreigners can be sued in our courts on weak pretexts and that that has led the United Nations Human Rights Committee to take the view that our laws
“discourage critical media reporting on matters of serious public interest, adversely affecting the ability of scholars and journalists to publish their work”
and that libel tourism could
“affect freedom of expression worldwide on matters of valid public interest”.
The Justice Secretary said earlier that he did not think it was fair to describe our laws as an international “laughing stock”, and perhaps that is a little too strong, but I think that all hon. Members here this evening could agree that we should be seeking to make our laws an international blueprint.
We have all-party consensus on this issue, and we know from very recent history that that is not always the case on justice issues. It would be regrettable if we wasted that consensus. As has been said, by the shadow Justice Secretary I believe, only three Bills have touched on the subject of defamation since 1852, so it would be a pity if we did not use this opportunity to get this right. It would be particularly regrettable given that, as far as I am aware, no vocal and organised lobby is campaigning against these proposals. Individuals, particularly those with a legal background, have perhaps been lobbied personally, but I am not aware of a groundswell of opinion opposing what the Government are proposing, and that surely presents an opportunity to push a little harder than the Bill proposes.
A number of hon. Members have said that it is difficult to future-proof the legislation, but we need to ensure that as far as is possible it is future-proofed, because, as I and others have stated, these Bills come around only every 50, 60 or 70 years. When dealing with an issue such as libel, what we are really talking about is context, content, level of harm, author and intent, and those issues should, to a great extent, be technology-independent. If we have to come back to this issue every time the next Facebook or Twitter is developed, we will be chasing our tails year after year.
I said that there is scope for improvement to the Bill, and the Libel Reform Campaign, which has been prominent in pushing this issue, has identified areas where it believes a good start has been made, and I would agree with a single publication rule preventing perpetual liability owing to internet publication. We all know that once something is out there on the internet it is almost impossible to get rid of it, and it will continue to circulate without anyone being able to exercise any real controls over it. The LRC welcomes, as we do, the fact that we are introducing measures to ensure that libel tourism is stopped, even if it is not happening on the scale that people believe.
Other developments include withdrawing or restricting the right to trial by jury in such cases. Almost every hon. Member would normally be clamouring to maintain that, but it seems that there is almost unanimity on its inappropriateness to most libel cases.
Many hon. Members have referred to the areas where improvement can be made, so I will not dwell at too great a length on them, but they are: the public interest defence; the serious harm test; corporations; and, finally, protection for internet hosts and intermediaries, on which I know my hon. Friend the Member for Cambridge (Dr Huppert) wants to spend some time later, if he is lucky enough to catch the Deputy Speaker’s eye. The exchange between him and the hon. Member for North Antrim (Ian Paisley) highlighted that there are some differences on the sort of protection that can or should be provided to internet hosts and intermediaries, and to individuals who are being attacked by trolls using that sort of technology.
I am sure that the Minister has received the Libel Reform Campaign briefing—I have it here and I am sure he recognises it—which sets out some challenges to which I hope the Minister will be able to respond in detail, even if he is not able to do so today. I hope he will confirm whether, in his view, its concerns are being addressed by the Bill, and if that is not the case, whether the Government will endeavour to address them. If they believe the concerns are unjustified, I hope he will explain why. It would be in keeping with the way in which these exchanges have taken place so far—I believe that the hon. Member for Worthing West (Sir Peter Bottomley) referred to the consensual and open attitude that Lord McNally had adopted in relation to discussions on this matter—for there to be ongoing dialogue and improvements to the Bill.
On clause 4, the LRC recommends
“an additional defence…which protects genuine public interest statements made in good faith.”
It highlights the fact that that might limit the occasions on which the expense of a full trial was required. In other areas of justice, the Government have rightly been saying that we want earlier settlement, mediation and conciliation, so there must be a good case for ensuring that matters do not reach a full trial.
The LRC wants to see changes that
“shift the burden of proof to the claimant to show that the publication (on a matter of public interest) was irresponsibly published.”
It also believes that
“the nature of the publication should always be taken into account so that small or solo publishers (such as bloggers) are not held to the same standard in running a defence as a newspaper.”
Those are perfectly valid queries or challenges to the Government, to which I hope the Minister will be able to respond. The LRC also identifies some concerns about clause 1 and the serious harm test, and the extent to which it goes any further than simply restating the existing common law position. I hope that the Minister will be able to pick up on those concerns, too.
Corporations have been mentioned by a number of hon. Members, including the right hon. Member for Tottenham (Mr Lammy) and the hon. Member for Newcastle-under-Lyme (Paul Farrelly). I have already quoted from the Lib Dem manifesto; we specifically identified the area as one that we wanted addressed. It is absent from the Bill but I hope that some amendment or amelioration will be possible. Corporations are not individuals and should not have the same rights. Clearly, if individual directors were libelled they should have the same rights, but considering the extent to which corporations can use libel laws to manage their brand, as the Libel Reform Campaign has put it, we should be very careful to ensure that that cannot happen. It should not be simply about protecting an image as opposed to any real or substantial harm that might have been incurred as a result of comments that people might have made.
I promised to keep my remarks short and I always keep my word. We have made good progress on the Bill and I hope that the open approach that has been adopted so far by Lord McNally and the Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly), will continue. The Bill can be improved. We have a once-in-a-lifetime opportunity, so let us not pass it by.
Amber Rudd (Hastings and Rye) (Con)
This is a timely debate. The Bill might be uncontested, as we have heard from many Members, but it is not uncontroversial. Free speech and freedom of expression have been brought to the forefront by the Leveson inquiry, which is happening a mile down the road. In this House, we know that there is a fine balance to be struck in weighing the right to freedom of speech and expression against the right to privacy. As my right hon. and learned Friend the Secretary of State said in his opening remarks, when it comes to the law on defamation it is vital that we get the balance right. Every Member who has spoken has mentioned the difficulty of getting it right. The solution is not a simple one and great care and caution must be taken.
I, like many other Members, believe that our libel laws are outdated and have made it far too easy for the rich and powerful to suppress and stifle criticism. Even many small-time bloggers, journalists and academic professors are afraid to tackle important issues for fear of being sued—a sad reflection of the current law’s unintended consequences. The Government’s reforms seek to redress the balance, maintaining the importance of free speech while giving people the opportunity to defend themselves against unfair and malicious allegations.
We have heard a lot today about libel tourism. I appreciate that there are mixed views on the matter and on how much of a problem it is in the UK. Some Members have felt that it is overstated, others that it is not, but I think we all agree that it is a problem that London has been labelled in such a way. It is crucial to emphasise that not only the number of cases reflect the problem caused by the libel tourism tag. The threat of proceedings can be used to stifle much-needed investigative journalism, regardless of whether a case is ultimately brought.
I agree with the comments made by my hon. Friend the Member for South Swindon (Mr Buckland), who spoke so eloquently about libel, that it is important that everybody from every walk of life should have access to protection from libel. Libel tourism is hardly an attractive label to be attached to the UK. Here we are, in the mother of Parliaments, standing up for our country, and we do not want to hear that label used. We have so many wonderful attractions in this country—and, dare I say it, in Hastings—so let us try to lose the tag as a destination for libel tourism as we tackle the issue of defamation. I therefore strongly welcome the provision in clause 9 to tighten the test applied by the courts in cases brought against people who are not domiciled in the UK or the EU.
I support the provisions in clause 11 on the presumption against a jury trial in defamation cases. Of course, I understand the importance of trial by jury in most cases, where it provides a fair hearing for all concerned. Many Members have spoken about the importance of maintaining the true and honest right of British citizens to be tried by their peers, but the existence of the right for either party to opt for trial with a jury has its problems. As we heard earlier, it can often impede settlements, create additional costs and increase the length of cases which, on average, take about 12 months from the issue of court proceedings to trial.
The outdated law surrounding privacy and defamation is highlighted by the online traffic that many Members have discussed. Our internet hosting sites are a particular example. Twitter and Facebook especially have driven a significant rise in online libel claims. For example, last year a county councillor was ordered to pay £3,000 in damages and costs to a political rival over false claims made on Twitter. Operators of websites, both large and small, are also at risk of action against them in respect of comments posted by a third party. It is almost impossible for many websites, such as social networking sites, to police that. The owner of a book store would not be prosecuted for a sentence contained within a book sold at the shop, so why should online sites be fearful of such action being taken against them?
Dr Huppert
The hon. Lady is making an excellent point about how a bookshop should be treated, but unfortunately that is not what happens at the moment. Bookshops are subject to libel cases about books they are trying to sell, which they have no ability to defend.
Amber Rudd
I thank the hon. Gentleman for that intervention. That is a broader point about some books, but there are quite a lot of books that are not subject to such analysis. I am sure that the Minister will address that point later.
At the moment, internet hosting sites are obliged to remove allegedly defamatory material from their website when they receive a complaint, often without knowing whether the comments are defamatory. That is an attack on free speech and the Bill addresses that issue. The provision in clause 5, which offers website owners a new process governing the responsibility for publication on the internet, will undoubtedly give websites greater protection against a threat of legal action. I am sure that is welcomed by Members on both sides of the House.
Above all, I welcome, as I know my constituents in Hastings and Rye will, the clarity that the Bill will provide in an area that remains unsettled and unclear to many.
Let me mention clause 13, which repeals the Slander of Women Act 1891.
Michael Ellis
My hon. Friend is making some very powerful points. The Slander of Women Act 1891 will be repealed by clause 13, as she says, and that tallies well with the Government’s proposals to repeal a number of pieces of outdated and outmoded legislation. Does she feel that that rarely used piece of legislation should be repealed in such a way?
Amber Rudd
I am grateful to my hon. Friend for that intelligent question. The Act provided that slander imputing unchastity or adultery to a female is actionable per se. Although I naturally support adequate protection of women across the country, I think that goes a little too far. The Act does not apply to Scotland, so it is about time the rest of the UK followed suit.
I am confident that the Bill will redress the balance in the defamation rules towards freedom of speech in a way that is just and fair. The reforms are well overdue and, as we have heard this afternoon, widely supported by the public and the rest of the Members of this House. I therefore commend the Bill to the House.
Dr Julian Huppert (Cambridge) (LD)
It is a great pleasure to speak in this debate. We face a tough challenge in trying to write defamation laws. On the one hand, we want freedom of expression and, on the other, we want protection of reputation. We want to get the balance right while ensuring that the system is affordable, because the law should support whoever is right rather than whoever is wealthiest. We should also ensure that the law is accessible to all, not just to lawyers, and we simply do not have that balance. The costs are not right—they are far too high—and there is what has been described today as the chilling effect of people being silenced for fear of large costs, even in thoroughly unmerited cases. That happens. We have heard about a number of cases, including those that involved Simon Singh and Peter Wilmshurst. We have heard of publications such as Nature, Which? and the British Medical Journal, which do not feel that they can publish articles out of fear. It applies online as well—Mumsnet, WhatDoTheyKnow and many others.
While I was writing this, a case came up in my constituency, Cambridge. Richard Taylor, a local blogger and an extremely assiduous attender of council meetings who writes them up in immense detail, described a council meeting which was looking at enforcement action against a property in Cambridge being used as a bed and breakfast without the benefit of planning permission. This has led to a rather bizarre libel threat from an organisation known as WWFS Ltd or UK Law Consultants Company, who say they are consultant solicitors. Though I am not an expert in the field, the claim appears to me to be baseless, especially since the people making the claim refuse to say which part of his description they find defamatory. They have gone on to threaten other commentators.
Mr Taylor writes on his blog—all this is there, if anybody would like to look at www.rtaylor.co.uk—and this should worry all of us:
“My view is that this kind of thing is one of the reasons people shy away from entering discussion of how we run our society, be it at the local level in Cambridge or more broadly.
Having received the threat of legal action I have had to consider if I am prepared to risk everything I have in order to do what I consider to be the right thing and continue to publish the material. This is to an extent the question which has to be asked before publishing any material, every blog post and every tweet could potentially be personally ruinous.
Should the case reach court, the cost of defending it, even if the judgment was in my favour, could exceed my resources.”
A number of people with legal training and others are assisting Mr Taylor in the case and I think he will be all right. He is also determined enough to get through.
The current position is not acceptable. The Libel Reform Campaign was established in 2009 to try to make a difference. Lord Lester proposed his Bill in 2010. There was a Government draft Bill in 2011, and I had the great privilege of serving, with other Members who have spoken, on the Committee which considered that. The full Bill was tabled in 2012, led by the Minister, Lord McNally. It has been nice to see how this has captured the imagination. As John Kampfner, the chief executive of Index on Censorship, said,
“When we launched the Libel Reform Campaign in 2009, only the Liberal Democrats backed change. Now the cause has cross party support.”
That is absolutely correct. I pay great tribute to him and to everybody in the Libel Reform Campaign—Index on Censorship, English PEN, Sense about Science and all the other supporters that they have.
I would like particularly to mention one extremely dogged individual who has been involved with that, as well as with the Hacked Off campaign, Dr Evan Harris. I suspect that Members in all parts of the House will have heard his comments on the issue. I am delighted by the cross-party support that we have.
This is a good Bill, but with some tweaks it could be a great Bill. I am delighted by clause 1. The serious harm test is right, but it should be coupled with a strike-out power so that cases could be quickly ended where there is no serious harm to consider. I support clauses 2, 3 and 4 as they codify the common law, which means that non-lawyers such as myself can find out what the rules are, without having to plough through case law after case law.
With regard to clause 4, I am pleased about the codification of Reynolds, but it is still a complex defence. Some improvements can be made, as Members have mentioned. I hope the Government will consider the possibility of a simpler, clearer public interest defence which would apply where defendants take appropriate action to correct any errors or inaccuracies that they have made, as has been suggested by the Libel Reform Campaign. I do not expect the Government immediately to say yea or nay to any such proposal. It needs to be considered very carefully, but I hope they will look at it. If we could find something like that, it would be an excellent improvement.
Clause 6 is a key change from the draft Bill and shows the value of pre-legislative scrutiny, which I hope will be applied to a number of other Bills, as it is shortly to be applied to the draft communications data Bill. Clause 6 is extremely welcome. I pressed hard for this. My experience as an academic scientist made me particularly concerned and I was especially pleased when the Secretary of State announced, in response to a question that I asked him, that there would be a change to give protection to academics and scientists publishing peer-reviewed articles.
Currently, journals are afraid of publishing peer-reviewed statements, and academics can be afraid of making the statements that they need to make. There has been an insidious silencing of rigorous scientific debate. A survey conducted by Sense about Science in 2010 found that 38% of editors of scientific journals have chosen not to publish certain articles because of a perceived risk of libel, and 44% have asked for changes to the way articles are written to protect themselves, not necessarily because they thought there was a genuine case to answer. Journals such as Nature, the British Medical Journal and a range of others are not libel experts and should not be expected to be libel experts.
Dr Sarah Wollaston (Totnes) (Con)
Does my hon. Friend accept that that should be extended to national newspapers? There is indeed a stifling of debate about scientific issues in the national press, and very many of our constituents do not read the scientific press and need access to good scientific debate in the national press.
Dr Huppert
I thank the hon. Lady for her comment. She is right that we need to encourage more educated scientific debate among the general public. That is a larger issue than the subject of the present debate. The question is how far one goes in providing the sort of privilege that we are talking about. Peer review processes are significantly better developed than what we see in newspapers. I would expect newspapers to have more access to lawyers who could advise on libel because they deal with a range of issues. But there may be ways of going slightly closer to what the hon. Lady suggests and I would encourage something like that to happen.
Bob Stewart (Beckenham) (Con)
Is it not possible that we could have a sort of citizens advice bureau for people who are thinking of publishing something so that they could go to someone who understands the issues, without having to go through the law to get guidance quickly, so that good debate is not stifled?
Dr Huppert
I thank the hon. Gentleman for his comment, and I can see where he is coming from. The clause goes further than that and it is better. It says that for peer-reviewed academic publications, unless they are malicious, there is no risk. So the citizens advice bureau approach is not necessary. Anybody publishing in this way knows that they are fine, as long as they are not being malicious, and I hope people would not seek to be malicious in this way.
However, we do see such cases, and not only the famous ones. In the past six years one in 10 of all High Court libel cases have involved an academic or scientist. It is a real issue, and I believe firmly that scientists and other academics should focus on doing research in their field, not on researching the law. That protection is very welcome.
Clause 10 is another welcome addition to the Bill, particularly because it protects booksellers. As the hon. Member for Hastings and Rye (Amber Rudd) mentioned, they sometimes face cases on questionable materials. If they are selling two such books a year and are not interested in defending the case, they just remove the book from their stock. It should be the author who is responsible, wherever possible.
I support most of the other clauses. I am pleased to see clause 7, which extends some of the privilege protections, clause 8—the single publication rule—and clauses 9, 11 and 12. I am pleased to see clause 13, which gets rid of the Slander of Women Act 1891. Society has moved on slightly in terms of gender roles since 1891.
This is a good Bill, but there are still some areas of concern. I agree with those who have said that one of the key areas that has not been looked at enough is costs. It is key to get the costs right, but that is not entirely within the Bill. Cost is not just a matter of writing legislation. Legislation alone does not solve every problem. The Government need to do a little more work to make it clear how they will reduce costs, in addition to the legislative changes that are being made.
Then there is the issue that has been touched on recently about corporations and other non-natural persons. I agree with my right hon. Friend the Member for Carshalton and Wallington (Tom Brake) that non-natural persons are not natural persons: companies are not the same as people. They do not have feelings in the same way and they could be treated differently. There have been many cases, such as the McLibel case, of corporations which abuse their power and their resources to take unreasonable libel actions.
The Joint Committee recommended that corporations should have to prove that they have actual, substantial financial loss and that they should have to get permission from the court in order to take actions. That seems a modest way to go, given some of the other proposals, which are quite tempting. An extreme view is that corporations should not be allowed to take libel action at all. This has been tried in Australia, so that only corporations with fewer than 10 employees are allowed to take any sort of libel action. I have spoken to a number of lawyers in Australia, and that does not seem to be the best way to go. I hope the Government will not go ahead with that idea, although I was initially attracted to it.
I rarely disagree with comments from the Libel Reform Campaign, but I do not like the idea of courts being asked to make declarations of falsity. I was initially persuaded of that, as people who served on the Committee are aware, but I think on balance that it is hard to expect a court to say definitively, “This statement is false,” because new evidence can come up. It is a very hard thing for any court to say.
Lastly, let me turn to clause 5, which deals with an incredibly complex area. I think that the idea of a new defence is a good approach, but it needs to be tweaked somewhat and the Government’s proposed regulations should be published and available for discussion alongside the Bill. I hope that the Government will be absolutely clear that this new defence is an optional one that website operators can use but do not have to. It does not impose on them a duty; it merely gives them a defence if they comply with some regulations. Furthermore, I hope that the Government are absolutely clear that the existing defences from the e-commerce directive remain in place and that the rules about being a mere conduit and so forth still apply in exactly the same way they have done. It is very important that we do not see any inadvertent weakening of the protections available.
It is also important that we are clear that the good practice of post-comment moderation used by some website operators, whereby they try to do their bit to filter out the things they can tell are inappropriate, does not itself bring about liability, so long as that does not change the meaning in a damaging way or significantly increase the scale of publication. This was recommended by the Joint Committee and accepted by the Government, because if the BBC, for example, spots something inappropriate and removes it, it is important that that does not render it more liable to the thing that they could not have spotted because they would not know the facts of a case.
It is also important that there is an ability to preserve some anonymity. It is right that action should be taken against a person who posts something online, but there will be cases, such as those of whistleblowers and dissidents, in which there is a real reason why anonymity should be preserved. The key point is that there should be a communication channel between the person complaining and the original author, even if that is mediated by a third party.
This is a very complex area, and I welcome the fact that the Secretary of State said at the beginning of the debate that he was open to considerations to try to get it right. I hope that either he or the Minister will be able to arrange for the Bill team to meet me and the Libel Reform Campaign, internet service providers and organisations we have been talking with, such as Facebook, Google, Yahoo and Mumsnet, to discuss how we can get this right so that we get what we all want: something that works in a clear and simple way and gives the right protection to the people we wish to be protected. This is a good Bill and I am delighted to support its Second Reading.
Michael Ellis (Northampton North) (Con)
It is a pleasure to follow my hon. Friend the Member for Cambridge (Dr Huppert), who is a fellow member of the Home Affairs Committee. It will come as no surprise to Members that I support the Bill. I do so because it defends the sanctified right of freedom of speech that this House has sought to protect for generations and, I expect, will continue to seek to defend. But it is also a good Bill because it recognises that there are limitations to the right of freedom of speech—sadly, the courts have not always recognised in recent years that there are limitations to certain rights. With every right there is a responsibility, for example, and it would not go amiss to notify the human rights courts of that point occasionally. The right to freedom of speech has been recognised in the courts for many years but, to use the classic example, it does not extend to allowing a person to go into a crowded theatre and shout, “Fire.” We have to recognise that those rights must be curtailed.
The Bill will rebalance the law to ensure that people who have been defamed are able to protect their reputations, and it is right that they should be able to do so. Freedom of speech and freedom of expression are not, and must not be, unjustifiably impeded by actual or even threatened defamation or libel actions. The reality is that sometimes even the threat of a defamation suit can prevent a person from making a fair comment on something, giving an opinion about a product, service or individual, or expressing a doubt about something. Many will take the view that it is simply not worth it and decide it is easier not to refer to a particular area of controversy because they do not want to risk getting a solicitor’s letter and the very expensive defamation actions that would follow. The Bill will ensure that the threat of libel proceedings is not used to frustrate scientific, medical or academic debate, for example. Sadly, there have been examples of the peer-reviewed work of academic experts and others and their freedom to speak freely on those subjects being endangered by threats or actual suits for defamation.
We need to reduce the potential for trivial claims and address the perception that has arisen in some parts of the world that this country is suitable for libel tourists, the people who come to this country, despite the fact that only one or two of their books or magazines have been sold here, to take an action for defamation because the law in their home country is in some way unsuitable for their purposes. We do not want this country to be seen as a libel tourism haven, and that is addressed in the Bill.
In my judgment, it is right that the test for determining that a statement is suitable for defamation proceedings is whether it has caused “serious harm”. Cases sometimes go before the courts in this country when even a reference to someone being ugly or in some way antisocial is enough to justify a libel action. It is a matter of fact and degree, but in my judgment it is right that serious harm should be proven before a statement can really be considered defamatory.
The Bill also deals with the new statutory defence of responsible publication on matters of public interest, to which I have already alluded. Such things as peer-reviewed academic, medical and scientific analysis, which sometimes necessarily has the effect of rubbishing someone else’s academic work, should be appropriately open to debate, so long as there is no clear malice, and not subject to over-sensitive legal actions. The Bill updates and extends the circumstances in which the defences of absolute and qualified privilege are available, including extending qualified privilege to peer-reviewed material.
I am also impressed by the way the Bill goes some way towards addressing the issues that have arisen in recent years concerning the publication of defamatory material on the internet. The single publication rule that the Bill introduces will prevent an action from being brought in relation to the publication of the same material by the same publisher after the one-year limitation period. It has been quite easy for people to take defamation actions against newspaper websites, for example, and others if they repeat the libel that was originally the subject of an action. It is very easy for those websites to be insufficiently monitored so that they repeat the libel and a further and new action can then be taken. It is right that a limitation of one year be put on that, because the nature of the internet is such that it is very easy to draw down the material that was the subject of the libel and repeat it.
Another feature of the Bill that has been referred to in the Chamber is that it will remove the presumption of a jury trial in defamation actions. I would passionately seek to defend the right to a jury trial in almost every case, and certainly criminal cases. There are now very few civil cases that would be subject to jury trial—I can think of malicious prosecution, false arrest and false imprisonment, but very few others.
This Bill will not remove the right to a jury trial in defamation proceedings, but it will remove the presumption that a jury trial should be the forum that is utilised. We should of course trust our judges to exercise their lawful discretion to order a jury trial when they think it appropriate, and there will be some cases in which a jury trial will be appropriate, especially one involving one person’s word against another when there is very little other ancillary evidence, because juries are equipped to make a judgment on witnesses when they hear them from the witness box.
Guy Opperman
On jury trials, does my hon. Friend not accept, however, that in civil liability trials and in all number of other pieces of litigation, the judge is taken out of the assessment of the truth of individual witnesses, and that credit is something judges are well used to judging on a regular basis? Does he not also accept that there is a possibility of our merely returning to a situation in which we have endless jury trials, instead of trusting the judges to get on with the decision?
Michael Ellis
I recognise my hon. Friend’s point, and the common law will no doubt develop in this area, but I hope that, if this Bill becomes law and removes the presumption in favour of jury trials, judges will recognise that jury trials will be less frequent than heretofore. I will be corrected if I am wrong, but I seem to recall that until relatively recently juries in defamation cases had a part to play in deciding the quantum of damages after successful defamation proceedings, and I recall also some rather large figures for damages awarded against various periodicals. I am a great fan of Private Eye, possibly because I have not featured in it—[Interruption.] I am not inviting it, and I emphasise that!
Michael Ellis
The less said about that, the better. I remain a fan of that periodical, and as far as such proceedings are concerned we have to move with the times, because defamation law has not tended to move with them sufficiently.
Jacob Rees-Mogg
My hon. Friend says that we should move with the times. Surely we are Conservatives and should be turning the clock back.
Michael Ellis
Notwithstanding my hon. Friend’s pertinent observation about our party of support and care, I think it is right—I know my hon. Friend will agree—that the Conservative party has moved with the times. It is the longest-serving political party anywhere in the democratic world because it has tended to move effectively with the times over the generations.
Few colleagues have made the point that the Bill will rightly provide a power for the court, under the existing summary disposal procedure, to order publication of a summary of its judgment, which will be available in defamation proceedings generally. It is my understanding that the courts will be able, in certain circumstances, to order the offending publication to reprint some or all of its judgment. That will be quite useful if a judge feels that there has been an egregious failure by the periodical which is not going to be met other than by his or her intervention to ensure that proper redress is made in terms of the court’s ruling. The hon. Member for North Antrim (Ian Paisley) referred some time ago in this debate to a page 1 splash, which a few months later results in a postage-stamp-sized apology on page 52. A judge will be able to order, if he or she wishes, that a transcript of the judgment be reprinted in full in the newspaper. That will be quite powerful for the courts, and an effective measure.
The secondary publishers to which hon. Members have referred, namely the vendors, bookstores and booksellers, need greater protection from civil suit in any defamation action that may be brought against them. There may be certain circumstances in which it is appropriate to take punitive action against a bookseller or a company that disseminates libellous material, but it ought to be a secondary measure. The primary purpose—the primary avenue—should be to take an action against the author and publisher of the offending work, and the disseminator should be involved only if necessary, appropriate and reasonably practicable. I therefore approve of all those measures, which will be rather effective.
We need to remove the trivial and unfounded cases and raise the bar for bringing a claim. I am conscious that it is sometimes prohibitively expensive to take an action for defamation, and colleagues have referred repeatedly to the chilling effect of the costs involved. That can itself be limiting, and a principal concern of mine is that individuals who are without means or even of “middle” means—if I can put it that way—are not able to take the same action as a wealthy individual or a news company that has a greater ability to fight and to defend actions in what can be very expensive defamation proceedings.
In short, this Bill has my support for all those reasons. It is clearly a necessary measure in order to modernise the law of defamation, and in those circumstances I expect it to have considerable support on both sides of the Chamber.
Guy Opperman (Hexham) (Con)
I, too, support the Bill, and on defamation I fundamentally believe, as Shakespeare wrote:
“The purest pleasure mortal times afford
Is spotless reputation: that away,
Men are but gilded loam or painted clay.”
That was said in “Richard II”, a king who sadly did not last long enough as a Yorkist to enjoy much of his spotless reputation, as he was shortly killed thereafter, but his reputation, spotless as it was, went with him to the grave.
The world is clearly changing. My hon. Friend the Member for Northampton North (Michael Ellis) and I shared an illustrious, or non-illustrious, career as barristers in a former life, and my old copy of “Carter-Ruck on Libel and Slander”, the definitive edition from 1997, features not a single paragraph about libel and slander on the internet, because of course such a thing did not exist in those days.
We now face the dreaded heretic that is the internet troll. Many of us would not have known, until a couple of years ago when we took public office, what an internet troll was, nor would we have been subjected to the great delights of annihilation in print or prose, such that we all now have to face the slings and arrows of outrageous internet fortune on a regular basis, but the development of the law requires this Defamation Bill, which we are considering, and it can only be a good thing.
My hon. Friend said that we must move with the times, but sadly the reason why we have Lord Leveson’s inquiry is that too many political parties moved with The Times for far too long, and Mr Murdoch and his empire have been far too close to too many people on a repeated basis—such that I am beginning to distance myself from The Times.
Guy Opperman
I accept the possibility that my hon. Friend was not referring to that, but was referring to the development of events over the past few years.
It is absolutely vital to ensure that we have a free press and an ability to speak out without fear or favour—that is fundamental—but justice must be accessible to the people who receive comments from such a press. The Bill definitely increases that accessibility, and I welcome that wholeheartedly. Any interpretation of such legislation must take account of the countless stories told throughout this debate of people whose reputations have been annihilated on the internet and elsewhere.
Bob Stewart
Would it not be fair for people of little means to have the opportunity to go to, say, a defamation ombudsman who could give them advice and help them before they spend one penny? At the moment, the law seems to be available only to those who can afford it, and that is wrong. It should be possible for a man or woman of no means to be able to go and get decent advice from someone who knows what they are talking about.
Guy Opperman
I am delighted to say that to a certain extent such advice does exist. There more developed citizens advice bureaux and victim support organisations are able to provide such assistance, as are the Bar Pro Bono Unit and the Free Representation Unit. I have represented individuals in libel cases as part of the Bar Pro Bono Unit, and there will certainly continue to be such accessibility. However, my hon. Friend identifies one of the fundamental flaws in the Bill, which I hope will be remedied in Committee.
The Jackson report that was instituted by reason of the Legal Aid, Sentencing and Punishing of Offenders Act 2012, which we passed on 1 May, ensured that there is no ability to recover the cost of insurance for the litigation. The consequence of that is that individuals who wish to bring such litigation against a newspaper would have to risk a great deal were they unsuccessful. There is a way round that. The way forward is for the courts is to develop what they have developed in other branches of the civil litigation arena—a protective costs order. In the case of Compton v. Wiltshire primary care trust, the protective costs order was extended to a local group of individuals to make the case a matter of public interest. This means that were someone to wish to bring a civil action against a public organisation or a newspaper and it was in the public interest for them to do so, they would be protected were they to lose the case because the very fact of bringing that action constituted something that was in the public interest. I suggest that we will see that development in libel and defamation law. As my hon. Friend the Member for Northampton North said, common law will develop to accommodate the fact that, sadly, there is no legal aid and precious little to assist the individual litigant in taking a case against the newspaper or public institution that has defamed them.
The nature of this Bill is such that there is general agreement that we need to move forward and have a better understanding of such access to justice, which is patently not there at the moment. I should make a declaration as a trained mediator and as someone who was at the Bar and has earned a moderate living as a barrister. [Interruption.] I was not a very good libel lawyer, I hasten to add. The shadow Minister just said that I used to practice extensively at the Bar in this field, but I assure him that I was of no quality whatsoever in libel cases; I got far too irate. A greater use of mediation at an early stage can only assist. Looking at the various problems that arise in libel, the mediation and the apology at the early stages are most important, not necessarily the damages that are ultimately sought, but we get so enmeshed in the process of litigation that we end up with a case that has mushroomed way beyond the reality of the loss entailed. I therefore welcome the extra mediation and alternative dispute resolution processes that the Bill will bring about.
I warn that there can be a sad tendency to have a great deal of discussion at the early stages of the litigation process. I have witnessed that in many a case. One has to clear hurdles at the outset to prove that the nature of one’s case gets over a certain threshold and it would be not unheard of for a newspaper or a public organisation with deep pockets suddenly to attack the individual and say, “We don’t accept the judge’s finding that you’ve got over this hurdle—we shall appeal this.”
I represented Mrs Compton in the case of Compton v. Wiltshire primary care trust, which concerned the health services in the constituency of my hon. Friend the Member for South Swindon (Mr Buckland). There were 14 separate pieces of litigation involving the primary care trust that went all the way to the House of Lords on seven separate occasions. Her original hurdle was overcome and tested all the way to the House of Lords. These early hurdles must have a finite end. If one has a preliminary hurdle to get over in a defamation case, as is now set by the Bill, there should be one single right of appeal and then the matter moves on. Without that sort of process, an individual may find themselves enmeshed in ever-deeper litigation before the case has even got off the ground. By that stage, years have passed, their reputation is gone, and their ability to respond to the libel or defamation has totally dissipated. I warn the Minister that there needs to be strict guidance on the maintenance of the alternative dispute resolution process as it goes through.
I am glad that my hon. Friend the Member for South Swindon has returned to his seat. I sat through his lengthy and impressive speech, in which he said, if I remember correctly, “The law, like the Ritz, is always open.”
Guy Opperman
I apologise to my hon. Friend. It is possible that he dines in larger and more salubrious establishments than the rest of us, who are more Little Chef and Happy Eater people. I am sure that those days of the Ritz are sadly gone.
As lawyers practising in this field, we know that it is important to have accessibility, because without that there is no justice. There is a long history of those who have been defamed, from Oscar Wilde to Winston Churchill to Marie Stopes to W. E. Gladstone. It is good to see the Liberal home affairs spokesman, the right hon. Member for Carshalton and Wallington (Tom Brake), in his place. Of course, Gladstone was the last man to be libelled from the grave. His son took an action on behalf of the reputation of W. E. Gladstone and his family, who he felt had been maligned and libelled, and was successful before a jury trial.
That brings me nicely, with a slightly Radio 2 link, to jury trials. That issue must be addressed with robust guidance. It is not sufficient to say to the courts that the presumption should be against jury trials. The Secretary of State said that in matters where there is a genuine test of credibility, there would be a jury trial. I entirely accept that, but it would be extraordinarily rare to have a libel case without a genuine test of credibility. The whole purpose of libel law is to test the meaning and intent of certain words.
Michael Ellis
Does my hon. Friend accept that in many cases it will not only be about the word of one person, the plaintiff, against that of the other, the defendant, because there might be supportive material that backs up one against the other, such as e-mails, an exchange of letters, other documentary or ancillary evidence, or supportive or corroborative evidence from other witnesses?
Guy Opperman
I regret that my hon. Friend—eminent lawyer, lion of Northampton and feared throughout the west midlands legal circles though he is—has identified the fundamental problem with his own argument in a sort of self-defeating prophesy. There will surely be an assessment of the individual merit of these e-mails and of whether they have been written by an individual who can be accounted for. All those matters will come under the test of credibility that he has espoused and that was put forward by the Secretary of State.
That all goes back to the issue of a jury trial. I have no problem with jury trials. I conducted nine murder trials and umpteen Crown court trials. The short point is this: if we are to reform the libel system so that defamation is no longer tried by a jury, save in the most exceptional circumstances, the test cannot be, “Who do we believe?” As I attempted to explain earlier, that question is assessed by district judges, county court judges, circuit judges and every other judge in the country on a daily basis. We do not need a jury trial to assess that. One could argue that 99% of all trials in this country are conducted in the absence of a jury, when judges assess the merits of an individual’s credibility. With respect, I urge the Secretary of State and the Committee to address this issue so that there is proper guidance on it.
This matter has rightly been dealt with on a cross-party basis. I support the idea of having a draft Bill. It is patently clear to those of us who have endured the delights of guiding such wonderful Bills as the Health and Social Care Bill through this House, drafted as well as they were, that we are now debating a Bill that has been considered by sane and intelligent persons on a cross-party basis, and that we are therefore fine-tuning rather than redrafting. That, I assure the House, is something that we should all welcome.
Heather Wheeler (South Derbyshire) (Con)
It is a pleasure to follow my hon. Friend the Member for Hexham (Guy Opperman). I come at the Bill from a completely different perspective, because I am definitely not a lawyer. I am very much a poacher turned gamekeeper on this matter, because in another life I was an insurance broker—even worse than a lawyer—and I used to place libel and slander policies at Lloyd’s. When I saw this debate on the Order Paper, I therefore thought, “You know what? This is one for me.”
Having sat here since half past 3, I have been considering whether to give the five-minute speech, the 10-minute speech or the 15-minute speech. I have not had the nod and the wink from the Whips to say that it should be the three-minute one because we are getting to the later stages of the debate. As has been said, there is cross-party agreement on this matter. Is that not a breath of fresh air in this Chamber?
Clauses 2, 3, 4 and 9 are particularly helpful. They have all been expanded on by learned friends, so as a mere humble Back-Bencher and political hack, and not a lawyer, I do not need to expand on them further.
Heather Wheeler
Indeed, not learned at all.
What is fascinating to me is that the Bill is drafted so clearly that the person on the Clapham omnibus will be able to understand it. Two years into this glorious coalition Government, is it not something that we are finally getting a Bill about which the person on the Clapham omnibus will be able to say, “That protects me. I understand that.”? It can be understood not only by lawyers, but by MPs and ordinary people who do not earn their money by standing before people with wigs—you are not wearing a wig tonight, Mr Deputy Speaker, so I can genuinely say that. We have found a Bill that the people will rejoice at. There should be greater publicity about the process by which this Bill has come about. It should be held up as a burning light to demonstrate what Parliament can do when it does the right thing and gets behind something.
It is an even better Bill because it fits with the great coalition pledge of one-in, one-out. We are getting rid of a horrendous piece of law that has been in force since goodness knows when.
Heather Wheeler
Since 1891—what an amazing piece of legislation to be getting rid of! Again, that is something of which this House should be eminently proud.
Ministers have been asked a few questions and for a few clarifications. I will sit here to the bitter end, because I want to see the Bill through. To repeat myself, it is interesting that we finally have a Bill that lay people can genuinely understand and say, “Well done.” I thank everybody who has been part of the process of putting it together. I look forward to hearing the winding-up speeches from the Front Benchers in due course and I commend the Bill to everybody.
Jacob Rees-Mogg (North East Somerset) (Con)
I thought I might throw a few pebbles into the pond of consensus that there has been so far. We have had near enough five hours of consensus. It is now time to hear a little from the other side.
First, as a general principle, when all parties agree on something, it is usually a mistake. We have found that historically. The cut and thrust of debate, with one side saying one thing and the other putting forward the alternative view, is enormously powerful in getting to the right answer. I am rather suspicious when we have a lawyerly committee that comes together. I am so pleased to follow my hon. Friend the Member for South Derbyshire (Heather Wheeler), to break into the lawyerly cabal and give the view from the layman. So first, I have a suspicion of consensus in principle.
Secondly, as my doubts were beginning to grow, at the end of his fine speech, the Lord Chancellor said that this was a “sound piece of modernising” legislation. It seems to me that the words “sound” and “modernising” never go together. If something is modernising, one ought to be suspicious of it. We had modernising from 1997 to 2010 and it almost bankrupted the nation. Therefore, “sound” and “modernising” are not compatible.
I think back, of course, to the coalition agreement. It is a great pleasure and a daily joy for all of us to be in coalition with our Lib Dem friends, allies, compatriots.
Jacob Rees-Mogg
I am so pleased to hear that it is mutual. I say that for the benefit of the Hansard Reporters in case they did not catch it, although they have such sharp ears that I am sure they did.
The Bill is something that the Lib Dems asked for in the coalition agreement. It is a major piece of legislation, which we are pushing through at the very earliest stage of the second Session of Parliament. We should remind the Lib Dems that this is their legislation. When they come back and ask for more legislation later in the Session, perhaps to do with constitutional reform, we can remind them that they have had their fair share and that we have been relatively sotto voce about our concerns over this Bill, so they cannot expect to have any more.
Jacob Rees-Mogg
I have been listening for the last five hours to how amazingly important the Bill is and to the view that it is short but perfectly formed. It seems to me, therefore, that the power of the Bill and the effect it will have should not be underestimated when we look at the scales of coalition balance. At the moment, they are weighing down heavily on the Lib Dem side and I think that we might need a little counterweight for the Conservatives later in the Session.
I want to consider the merits of the Bill and the whole idea of what we are trying to achieve. We have heard from other Members about freedom of speech, which is something of the utmost importance—the cliché of the evening, but it is a true cliché. Freedom of speech is under attack from the Leveson inquiry, which wishes to bind down journalists to rules of good behaviour, and sometimes from libel lawyers.
However, we should also consider the question of reputation, defamation and how we should protect people when they feel they have been hard done by. My hon. Friend the Member for Hexham (Guy Opperman) quoted Shakespeare. Two can play at that game, so I though I would too:
“Good name in man and woman, dear my lord,
Is the immediate jewel of their souls.
Who steals my purse steals trash—”
in my case butterflies and moths, and things like that—
“‘tis something, nothing;
‘Twas mine, ‘tis his, and has been slave to thousands;
But he that filches from me my good name
Robs me of that which not enriches him,
And makes me poor indeed.”
So it is right that there is some protection in our legal system for people’s good name, even though that impinges on freedom of speech.
There are already many protections in the law for freedom of speech. We are fortunate to enjoy under the Bill of Rights an absolute privilege for anything that we say in this Chamber. It can never be used in any court of law. We can be as rude about people as we like—not that I am going to use that privilege this evening, but it is a privilege of absolute free speech.
It is to be welcomed that the Bill maintains that truth should be a defence in a defamation action. That seems perfectly sensible and wise, although I know Pontius Pilate questioned what truth was, and there is always that issue to consider. Truth is not necessarily as absolute as it can sometimes be thought to be off the cuff, so to speak. There are elements and forms of truth, and of course in the oath that people take in courts there is “the truth, the whole truth and nothing but the truth”, indicating different levels of truth.
Fair comment, which has been allowed in the past, is now being made clearly part of the law, which is absolutely splendid. If people wish to air their disagreements and phrase themselves strongly, that is all to the good and to be encouraged, and it should be protected as part of free speech. However, what if the defamation is serious? What penalties should there be then? Who should decide, and who should be charged?
I am concerned about the liberties that we are giving to internet service providers and to people who are responsible for websites but deny any responsibility for their content. They become more and more powerful as time goes on. There are two or three firms that dominate the world in that sense, but they are not necessarily on the side of the individual who is defamed.
I had my own little issue with somebody who set up a highly amusing Twitter account in my name. It was not done by me—it was much funnier than I could ever have been—but there was nothing that I could do to stop it. It went on churning out comments that some journalists thought I had made. I always thought I could say my own silly things without anybody saying them on my behalf. There needs to be some recourse for people who are impersonated and defamed through that impersonation. The responsibility ought to lie with the internet companies, which ought not to have a great exemption that allows them to tarnish people’s reputations without any great difficulty.
I have some specific concerns about the Bill and the argument that has been developed today. The first is about jury trials. We heard from the Lord Chancellor and others very good arguments for getting rid of juries—that they are expensive, that they are inconvenient, that they make the process more difficult for m’learned friends. However, that requires that we should have absolute faith in the wisdom of judges, and personally I do not. They are broadly good and wise eggs and do their best under difficult circumstances, but they are not omniscient. I feel that if my reputation were on the line, it would be safer in the hands of 12 good and true men and women of this country—ideally, of course, of Somerset. That would be the best way to protect one’s reputation. I accept that it is expensive, but it is more just.
That is particularly important in any libel case that has a political tint about it, because judges are part of the establishment. They are there, in some ways, to uphold the establishment, and we see from some of what they come up with when commissioned by the Government to write learned reports that they often fall on the side of the establishment. Lord Hutton was the supreme example of that a few years ago when he produced a most extraordinary whitewash of all that had gone on over the Iraq affair. I therefore do not believe it is right or wise to use the argument of convenience, which could be used to abolish juries in every trial in the land for all time.
Michael Ellis
Does my hon. Friend accept that the Bill simply removes the presumption in favour of a jury trial? Does he also acknowledge that part of the difficulty with jury trials in defamation actions is that the fact of a jury trial being so much more expensive can and has been used by those who have substantial means who are seeking to put off putative plaintiffs from taking defamation action in the first place?
Jacob Rees-Mogg
My hon. Friend makes the point that the Bill takes away the presumption in favour of juries, which is fair enough. I would put that presumption back. I would trust juries to make the decision, because they are better at doing so than judges, and because a jury decision is more just. The presumption in favour of a jury is less likely to leave one under the hammer of the establishment if one falls on the wrong side of it. It is true that establishment views are sometimes hard to break through, and judges are establishment creatures, so I would always trust juries against judges.
Mark Reckless (Rochester and Strood) (Con)
My hon. Friend makes a compelling argument for retaining the presumption in favour of a jury trial for libel. Will he go further and support the re-establishment of juries in the criminal proceedings at which the previous Government chipped away, and in the broad range of civil matters in which jury trial is no longer available?
Jacob Rees-Mogg
I am in absolute agreement with my hon. Friend. Those who attack juries often take a grand view of people in public life. They think that people who are in office of some kind, or who have a seal from the Crown, are grand fellows who know everything. I think we should trust the people—a sound Conservative party slogan from the 1930s. When brought together randomly, the people make better decisions—after all, they sent hon. Members here—than the most learned judges in the land.
Any attack on juries is a part of the continual chipping away at one of the great protectors of our ancient liberties. We might believe that this attack does not matter because all our liberties are not under attack nowadays, but our liberties are always under attack. It is in the nature of Governments and judges to get more power for themselves and to suck it out from the people to whom it rightly belongs. Members of the House, representing the Commons of England, Scotland, Wales and Northern Ireland—although in this instance, we are discussing only English and Welsh law—should always be on the lookout for any attack on the rights of the people.
The cost of jury trials, which was mentioned, is part of the mishmash of saying such trials are less convenient. If jury trials are expensive, we should ask: “Is justice worth paying for, or should we penny-pinch?” Of all the things the state pays for, law and order, defence of the realm and justice are the three bulwarks on which our rights depend.
I want to criticise a couple of little points in the Bill—they are less important than the jury system, but few things are as important—the first of which is the protection of academics unless they are malicious. When one of my hon. Friends said earlier that academics are not malicious, I laughed inwardly, because academics have a reputation for having some of the most spiteful battles of any profession in history when they disagree. We should be careful in saying that academics are frightfully lovey-dovey—even people in the acting community are probably quite tough with one another behind the scenes. We should not make the assumption that academics should be protected against the requirement to tell the truth just because they are academics. If what a person says is wrong, and if it defames somebody and damages their livelihood, whether they are a regius professor or a tabloid journalist ought not to make any difference.
Another thing I would like to keep—I will be accused of being old fashioned for this—is the Slander of Women Act 1891, which protects the reputation of ladies. I cannot see any reason for getting rid of it. It is rather a shame to make our law so dry and drab that we have no elegant ornaments on it to protect the reputations of those who deserve a higher degree of protection than we gentlemen.
Ultimately, there is a battle between defamation and free speech. Our newspapers, much maligned though they have been in recent months, and possibly over the last couple of years, are the most fabulous protector of our freedoms and liberties because they are so rude—because they do spy on politicians; because they do publish stories that we do not like. They embarrass us; they make us look foolish—sometimes even corrupt. That embarrassment and shame have made British public life the most honest of any country in the world. We should always protect that freedom of speech from the forces of law or the forces of Leveson—it does not really matter which: freedom of speech is very precious. But if newspapers misuse that freedom of speech, let them be punished in the defamation courts. Let them be fined and have a penalty to pay, along with the costs of a jury, because that is what has given us such a good and well balanced system—a system that ensures our liberties, but compensates those who are defamed.
Robert Flello (Stoke-on-Trent South) (Lab)
We have had an excellent debate this evening. We have had some extremely informed contributions from across the House—some short; some somewhat longer; some, indeed, quite lengthy—and the debate on the Bill will be all the richer for those varied contributions.
I would like to begin by putting on record my thanks to all Members, from both Houses, who worked on the Joint Committee considering the draft Defamation Bill. They provided excellent observations which improved the Bill to a huge extent—indeed, to an extent that anyone listening to this evening’s debate will not comprehend. I also add my thanks to those my right hon. Friend the Member for Tooting (Sadiq Khan) gave at the start of this debate to the key people and organisations—to the Libel Reform Campaign, which did fantastic work; to Dr Simon Singh, who has been mentioned by many contributors to this debate; and to all those who petitioned and lobbied for this Bill. We owe them a debt of gratitude for the work that they did and the pushing that they instigated and continue with.
This is a good Bill—it has to be, as it started life under a Labour Government. There are, however, still areas where it needs to be improved. On the assumption—a reasonable assumption, I think—that the Bill will make it to Committee, we will table a number of amendments and new clauses which we hope will make it the best it can possibly be. I hope that the Under-Secretary of State, the hon. Member for Huntingdon (Mr Djanogly) is indeed in listening mode, because the journey that this Bill has undertaken is a classic example of co-operative working. We hope that our serious and practical input in order to improve the Bill will be accepted at an early stage, unlike the challenge—I will be kind this evening—that was the Legal Aid, Sentencing and Punishment of Offenders Bill, where the Government had to endure strong persuasion, shall we say, in the other place to make the right concessions. [interruption.] I am in a very generous mood this evening. Let us have none of the tactics with this Bill that were needed in that case. Let us hope that the Minister is indeed in listening mode and will act quickly and appropriately.
As my right hon. Friend the Member for Tooting said there is much in the Bill that we are pleased about, which reflects the good work up to this point. For example, the protection offered to scientists and other academics in peer-reviewed statements and the single publication rule are good measures, as are the tidying-up provisions, such as those relating to bookshops and, despite the comments of the hon. Member for North East Somerset (Jacob Rees-Mogg)—meant, I am sure, in very good faith—to the Slander of Women Act 1891.
A number of concerns remain, however, and I am keen to highlight them this evening in order to provide the Minister and his officials with plenty of time to address them before we meet in Committee. We must not lose any opportunity to improve the Bill further in the same consensual way that we have worked on it up to now.
The first concern is the fact that the main mischief caused by the cost of defending an action and the length of time taken to resolve cases might not be addressed at all by the Bill. The Joint Committee agreed with the Government’s intention of promoting early resolution by allowing the judge to determine key issues at an initial hearing. However, the Committee went on to propose a stricter approach, as it felt that the Government’s changes did not go far enough. The Minister and his officials should revisit the Committee’s report urgently, with a view to bringing forward revised civil procedure rules and more. Those points are raised in the report; they have been well documented and discussed, and we need new proposals to be introduced urgently. Let me put on record our concern that, although the Bill tidies up the existing law and brings defamation law into the 21st century, it might not have any positive impact on the costs and delays in libel cases.
We also have grave concerns about the ability of ordinary people to get access to justice. Kate and Gerry McCann, Christopher Jefferies and others wrote an open letter to the Prime Minister during the passage of the Legal Aid, Sentencing and Punishment of Offenders Bill, as my right hon. Friend the Member for Tooting said. It is worth repeating their views, as they are so important. The letter warned:
“Parliament is on the cusp of passing a law that will grossly restrict access to justice for ordinary people in privacy and libel cases, without even any saving to the public purse. We strongly object to the passing of this unjust measure and urge you to amend it before it is too late.”
Of course, the LASPO Bill was passed. The letter continued:
“A successful libel defendant obviously does not get any damages so these reforms will prevent all but the rich from being able to defend their right to free speech against wealthy or corporate libel claimants.”
We share the concern that the changes brought about by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 will result in justice being denied to most people, who will be unable to protect their good name or to defend themselves, even when they publish the truth.
We would like the Government to be more explicit about what constitutes substantial harm. As we have heard today, this is an area of widespread concern. In Committee, we will seek far more detail on this from the Government, and I hope that they will seize the opportunity to provide it. I hope that the Minister will take that opportunity to put on record a clarification of what is substantial harm, and what it is not. One person’s substantial harm might be quite different from that of another. I shall return to that point later. We would also like the Government to be clearer about honest opinion. Again, we will test that point in Committee in order to draw out what they mean by the term. We also want them to tighten up the single publication rule, as we feel that a further test relating to the credibility of the source would improve matters further.
On the question of trial by jury, we hope that the Government will take the opportunity to be clearer—again in line with the findings of the Joint Committee—about which cases should go before the courts. The Libel Reform Campaign and many others have highlighted serious concerns about the public interest tests. Indeed, an interesting and appropriate article in The Times today raised the point that, while clause 4 seeks to replace the Reynolds defence, it does not bring the law up to date in line with the Flood judgment. I agree with the article’s view that a tick-box approach will help nobody. Moreover, there is a real risk that the factors could end up being used as hurdles or as elements to be ticked off. I know that the clause does not say that. In fact, it states that
“the matters to which the court may have regard include (amongst other matters)”,
but, given what happened in relation to Reynolds, there is a danger that those matters would become a set of hurdles or, as the article explains, a set of tick-boxes.
We have two further serious concerns. First, there is the clause that deals with the operators of websites. On the face of it, clause 5 seems a sensible approach, bringing the law into the 21st century. However, the absence of draft regulations seems sloppy and misguided. I hope the Minister will forgive me for using those words, but given the fundamental importance of regulations to the Bill, no other words do justice to the danger of their absence. The Secretary of State said that we will have to get the detail eventually. I am sorry, but that is not good enough. There is also the worrying development that libellous statements hosted on a website might remain in place because the defamed person is unable to take action against the identified author.
The Justice Secretary made great play in this morning’s media—as, indeed, did the Minister—of the fact that internet trolls would no longer be able to hide behind anonymity. That is greatly to be welcomed, but what about the internet trolls whose details are provided, thereby allowing the website operator to use that defence? What happens when the troll is in another jurisdiction? The website operator is able to use the defence of identifying the internet trolls, and that is it—the line comes down. We shall seek to amend the Bill in line with the Joint Committee’s recommendations.
Let me deal with what hon. Members have said many times is a glaring absence from the Bill: corporations. All too often, corporations are able to flex their muscle and call in their lawyers even when the author or publisher makes a justifiable statement that is fully capable of being defended. The corporate bullying must end. I am surprised that the Government have given in to brash big business rather than at least attempt to address the inequality of arms. We shall seek to bring forward a new clause to encapsulate what the Joint Committee report concluded on this important issue. Broadly, we shall seek to ensure that serious harm in the context of corporations means that where there has been or is likely to be a substantial loss of custom directly caused by the defamatory statements, the court must give permission before a libel claim can be brought. It is all in the Joint Committee report, and we have heard many Members across the Chamber say how much they welcome its work. It is incumbent on the Minister to take on board the comments of Conservative Members who say that the report is a good one that should be taken forward.
Let me comment on some of the contributions, beginning with the Lord Chancellor’s opening comments. He said that the courts would decide what counts as “serious harm”. Does that mean yet more litigation, yet more costs and yet more delay while the courts decide what it is? We need a really strong steer to avoid that. He referred to the development of new procedures to hear preliminary points and meanings before full trial. I think that is very good, but again it is all pie in the sky and yet to be done, with nothing concrete before us. As to the circumstances in which jury trials will be left to the judge, the Lord Chancellor was fairly clear; he felt it was a matter for the judges to decide when juries should be brought in, but that leaves things wide open to further litigation, further delays and further costs.
Moving on to other contributions, we heard first from the hon. Member for Mid Bedfordshire (Nadine Dorries), who spoke from personal experience about some of the appalling messages, including death threats, that she had received. She raised the issue that a matter of serious harm for one person might not necessarily be the same for another person. She also mentioned that the impact of being defamed can last a lifetime for a young person; it might impact on them and never go away. She was the first to raise the issue of looking at libel law on a regular basis. At that point, I almost heard the Minister groan. As the debate continued, we heard some alternatives to that, some of which had merit, and I shall come back to them.
My hon. Friend the Member for Bishop Auckland (Helen Goodman) made a characteristically thoughtful and serious speech. She made the excellent point that the police were not always up to speed when it came to crimes on the internet. The different police forces need to find a way of ensuring that when someone makes a complaint of this nature, it is referred to specialist officers who have the necessary knowledge and experience. Perhaps the list of matters to be considered by the police and crime commissioners should include that, as a matter of urgency.
My hon. Friend drew attention to the importance of supporting good journalism. We have heard a great deal about bad journalism today and about how it should be dealt with, but a Bill that supports good journalism should surely be encouraged. She discussed the meaning of “serious harm”, and also the difference between the website issue raised in clause 5(2) and the issue of letters pages or chat shows. I especially enjoyed her observation that the internet was not like a mediaeval forest that was beyond the law. We may well return to that point in Committee. My hon. Friend, and a number of subsequent speakers, also made the point that the No. 1 problem for a particular newspaper—as I understood it—was the threat from oligarchs who would try to sue it if any inappropriate comment was made.
The hon. Member for Morecambe and Lunesdale (David Morris) talked about the use of lower courts. When Opposition Members discussed the issue with libel experts, they expressed concern about the level of expertise in some courts, and I agree with the hon. Gentleman that one option is to establish whether some of the problems result from a lack of specialist judges.
The hon. Member for North Antrim (Ian Paisley) hit the nail on the head when he said that 21st-century libel reform was not straightforward; I do not think anyone could disagree with that. I was also impressed by his insistence that the Bill should be about the protection of people, which echoed our concern about website operators and others.
The hon. Member for South Swindon (Mr Buckland), who is not in the Chamber now, produced a lengthy analysis of the Bill.
Robert Flello
My right hon. Friend chides me for being generous again. I am merely trying to create the right atmosphere for the Committee stage, when the Minister will doubtless accept all our amendments and new clauses.
The hon. Gentleman felt that the Bill was better as a result of the Joint Committee approach, and better than it would have been had it relied solely on evidence sessions. How can I disagree? As I have said, I strongly believe that the Joint Committee’s report needs to be reflected in the Bill.
My right hon. Friend the Member for Tottenham (Mr Lammy) spoke of the balance between freedom of expression and protection of reputation. He rightly raised points about companies and corporations, and referred briefly to the consequences for jury trials.
In his substantial contribution, the hon. and learned Member for Sleaford and North Hykeham (Stephen Phillips) rightly observed that costs were driven by procedure. The draft Bill that was considered by the Joint Committee focused strongly on that point, and we need to see some movement on that from the Minister.
My hon. Friend and neighbour the Member for Newcastle-under-Lyme (Paul Farrelly) returned us to the theme of responsible journalism. He took us on a trip down memory lane when he talked about the infancy of Google and the like. He then drew attention to some of the good aspects of the Bill and some of the omissions, such as the omission of provisions relating to corporations.
Paul Farrelly
I also took the House on a trip down memory lane when I mentioned the issue of the Russian mafia and Russian oligarchs, which is ever present today.
Robert Flello
I am very grateful to my hon. Friend for that comment. I knew he would not want to miss the opportunity to add it, so I paused just long enough for him to rise to intervene. He makes a good point. We must not allow Russian mafia—criminal gangs—to suppress free speech in the UK. That is outrageous.
The right hon. Member for Carshalton and Wallington (Tom Brake) highlighted a number of areas that we need to address. I look forward to perusing Hansard tomorrow to refresh my memory so we can address them in Committee.
I was impressed by the contribution of the hon. Member for Hastings and Rye (Amber Rudd), in part because she managed to mention her constituency on so many occasions in the context of defamation law. She made a very good speech, in which she said it was too easy for the rich and powerful to stifle free speech. I entirely agree.
The hon. Member for Cambridge (Dr Huppert) is no longer in his place. He gave one of his customary long short speeches. He talked about the chilling effects that we have seen and went through quite a few cases. He hit the nail on the head when he said that clause 5 on website operators addresses a complex area that is difficult to get right. I agree.
The hon. Member for Hexham (Guy Opperman) talked about his personal experience as a mediator and libel barrister. The hon. Member for South Derbyshire (Heather Wheeler) welcomed the Bill and the cross-party approach. The hon. Member for North East Somerset said in a complementary way—with an “e” not an “i”—that, instead of having consensus, he preferred holding to the cut and thrust principle. If he serves on the Committee, he may well see plenty of cut and thrust as we ensure that the Bill is knocked into good shape. I thought he was a little unfair to his coalition colleagues, but he redeemed himself by reciting “Othello”, I think—I hope I am not wrong about that. He also made the very good point that those responsible for websites must take responsibility for the content on them. Of course there need to be protections where website operators act responsibly and do the right thing. We will need to see the regulations on that, and we have not yet had sight of them. I never thought I would hear the hon. Gentleman say he was an anti-establishmentarianist —if there is such a word—but it was interesting to hear him say so and to talk about the battle between libel and free speech.
We have had a good debate and, in view of the consensus on the key principle, we will not seek to divide the House this evening. However, I again stress to those on the Treasury Bench that they should see our acceptance of the principle and our willingness to work collaboratively as an opportunity to embrace positive improvements so that we do not rehearse the protracted warfare that gave Ministers a number of bloody noses in the other place. We do not want to see that. Instead we want to see a good Bill come out of this process.
So let us move into Committee with a genuine desire to improve this important piece of legislation further.
The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)
We have had an extensive and informed debate in which many varied and interesting points have been raised. As the Secretary of State said in his opening speech, our core aim in introducing the Bill is to reform the law so that it strikes the right balance between the right to freedom of expression and the protection of reputation. I was impressed by the elegant description of this balance by my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips).
I want to take this opportunity to thank the draft Bill Committee members, a number of whom have spoken today. They were very capably chaired by Lord Mawhinney, and we have valued their recommendations and careful scrutiny of the Bill. I also thank Lord Lester, whose private Member’s Bill focused attention on this important issue. I am sure that the remarks of my hon. Friend the Member for Worthing West (Sir Peter Bottomley) about the openness of the Government’s position in the Joint Committee will be well received by my noble Friend, Lord McNally, who has worked very hard on this legislation over the past year.
As the points that have been raised illustrate, there is a range of views on exactly what the balance should be and on how individual issues should be dealt with, but for the most part these are issues of nuance rather than principle. I can confirm to the hon. Member for Stoke-on-Trent South (Robert Flello) that of course I remain in listening mode and shall continue to do so throughout the Committee’s proceedings. I welcome the clear recognition from the shadow Secretary of State and Members on both sides of the House that reform of defamation is needed. I also welcome the support that has been expressed for the Bill and what we are trying to achieve with it. The Bill was described as a “burning light” by my hon. Friend the Member for South Derbyshire (Heather Wheeler).
Let me respond to some of the specific points that hon. Members have raised. Questions were raised by the hon. Member for North Antrim (Ian Paisley), the right hon. Members for Tottenham (Mr Lammy) and for Tooting (Sadiq Khan), the hon. Member for Bishop Auckland (Helen Goodman), my hon. and learned Friend the Member for Sleaford and North Hykeham and the hon. Member for Newcastle-under-Lyme (Paul Farrelly) about how far the serious harm test raises the bar for claims. As the Secretary of State indicated, it is our view that the requirement to show serious harm represents a higher hurdle than the current law. It will be a matter for the courts to determine how the test should apply in individual cases, but we wish to nudge the threshold up to deter trivial claims. No doubt we shall be discussing this issue further in Committee. Hon. Members have expressed concern that the test might require detailed evidence to be presented. We recognise that the introduction of the test might involve some front-loading of cost, but we believe it is better to resolve this issue at an early stage so that only cases involving serious harm proceed.
My hon. Friend the Member for Cambridge (Dr Huppert) has been a determined and consistent advocate for scientific research and freedoms. On his request for a strike-out power in clause 1, we took a different and wider approach than Lord Lester’s Bill on this issue. Our measures change the substantive law of defamation instead of focusing on one aspect of the procedure. Our intention is that the normal rules, as set out in the civil procedure rules, will apply. It seemed preferable to rely on those rules rather than create a new and unprecedented procedure for mandatory strike-outs. If the court decides that the serious harm test is not satisfied it will be able to use its power under the rules to strike out the claim.
On clause 2, the hon. Member for North Antrim and others have expressed concern that legislating to rename and restate the defence for justification as one of truth could lead to uncertainty about how far the new law might differ from existing law. The right hon. Member for Tottenham, the hon. Member for Newcastle-under-Lyme and my hon. and learned Friend the Member for Sleaford and North Hykeham also raised more general concerns about the Bill in the same regard. I agree that any new legislation will inevitably require interpretation and development by the courts in individual cases. However, as the Secretary of State indicated, we want to simplify and clarify the law, which has become unnecessarily complicated. We believe that the clause sets out the key principles of the defence as clearly as possible and will provide greater clarity and certainty in defamation proceedings.
Similar concerns were raised by my hon. Friend the Member for Gainsborough (Mr Leigh) regarding the new statutory defence of honest opinion and whether it would be misused by the press. Again, this is an area in which the law has become particularly complex and technical and has often led to protracted disputes. I confirm to my hon. and learned Friend the Member for Sleaford and North Hykeham that clause 3 clarifies and simplifies the law. We believe that this change will provide greater certainty and will help to avoid unnecessary litigation and cost.
On clause 4, my hon. Friend the Member for South Swindon (Mr Buckland), the right hon. Member for Tooting, the hon. Member for Bishop Auckland, the right hon. Member for Carshalton and Wallington (Tom Brake) and my hon. Friend the Member for Cambridge have expressed the view held by some that the clause might not provide strong enough protection for publications in the public interest and that instead of the defendant having to show that a publication has been made responsibly, the claimant should have to show malice or recklessness on the part of the defendant in order to defeat the defence. We share the view of the Joint Committee on the draft Bill that this would not be appropriate. It would widen the scope of the defence and not offer sufficient protection to people whose reputations had been defamed.
Our position is that the clause strikes the right balance and will provide effective protection for responsible publications, but we will be pleased to discuss the matter further in Committee, including the implications of the Flood decision. We do not consider, as suggested by the hon. Member for Bishop Auckland, that we have departed from the Reynolds defence. Clause 4 is based on existing common law and the defence established in Reynolds, and is intended to reflect the principles established in that case and subsequent case law. The essential test is whether the defendant has acted responsibly in a matter of public interest. That matches the case law and gives the court appropriate flexibility.
This is probably an appropriate time to consider the suggestion from the hon. Member for North Antrim that newspapers be required to notify people in advance about any story they propose to publish. We do not consider it appropriate to require that prior notification be given to the subjects of newspaper articles. However, the defence in clause 4 follows the Reynolds case in identifying as factors that the court can consider in deciding whether the publication was responsible, first, whether the defendant sought the claimant’s views on the statement complained of before publishing it and, secondly, whether an account of any views the claimant expressed was published with the statement.
On clause 5, many hon. Members have discussed how technology has changed the arena in which defamation operates. My hon. Friend the Member for Mid Bedfordshire (Nadine Dorries), my hon. and learned Friend the Member for Sleaford and North Hykeham, my hon. Friends the Members for Richmond Park (Zac Goldsmith) and for Northampton North (Michael Ellis), and the hon. Members for Liverpool, Walton (Steve Rotheram) and for Bishop Auckland raised important questions about the extent to which the new provisions will tackle trolling and abusive behaviour on the internet. Clause 5 establishes a new procedure that can be followed by website operators on receipt of a complaint about defamatory material on the site on which they host user-generated content. Provided that website operators comply with this procedure, they will have a defence against a civil action for defamation. The procedure focuses on putting complainants in touch with the author of allegedly defamatory material so that they can take action against the author and bring civil proceedings of defamation, if the matter cannot be resolved by other means.
It is recognised, of course, that the dead cannot be defamed, but it is also important to recognise, in response to the sad case in Liverpool mentioned by the hon. Member for Liverpool, Walton, that a range of criminal offences exist to tackle trolling and other offensive behaviour on the internet. These criminal sanctions include section 127 of the Communications Act 2003, which creates an offence of sending or causing to be sent
“by means of a public electronic communications network a message or other matter that is grossly offensive or of an indecent, obscene or menacing character”.
Section 127 has been used to prosecute instances of cyber-bullying, hate crime, homophobic crime, incitement to violence, crimes committed by animal extremists, domestic violence and other sorts of threatening and abusive behaviour. Other offences, under statutes such as the Malicious Communications Act 1988, the Computer Misuse Act 1990 and the Protection from Harassment Act 1997, may apply, depending on the circumstances.
The Crown Prosecution Service will determine under which legislation to progress prosecution, depending on the circumstances of each case. Some 2,000 criminal prosecutions for trolling have occurred in the past year, but I agree with my hon. Friend the Member for Mid Bedfordshire that action must be taken, where appropriate, and that trolling can be a very nasty business indeed. She clearly explained the range of the activities involved. We are confident that this criminal legislation is being used effectively to tackle offensive behaviour, as the recent case involving Facebook demonstrates. In addition, clause 5 will help to improve the civil law in relation to defamatory postings. Our idea is to help enable the claimant to take action against the author, including anonymous trolls, at a low cost and with the possibility of avoiding the involvement of lawyers.
Paul Farrelly
I have learned in this debate that the word “troll” is being used in this way. Let us not give these people the respectability of Norse mythology. Can we not describe them as they are? Can we avoid using “troll” and just say that these are sad, irresponsible people?
Mr Djanogly
I understand and agree with the hon. Gentleman’s sentiment, however I am reflecting what is now in common usage and “troll” is a word that people will understand. Some people understand it in either the criminal or the civil context, but the point I am making is that it can be used in both contexts.
Our approach will also promote freedom of expression by helping to ensure that material is not needlessly taken down without the author being given the opportunity to defend it, as often happens now. I can confirm to my hon. Friend the Member for Cambridge that we will also be ensuring that protection is in place for whistleblowers.
Robert Flello
Will the Minister please address the issue of what happens when a defamatory statement is put on a website anonymously and the website operator then tells the person defamed who the person posting it is but they are impecunious and are out of jurisdiction? What happens then in terms of taking the statement off the website, because the website operator now has a defence?
Mr Djanogly
If the website operator has a defence, they are out of the picture. That does not stop action being taken against the anonymous troll, but that would have to be done by way of an order, which, admittedly, would be a more expensive procedure.
Nadine Dorries
I believe, and think that the shadow Minister probably does too, that the entire process whereby the responsibility is on the website owner to seek out and address the libellous or defamatory comments left by a troll will be enough to encourage that website owner to remove the comments themselves if they do not get a satisfactory answer. I know that it is not in legislation, but I believe that that even happens now and so this approach will help to reinforce that process.
Mr Djanogly
My hon. Friend makes a good point. I would be the first to admit that there are no silver bullets here. We are looking at a range of proposals that will give an array of weaponry to deal with what we consider to be a dangerous situation. Let me make it clear that the Government are committed to tackling trolling, cyber-bullying and other forms of abuse and misuse of social networking sites by working with industry, academia, charities and parenting groups to develop tools and information for users aimed at keeping society safe online.
The Government are pressing the internet industry in the UK and Europe to implement clear and simple processes for dealing with abuse online, and we have also recently reviewed our cyber-bullying policy. For the most part, social network site operators adopt sensible and responsible positions on any misuse or abuse of their services in the terms and conditions they require of their users. They support this with systems for notification of breach and removal of material in breach. This corporate responsibility of operators, aligned with collective responsibility on users to report misuse, provides the basis for self-regulation of the internet and a more immediate means of monitoring and dealing with abuse.
Many hon. Members queried when we would be publishing regulations to set out the new procedure in detail. I can say tonight that a note on the new process will be provided to the Public Bill Committee to aid its scrutiny of the Bill’s provisions, and draft regulations will be published for consideration by stakeholders in due course.
As the right hon. Member for Tooting said, we believe that extending the clause 6 protection is important in order to help encourage robust and open scientific and academic debate, and I, too, acknowledge the principled stand and ongoing participation of Dr Simon Singh in this area. In drafting the clause, we have given careful consideration to defining key elements of the peer-review process to ensure that the scope of the provisions is clear and appropriate, and we are satisfied that it is.
The hon. Member for North Antrim, among others, expressed the view that the problem of libel tourism has been exaggerated. We recognise that there are mixed views on how far libel tourism is a real problem; my hon. Friend the Member for Morecambe and Lunesdale (David Morris), among others, took the opposite view, saying that it is a serious problem. However, I point out that the number of cases alone may not accurately reflect the extent of the problem, as the threat of proceedings by wealthy foreigners and public figures can be used to stifle investigative journalism, regardless of whether cases are ultimately brought. That is a form of legal arbitrage and on balance we believe that there is a need to take action specifically to address the issue. We must lose our growing reputation as the libel capital of Europe.
As for how clause 10 will interface with the new defence for website operators under clause 5, if a website operator were to fail to follow the process and then attempt to use a clause 10 defence on the basis that they were not the author, editor or commercial publisher of the third-party material, it would be for the court to decide whether the fact that they had failed to follow the process set out in clause 5 meant that it was not reasonably practicable for the claimant to pursue the primary publisher.
The right hon. Member for Tooting, my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), my hon. Friends the Members for Worthing West, for Gainsborough and for North East Somerset (Jacob Rees-Mogg) and my hon. and learned Friend the Member for Sleaford and North Hykeham discussed issues relating to a person’s reputation being decided by his or her peers in the form of a jury. I understand those views but, as my right hon. and learned Friend the Secretary of State outlined, in practice very few defamation cases now involve juries. We need to appreciate that jury trials can create practical difficulties and add significantly to the length and cost of proceedings, and that if the judge believes that a jury trial is appropriate that will still be a possibility. As my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) said, the proposal should also help moves towards early settlement.
My hon. Friend the Member for South Swindon gave a lively exposition of how the move away from jury trials is part of what he described as an evolutionary process of libel law. The right hon. Member for Tottenham asked about guidelines and whether they should be included in the Bill to assist the court in the exercise of its discretion to order trial by jury. A clear majority of consultation responses considered that such guidelines would not be necessary. The courts are already familiar with exercising their discretion to order jury trial when appropriate, and we believe it would be preferable to allow them to continue to do that without specific guidance in the Bill.
My hon. Friend the Member for Stroud (Neil Carmichael), my hon. and learned Friend the Member for Sleaford and North Hykeham, the shadow Justice Secretary, the hon. Member for Newcastle-under-Lyme and others have touched on the new procedure for resolving key preliminary issues at an early stage and its relationship with costs. Let me say first to the hon. Member for Stoke-on-Trent South that we agree that this is an important issue, and I agree with the shadow Justice Secretary that if we can reduce procedure we can reduce costs.
During our initial discussions with interested parties in the summer of 2010, it became apparent that a major area of concern was the extent to which defamation proceedings can become mired in disputes over preliminary issues. That contributes substantially both to the time taken to resolve cases and to the costs involved. For example, in British Chiropractic Association v. Singh proceedings in relation to whether the words complained of were matters of fact or opinion took almost two years to resolve. When a ruling was ultimately given on the issue by the Court of Appeal the claim was withdrawn, but by that point substantial costs had been incurred and the defendant had been placed in a position of considerable uncertainty and stress over an extended period.
In the light of such concerns the Government consulted, alongside consultation on the draft Defamation Bill, on the possibility of introducing a formal new procedure in the High Court to channel all cases in which proceedings are issued through a process whereby early rulings can be given on key issues that currently contribute substantially to the length and cost of the proceedings. That would help to clarify the issues in dispute and the defences that may be available and should assist in encouraging early settlement in many cases. The practical implications of the proposal were discussed with members of the senior judiciary with experience in defamation cases and those views were taken into account by the Government in developing a skeleton outline of how the procedure could work, which was published in the consultation document.
The main preliminary issues which the outline envisaged being determined under the new procedure were whether the claim satisfies the serious harm test where this is disputed, which would enable claims failing that test to be struck out as early as possible; what the actual meaning of the words complained of is and whether that meaning is defamatory; and whether the words complained of were a statement of fact or an opinion.
It was envisaged that the procedure would be automatic in all cases where any of these issues needed to be resolved. In addition, other issues which it was considered could potentially be determined, if relevant, were whether the publication is on a matter of public interest, because an early decision on whether a matter is or is not in the public interest could help to determine whether there is any scope for the defendant to use this defence; whether the publication falls within the categories of publication in schedule 1 to the Defamation Act 1996 for which the defence of qualified privilege is available, as this would help to clarify whether it is open to the defendant to use this defence; and consideration of costs budgeting in appropriate cases, depending on the outcome of the ongoing costs budgeting pilot.
Sir Peter Bottomley
On the case of Dr Singh and the chiropractors’ action against him, the House would like to know, if not now then in Committee or on Report, that the changes which are proposed, both in the Bill and in what my hon. Friend the Minister is describing now, would have chilled the chiropractors and they would not have tried to take the bad action that they took, based on bad science and on money and bullying.
Mr Djanogly
We intend that issue to be addressed both in terms of the substantive law and in terms of the procedure.
Paul Farrelly
I was also trying to give the Minister a pause for breath when the hon. Member for Worthing West (Sir Peter Bottomley) intervened. I tabled the question on Trafigura. One of the consequences was that because of the clash between Parliament and the courts, the courts started to look at how their procedures were working. The Lord Chief Justice, Lord Judge, issued a press statement saying, in effect, “I did not realise what my courts were doing.” Similar circumstances are applicable in libel, but they have not come to a constitutional clash, which why it is so important that the Government look at civil procedure rules and make sure that the courts are managed properly from the top by the Lord Chief Justice and throughout, without our intervening in their affairs.
Mr Djanogly
I can assure the hon. Gentleman that that is already happening and forms the subject of my not infrequent meetings with the Master of the Rolls.
Sir Peter Bottomley
Following up the very important Trafigura issue, if either a solicitor or a barrister ever purports to a client or to someone on the other side that they cannot talk to their Member of Parliament about a matter of public interest, whether international, as in the case of Trafigura, or in a number of medical cases where hospitals or trusts appear to try to silence a consultant, a clinician or a nurse on the issue of patient safety, I hope the Minister will join me in saying that the standards board for the barristers or the solicitors should say, “That person is unprofessional and will be subject to discipline.”
Mr Djanogly
If someone has a problem with the advice that they receive from their professional, they can of course go to the complaints organisations.
We indicated in the consultation document that the Civil Procedure Rule Committee would be asked to consider appropriate procedural changes through secondary legislation to support the new approach. A majority of respondents on this issue were in favour of introducing a new court procedure to resolve key preliminary issues at an early stage. Many of these argued that procedural reform aimed at speeding up defamation proceedings and reducing costs is one of the most important elements of any proposed reform of the law. However, a small number of legal professionals argued that it is unnecessary and could add further complexity.
A range of comments were provided on the issues that would be suitable for determination under the procedure and on other points of detail. I can confirm to the House that we are considering these in working up detailed proposals for the Civil Procedure Rules Committee to consider.
Paul Farrelly
At a time when the country is going through some severe problems, we have more pilots in the legal profession than we have, potentially, in the RAF, determining how to cut the costs of lawyers in defamation cases. When we discussed this in the Select Committee, we came to the ludicrous conclusion that cost-capping measures in the courts led only to costs increasing because of the number of cases that were being discussed for cost-capping. It is important that the Government and the Courts Service get a grip on, I am sad to say, how judges run their own courts.
Mr Djanogly
We have been doing that, and the hon. Gentleman will appreciate that we addressed the issue to some extent in the Legal Aid, Sentencing and Punishment of Offenders Act 2012, although perhaps not to his satisfaction. As I have said, we are also consistently discussing the issue with the judiciary, because it is an important one.
These issues should not need primary legislation, which is why they do not appear in the Bill. However, I can assure the House that we are firmly committed to ensuring that they are addressed in order to reduce costs and encourage settlements and that we are taking the work forward on all these issues alongside the Bill.
With regard to the provision sought by the right hon. Member for Tottenham, the hon. Members for Bishop Auckland and for Newcastle-under-Lyme and my right hon. Friend the Member for Carshalton and Wallington, namely a specific provision requiring corporations to show financial harm, a proposal made by the Committee, we share the view that the inequality of financial means that exists when a large corporation sues or threatens smaller companies, individuals or non-governmental organisations lies at the heart of current concerns. In view of the fact that corporations are already prevented from claiming for certain types of harm, such as injury to feelings, in order to satisfy the Bill’s “serious harm” test a corporation would in practice be likely to have to demonstrate actual or likely financial harm in any event.
The right hon. Member for Tottenham, the hon. Members for Bishop Auckland and for Stoke-on-Trent South and others made observations on cost protection for claimants in defamation cases in the light of concerns raised during the passage of the Legal Aid, Sentencing and Punishment of Offenders Act. The Government’s reform of no win, no fee conditional fee agreements in that Act should not prevent strong cases from being brought. However, we recognise the concern that individuals who are not wealthy or powerful sometimes need to bring defamation or privacy cases. The Bill and the procedural reforms we intend to take forward alongside it seek to reduce the complexity and cost of defamation proceedings. In order to achieve those aims, I can confirm that we are carefully considering the issue of cost protection in defamation and privacy proceedings and will keep Parliament updated as the Bill progresses.
Continuing the theme of privacy, my hon. Friend the Member for South Swindon suggested that the law on privacy should be codified. The Government welcome the report of the Joint Committee on Privacy and Injunctions, on which he served. The Committee recommended, on a majority vote, that the law on privacy should not be codified. The Government are considering the recommendation, along with all the Committee’s other recommendations, and will publish our response in due course. My hon. Friend also queried whether section 13 of the Defamation Act 1996 should be repealed. Section 13 relates to the ability of Members of Parliament to waive privilege in relation to defamation proceedings. The Government are consulting on the issue as part of the Green Paper on privilege and consider that the issue is better examined in that context than in the Bill.
In conclusion, the Government firmly believe that reform of the law is needed to bolster free speech and ensure that the threat of libel proceedings is not used to frustrate and impede responsible investigative reporting or debate on issues of public importance, while ensuring that people whose reputations have been seriously harmed have clear and effective remedies against those responsible. I look forward to detailed scrutiny of the Bill and further constructive debate in Committee.
Question put and agreed to.
Bill accordingly read a Second time.
Defamation Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Defamation Bill:
Committal
1. The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
2. Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 26 June 2012.
3. The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Consideration and Third Reading
4. Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
5. Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
6. Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.
Other proceedings
7. Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.—(Stephen Crabb.)
Question agreed to.
Proceeds of Crime
(12 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for the Home Department (James Brokenshire)
I beg to move,
That this House takes note of European Union Document No. 7641/12 and Addenda 1 and 2, a draft Directive of the European Parliament and of the Council on the freezing and confiscation of proceeds of crime in the European Union; and supports the Government’s intention to not opt-in under Protocol (No. 21) to the European Union Treaties at this stage.
I welcome the opportunity to debate this important draft directive in the House this evening, but I should say at the outset that I am sorry that it has had to be scheduled on a day when a number of members of the European Scrutiny Committee cannot be present. It was originally scheduled for 23 May, but it was necessary to move it in order to give more time to consider fully the views of operational partners before deciding whether or not to opt in. Given the weight of parliamentary business and the limited time available before the opt-in deadline, it was not possible to find a time for this debate when members of the European Scrutiny Committee had returned from their pre-presidency visit to Cyprus. That is not as I would have wished, and I have offered to meet the Committee Chairman, my hon. Friend the Member for Stone (Mr Cash), to discuss the directive.
I also recognise that, in order to inform these debates, we must ensure that the House is informed at an earlier stage of the Government’s position on such directives. I have written to the European Scrutiny Committee Chair to underline the high priority that I attach to ensuring that this process and these debates provide more effective scrutiny, and my officials will work with the Clerk of the European Scrutiny Committee and with the European Union Committee in the other place to that end. I am also arranging a discussion with the Minister for Europe to consider how the matter might be addressed effectively.
On the subject of the motion, asset recovery is a hugely important weapon in our efforts to tackle organised crime. The proceeds of crime are not only a central motivation for organised criminals; they fund further criminality. Freezing and confiscating criminal finances hurts organised criminals and protects the public, and I have no doubt that right hon. and hon. Members on both sides of the House will have examples of when the use of asset recovery has been a very effective weapon in providing relief to communities from serious organised criminals. It is an effective means of tackling and putting increased pressure on organised crime groups.
Keith Vaz (Leicester East) (Lab)
The Minister is absolutely right, but we must do much better, and the better way is to make sure that there is more co-operation between EU countries on ensuring that those who try to find a safe haven for their money in another EU country are caught and their money confiscated as quickly as possible.
James Brokenshire
The right hon. Gentleman, the Chairman of the Home Affairs Committee, makes an important point about international co-operation—one that we certainly recognised in the organised crime strategy that was published last summer. Criminals may wish to hide or to secrete assets not only in the EU, but throughout the world, so the need to look at the matter in an international context is an important one to which I shall return during my contribution.
In our domestic legislation, we have taken some important steps forward. The Proceeds of Crime Act 2002 is the principal piece of domestic legislation for the restraint and confiscation of the proceeds of crime. It is an advanced and powerful piece of legislation that in most areas goes beyond the minimum standards of the directive that we are debating this evening. It provides a single scheme for the confiscation of the value of the proceeds of crime, following any criminal conviction and regardless of the amount.
If a defendant has been convicted of a listed serious offence or has a number of convictions, the court can assume that all their property is the proceeds of crime and can be factored into the amount of a confiscation order, a power known internationally as “extended confiscation”. It allows for the confiscation of assets that have been transferred to family members or other third parties; it enables the freezing of assets by a court from the beginning of an investigation in order to prevent their dissipation; and it provides civil recovery powers, an intrinsic part of our approach to this area of law, whereby the focus is on the property, not on the person who holds it, and no conviction is required. That is a particularly useful tool for tackling high-level organised criminals for whom it is hard to obtain a conviction.
In 2010-11 UK law enforcement agencies froze or recovered more than £1 billion of criminal assets. The amount of assets recovered has increased year on year since the 2002 Act, and one of this Government’s first steps on entering office was to do away with some of the arbitrary targets that the previous Government imposed on law enforcement professionals. This has galvanised their professionalism and their approach to ensuring that more assets are recovered or frozen. Certainly, the UK is recognised as a leader in this field. However, the Government want to do more, particularly on international asset recovery, as we made clear in our organised crime strategy of July 2011.
In 2008, it was estimated that some £560 million-worth of UK criminal assets were held abroad. That underlines the level of sophistication that a number of organised crime groups are seeking to deploy in order to hide or to shield assets. Improved international co-operation is therefore a necessary step towards recovering that money. That is why we welcome the aims of the directive, if not some of its provisions. It is right that we seek to drive up standards throughout the EU and find better ways of working together with our EU partners. To that end, the directive covers confiscation following a criminal conviction, extended confiscation, third-party confiscation, non-conviction-based confiscation, and powers to freeze assets. The UK already has all those powers under the Proceeds of Crime Act, and so, in almost all areas, we exceed the minimum standards established by the directive.
The purpose of the directive is to require member states to be able to freeze and confiscate the proceeds of cross-border serious and organised crime. The Commission argues that the confiscation of the proceeds of crime in the EU is under-utilised despite the existing EU legal framework. It says that there are three problems with the current EU legal framework: its incomplete or late transition into domestic law, diverging national provisions that make mutual recognition more difficult, and the low utilisation of confiscation in practice. The directive therefore creates minimum standards for the freezing, management and confiscation of the proceeds of crime. The Commission intends that minimum standards will lead to greater co-operation, but a mutual recognition instrument has not yet been published.
It is vital that we get the detail right, and we must pay great attention to the effect of the directive on our existing domestic regime and its likely operational impact. In that regard, the Government have identified a serious problem with the directive. As drafted, it poses a very real threat to our domestic non-conviction-based confiscation regime. Operational partners have expressed concern that opting in at this stage poses a risk to the powers used by our law enforcement agencies to target and disrupt the most serious organised criminals. Our non-conviction-based confiscation powers are civil law measures that allow prosecution agencies to take action against property that they think has been acquired through unlawful activity. The action is not taken against an individual, and no criminal conviction is necessary. As I said, it is a particularly useful tool for tackling the high-level organised criminals against whom it is very difficult to achieve a criminal conviction.
In 2011-12, approximately £20 million-worth of criminal assets were recovered using non-conviction-based confiscation powers. It is important to note that the Proceeds of Crime Act, and the use of the civil standard of proof as structured within the Act, has been upheld by the Supreme Court, and therefore its operation has been subject to judicial scrutiny at the highest level. Because of its criminal law legal base, the directive risks placing non-conviction-based confiscation measures in the UK on to a criminal law footing, opening new avenues of legal challenge to our powers and, in many ways, undermining the court judgments that have been secured in relation to the operation of the Proceeds of Crime Act. If criminal law procedural protections and a criminal law standard of proof were introduced, our domestic regime would be severely weakened and our law enforcement agencies would find it harder to disrupt the workings of some of the most dangerous organised criminals.
This is a technical argument, but it is of great importance to the law enforcement agencies that protect our country from organised crime. Under qualified majority voting, there is no guarantee that we can secure the necessary changes to the text. This Government will not risk hindering the work of law enforcement agencies in tackling high-level criminality. The risk is simply too great.
Tom Brake (Carshalton and Wallington) (LD)
Is it not the case that non-conviction-based confiscation powers exist in many other EU countries and that the directive is therefore likely to be changed to increase flexibility and incorporate those powers, rather than to reduce it?
James Brokenshire
There is likely to be negotiation and discussion on the directive, as the right hon. Gentleman will know, given the manner in which such instruments are taken forward. However, given the significance of the existing powers and the way in which the regime has been tested before the courts, the key point is that because of the use of qualified majority voting, which I have mentioned, there is no guarantee that there will be the outcome that he suggests. The Government have taken the judgment that that risk is too high. On balance, we believe that not opting in at this stage is the better option. The risk to our civil recovery regime is simply too great, and I am not willing to take it, especially when operational partners have expressed such concern to us.
None the less, it is our intention to play an active part in the negotiation on the directive. Our experience on the recent human trafficking directive shows that the UK can have an influential voice, even when it does not opt in at the outset. In that case, we opted in to the directive at the post-adoption stage. The UK’s recognised experience and expertise in asset recovery will certainly help with the negotiations.
Our wider aim is to establish effective mutual recognition arrangements for both conviction-based and non-conviction-based confiscation orders. Although the draft directive adds nothing to our domestic asset recovery regime, mutual recognition arrangements could greatly improve our ability to recover the proceeds of crime held in other member states. The draft contains no proposal to establish an effective system for the mutual recognition of confiscation orders. Law enforcement partners say that they would welcome such proposals. The Government will consider how best to use our influence on that matter.
It is important to underline the comments of the Chair of the Home Affairs Committee on how mutual recognition can be a powerful tool. It is important to focus on that point. Indeed, the EU Select Committee in the other place has highlighted it as an issue with the directive and it needs careful attention.
Charlie Elphicke (Dover) (Con)
Is it not the case that there is bilateral mutual recognition in almost every case and that we do not necessarily need mutual recognition under the aegis of the European federal government in Brussels?
James Brokenshire
It is certainly true that bilateral arrangements can be structured. All that I am seeking to say is that negotiations on the directive provide the UK with an opportunity to have an influence. They do not affect our decision, reflected in the motion, not to opt in at this stage because of the serious risks and operational requirements that I have identified.
Jacob Rees-Mogg (North East Somerset) (Con)
I urge the Minister to be very cautious about mutual recognition, because it means that countries that do not have a legal system that is as robust as ours can have their orders enforced in this country. It therefore threatens the rights of British subjects.
James Brokenshire
I certainly hear my hon. Friend’s point, and we will monitor that carefully in relation to the directive. As I have indicated to the House, there is currently no proposal in the directive dealing with mutual recognition.
Mr David Hanson (Delyn) (Lab)
I hear what the Minister says, but I wish to clarify it. In another place’s proceedings on the matter only recently, on 22 May, Lord Henley, the Minister, said:
“The directive offers us a valuable opportunity to raise the standard of asset recovery legislation in the EU, enhance our co-operation with member states, and increase our powers to recover criminal assets held overseas.”—[Official Report, House of Lords, 22 May 2012; Vol. 737, c. 778.]
Why did the Minister in the Lords say that only two weeks ago, whereas the Under-Secretary is saying today that we are not going to opt in?
James Brokenshire
If the right hon. Gentleman reads the report, he will see that my noble Friend underlined clearly that the Government had not concluded their consideration of the directive at that point and had not formulated their decision on whether to opt in. We have listened carefully to the concerns expressed by law enforcement partners about civil recovery powers, and we have determined that the best course of action to protect our laws and our current civil recovery operation is not to opt in. I am surprised that the right hon. Gentleman seems to challenge that view. He seems to have determined that it would be appropriate to opt in.
James Brokenshire
If the right hon. Gentleman wants to take a different course, I am happy to give way to him.
Mr Hanson
I was simply looking at what was said only three weeks ago in another place and what the Minister is saying now. Given what he has said today, is he willing to publish in the Library at least some sort of précis of the responses that he has had from the agencies concerned, so that we can examine them in the light of the directive?
James Brokenshire
I am certainly happy to consider that, but the right hon. Gentleman will recognise that there are sometimes operational sensitivities attached to doing so. We have heard clear representations from operational law enforcement partners, which have been an important factor for the reasons that I have outlined. We none the less recognise that the UK would benefit from the directive raising standards across the EU regardless of whether we opted in, because of the developed legislation that we have in place in this country.
Not opting in at this stage is not a sign that we do not care about asset recovery. It is a sign that the UK takes it very seriously and is committed to getting legislation right for the UK and all member states. Our ultimate aim is to achieve better mutual recognition of both criminal and civil confiscation. The directive will not achieve that, and we will press for a further instrument or instruments in due course that would have that effect. We will analyse the directive carefully, but in the context of the current version, and for the reasons that I have explained, our clear judgment is that the UK should not opt in at this point.
Mr David Hanson (Delyn) (Lab)
The nature of the debate has changed slightly since the initial discussions in another place some weeks ago. I welcome the opportunity to discuss the draft directive on the freezing and confiscation of the proceeds of crime in the European Union, and I am grateful to the Minister for his explanation of his view. He mentioned that the debate should have taken place before the recent recess and was pulled at the last minute. That might be for the reasons of operational advice that he gave, but I smell a bit of anti-Europeanism on the Conservative Back Benches—there is a slight whiff of concern about the EU encroaching on the House’s legislation. Perhaps that is one reason why the Minister has looked at the matter in more detail, but I accept at face value his indication that he has taken advice.
The directive seeks to harmonise national responses by laying down minimum rules for member states with respect to the freezing and confiscation of criminal assets. As the Minister knows, dissipating and converting the proceeds of crime into a variety of assets is one way in which criminal gangs and terrorist organisations operate. The process of uncovering such assets can be complex and difficult, and international co-operation is an indispensable tool in the recovery process.
Like the Minister, I welcome the promotion of cross-border responses. In order to be effective in tackling organised and other crime, we need to co-operate and strengthen our existing relationships with other states within the EU. The Commission believes that EU and international law remain underdeveloped and underutilised. Crime does not respect borders, and we must have a proactive cross-border approach.
I found myself agreeing with Lord Henley, the Minister in another place, who said on 22 May that the directive offers a valuable opportunity to raise the standard of asset recovery in the EU. The Minister has tonight indicated that we already have a strong UK provision on such matters. In fact, for the most part, the UK exceeds the requirements of the draft provisions, owing in no small part to the measures he mentioned, such as the Proceeds of Crime Act 2002, which was passed by the previous Government, and the Terrorist Asset-Freezing etc. Act 2010, which I supported as a Minister and saw through the House as a shadow Minister only a couple of years ago.
The Minister has noted that there are a range of figures, but around £560 million-worth of UK criminal assets are overseas. We need to look at how we recover those, because sums of that magnitude indicate that the Government can do more. Effective international co-operation is key.
I believe the directive will be an important tool in tackling serious organised crime, but I am willing to take at face value what the Minister has said. I would like further information on any concerns that have been expressed to him. He can share those either with the House or with me on—dare I say—a Privy Council basis, because I would like a flavour of them. Ultimately, I want an improvement in the asset recovery regime across Europe and international co-operation with our European partners to deal with this problem.
As the motion asks the House to take note of the document, it is important that we examine it. The European Scrutiny Committee highlighted a number of issues, including a range of matters on which there needed to be further work—I accept that these are for discussion—including the extent of criminal offences and the implications of article 8 on safeguards for the legal aid budget. There is a concern whether article 9 includes value-based confiscation, and a concern about articles 3 and 4 on the confiscation of the proceeds of crime, and on extending confiscation when the court
“‘finds it substantially more probable’ than not that these assets are derived from other similar crimes.”
There is concern about article 7.2, under which, in urgent cases, assets may be frozen prior to obtaining a court order, which is at odds with UK legislation. Article 7 requires member states to be able to freeze property that is in danger of being dissipated, hidden or transferred, as ordered by a court.
A range of issues were raised, including on article 11 and others, by members of the European Scrutiny Committee.
Charlie Elphicke
I am listening with care to the argument the right right hon. Gentleman puts to the House, but I am unclear on one thing: does he think we should opt in to the directive, yes or no?
Mr Hanson
I have said to the Minister that we believe that the directive is a positive development, as the Minister in the other place also said, only two weeks ago, and we should look at it in a positive way. I will take at face value the concerns that the Minister has raised this evening about operability and the advice that he has received from the agencies, but if the hon. Gentleman thinks that we should not opt in because of a wave of anti-European sentiment, that is a very different matter indeed. I will certainly be a positive European. We should have co-operation. I want to see co-operation between states. I also want the European Union to take powers to take the assets of criminals abroad who are operating and making profits in this country. That would not be a bad thing. I would very much welcome further discussions with the Minister about the points that he has raised, but in principle I have no objection to a Europe-wide document helping to support this approach and enshrine improvements on what we currently have in British law.
Mr Hanson
For the anti-Europeans on the Government Benches, let me say that it is certainly a yes. I certainly wish to see co-operation on a Europe-wide basis to freeze terrorist and criminal assets and to repatriate them to this country. The hon. Gentleman can certainly take it as a yes. This evening I have listened to what the Minister has said, which indicates that he has had advice—which I have not seen—that says that there are difficulties with this measure. What I am saying to the Minister—and to his right hon. Friend the Home Secretary, who is in her place—is that my right hon. Friend the shadow Home Secretary and I would wish to have sight of that advice and to have further briefing on it, so that we can scrutinise the operation of the process by the Minister and how he intends to take forward discussions on the document as a whole. However, I sense that Government Members have objections to the very principle of such co-operation, rather than to the practice that the Minister has set out.
I would like to have some idea from the Minister—either now or after contributions from right hon. and hon. Members—of how he will take this matter forward. He has indicated that he has concerns about certain issues, but he has not yet shared with the House the details of what they are. What is his timetable for discussion with his European Union colleagues on these matters? Does he have a timetable to try to resolve the issues? Does he intend to return to the House at some point to sign up to the document, or has it been kicked into the long grass because he knows that, ultimately, Members such as, I suspect—with due respect—the hon. Member for Rochester and Strood (Mark Reckless) and others would vote against the measure, no matter what was brought forward, as a matter of principle? If that is the case, the Minister should be honest with the House, because we will certainly return to this matter in due course, when we have seen the advice that he has received, as far as he can share it with us. I sense that this is not just about the operation and practice of the measure; rather, I sense that there are certain elements on the Government Back Benches with a fundamental objection to the principle of such co-operation.
George Eustice (Camborne and Redruth) (Con)
Many Members on the Government Benches agree that we should co-operate. However, does the right hon. Gentleman not understand that we can co-operate without giving up control in some of these policy areas and without subjecting ourselves to the authority of the European Court of Justice, which is what this directive is about?
Mr Hanson
Case proved, m’lud: the hon. Gentleman, along with the hon. Member for Rochester and Strood and others, does have concerns about this issue in principle. What I take from the Minister this evening is that the advice that he has received from operational organisations points to concerns about the ability of the measure to deliver what it should deliver, which is an increase in the assets taken from criminals and terrorists, and their repatriation to the United Kingdom. If that is the reason he is lukewarm this evening about progressing the measure, I will look at that in detail. If the reason is the pain and suffering that hon. Gentlemen such as the hon. Member for Rochester and Strood and others may bring upon him—because of their fundamental objections to further European co-operation on such matters—that is something that we will also revisit in due course. If the Minister can provide us with a timetable for further discussion and examination of the issues, and if he is saying that he will rule out for ever signing up to this—[Interruption.] If he would like to say that on the record, that would be helpful.
James Brokenshire
I say to the right hon. Gentleman that we do not rule anything in, and we do not rule anything out. It will depend on how the negotiations proceed. The EU itself will be leading the timetable, and the presidency will take that forward. I understand his desire for a timetable, but that is not within my gift.
Mr Hanson
I am afraid there has. The Minister has explained this evening the basis on which he has made his comments on the order. I will seek to obtain further information on that, as that would represent valuable progress. I suspect, however, that underneath all this there is a slight concern about the reaction of some Conservative Members, who will undoubtedly raise the concerns that I have mentioned, during the rest of the debate.
Jacob Rees-Mogg (North East Somerset) (Con)
I am grateful to have been called so early in the debate to represent the European Scrutiny Committee, replacing my hon. Friend the Member for Stone (Mr Cash), who is away. I apologise if, in comparison to him, I am more loquacious.
I want to start by raising a few points relating to scrutiny. The Minister was gracious in accepting that there had been problems with it. The document was first made available for an opt-in decision in the middle of March, with a three-month time scale for making a decision which ends on 15 June. It is a pity that Her Majesty’s Government could not have made up their mind on this matter slightly earlier in the process.
I also want to raise a point about the other place. The debate in this House was cancelled on the ground that we were unable to debate the matter until the Government had made up their mind, but in the same circumstances the other place was able to debate it. I am not entirely sure whether that is a discourtesy to the other place or to us, but it seems odd that such a rule should apply in one place and not the other.
James Brokenshire
Perhaps I can help my hon. Friend. There was a distinction, in that the debate in the other place was on an Opposition motion, rather than a Government motion.
Jacob Rees-Mogg
I am grateful for that clarification. I should also like to say, for future reference, that I have been given hope that the Government might occasionally listen to what the House says, and that having debates before a decision is finally made would not necessarily be a bad thing. It might be a pious hope that speeches made from these Benches might influence the wise thoughts of Her Majesty’s Government, but it is one that I hold to. I am grateful to the Minister for his explanation, but I hope that we can have better scheduled debates in future. From a personal point of view, I believe that the slot at the end of business on Wednesdays is extremely convenient for most people.
It is also a shame to be having this debate now, when half the members of the European Scrutiny Committee are away in, of all places, Europe. They are visiting Cyprus, in preparation for Cyprus taking over the European Union presidency. I was glad to have the opportunity of staying in the House. Like you, Mr Speaker, I prefer not to leave. I believe that you require specific permission to leave the country, and I would not mind being under the same constraint myself.
I shall move on to the substance of the opt-in decision, and to the Minister’s comments. It is tremendously important that, under our current law, any freezing order requires the order of a court, but that would not be the case under the proposed document from the European Union. It is unsatisfactory to allow the administrative freezing of assets without a court interfering. That is an important principle of justice, and on that basis alone it would be wise of the Government not to opt in to the directive.
As the Minister said, the directive would offer no direct benefit to our domestic asset recovery regime. That being the case, the only argument for opting in would be to have more Europe, and that is not the policy of Her Majesty’s Government, who are committed to keeping Europe closely under watch and limiting any extension of its powers. It is therefore difficult to see what changes to the draft directive the Government would find acceptable in order to make it better, or whether there is any prospect of their insisting that anything that happened under it should require a court order before being implemented. It would be interesting to know from the Minister what would be the consequences of our not opting in—by what would we be bound in our existing agreements and how would they develop, and what would be our ability to maintain bilateral arrangements with other member states in future? Might that not be a more suitable way of approaching the matter?
There are concerns about the standing of the directive under European constitutional law. As the Minister and other Members know, we have the ability to opt out of a great number of the crime and justice directives in 2014, but—and there is a but—if we signed this proposed directive, it would not be part of that block opt-out and it would remove our ability to opt out of three other directives that we have so far opted into. The block opt-out does not apply to EU policing and criminal justice legislation adopted following the Lisbon treaty’s entry and coming into force where the UK decides to become bound by it, and neither does it apply to pre-Lisbon treaty legislation that was amended once the Lisbon treaty came into effect. The three pieces of pre-Lisbon EU treaty legislation that we would lose are on money laundering, the identification, tracing, freezing, seizing and confiscation of instrumentalities and the proceeds of crime under the framework decision 2001/500/JHA on the same subject, and another framework decision on the confiscation of crime-related proceeds. We would thus be tightly binding ourselves into all our future confiscation and money laundering policies being determined at the European level.
George Eustice
My hon. Friend makes an important point, which is that the longer we delay our decision about whether to exercise our block opt-out under the Lisbon protocol, the more it can be undermined by subsequent directives such as this one coming along. Does he agree that we should make a decision sooner rather than later about whether or not to exercise that block opt-out?
Jacob Rees-Mogg
I am in complete agreement, and the right hon. Member for Delyn (Mr Hanson) might not be surprised to know that I would opt out of everything at every possible opportunity—and I am more than happy to admit that and to have it held against me in evidence by suitable authorities in future. It is important not to get sucked into more changes through the development of existing pre-Lisbon directives that then become binding and are not subject to the opt-out.
The other important aspect is that this directive does not apply exclusively to cross-border activities, as it applies in the UK alone where we are enforcing standards that apply to crimes committed purely in the UK, so we need to raise the question of what the European dimension is in all cases. If any directive is suitable, is it this directive, or should a completely different one be reframed relating to cross-border activities? That poses all the questions about recognition of foreign countries’ laws and enforcements that we raised with the Minister.
We have those problems to face in a once-and-for-all decision, but I also want to look at what the European Union document states on this issue and the basis on which it has been produced. The two legal bases are article 83(1) and article 82(2) of the treaty on the functioning of the European Union. Article 83(1) includes provisions on organised crime, which the European Commission has decided includes almost any serious crime that could be mentioned, so we can see immediately in that justification part of the general European creep in using the treaties to extend the Commission’s remit—indeed, the EU’s own documentation admits that.
The other legal basis, article 82(2), is all about the facilitation of mutual recognition, so although the current document is not about mutual recognition specifically, this is part of the basis of the directive coming into force. There is some broad contradiction between how the directive will be applied and the legal base used for it. I think we should be suspicious of the EU extending its powers on a basis that it then does not wish to use. Why is it doing it that way?
I know that many other Members wish to speak, but I want to say a little about the way in which the European Union reached its decision. As can be seen in the document provided for the debate, it considered five policy options. The first was the status quo, which it immediately rejected as being completely unsatisfactory. Each of the subsequent options had a slightly more European context than the one preceding it. The second option was non-legislative:
“promoting implementation of existing confiscation obligations… and promoting… existing mutual recognition obligations”.
The European Union did not like that one.
The third option was the “Minimal legislative option”, involving
“transposition and utilisation workshops plus additional policy actions addressing identified deficiencies in the existing”
legislation. Lo and behold, the European Union did not like that one either.
The fourth option was the
“Maximal legislative option without mutual recognition”.
I do not think that “maximal” is a word, Mr Speaker, but your vocabulary is better than mine. Perhaps I should ask you to rule on it later in the day. That option, it was said, would provide many benefits, and
“would consist of all policy actions which do not involve legislative action in relation to mutual recognition.”
Finally, there was policy option 4.2:
“Maximal legislative option including mutual recognition”.
We can see exactly how the process operates. The European Union issues a discussion document and considers all the options. “What should we do? Should we just leave it to the nation states? No, that will not do: we cannot trust them. Should we just do a little bit that will ease the process and make it a bit better? Should we round some of the corners to make them smoother? No, we had best not do that; the European Parliament would not like it.” That is one of the arguments that it uses. “We must go for the maximum option. We must go for the most federalist option. We must go for the option that brings in the European Court of Justice to rule over laws that apply purely in the United Kingdom and purely in the criminal justice area.” That is how the European Union operates.
Her Majesty’s Government were absolutely right to decide not to opt in at this stage, and they should remain right by robustly refusing an extension of EU powers which is, as always, being introduced in the area where it is hardest to oppose. The suggestion is that there are all those nasty people out there, and that if we all club together we will be able to deal with them. However, a Bulgarian enforcement order on some Englishman who has mislaid a parking ticket is not a way of reducing crime. What we need is a robust British system—which I think we already have—that is subject to fair controls and court orders. We do not need a further power grab by the European Union.
Keith Vaz (Leicester East) (Lab)
It is always a pleasure to follow the hon. Member for North East Somerset (Jacob Rees-Mogg). I do not know whether he was implying that the Government were holding the debate this evening because the European Scrutiny Committee had gone to Cyprus, but I am glad that he was left behind—or remained behind—to participate in it.
Jacob Rees-Mogg
I should have thanked the Government rather than criticising them, because they gave me a chance to speak for a little longer than normal.
Keith Vaz
I am sure that the Government are most grateful for the hon. Gentleman’s thanks.
Last night I was present at the launch of a document produced by the hon. Member for Bournemouth West (Conor Burns) about the operation of the European arrest warrant and what it has delivered over the last few years. I know that the hon. Member for Esher and Walton (Mr Raab) is a frequent commentator on its justice and home affairs implications for our country.
I think that we should be cautious in dealing with these matters. The EU document needs to be considered with great care. I am not one of those who believe that we need a directive in order to secure co-operation between EU partners, but I think that my right hon. Friend the Member for Delyn (Mr Hanson) deserves the explanation that he seeks. I think that he deserves to be told why the Minister in the other place was so enthusiastic about the directive, and why the Government have apparently changed their mind. Of course, if there is a valid explanation, and if the various agencies—the Serious Organised Crime Agency being one of them—make representations to the Government pointing out that this is going to create problems for our legislation, it is important that that advice is shared not only with the Minister, but with the House.
The hon. Member for South Ribble (Lorraine Fullbrook) and I recently returned from an official visit to Colombia as part of a Home Affairs Committee delegation, where we were looking at the drugs trade. We noted a very important fact: only 2.6% of the profits from the trade in cocaine remain in Colombia. Some 97% of cocaine profits are administered and laundered within the European Union—in our country and other countries of the EU. That means that our existing structures are not used appropriately enough to catch the people who are responsible for drugs having become the biggest illicit activity in the world.
Even though a directive would help, it will not provide the answer. The Government are right not to opt in unless and until there are further negotiations, therefore. We need to make sure that the structures that are in place in the various countries of the EU can work together to catch those responsible for laundering the profits from drugs. I hope that the Government will use the time that will be available to them as a result of their decision not to opt in constructively and productively, and that they look at the institutions and organisations and make sure that that co-operation is improved. There are, of course, organisations—such as Europol and Interpol—which can be used effectively. I do not think Europol is used enough. We have a very good British director of Europol, Rob Wainwright, who was trained at SOCA. We must co-operate much more closely, without legislation from Brussels being needed.
Drugs is one example. The other is human trafficking, which is the third biggest illicit activity in the world, with profits of £32 billion a year. Through our co-operation with the Romanian authorities in Operation Golf, we showed that it is possible to have mutual co-operation with other EU countries without having a further directive, if there is willingness on the part of our European partners to work with us to deal with illegal activity.
Mark Reckless
The right hon. Gentleman mentions Europol and the issue of trafficking. Does he recall that when the Home Affairs Committee visited the Greek-Turkish border, one of the issues we found was that the structures of Europol were not well designed to secure co-operation with Turkey? Very often, the European basis of Europol and the insistence on doing everything through that framework was getting in the way of practical co-operation.
Keith Vaz
I am happy to agree with the hon. Gentleman, who is also a fellow member of the Home Affairs Committee; he is absolutely right. The EU looks at these issues only within the confines of the EU. Because Turkey is not a member, it is not included in any aspects of co-operation. An example of that is the way the RABITs were deployed in Greece to deal with illegal immigration. Because the UK was not part of Schengen, we were not allowed to be a formal part of the activity of the RABITs. As a result, we were left marginalised.
Mr Speaker, I can see that you are about to tell me that I am out of order. [Interruption.] Oh, you are not. You were frowning, Mr Speaker, and I have known you long enough to know that a frown may have indicated that you were about to stop my flow. Let me go back to the original reason behind this debate. I was tempted along the other path by the hon. Member for Rochester and Strood (Mark Reckless).
Mr Speaker
Order. I am sorry if the right hon. Gentleman was concerned that I was frowning. Perhaps I can satisfy simultaneously his curiosity and that of the hon. Member for North East Somerset (Jacob Rees-Mogg). I have made inquiries, as the hon. Member for North East Somerset would expect, and I am now in a position to tell him and the House that the word in question, maximal, is the penultimate word in the second column of page 1,720 of the new “Shorter Oxford English Dictionary”. I know that the hon. Gentleman already knew that, but I am just reminding him.
Keith Vaz
I am enormously grateful that my speech will go down in history as the one in which you made such an important ruling, Mr Speaker, and thank you very much for choosing my speech in which to do it.
Let me conclude by saying that I hope the Minister will use the time available to the Government to make sure that the structures I have described are used to their maximum to ensure that we get the greatest amount of co-operation.
Bob Stewart (Beckenham) (Con)
Before the right hon. Gentleman finishes, will he kindly tell me what the heck a RABIT is?
Keith Vaz
Of course. A RABIT—rapid border intervention team—is a rapid deployment force used by the EU to go to countries that face influxes of migrants who are illegally trying to enter the European Union. It is not the furry thing that runs around the hon. Gentleman’s constituency.
When the Minister winds up—I will read his reply in Hansard, and I apologise, Mr Speaker, for not being here for the wind-ups—I hope that he will look at the issue of the new National Crime Agency to see whether any of this affects the way in which the NCA is going to deal with the mutual co-operation that exists between our agencies and other EU countries. I have mentioned the visit that the hon. Member for South Ribble and I made to Colombia. The one agency that was praised, from a front-line commander in the middle of the jungle that we visited to the President of Colombia, President Santos, was the Serious Organised Crime Agency. It was praised particularly for the way in which it has worked with the Colombians and with other Governments throughout the world to combat illegal drug activity.
James Brokenshire
As the right hon. Gentleman will not be here for the wind-ups let me say now that I will reflect on his comments. I am certainly very appreciative of and recognise the work that SOCA undertakes around the globe in a number of different regions. The development of the NCA, and certainly the utilisation of legislation on the proceeds of crime, will be part of our approach to strengthening and developing our response to organised crime. The NCA is one part of that.
Keith Vaz
I thank the Minister for that answer.
Finally, when we spend money on organisations such as SOCA, on which we spend £0.5 billion pounds a year, we expect value for money. We expect it to be able to go out there and seize assets. At the end of the day, that is how the public will judge the effectiveness of these organisations. Working with our European partners can only help us to achieve that. We do not need more legislation or, necessarily, more directives, but we do need the co-operation of our partners to succeed.
Tom Brake (Carshalton and Wallington) (LD)
It is a pleasure to follow the Chairman of the Select Committee on Home Affairs, who has been able to put Members’ minds at rest on the subject of RABITs this evening. It is also a pleasure to follow my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), who was loquacious, in the earlier Defamation Bill debate, on the joys of coalition. I wanted to point out to him that I feel a particularly heightened sense of joy on coalition partnership working during these European Union debates.
There are a couple of points that I should like to make on this subject. I am sure that all fair-minded Members will acknowledge the value of a robust EU-wide regime for freezing and confiscating criminal proceeds, because cross-border crime is a serious and growing threat to the UK. Inevitably, one of the consequences of the four freedoms of the single market—the free movement of goods, services, people and capital—is the growth in cross-border organised crime and proceeds of crime. I am sure that Members will also agree that it is important that the UK maintains its European and international lead on these issues. That has been the UK’s position since 1998. Indeed, the EU’s 1998 joint action, which the directive would replace, was a UK proposal. Currently, in almost every respect, UK domestic arrangements match or exceed the minimum rules in the directive, so opting out permanently would threaten the UK’s leading role.
I agree that the text of the directive is not perfect and that the UK must use its active observer status to improve it and opt back in. As the Minister indicated, there are legitimate concerns about how the draft directive would interrelate particularly with our non-conviction-based confiscation powers. In response to my intervention on that point, he said that there would be no guarantee that the directive could be changed to accommodate our non-conviction-based confiscation regime. I wonder, however, whether he has any intelligence about whether that would be likely, given the extent to which these non-conviction-based confiscation schemes operate in other EU countries. I hope that he can reassure me that the UK will use its status to seek to galvanise support for ensuring that our non-conviction-based confiscation regime can sit within the scope of the directive and secure other changes deemed preferable so that we can opt back into the directive post-adoption.
Nia Griffith (Llanelli) (Lab)
As a member of the European Scrutiny Committee, I want to place on the record my extreme disappointment at the timing and last-minute nature of this debate. We have had the documentation since March, but things have been left till the last minute. One debate was cancelled and now this debate is being held when the majority of Committee members are on an important pre-presidential visit to Cyprus. Those of us who are here are here because other commitments prevented us from going.
The timing of this debate is therefore unfortunate and does not bear out the spirit that the Minister for Europe promised when he said he would continue to honour the enhanced parliamentary scrutiny of justice and home affairs opt-ins. In a written ministerial statement in January, he said that such debates would form part of a package of measures intended significantly to strengthen Parliament’s oversight of EU justice and home affairs matters and make the Government more accountable for their decisions in the EU. It is unfortunate, therefore, that this debate has been called at the last minute and at such short notice, as it has not given hon. Members a chance to prepare.
The Minister talked about having influence without intending to opt in. Will he clarify how he sees the UK continuing to influence the process if we are not opting in at this stage? Will he expand on his explanation of the types of changes in the draft directive that would be needed for the Government to opt in to the directive, even after it has been adopted? I thank him, by the way, for the detailed letter sent to the Chairman of the European Scrutiny Committee, the hon. Member for Stone (Mr Cash), and the negotiating objectives, which are particularly helpful. If the Government do not secure the necessary changes, would there be any other ways in which some sort of mutual recognition could be established? Does the Minister see any particular ways forward on that? Lastly, what would be his assessment of the implications for broader international co-operation on the freezing, confiscation and recovery of proceeds of crime, not only with EU partners but even further afield, if the UK does not participate in this directive? It is important that we know both sides of the question. With those few remarks, I conclude.
Mr Dominic Raab (Esher and Walton) (Con)
I support the motion, and I commend the Minister and the Home Secretary for taking a wise decision. I wish to speak briefly because after years of our sleepwalking into many mindless EU regulations, we are at last getting some substantive scrutiny of and rigour in how we take these decisions under this Government and in this Parliament. I also wish to commend the European Scrutiny Committee and, in particular, my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). That Committee has become the nightwatchman for Parliament on these matters, and on this directive in particular.
This draft EU directive is flawed. The Minister has explained one of the specific law enforcement problems with it, but beyond that there are six reasons why Britain should not opt in. The first of those is the basic issue of principle: the directive empowers the state to freeze assets without a court order being obtained first, and that extraordinary proposal is contrary to the fundamental tenets of justice in this country. Given the exponential increase in security legislation in this country since 9/11 and the many examples of broad powers being expansively interpreted by law enforcement agencies, whether inadvertently or otherwise, under the Regulation of Investigatory Powers Act 2000 and elsewhere, the retention of judicial oversight before making such an order is vital.
Those who want to make a practical rather than ideological argument in favour of opting in should note that in the UK a court can be asked to issue a property freezing order at any time and, if necessary, without notice to the affected party. The risk that assets might be moved if a court order was first sought are not a good reason for us to legislate along these lines. The decision to deprive an individual of their property should always require a judge’s consent.
Mark Reckless
Although the Labour Chair of the Home Affairs Committee took a different view, how does my hon. Friend react to Her Majesty’s Opposition apparently, in principle, supporting opting into this directive, despite the issue of principle, to which he refers, of the state taking away a private citizen’s assets—freezing them—without any reference to a court?
Mr Raab
I thank my hon. Friend for that. I think we saw a classic piece of fence-sitting. There is a clear contradiction in the position set out by the shadow Minister, which I shall refer to briefly in due course.
The second argument against opting in is, as the explanatory memorandum explains, that there has been no formal domestic consultation yet, so the House does not have the official and formal views, based on operational law enforcement experience, of the police, SOCA, the intelligence agencies and other departments, let alone external experts and groups, on the need for and the practicability of what is being proposed. The Government are therefore right to be cautious and not to be bounced into signing up to a broad new law with far-reaching implications that have not been properly thought through. I noted that the shadow Minister has explicitly requested some gist, explanation or consultation in respect of the nature, character and substance of those submissions, yet without having seen them, he would be happy to opt in anyway. I respectfully suggest to him that the ideological view in this debate and in this House is his, in favour of more JHA integration, irrespective of the scrutiny of the merits and the substance.
The third argument against opting in relates to the costs associated with this directive. Those remain unquantified, but they could well be substantial. The directive will require changes to UK primary legislation. It would introduce new data collection requirements, specifically for evaluation purposes at the EU level. Those would create a pointless administrative burden for UK authorities and lead to an additional bureaucratic tier of EU monitoring of our practices. In addition, as has been said and as the explanatory memorandum explains, the directive’s insistence on effective remedies could add to the legal aid bill, just as we are taking difficult decisions to reduce it which require uncomfortable sacrifices at home.
The fourth objection is that the UK already has ample powers in the area of asset confiscation and freezing. The Government’s explanatory memorandum states:
“We believe that the UK exceeds many of the minimum requirements and so we do not foresee that it would have an impact on the number of cases.”
If anything, those powers have become too broad in the post-9/11 era. The amount of money confiscated by the UK authorities rose by more than 500% between 2003 and 2009, which is scarcely the symptom of a weak regime. The reality is that the directive is neither necessary nor desirable.
Under the Proceeds of Crime Act 2002, the UK framework for dealing with the confiscation and freezing of assets is perfectly robust. Let us be honest about this—I think that the shadow Minister should be honest about it: by legislating on this matter in Brussels, we would be legislating for the failings of other EU member states whose regimes are criticised by the Commission as “underdeveloped and underutilised”. In other words, we are expected to sign up to this blunt EU directive to try to encourage other EU states to pull their socks up. That is not a satisfactory basis for legislation in this country. For one thing, most of the failings in other member states arise less from legislative defects and more from deficiencies in operational law enforcement capabilities. The statement from the Commission suggests that the problem is less one of legislation and more one of law enforcement.
The Home Office recognised that point in its explanatory memorandum, which states:
“The UK does not consider that non-legislative options have been fully considered”.
That is the fifth objection to opting in. If there are alternatives to legislation, why have they not been thoroughly and properly examined by the Commission before it rushed to churn out yet another intrusive and in certain respects draconian directive?
The final objection is the impact on the UK’s 2014 opt-out decision on crime and policing, which has already been mentioned. Every time the UK opts in to one of the 130 or so measures that are subject to our block opt-out, that measure is removed from the list of laws that the UK will have the chance to repatriate by 2014. In other words, if we opt in we will automatically become subject to the jurisdiction and interpretation of the Commission and European Court of Justice. Given that Brussels will be assuming competence over broad and, for the UK, unprecedented security powers, that is not an ideological issue but a major constitutional one.
The directive is in part draconian, but it is in whole costly and unnecessary. It conflicts with basic principles of British justice and would undermine Britain’s opportunity to wrest back democratic control of justice and home affairs legislation. There is no good reason why Britain should opt in—the Opposition have not advanced one—and for principled and practical reasons, we should remain out. I commend the Home Secretary and the Minister for their rigour in reaching this decision based on the substance and merits of the matter.
James Brokenshire
Thank you, Mr Speaker, and I will be brief given the late hour. I thank right hon. and hon. Members for their contributions tonight and I think that the debate shows the importance not just of the subject matter but of debating such decisions in the House to allow a full exploration of all the issues before a final decision is made.
In response to my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) and the hon. Member for Llanelli (Nia Griffith), who are members of the European Scrutiny Committee, let me underline the comments I made at the outset. The Minister for Europe is alongside me on the Treasury Bench tonight and we will work with the Committee and consider ways in which we can seek to ensure that Government decisions are communicated to the Committee and the House in advance of such debates so that we can facilitate further scrutiny and examination of the matters before us. I give the House a commitment that we will take that forward after this evening’s debate.
On the issue of mutual recognition, it may be of assistance if I say that the UK already succeeds in recovering assets from member states and other countries outside the EU in the absence of a directive. Some of that co-operation is a result of working through an existing mutual legal assistance framework on criminal matters that exists independently of and will not be affected by the directive. As I have said, the directive does not and is not intended to contain any further mutual legal assistance measures. However, as I said, we will explore the options for new mutual recognition for both conviction and non-conviction-based confiscation as these measures have the potential greatly to improve our ability to recover the proceeds of crime held in other member states.
I certainly recognise the emphasis on practical co-operation—a point that was made by my hon. Friend the Member for Esher and Walton (Mr Raab) and by the Chair of the Select Committee. Practical co-operation is a very important aspect, which I underline in my discussions with other EU members in relation to this subject matter.
I can tell my right hon. Friend the Member for Carshalton and Wallington (Tom Brake) that I have stated clearly in my letter to the European Scrutiny Committee that irrespective of whether the UK opts in to the directive, we will take an active part in negotiating the directive to shape it in the national interest. In response to the Opposition Front-Bench spokesman, the right hon. Member for Delyn (Mr Hanson), may I say that we have set out in our letter to the Select Committee our negotiation objectives? I will consider ways in which we may be able to share information with him on that and in relation to the representations that we have received from law enforcement partners in connection with the directive.
Ultimately, the risks posed to our domestic non-conviction-based confiscation powers are too great. We will seek to negotiate the directive into a more acceptable form and we will keep the progress of those negotiations under close consideration. We believe that the right approach is not to opt in at this stage, but to stay out and negotiate, to underline the need for continued focus on our international relationships in respect of asset recovery and to ensure that we have a robust system to monitor this. If necessary, I shall come back to the House in the future, should the situation change. At this stage we do not judge that opting in is in the best interests of our country.
Question put and agreed to.
Resolved,
That this House takes note of European Union Document No. 7641/12 and Addenda 1 and 2, a draft Directive of the European Parliament and of the Council on the freezing and confiscation of proceeds of crime in the European Union; and supports the Government’s intention to not opt-in under Protocol (No. 21) to the European Union Treaties at this stage.
Backbench Business Committee
(12 years, 5 months ago)
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Geoffrey Clifton-Brown (The Cotswolds) (Con)
I beg to move,
That Mr David Amess, Mr David Anderson, Bob Blackman, Jane Ellison, John Hemming, Mr Marcus Jones and Ian Mearns be members of the Backbench Business Committee.
I am grateful to catch your eye, Mr Speaker, at this late hour and I apologise for delaying the House to debate the motion. I shall outline the factual position that has brought us to where we are this evening. The concept of the Backbench Business Committee emanated in the last Parliament from the Committee on Commons reform, commonly known as the Wright Committee. The Backbench Business Committee was created by Standing Orders made in the House on 15 June 2010.
The Committee has responsibility for scheduling debates on 35 days, at least 27 of which must take place in the Chamber. This represents a significant amount of parliamentary time in each Session to schedule debates on matters of genuine interest to Back Benchers—more than that afforded to Opposition parties. Before these reforms, Back Benchers had not been able to bring forward substantive motions regularly to the Floor of the House since the late 19th century.
On 12 March 2012 the House amended the way in which the Chair and other members of the Backbench Business Committee were elected, with the following effect: first, to ensure that the Chair of the Backbench Business Committee will always be a member of the non-governing party; secondly, to bring minority parties into the fold by allowing the Backbench Business Committee to invite a Member from a party not represented on the Committee to participate in its proceedings; and thirdly, to amend the rules on electing members of the Backbench Business Committee to reflect exactly what happens now in other Select Committees.
There would be elections within the three major party groups, and it was the Members who emerged from these elections that the Committee of Selection, which I have the honour to chair, selected for membership of the Backbench Business Committee. That forms the basis of the motion on behalf of my Committee that we are debating now.
Mr Christopher Chope (Christchurch) (Con)
I thank my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) for introducing the debate and the Leader of the House for facilitating it, albeit through gritted teeth. It also gives us an opportunity to congratulate all the Back-Bench Members who have been elected to serve on the Backbench Business Committee this Session. My purpose this evening is certainly not to criticise any of those elections, but to point out that they are elections for one year and that this time next year we will be electing not a Backbench Business Committee, but a House business committee, because the coalition agreement specifically states:
“A House Business Committee, to consider government business, will be established by the third year of the Parliament.”
We are already in the third year of the Parliament, so if a House business committee is not established before the next Queen’s Speech, the coalition agreement will not have been complied with. Given that the powers that be might think it much more convenient to start those new arrangements from the beginning of a new Session, I presume that arrangements will have to be made to ensure that the House business committee can start at the very beginning of the next Session and that we will not have the sort of delay we got this year between the Loyal Address and the Government’s response on what the business of the House would be.
Mr David Nuttall (Bury North) (Con)
Does my hon. Friend therefore assume that the formation of the House business committee in due course will automatically mean an end to the Backbench Business Committee? It could be that both could continue.
Mr Chope
Perhaps that is possible, and I am grateful to my hon. Friend for his intervention. The debate gives the Deputy Leader of the House the opportunity to confirm for the avoidance of doubt, as lawyers would say, that the commitment in the coalition agreement will be complied with, and when he gives that commitment perhaps he would also answer my hon. Friend’s question on whether there will be a House business committee and the Backbench Business Committee or just one covering both important subjects.
It would also be wrong if the Members present tonight did not pay tribute to the work of the Backbench Business Committee in the previous Session, which was a very long Session and the Committee’s inaugural one. Its members were effectively pioneers and I think that they served the interests of fellow Back Benchers with dedication and distinction. I would like to mention three Members in particular: my hon. Friends the Members for Wellingborough (Mr Bone), for Kettering (Mr Hollobone) and for Shipley (Philip Davies). They are not on the list of Members to be reappointed to the Committee, and I think that when hon. Members look back on its work over the previous Session they will realise what an enormous contribution those three hon. Members made.
In the previous Session the Backbench Business Committee ensured that Back-Bench debates, to a large extent, reflected the priorities of Back Benchers and our constituents, rather than those of the Government, which I think was a very refreshing change from our previous procedures. Notable highlights included the debates on prisoner voting and on the case for a referendum on our relationship with the European Union. It should be noted that both debates were on substantive motions on which the House was able to express a clear view. I think that the Government certainly found the expression of a view on prisoner voting helpful, although perhaps they did not find the expression of a view by 81 Conservative Back Benchers on an EU referendum quite so helpful. Nevertheless it was an opportunity for the Government to hear what Back Benchers thought on those subjects.
I would urge the new members of the Committee whom we will appoint tonight not to be intimidated by the Whips into always selecting for debate bland subjects that do not have substantive motions with teeth, because if we always did that, we would not be serving the best interests of Back Benchers and our constituents. I urge those Members to ensure that we have some substantive motions.
Charlie Elphicke (Dover) (Con)
One of the best things about the Backbench Business Committee is that it includes votable motions, and Back Benchers should be able to table motions and have them debated and voted on to ensure that if the Government or, indeed, the Opposition of the day are going off kilter the temperature and viewpoint of the House can be taken.
Mr Chope
I agree absolutely.
I raise this little subject because, immediately after the election and certainly on the Conservative side, one of those who was successful sent out a circular, saying that he would try to ensure that there were no motions on which we could vote on Thursdays. If the Government and the Whips decide that the only day to be allocated for Back-Bench business is going to be a Thursday, and Backbench Business Committee members throw in the towel early on and say, “We’re not going to have any substantive motions on which we can vote on Thursdays,” we will be in a rather sorry state of affairs, so I hope that those people who are on the Committee, and who may aspire to be on the House business committee in due course, realise that Back Benchers want some substantive motions. That does not mean every time—but quite often.
Dr Julian Lewis (New Forest East) (Con)
I should like to defend the idea that votable motions on a Thursday are not in the interests of Back Benchers, because the danger is that the Government will simply impose a one-line Whip and any vote held on a Thursday will be rather meaningless, as people will not attend in sufficient numbers. I believe that my wish to have a votable debate on the renewal of Trident has been shortlisted and is somewhere in the queue for future debate, and I hope that that votable debate, which would not be worth having if it were not votable, will be held on an evening other than a Thursday so that people are present and the temperature within and across parties can be measured accurately.
Mr Chope
My hon. Friend makes a very good point, and I am with him all the way on his campaign to have a debate about that all-important issue of renewing our nuclear deterrent.
This coming year offers an opportunity for the Backbench Business Committee to work with the Government more closely on developing what will eventually become the House business committee, and that work must mean looking at opportunities for such debates and at fitting them in throughout the whole week, rather than thinking of them as something to be held on a Thursday. I hope that that is one thing the first-class Chairman of the Committee takes forward during this Session.
Mr Nuttall
My hon. Friend will recall that, when it suited the Government, on the occasion of the debate about whether there should be a referendum on our membership of the European Union, the debate was moved from a Thursday to a Monday.
Mr Chope
Exactly. My hon. Friend makes a very good point. The debate was moved because the Government took the view that they had to get their Ministers and payroll involved in the vote, but I am not sure that that is the right approach for the Government to take. They should be quite prepared to say, “This is the view of Back Benchers, and we, the Government, will listen to the views of Back Benchers.” Back Benchers should vote on a substantive motion, and, if they agree on something that is not Government policy, the Government should not regard it as an issue of confidence in them; they should listen to what has been said. Up to now, one difficulty has been the Government’s interpretation of any motion by Back Benchers in Backbench Business Committee time as a potential attack on their integrity.
Mark Reckless (Rochester and Strood) (Con)
Does my hon. Friend agree that, since the debate and vote on holding a referendum on our membership of the EU, there has been some potential for change in the Government’s position? The Chancellor is talking about a vote on any reshaped relationship with the EU, and even yesterday we had a written ministerial statement entitled, “Post-EU Competitiveness Council”.
Mr Chope
My hon. Friend is absolutely right. Such circumstances show that, although some of us may think that the Government do not listen enough, they certainly do sometimes, and we must be grateful for that. Indeed, we know that they have listened on prisoner voting. Then yesterday the Home Secretary came here and said that she wanted us to express a view on an important issue so that we could, in effect, try to influence the interpretation of the judges on article 8 of the European convention on human rights.
Dr Julian Lewis
Although the Government certainly did not enjoy the experience of the vote on a referendum on Europe, might they not, taking a broader view over time, come to reflect on the fact that Parliament as a whole was a definite gainer from that vote and that a lot more interest in, and respect for, Parliament resulted from it?
Mr Chope
I am sure that that is absolutely right. We should accept that the Government have done Parliament and Back-Benchers a good turn in facilitating the work of the Backbench Business Committee. Nothing that I have said so far is intended to pour cold water on that radical reform of our procedures in this House.
My final point concerns the problems that are caused when there is a delay in setting up a Committee. Some Members were surprised when on 24 May, at column 1285 of Hansard, the Leader of the House announced that there would a debate on mental health and that the subject was “previously suggested” by the Backbench Business Committee. That debate is scheduled to take place this Thursday. The use of the word “suggested” contrasts strongly with the provisions of Standing Order No. 14(3D), which says that such business shall be “determined” by the Backbench Business Committee. It is a pity that the Leader of the House did not spell out that, notwithstanding that expression of intention, the debate would need to be confirmed by the Committee after it had been formed and was essentially only provisional business if it was to count as Back-Bench rather than Government business. Perhaps the Government will want the Committee to meet them tomorrow to give the green light to Thursday’s business being Back-Bench business—in effect, one of the 27 days allocated for Back-Bench business—rather than Government business on a Government motion.
That shows why some of us are rather sceptical about the Government’s use of words in what they put down on the Order Paper. I, for one, will be looking closely at how they prepare to deliver on their commitment in the coalition agreement to set up the House business committee in the third year—not the third Session—of this Parliament.
Angela Smith (Penistone and Stocksbridge) (Lab)
Let me once again put on record my tribute to the work already done by the Backbench Business Committee in the first Session, as the hon. Member for Christchurch (Mr Chope) said. We had some very good debates, including debates on Hillsborough and on wild animals in circuses, the resolution of which issue we still await.
Labour Members are happy with the process undertaken to elect the new Backbench Business Committee. The parliamentary Labour party has run its election to the Committee and is more than happy—in fact, proud—to put forward my hon. Friends the Members for Blaydon (Mr Anderson) and for Gateshead (Ian Mearns). I am sure that they will be fine members of this new institution as they join its wonderful Chair, my hon. Friend the Member for North East Derbyshire (Natascha Engel), who has shown real leadership in taking the Committee’s work forward.
As for the House business committee, Labour Members await with interest developments on that front. In particular, we will be looking to see whether we get U-turn No. 35, or perhaps No. 36, when we do not see the committee materialise over the next year or two. That would be one of the biggest U-turns of all, as this commitment goes straight back to the coalition agreement.
Angela Smith
Perhaps we will see tomorrow one of the reasons why.
It remains for me to congratulate all those who have been elected. I hope that this Committee will be as successful as the previous one in the forthcoming Session.
The Parliamentary Secretary, Office of the Leader of the House of Commons (Mr David Heath)
I am grateful to the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) for introducing the motion on behalf of the Committee of Selection. As he rightly said, the sole purpose of the motion is to bring into effect the results of the ballots held in the respective parties to provide for the constitution of the Backbench Business Committee. One might imagine that that was a fairly straightforward process. One might imagine that having elected Members to the Committee, the House would wish for the Committee to undertake its work at the earliest opportunity.
Mr Peter Bone (Wellingborough) (Con)
The concern of some Members tonight is why it has taken so long to bring the motion forward. The House has been sitting for a number of weeks since the elections. People are concerned about why the Government have delayed the Backbench Business Committee in coming forward.
Mr Heath
Uncharacteristically, the hon. Gentleman is simply wrong to say that there has been any delay. At the very first opportunity following the elections in the various party groups, the matter was put before the Committee of Selection, and the Committee of Selection took the very first opportunity to put it on the Order Paper. There was an objection, so we could not form the Committee. That is why we are debating the matter—again, at the very first opportunity that the House has had—to bring it into effect.
There has been absolutely no delay. Matters have proceeded as quickly as possible. That is why I was a little flabbergasted to find that we would have to have a debate. As I said, I would have thought that the House would have wanted the Committee to be constituted as quickly as possible. Of course, there are legitimate reasons why hon. Members might wish have wished to have a debate. They might have felt that there had been procedural irregularities in the elections. However, I have heard no arguments of that kind. Indeed, quite the reverse: I have heard Members congratulating the hon. Members who have been elected. I am glad that they seem to have the acclamation of the whole House.
Mr Nuttall
On the constitution of the Backbench Business Committee, does my hon. Friend think that it is rather demeaning that the minor parties have only observer status, rather than full membership?
Mr Heath
No, I do not think that it is remotely demeaning. It is the result of what the House decided just before the close of the last Session. The House has debated that matter and I do not intend to repeat the arguments.
Now, would the hon. Member for New Forest East (Dr Lewis) like to intervene?
Dr Lewis
I thank the Deputy Leader of the House, as always, for giving way graciously. Given that we have the opportunity of this debate, would he care to use it to reassure Back-Benchers that the Government have no intention whatsoever of trying to prevent votable motions from being debated on days other than Thursdays?
Mr Heath
Whether the Government have any mechanism to do that is in the hands of the Backbench Business Committee, which was set up by this Government. Incidentally, it was not set up by the hon. Member for Penistone and Stocksbridge (Angela Smith), who was so concerned about the progress towards a House business committee that her Government would not allow a Backbench Business Committee of any kind. We set it up and are very proud of its progress over the past year. I am pleased that it has managed to do the work that it has done, and I look forward to it doing its work in the years ahead.
Charlie Elphicke
I have a very brief point. Sometimes, the Leader of the House is given a hard time about how things are with the Backbench Business Committee. However, is it not right to say that it was very much his brainchild to make it happen and to implement it? Should not the House recognise that he has fostered this major improvement in our parliamentary machinery, which the previous Government did nothing about?
Mr Heath
I am perfectly happy to take credit on behalf of my right hon. Friend the Leader of the House for implementing what was clearly set out in the Wright Committee report. I thought it was a great shame that the report was not implemented by the previous Government, but it has been and will be by this Government. I commend the Wright Committee’s report to everybody who wants to see the way forward on some of the relevant issues.
Mr Heath
Again, I commend the Wright Committee report to the hon. Gentleman. He will find that he was simply wrong in some of the points that he made earlier about the Committee’s suggested structure for determining House business.
I move on to the last substantive point that needs to be made. The hon. Gentleman seemed to take exception to the fact that the Government had attempted to facilitate the Backbench Business Committee’s procedures for this week.
Mr Heath
No, not for the moment. Let me explain what the Government have been attempting to do.
It seems that there is some objection to the fact that the Government have tried to help the Backbench Business Committee by providing the debate that it would normally have scheduled this Thursday. We are committed to the Backbench Business Committee having time for Back-Bench debates at an average of once a week, although not necessarily every week consecutively, and we have kept up that average.
We felt it imperative that we reserved time this week for a Backbench Business Committee debate. Did we pluck a subject out of the air for that debate? No, of course we did not. My right hon. Friend the Leader of the House asked the Chair-elect of the Committee, who of course was its previous Chair and so has some experience, what she felt would be an appropriate subject for debate this Thursday prior to the Committee being formally instituted. She undertook to consult the new Committee’s members-elect to see whether they had views, and she took into account the requests that had come forward. She suggested that we might provisionally propose that there be a motion on mental health, tabled by Back-Bench Members and in the name of the hon. Member for Loughborough (Nicky Morgan).
The Government are now being criticised for providing at the earliest opportunity what members of the Backbench Business Committee wanted. We are told that we are wrong to have done that. I reject that criticism, which I think is frankly rather stupid. All that we have done throughout the process has been to say that we will do whatever we can to help the Committee in its work. Had the Committee been set up last night, it would have met today and agreed the subject for debate on Thursday. I have every confidence that the subject it would have chosen was the one that its members asked for. If the Government are to be criticised for helping the Committee and facilitating its setting-up at the earliest opportunity, I fail to understand what more we can do to assist Back-Bench Members. I believe that we have acted entirely properly.
Business without Debate
Petitions
Phil Wilson (Sedgefield) (Lab)
The petition has been signed by 85 of the 150 residents of the small but beautiful village of Brafferton in my constituency, from which Arriva has decided to withdraw the only bus service, meaning that the only shop within walking distance is the motorway service station.
The petition states:
The Petition of residents of Brafferton,
Declares that the Petitioners believe that in order to maintain a reliable rural transport network in Darlington Borough, additional funding needs to be provided for rural bus services.
The Petitioners therefore request that the House of Commons urges the Government to ensure that there is funding in place to maintain the provision of reliable rural bus services in the Darlington Borough.
And the Petitioners remain, etc.
[P001096]
Jacob Rees-Mogg (North East Somerset) (Con)
I must declare an interest in this petition, because the event that led to it occurred in my garden, where a dog was savaged—brutally—by a pack of 10 dogs. I said to the owner of the dog that I would present the petition only if it achieved at least 1,000 signatures, because I thought it would be improper for me to benefit from a parliamentary procedure on my own account. Instead, we received thousands of signatures, not only from my constituency, the village of West Harptree and neighbouring villages, but, thanks to The Daily Telegraph, from across the country.
The petition states:
The Humble Petition of Deborah Bowler,
Sheweth,
That the Petitioner believes that attacks by dogs made on all other animals should be made illegal and that owners should be legally responsible for their dogs’ actions.
Wherefore your Petitioner prays that your Honourable House shall urge the Government to consider legislating to make owners accountable for their dogs’ actions in the case of attacks on other animals.
And your Petitioner, as in duty bound, will ever pray, &c.
[P001097]
Port of Dover
(12 years, 5 months ago)
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Charlie Elphicke (Dover) (Con)
I am delighted to have secured this debate on the future of the port of Dover. In Dover and Deal in my constituency, the port of Dover is a cornerstone of the local economy. It dominates the seafront and is a key facility for the ferry industry, which employs around 5,000 people, and it serves as nationally important transport infrastructure. The port is a major asset of the town of Dover.
For all those reasons the future of the port is considered to be critical by people of my constituency, yet there is much concern about the port, which is more formally known as the Dover Harbour Board. The catalyst for the deep concern about the future of the port was its being put up for sale in the dying days of the Labour Government. That came as a shock to my electors, who do not want to see the port sold off to the French or anyone else. They see the port, nestled as it is at the foot of the white cliffs of Dover, as the English border. They feel that the port, every bit as much as Buckingham palace, Big Ben or Stonehenge, should remain for ever England. That view is shared by people up and down the country.
The privatisation move made people think more deeply about how things were going at the port. The more they thought about it, the more concerned they became. First, there is great concern that the harbour board has been in conflict with its key customers, the ferry companies. The board has been seeking to increase mooring fees by a third in a serious downturn. Moreover, the ferry companies feel that they have provided the harbour board with £60 million for investment in infrastructure, which they feel has not been made. The situation has resulted in litigation and has injected much acrimony and uncertainty into the local economy of a town that has more than its fair share of deprivation.
Secondly, the business at the port has not been doing very well in recent years. In 2008, the turnover of the harbour board was £60.774 million; by 2011, it had fallen by 10% to £54.74 million. In 2008, the operating profit was £15.53 million; by 2011, it had fallen to £9.868 million—a fall in profits of 34%. One might think that that was just down to a general reduction in traffic because of the economic downturn, but the figures give the lie to that notion. They show that more traffic has been going to the channel tunnel. In 2008, Dover accounted for 65% of cross-channel freight; by 2011, the figure was down to 62%. In 2008, 61% of cross-channel cars went through Dover; today, the figure is just 54%. In 2008, 64% of cross-channel coaches went through Dover; by 2011, the figure had fallen to 60%. Reflecting on those figures, people rightly feel that the harbour board should be working together with its key customers to win market share and beat the competition. It should certainly not find itself in conflict with its key customers.
There are also concerns about pay in the boardroom. In 2007, the compensation of the harbour board in total was £402,000. By 2011, it had risen to £546,000—a rise of 36%, at a time when wages across the country had barely risen at all and when operating profits had fallen by pretty much the same percentage. That concern has been increased because the port’s turnover and profits have fallen over the period, and the harbour board has been sacking hundreds of long-serving port workers. There are also concerns about infrastructure maintenance, as the Dolphin jetty recently collapsed.
Overall, my electors feel that the current situation at the port is simply not acceptable. They sense that there has been a record of failure and a promise of more. They feel that there is a lack of accountability, partnership and co-operation to deliver the best future for Dover. There has been a lack of partnership with the port’s stakeholders. My electors do not want to see the port sold off; they want it to be more of a success, and to see greater investment in the infrastructure and regeneration of the seafront. Regeneration is particularly needed in the western part of the port, around the now derelict harbour station. Regeneration is key to making the best of Dover. We are talking about a beautiful regency town that was lost in the cross-channel shelling of the second world war. Regenerating the seafront is overdue, and, if effected properly, could make Dover a jewel in the crown of the nation once again.
That was the situation that I was confronted with on my election to serve the people of Dover and Deal in 2010. My electors wanted to see investment, but no sell-off. The harbour board is a public body—it is a quango of the Department for Transport—so it has the ability to raise funds, albeit with great difficulty, because they come on to the national balance sheet. My electors wanted to see greater partnership and greater accountability to the residential and business community. They also wanted to bring forward regeneration and investment. As it was in 2010, so it is today. For that reason, it is clear to me that the community and businesses should get together and buy the port. The Prime Minister came into office promising the big society and a community right to buy. It is for that reason that the People’s Port Trust was set up: to take over the port. The People’s Port Trust was set up as a charitable mutual society, like a building society or trade union. Anyone living or working in the Dover district can join for just £10.
Funding was raised in the City of London to buy the port, in the same way that one would buy a house with a mortgage. The revenues would be underpinned by the ferry companies, ensuring the lowest possible cost of funds and the lowest possible mooring fees for the hard-pressed ferry operators, which have been suffering from predatory pricing by the state aid-backed channel tunnel. The People’s Port Trust directors are highly skilled, and include people such as Sir Patrick Sheehy, who ran British American Tobacco, the multi-billion pound cigarette combine, and Algy Cluff, the entrepreneur who opened up the North sea to oil exploration back in the 1970s. The funding commitments have been made by serious institutions in the City of London; this is a serious bid by a community that is serious about having greater control over its future.
Buying the port would ensure that it would remain forever England, and that it would be safeguarded by the community for the nation in perpetuity. Buying the port would ensure the accountability of its board to the community and businesses. It would reconnect the port with the community, and especially the ferry companies, which provide many thousands of local jobs and almost all the moneys that the port has. The People’s Port Trust would ensure that there would be a real focus on investment and regeneration under a costed plan for the long term, in contrast to the vague promises put forward by the harbour board in its plan to take forward the privatisation that Labour was so determined to see.
That Dover should become the people’s port and a landmark of the Prime Minister’s big society is the clear, settled will of the community—a will demonstrated by 98% voting in favour of the people’s port in a statutory local referendum, and a will and motivation underlined by the fact that the People’s Port Trust now has more than 1,000 members. The question is how the will of the community and local businesses can be implemented. The harbour board has remained determined in its desire to follow through the privatisation policy of the last Labour Government, but there is now a different Government. This Government do not need slavishly to follow the sell-off plan of the previous Government.
That brings me to a number of questions about the future. As the Government appoint the harbour board members, could they not exercise their control to enjoin the harbour board to work more closely with the community and businesses on the new big society plan that the community so clearly wishes to see? In the past, directors of the harbour board have been appointed by the Department under the old-style quango appointment system involving the great and the good. In some cases, it seems that the harbour board has largely been left to choose its own directors. That has led it to become provider-focused, and not sufficiently customer or community-focused.
Would it not be possible to have community and business involvement in making future appointments in an open and transparent appointment process in which the Department appoints the brightest and best through open competition? That would enable the port to become more customer and community-focused. There is an opportunity coming up to make that happen. The chairman of the harbour board retires at the end of this year, and its chief executive retires next year. Those appointments are key to how the harbour board operates and behaves, and they are made by the Department. Will the Department consider making the appointments under the new, open and competitive process that I am suggesting?
Moving to the privatisation process that is now under way, I understand that, once started, it is hard to stop. The Ports Act 1991 was aimed at selling off ports, rather than not selling them off. The process has dragged on, however. The harbour board has been slow to put proposals to Minsters for a decision to be made. It keeps changing its submission and seeking further bites of the cherry. It was meant to submit its final proposal earlier this year, but it has still not done so. It is claimed that the proposal will be tabled in July. Will Ministers ensure that if the proposal is not made in July, the process will be brought to an end? This matters, because the people of Dover need to know what the future of the port will be. The uncertainty is having a negative impact on the local economy.
There is, of course, an alternative to privatisation. It is for Ministers to use the new powers contained in the Public Bodies Act 2011. Those powers would enable the harbour board quango to be reformed. In that way, the community port proposal could be taken forward and implemented. I understand that Ministers do not believe that they can use those powers unless or until the privatisation process has been completed, whether it is accepted or rejected. I want to ask whether Ministers have taken independent legal advice on that matter, because it seems to me that, as the Public Bodies Act 2011 was passed after the Ports Act 1991, the Public Bodies Act can trump the Ports Act. Ministers could therefore start the process to reform the port under the Public Bodies Act, as Parliament has given them powers to do so more recently than it gave them powers to make a decision under the Ports Act.
That matters because, given the behaviour of the harbour board, few people in my constituency seriously believe that the harbour board should be allowed to make any decision on the future of the port of Dover. They feel that the Department should take direct control and work with the community and businesses to find a more positive way forward—ideally, the one involving the people’s port, because that is the people’s will and the mandate that I have received as the constituency Member of Parliament.
I hope the Minister will consider these matters and will be able at least to consider some of the points I have raised this evening. I hope that it is understood that, as the Member of Parliament for Dover, my aim is to deliver a stronger future for Dover, to see the long-desired regeneration of Dover and renewed economic success for a town that has not had its fair share of jobs and money in recent times, and to ensure that an asset that is important to the nation as a whole is managed more effectively in the future for the benefit of the community and of our country. If we get the right future for the port, Dover could be a town transformed into the jewel of the nation’s crown that it always used to be. That is the future that I and the community wish to see.
The Parliamentary Under-Secretary of State for Transport (Mike Penning)
It is a pleasure to respond on behalf of Her Majesty’s Government to the debate of my hon. Friend the Member for Dover (Charlie Elphicke) on the future of Dover. It is a subject that we have discussed privately and publicly many times, and we will continue to do so. I unashamedly pay tribute to my hon. Friend’s tireless work on behalf of his constituents on the issue of the future of Dover. The town has a wonderful tradition and history, and its future is enormously important not just for Dover but for the future of the UK, which needs growth to get us out of the economic situation that we inherited.
I accept many of my hon. Friend’s points. He touched eloquently on the point that I am fairly restricted in what I am able to articulate from the Dispatch Box this evening—I know what he would love me to say—so I hope he will understand that I cannot fall into proverbial potholes, which might have serious consequences as we take the process forward following receipt of the further submission from the harbour board in the near future.
As my hon. Friend alluded to, Dover has been a vital artery into the UK for many years. To this day, this great nation of ours, being an island nation, still relies enormously on our ports and our maritime industry. We are going through a renaissance as a maritime nation, with more and more shipowners registering their ships under our flag. We in the UK are not a flag of convenience; we are very strict about what ships are under our flag, which is one reason why others are attracted to the UK.
More than 90% of our international trade is conducted through our ports. Many have not had the sort of investment that my hon. Friend and others would like to have seen over the years. I think the polite term is that maritime has been a bit of a “poor relation” in transport matters. That certainly does not apply during the two years in which I have had the support of two Secretaries of State and the Prime Minister for the maritime industry.
Port capacity at Dover, particularly roll-on, roll-off issues, has to be addressed because we expect the amount of roll-on, roll-off to double by 2030. My hon. Friend touched on recent issues concerning Sea France. If he does not mind, I shall not dwell much on the acquisition of Sea France by Eurotunnel, which has been agreed by the French courts over the last couple of days—not least because we are closely studying that decision to determine whether it might be detrimental to competition for both the other ferry operators in Dover. My hon. Friend knows that I have met them on more than one occasion. They are worried about their margins, particularly in the light of pressures from emissions legislation, which adversely affects their profits.
Since I have been the Minister, the Department has had to make three important quasi-judicial decisions. The harbour revision order to which my hon. Friend referred, involving the western docks—also known locally as terminal 2—was issued in 2009. Objections by the ferry operators to harbour dues for 2010 and 2011, and a transfer scheme under the Ports Act 1991, which was originally put forward in 2010 by Dover Harbour Board to permit the port to be sold off, also need to be considered. Two of the three quasi-judicial decisions have been made in the last two years.
I know that my hon. Friend was keen for the harbour revision order to proceed. I do not think that it came as an enormous surprise when, after an 11-day public inquiry, the inspector sided with the board rather than the ferry operators on the question of the harbour dues. That is the decision that has always been made, which worries the Secretary of State and me. We will examine the legislation to ensure that it is fit for purpose, because that is obviously necessary if it is always at the back of people’s minds that no one has ever won.
The third decision that needs to be addressed is that involving, for want of a better word, the privatisation of Dover. My hon. Friend said that he did not want the port to be sold to a foreign national, a foreign country, or indeed anyone except the people of Dover. I respect and understand his view, but, as he well knows, it is not quite as simple as that. We are awaiting a further submission from the harbour board, whose chairman I have met in the last couple of weeks. I stressed to him that the Secretary of State and I considered it crucial for the board to produce its revised submission as soon as possible after the decision on harbour dues.
Let me explain what the Government seek from the harbour board. The criteria include an expectation that the Secretary of State
“'will not approve an application for the sale of a trust port”—
which is what Dover is—
“unless the sale is considered likely to deliver an enduring and significant level of community participation.”
I hope that the members of the harbour board have noted that. They know it for a fact, but I think it important to reiterate it as we await their written submissions.
My hon. Friend mentioned regeneration. I have visited Dover as a tourist over many years, but in recent months I have been there to meet members of the local authority and the harbour board, as well as local dignitaries including my hon. Friend. I know that it is imperative for the people of Dover to be able to see the tangible benefit of the wealth that it can produce, but my visits, correspondence and meetings with the hon. Gentleman and other local representatives have left me in no doubt that they cannot see it at present.
When I met representatives of the Unite union recently—a meeting facilitated by my hon. Friend—I encountered deep concern about the lack of investment, as it was described to me. I have put the points that were raised with me directly to the chairman and chief executive of the board, who have addressed themselves to many of them. I am not certain that the people of Dover, my hon. Friend or the union will accept some of their assurances, but I wanted to ensure that the concerns expressed to me by my hon. Friend and the union were put to the board formally, and to make public the point that our discussions had reached.
I genuinely believe that Dover has an exceptional future. I know that other countries around the world look to it—notwithstanding its problems—as a model for the development of their own roll-off ferries. I was in Taipei recently. Relations between Taiwan and mainland China are becoming exceptionally good—so good that roll-on, roll-off capacity is no longer anywhere near good enough so the authorities are looking to add five new ports. Members of the management at Dover were in Taiwan because the Taiwanese want to buy some of their skills and specialist knowledge on how to have so much movement through a port with a very small footprint and without having the best road infrastructure in the world. That infrastructure issue is also a reason why the western port—terminal 2—is so important.
I am disappointed that the harbour board feels that the market is not currently at a level that will allow for active development of the western port to go ahead, although I understand its decision. I intend to discuss the issue with the board soon. We should not just wait for the market to move; we must be ready when the market moves. The local authority is very keen for the western port to be developed so we can move forward and have regeneration.
I am sorry that I cannot at present do many of the things my hon. Friend asks me to do. I will consider all the points he has raised, however, but the quasi-judicial process that is under way may impose some restrictions.
I should pay tribute to the Bishop of Dover for the work he has done in bringing the community together. Others, as well as elected politicians, have a role to play, and he has done very helpful work.
My hon. Friend mentioned board appointments. We already have a situation in which there are advertisements for board vacancies so local people can apply for them; the posts will be advertised locally as well as in the national press. My hon. Friend asked whether there might be local involvement on the selection panel, too. I will look into that. At present it is not the case, however.
I am sure my hon. Friend knows that I was asked to extend the membership of the board by several members for two years. I looked into that and decided that, as we are currently waiting for the submission and so forth, a one-year extension was the maximum period I was willing to consider at present. I did that not to cause instability in the board, but to do the exact opposite: to make its members concentrate their minds on the future and the need to address the situation in Dover.
To be fair, that situation was created by the previous Administration, who pushed the privatisation agenda forward without carefully thinking through what that would actually do. They opened a Pandora’s box. What we now need to do is open things up fully, so that nationally we can get the full benefits of a much more efficient and growing Dover port, and at the same time the people of Dover and Deal have ownership and get tangible benefits, even if they are not involved in the day-to-day running of the port. Anyone who knows anything about the running of a port knows that it is absolutely crucial to have experts in there running it and overseeing the business side of things. It is a very skilful job to run a port.
In conclusion, although this is a very frustrating time for the workers, the unions and their representatives in Dover, it is also quite an exciting time. If we can all get this right—that is the most important thing—a great national asset with wonderful history, which is known around the world, could work brilliantly for the local people and the country as a whole. It could enhance this great maritime nation in which we live.
Let me conclude the debate by addressing a point that I found slightly amusing. Whatever happens, the cliffs of Dover are not for sale—not to anybody from any nation—as they sit outside the port of Dover.
Question put and agreed to.
Ministerial Correction
(12 years, 5 months ago)
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International Development
(12 years, 5 months ago)
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Keith Vaz (Leicester East) (Lab)
How will these excellent priorities help the people of Yemen, almost half of whom are starving?
Mr O'Brien
In Yemen, many of the current challenges are humanitarian. Today, we have announced £26 million of humanitarian support and aid to ensure that some of the needs of the population—nearly half of whom, as the right hon. Gentleman rightly observes, are starving—are met. While we are in the humanitarian phase, that is patently the most important response, but we also need to look at the future of governance and resilience in order to improve the lot of the population.
[Official Report, 23 May 2012, Vol. 545, c. 1119.]
Letter of correction from Stephen O’Brien:
An error has been identified in the oral answer given on 23 May 2012 to the right hon. Member for Leicester East (Keith Vaz).
The correct answer should have been:
Mr O'Brien
In Yemen, many of the current challenges are humanitarian. Today, we have announced £28 million of humanitarian support and aid to ensure that some of the needs of the population—nearly half of whom, as the right hon. Gentleman rightly observes, are starving—are met. While we are in the humanitarian phase, that is patently the most important response, but we also need to look at the future of governance and resilience in order to improve the lot of the population.
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Emergency Services (Interoperability)
(12 years, 5 months ago)
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Mark Pawsey (Rugby) (Con)
It is a great pleasure to serve under your chairmanship, Mr Havard, and a pleasure to secure a debate on such an important subject. People might assume that because I am introducing this topic, I have a background in one of the emergency services. That is not so, although I have a brother who is a police officer. I was in business before coming to Parliament and I approach the issue of emergency services working together from the perspective of a business person in many ways, ensuring the efficiency of the operation and that public assets are used with maximum efficiency.
During my time as a Member of Parliament, I have formed the view that the emergency services are at their best when they work co-operatively and closely together. I have become aware of the benefits of that way of working since becoming an MP and have joined other hon. Members in creating a new all-party parliamentary group on emergency services. Other all-party groups support the individual services, but I remain convinced that the services need to be brought together to ensure that they work for the good of the country as a whole. It is important that each emergency service is not viewed, organised and operated in isolation. Our new all-party group was set up with the explicit objective of promoting joined-up working between the emergency services—the key word being “interoperability”. I shall cover those issues in my remarks.
Why do we need interoperability between the emergency services? History shows clearly that there can be a real danger if an emergency service looks inward on itself and operates solely in its own interests when contributing to resolving an emergency. There is grave danger if the three main emergency services—police, fire and rescue and the ambulance service—work in isolation, with little contact between them. This was borne out particularly in the emergency response to the 7 July bombings. There have been a number of reports since that event, and Lady Justice Hallett’s coroner’s report in particular highlighted interoperability between the emergency services as a major issue. The report bore out concerns that each service, when responding to that event, did not have a full grasp of what the other services were doing in response. The coroner’s report, which was published on 6 May 2011, said that there was a lack of adequate sharing of information between the emergency services’ and Transport for London’s control rooms.
One of the first issues that the all-party group considered was how many emergency services there are. I have mentioned the three blue-light services—police, fire and rescue and ambulance—which are most commonly referred to as emergency services, but they are not the only people who respond on our behalf when an emergency occurs. For example, coastguards play a vitally important role in saving lives, and orange-light services, such as the Highways Agency, assist with the day to day, smooth running of the road network. In emergencies affecting London, both Transport for London and the Port of London Authority are involved. So the response to any emergency will involve more than the traditional blue-light services. The key issue with regard to interoperability is that each service needs to know about the activity of others in responding to an emergency or the threat of loss of life.
Karen Lumley (Redditch) (Con)
A few weeks ago we had the unfortunate experience of the English Defence League marching in Redditch. I was impressed by the emergency services working together under the police’s gold command. Does my hon. Friend agree that as the Olympics draw closer, we need a seamless, comprehensive, integrated approach to our services, with a clear chain of command, so that everyone knows who they are reporting to?
Mark Pawsey
My hon. Friend is well ahead of me. I will talk at some length about the Olympics, which is one of the biggest challenges our country faces in terms of a possible security threat. My hon. Friend is right to draw attention to the need for gold command, led by the police service.
On the broader issue of who responds on our behalf in an emergency, taking the simple example of a serious accident on the motorway, attendance of the police and the ambulance service, responding to dangers to life, and of the fire and rescue service—to free people trapped in vehicles—will be necessary, but it is just as crucial that the Highways Agency is there to assess the situation, to help to minimise the effect on traffic and get the motorway moving again as quickly as possible. That example shows why joint working is paramount.
If we accept that the services responding on our behalf to an emergency need to work more closely together, where does responsibility for joint working currently lie? The three main blue-light services are the responsibility of different Departments. The police service is the responsibility of the Home Office; the ambulance service is administered by the Department of Health; and the fire and rescue service is administered by local authorities, under the control of the Department for Communities and Local Government. In theory, that may be no bad thing, but in practice there is grave danger that each service is considered in isolation. Since becoming an MP, I have learnt about silo thinking, and with each emergency service attached to a Department, there is a danger of such thinking.
Mr David Hanson (Delyn) (Lab)
There are even more silos, because the health service and local government in Wales are devolved to the Welsh Assembly, and the position is similar in Scotland. The Home Office has a responsibility nationally for such matters. Rather than three silos, there are in fact five or seven.
Mark Pawsey
The right hon. Gentleman makes a fair point, which adds to the argument in favour of some overarching control or administration to ensure close working between the various agencies involved, so that we do not drift to silo thinking.
I welcome the fact that the Crime and Security Minister is here to respond for the Government, because the police take the lead at incidents—my hon. Friend the Member for Redditch (Karen Lumley) drew attention to the police taking command—and he is best placed to speak about interoperability between the emergency services. I hope that he accepts that there must be greater focus on the need for joint working between the services and between Departments. The Government must understand and appreciate the need for greater collaboration.
Interoperability between the emergency services means that each of the three Departments that I mentioned must work together, and the Cabinet Office, which is charged with ensuring effective development, co-ordination and implementation of Government objectives across the board, must play its part in ensuring that interoperability becomes a key facet of our emergency services. For there to be a unified service response, there needs to be a unified Government response to the pressures faced by the services.
The problem was highlighted in a 2011 report by the Royal United Services Institute, “Anatomy of a Terrorist Attack”:
“Political understanding of the complexities of major incident response is critical to the future of the emergency services.”
The report also contrasted the civil situation with the military situation. In the military, all three emergency services report to one body, the Ministry of Defence, but the civil emergency services do not have an equivalent. In the absence of a Minister with specific responsibility for the broader emergency services, there is no one to argue for ring-fenced or increased budgets, making the recommendations of the report on 7 July difficult to implement.
We can see a difficult picture emerging, although given the structure of the civil service and how government is organised, there is some sense of inevitability about that. It is important, however, to understand how vital interoperability between the services is. Communications between the services—their ability to talk to and understand each other—is also a key point in joint working. Lady Justice Hallett reported:
“It is also well known, particularly as a result of the report of the 7th July Review Committee, that there were considerable failings in radio and mobile communications...The unprecedented volume of radio and mobile telephone communications caused congestion on the airwaves because of a lack of capacity. The emergency services and London Underground were further inhibited in their communications by restrictions on the coverage of their radio systems.”
My awareness of the issue arose from a visit to Airwave, a company with a substantial presence in my constituency of Rugby. The company designed, built and operates the largest public safety radio communications network in the world. It delivers voice and data communications to all the organisations involved in the public services, including the blue-light services as well as local authorities, utilities and transport providers. It has its own Tetra—terrestrial trunked radio—network in the UK, which was purpose-built to meet the needs of the emergency services, and covers 99% of the country’s landmass. Since 2008—after the 7/7 bombings, clearly—the network has included the entire London underground system. Importantly for us, given what we are discussing today, Airwave’s network is interoperable, which means that the emergency services and public safety organisations can communicate effectively with one another.
The success and importance of interoperability within the emergency services was noted in the coroner’s report on 7/7, which drew attention to the need for inter-agency liaison and communications:
“The 7th July 2005 Review Committee concluded that communications within and between the emergency services ‘did not stand up on 7 July’. It further observed that individual emergency service personnel could not communicate effectively, in some cases with each other and, in other cases, with their control rooms…There have been substantial improvements brought about by the introduction of the CONNECT and AIRWAVE radio systems.”
Where are we now? How can interoperability help? Each day, the emergency services need to ensure that they are working with each other efficiently. Furthermore, working together takes on even more importance during major events.
Geoffrey Clifton-Brown (The Cotswolds) (Con)
I congratulate my hon. Friend on securing this important debate. In addition to the Government’s emergency services, and taking into account that a serious event might take place in more than one city at once, might we not lack overall resilience training in this country? My constituency contains the Fire Service college at Moreton-in-Marsh, where a certain amount of inter-service training takes place. Could we not do much more as a nation to have interoperability and resilience training, not only for the silos that my hon. Friend mentioned but for the many more that could be involved, such as the utilities and local authorities?
Mark Pawsey
I shall come to local resilience forums and the useful part that they play in bringing people together. Communications are key, with people working together and understanding the different ways of operating. Clearly, through training at an institution such as the one in my hon. Friend’s constituency, emergency services personnel can get to understand more about the actions of colleagues not only in their own service but in other services. That understanding can be crucial in getting the right help to an incident as fast as possible. Not only must the police, fire and ambulance services be able to work with each other, but every individual force within each service needs to be able to do so as well. There are 53 police forces in the UK and their work often overlaps, most often at a force boundary but also when specialist forces such as the British Transport police are involved or when officers travel to another area to provide support at an event. Good communications are at the heart of such interoperability.
One organisation cannot work with another if it does not know what the other organisation is doing or trying to achieve. Sometimes that is straightforward, such as ensuring that all staff within a service use the same sort of language as other services. For instance, there is anecdotal evidence about the terminology used by the emergency services during the 7/7 bombings. To some, talk of “casualties” found in the tunnels meant injured people, but to those in another service a “casualty” was someone who had died, so when they heard the word, support was not prioritised because they believed it was too late. Another example—the blowing of whistles—comes from the time of the IRA bombings in Manchester in 1996. When the police blow a whistle, all available officers run towards the sound; when the military blow a whistle, everyone stands to attention; and when the fire service blows a whistle, everyone runs away because it is a sign that a building is in danger of collapse. There was no danger as a result in that particular incident, but the different responses to the sound of a whistle show how important it is to make certain that everyone responding to an emergency speaks the same language and works to the same procedures.
I am pleased to note that in July 2007 the National Policing Improvement Agency produced a guide to language to be used over the Airwave network, “AirwaveSpeak”. That was an early step to ensure that all police agencies spoke the same language. The development should be continued more broadly, to include other emergency services.
The quality of the technology is also important to ensure the achievement of interoperability. Before the Airwave network was rolled out nationally in 2005, the emergency services throughout the country used different systems and were not able to communicate easily with one another, leading to practical difficulties. For example, police officers working at force boundaries had to swap radio handsets regularly in order to keep in touch with each other. Now the situation has changed and members of all three emergency services and up to 300 other organisations have access to a common communications platform.
A recent example of the benefits of interoperability occurred last summer, during the 2011 riots, when unprecedented disorder took place in some towns and cities throughout England. An important point to note about those events was the sheer scale of the operations that the emergency services had to deal with. The number of police on duty in the capital rose from 6,000 to 16,000, and officers came to London from 25 different forces, from as far afield as Devon and Cornwall and Strathclyde. Crucially, even with such substantially increased numbers, all the forces involved were able to communicate with one another because they were operating on a common communications platform. Therefore, the necessary complex response to that event was co-ordinated and officers from different parts of the country could work together. There was criticism of the Airwave radio network—hon. Members may have read such criticism in an article in The Observer in December 2011—but the company’s rebuttal and subsequent media reporting clearly show that the network did exactly what it was created to do and supported interoperability in action.
A recent experience of our emergency services looking after a substantial number of people at an event was the diamond jubilee weekend, when the communications network helped the emergency services to work together effectively. I shall give an insight into just how many people used the network at the weekend. I have been told that, as we might expect, the key time was the river pageant on the Sunday. That was the peak day of operations, and during the 12-hour period between 6 o’clock in the morning and 6 o’clock in the evening, 125,315 radio handsets were used by the emergency services across the network. There were more than 1 million interactions across 135 sites. Some 74 organisations, including police, ambulance, fire and rescue services— emergency blue-light services—from all over the country were on the network and forces came from as far afield as the Isle of Wight, mid-Wales and Fife.
In addition to the police services, which were defined as clearly marked users, making use of the system, a further 93 users were recorded as having used the Airwave direct network, including groups such as the Royal National Lifeboat Institution, Transport for London, the Highways Agency and the Port of London Authority. The fact that emergency and non-blue-light services could talk to one another therefore led to success on that day. The Olympics are just around the corner and will start in 45 days. The diamond jubilee weekend was useful, early experience for our emergency services in preparation for what will almost certainly be the biggest test of working together. They can go into the rest of the summer with confidence.
I understand that the Port of London Authority, a user of the system, is looking forward to working on the Olympics and to facilitating
“a response which is both integrated and resilient”.
The Olympics provide a fantastic opportunity for our country. The eyes of the world will be on the UK and London in particular, and excitement is rightly starting to build in London as we approach the event. However, for our emergency services, the Olympics are their biggest challenge. Having visited the Olympics site with the all-party group on emergency services earlier in the year, I am confident that our services are well prepared for the challenge, and I look forward to their success.
One feature will be the armed forces’ contribution to Olympics security, and we will start to see interoperability between the emergency services and the military. The interest in the military’s role in providing security was evidenced by questions to the Secretary of State for Defence in the House just yesterday. The armed forces will use the same communications network as the emergency services, with about 8,000 military personnel having access to that service, making up around 3% of communications network users throughout the Olympics. They will act as reservists, and 13,500 personnel will be called up for the games, although, as my hon. Friend the Member for Redditch said, the police will be the lead service in terms of security.
I was interested to attend a recent all-party group on the armed forces briefing on the military’s contribution to Olympics security. Their role is divided into three sections: safety and security; support for operations; and a wider contingency role. It is clear that the planning is detailed, and the attention to detail is impressive. I was interested in a senior naval officer’s response when asked what success would look like. He said that he hoped that the 64 days of the summer Olympics and Paralympics will be the most boring of a servicemen’s career. I think that we all endorse that. I welcome the joining up of the work of the emergency services and armed forces.
I turn to shared assets. There is a link between services working closely together and their ability to share assets. Sharing assets is a big opportunity for public services more broadly to effect financial savings. I recently spoke at a Royal United Services Institute conference entitled “Blue Light Air Assets: Future Operations”, when particular consideration was given to the future of air assets. Sharing such assets is vital in helping the emergency services to work together with the coastguard and air ambulance services.
I pay particular tribute to the air ambulance service. In recent years, I have become involved with the Warwickshire and Northampton air ambulance service, which operates in my constituency. Air assets are used extensively and to great effect by all the emergency services, and in the UK the majority of those air assets are helicopters. RUSI’s research papers all point to the importance of the blue-light air service’s contribution. Crucially, in the UK, there is currently no co-ordination of those air assets, nationally or across agencies. Sadly, individual emergency services and regional forces currently operate their own air assets in isolation, and that goes back to the issue that I referred to earlier: silo thinking.
Guy Opperman (Hexham) (Con)
I congratulate my hon. Friend on securing this debate. Does he agree that, as we have the great benefit throughout the country of an air ambulance service for which taxpayers pay nothing whatever, the ongoing situation whereby the Royal National Lifeboat Institution is exempt from VAT on fuel, but the air ambulance service must pay VAT on the fuel that it uses should be changed? Will he join my campaign to put the matter before the Backbench Business Committee to try to persuade the Government to review VAT on the air ambulance service?
Mark Pawsey
I, too, am a great supporter of the air ambulance service as a charitable institution, and I know about its tremendous work to raise funds in and around the midlands. I share my hon. Friend’s concern that charitable funds are used to pay tax. I am more than happy to join him in his representations.
On silo thinking, the RUSI report argues that there must be much greater co-ordination in the use of our air assets. Its report on operations for the future makes it clear that the aim should be to ensure that organisations do not consider their air assets in isolation and that they investigate joint working and asset sharing with others. If those twin policies were pursued, there would be a welcome reduction in costs and improved efficiency in the use of assets. The report calls for, as I do, greater collaboration between Government agencies and asset sharing.
A helpful case study comes from Northern Ireland during the troubles when all helicopter assets were owned and operated by the Ministry of Defence in the UK in direct support of the Royal Ulster Constabulary and the civil authority. A single air-tasking cell enabled a helicopter in the air to switch from a life-saving mission to a police task, depending on need and urgency.
Given my background of owning and running a business over 25 years before first arriving at the House, I have always been keen to ensure the maximum use of any item of capital—effectively, to sweat the asset as much as possible—and it certainly seems that there is a great deal of sense in sharing key assets that might sometimes be idle. I would be interested to hear the Minister’s views on how sharing helicopter assets between police forces and other bodies could contribute to more effective working.
There are several examples of how interoperability can be a success. Existing emergency helicopter provision in north-west England contains many gaps, so there are proposals for a rescue helicopter in that area. Those looking to procure the new rescue helicopter point out that neither police helicopters nor air ambulances are equipped with a winch, and they therefore have to land to load or unload personnel and equipment. Air ambulances are classified as commercial aircraft and can therefore provide an emergency service only during daylight hours. To counter those problems, the proposal in the north-west is for a rescue helicopter that has a winch and uses night-vision devices. Such an asset will therefore have multiple roles and provide an affordable option that will allow all fire and rescue services in the north-west to enhance their response and service delivery, while providing support and resilience to other emergency services and rescue agencies. That is a good example of the widespread benefits that interoperability can bring.
My hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown) mentioned the local resilience forums that exist around the country, based on police authorities. The emergency responders—fire, police and ambulance services—meet as a group to consider the risks that affect their areas and to work out strategies to deal with them. That strikes me as an excellent example of interoperability in action that should be welcomed, and I look forward to the Minister’s remarks on how those local resilience forums can be built on.
What can we do in the future to improve interoperability? We have already seen how the adoption of a common platform for communications can significantly improve the performance of emergency services by enabling them to work together. There is, however, more that can be done. About 18 months ago, I attended a reception in the House of Commons for the emergency services. During the discussions that took place around the table between Members and representatives from all the emergency services, it struck me that it was one of only a few occasions in which members of the police had a detailed conversation with people from the ambulance and fire and rescue services. It was a great opportunity for people to network socially, and a greater understanding of each service is vital because, as we have already heard, different words mean different things to different services.
RUSI’s report on shared air assets states that, to achieve interoperability, agencies must fully understand one another if they are to work together effectively. The key question for people to understand is what their agency, and other agencies, are trying to achieve. The one-size-fits-all approach is not necessarily the best way for organisations to act in joined-up way; they need to identify which capabilities, policies, technologies and operational processes need to be shared and, of course, which are best not shared for perfectly good reasons.
We have spoken about the need for interoperability between Departments to help achieve interoperability between services. I understand that the Home Office is looking at the future of emergency services communications, and it is important that national co-ordination is maintained and strengthened to avoid any slipping back.
Interoperability can be enhanced in many ways, and I will refer to a letter that Roy Wilshire, the director of operational response at the Chief Fire Officers Association, has made publicly available to show how working together can be improved. He stated that incident commanders from all three services should train together to ensure that they understand where their procedures are the same, where there are differences, whether those differences are problematic and how they can be aligned—that returns to the point raised by my hon. Friend the Member for The Cotswolds. Furthermore, we should ensure that incident commanders understand each other’s roles and that throughout each service people understand the special skills that their colleagues in other services can provide and ensure that they are used effectively.
An emergency command doctrine should be jointly developed, setting out policies for responding at the earliest stages of a major incident. We need a national, Government-funded programme of exercises to deal with the main threats faced by the country. The Government should ensure that important information, such as Ordnance Survey maps and Met Office data, continues to be available free to the emergency services, so that they all operate using the same information. Finally, the Cabinet Office and Departments that sponsor the three blue-light services—the Home Office, the Department of Health and the Department for Communities and Local Government—should work together to ensure greater interoperability. I hope that all those suggestions have been borne out in my remarks, and I look forward to hearing contributions from colleagues and the Minister.
In conclusion, it is clear that interoperability between the emergency services has come a long way. The response to the 7/7 bombing and the riots in London last year showed that, by working together, emergency services can respond effectively to crucial events as they occur. I am pleased that the introduction of a common communications platform—currently through a company based in my constituency—has had a positive impact on the ability of the emergency services to work together. In future, each emergency service will greatly benefit from a greater understanding of the role played by their colleagues in other services. I look forward to greater departmental interoperability. If the Government have a concerted interoperable approach, a fully interoperable emergency service will be that much closer.
Guy Opperman (Hexham) (Con)
I suggest that we all owe a huge debt to our emergency services. Would we be able to deal with an ambulance situation, cope with an arrest or fight a fire? I suggest not. Those men and women are the cornerstone of our country and the cream of the crop whom we should support, laud and applaud. I am proud to record my thanks to them, both nationally and locally in my constituency.
This is an issue of great importance, and I congratulate my hon. Friend the Member for Rugby (Mark Pawsey) on securing the debate. With the forthcoming Olympics, we have one of the most serious security operations ever mounted in this country, and credit must go to the many security and emergency forces that are preparing for the ultimate test. I have a friend who was trained as a senior nurse in the bulky green chemical, biological, radioactive and nuclear event outfits that make people look like something from Mars. They are extremely useful against nuclear attack, although they will not be troubling Usain Bolt during the 100-metre dash. Such things are good preparation, and as my hon. Friend said, it is clear that the emergency services are working much better together. As various events have tested them over the past five to 10 years, their ability to co-ordinate—under successive Governments—has much improved.
I applaud and welcome all the points raised by my hon. Friend, but most of the issues that I wish to address concern non-life-threatening scenarios. It is clear that we are getting better at dealing with very serious events—the 7/7 bombings are a good example—but I suggest that, in 2012, we are still manifestly struggling to deal with the day-to-day interaction between police, fire and ambulance paramedics. That is not working as it should. It is a question not just of how the services co-ordinate with one another on a day-to-day basis, but of the sharing of buildings, how the location issue is addressed and how people who represent the individual emergency services work together.
Questions asked in the House provide a telling illustration. My hon. Friend has made the fair point that the ambulance service is the responsibility of one Department, the fire service is the responsibility of another Department and the police service, of course, is represented by my hon. Friend the Minister responding to the debate today. The hon. Member for Slough (Fiona Mactaggart) asked a question of the Department of Health on 23 March 2011. She asked the Secretary of State for Health what discussions he had had with ministerial colleagues on
“arrangements to improve liaison between ambulance services and other emergency responders”.
The Minister of State, Department of Health, my right hon. Friend the Member for Chelmsford (Mr Burns), said:
“The Department of Health, along with the Home Office and the Department for Communities and Local Government, continues to encourage and support regular communication across all emergency services.”—[Official Report, 23 March 2011; Vol. 524, c. 1195W.]
It is laudable that there is support for communication across all emergency services. Everyone would understand that, but I do not get the impression that it is actually happening.
The hon. Lady also asked a question of the Home Office, to which my right hon. Friend the Minister for Policing and Criminal Justice replied. The hon. Lady asked the Secretary of State for the Home Department what discussions she had had with ministerial colleagues on
“arrangements to improve liaison between police services and other emergency responders”.
The answer was:
“The strategic defence and security review records Ministers’ agreed intention to improve the ability of the emergency services to work together during emergencies.”—[Official Report, 1 April 2011; Vol. 526, c. 556W.]
Again, it is wonderful that there is an agreed intention to work together.
Undaunted, my hon. Friend the Member for Carmarthen West and South Pembrokeshire (Simon Hart) asked this question:
“Is the Minister satisfied that local forces are doing enough to share the costs of facilities such as human resources and IT with other public bodies and other emergency services?”
The Minister for Policing and Criminal Justice also replied on that occasion:
“It is important that police forces do more to take up such opportunities. We have already seen an increase in the collaboration between police forces over operational matters, but there are valuable opportunities to collaborate and share services for the back-office functions such as IT and human resources, which would result in significant savings.”—[Official Report, 12 December 2011; Vol. 537, c. 504.]
I endorse all those comments. I come now to the question asked by my hon. Friend the Member for Bournemouth East (Mr Ellwood) on 24 January 2012. He asked the Secretary of State for Communities and Local Government whether he planned
“to review the level of joint training undertaken by fire and ambulance services.”
The answer from the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), was:
“My Department is working with other Government Departments and the emergency services to improve joint ways of working in response to particular identified risks. In particular, in response to the Report of the Coroner’s Inquests into the London bombings of 7 July 2005, the Government agreed that it would co-ordinate a wider review of multi-agency considerations in single-service training. The Cabinet Office”—
another Department—
“are co-ordinating this review and will ensure that results are made available once it is completed.”—[Official Report, 24 January 2012; Vol. 539. c. 137W.]
I accept entirely that efforts are being made and that steps are being taken down the road, but if ever there was an example of why we have this problem, it is the fact that I have just managed to cite four different Departments, including the Cabinet Office, of all people, having overall control of the review and implementation of the changes. I suggest that unless the Government—successive Governments have failed on this; let us be honest—take control of how we mesh the services together, we will struggle going forward.
This issue is particularly important in a time of austerity. In other countries, the main emergency services share buildings. It might be hard for some people to believe, but in other countries there might be a fire station, an ambulance station and a police station all in the same building, all working together without any fundamental problems from a union that says, “We can’t possibly co-exist with this other organisation,” without any particular problems of individual commanders saying, “We can’t possibly share a building,” and without the problem of Government being told, “We can’t possibly have a situation in which the IT is provided to this organisation but not paid for by this organisation; it’s going to come out of my budget.” There is a possibility that we can amalgamate the services and run them at far less cost to the taxpayer and with much greater efficacy.
Geoffrey Clifton-Brown
I commend to my hon. Friend and to my hon. Friend the Minister the example of what happens in Gloucestershire, where all three services have a common call centre at Quedgeley. Not only does that save costs; it works incredibly efficiently.
Guy Opperman
Clearly, in relation to call centres and IT, we are taking steps. There is clearly a positive way forward. However, in broad terms, we have got into a situation in which individual parts of the emergency services in local areas are fighting for their own turf to much too great a degree. It is perfectly understandable that people wish to have an all-singing, all-dancing fire service, ambulance service and police stations. We might totally endorse that, but we have to ask, given that taxpayers’ money is paying for it all, how can we integrate matters better? I suggest that we look not only at the example cited by my hon. Friend, but at examples from overseas, where progress on these matters has been made.
I have the great good fortune to represent more than 1,000 square miles of Northumberland. Parts of the area are semi-urban, but to the west and the north of Hexham is a vast expanse of territory that genuinely suffers from a lack of emergency services. Let me give an example. One of my local schools, a secondary school, has a catchment area bigger than the area covered by the M25. That will enable people to grasp just how large that area is. It is centred around the town of Bellingham, a place where I have spent a great deal of time assisting the Friends of Bellingham Surgery and attempting to understand how we can have ambulance, police and fire services in that location. Currently, we have a police station. I credit the chief constable of Northumberland for retaining that police station. We also have a fire station, but we do not have an ambulance facility. As everyone knows, ambulances are required to have a 75% reach to patients who need urgent medical assistance within eight minutes. In relation to places in the far west of Northumberland, it is patently extremely difficult for the ambulance service to provide that. There are, however, examples of how that situation could be changed. For example, the Friends of Bellingham Surgery and the practice itself have been working extensively—for years, I suggest—to try to get a localised ambulance service. It could be located on the site of the fire station. One would think that that was not a very radical step, but it is clearly quite radical when one considers that these examples are only just being considered at this stage.
Just a mile over the border in Cumbria, there are two examples of local success that I should like to share with the House. In Alston, which my hon. Friend the Member for Penrith and The Border (Rory Stewart) represents so successfully, the community is setting up a community-run ambulance, with the backing of the league of friends of the local hospital, but also working with their local health trust and local GPs. The impression given—the project is at an early stage—is that that community ambulance would provide a rural area with a facility that is currently lacking.
Also in Cumbria, last December, the county council, the fire and rescue service and the police have come to an arrangement whereby the emergency services will operate from seven fire stations. Cumbria police have cut back the number of police stations, so the police and the fire services are working in the same building. In a large number of areas, the police have set up in fire stations, with cost savings to both parties and the benefit of interoperability. I suggest that that is clearly the way forward and something that, as police and crime commissioners come into being, individual commissioner candidates will need to consider.
On Saturday, I was delighted to select Mr Phil Butler, a former police officer from Northumbria, as the police and crime commissioner candidate on behalf of the Conservative party for Northumbria’s police and crime commissioner election. The candidates will need to look at the provision of individual police services in a rural area, how they interlink and the funds for the local community going forward.
I look at the individual examples of success in Cumbria and suggest that they are manifestly a good thing. We have to put them in the context of the disastrous FiReControl project. If ever there were an example of a disastrous Government project to provide a single-issue service without integrating it into other services, surely the fire service project—introduced, I am sad to say, by the previous Government—is it. The National Audit Office assessment, issued on 1 July 2011, of the FiReControl programme said:
“The FiReControl project was flawed from the outset because it did not have the support of those essential to its success—local fire and rescue services. The Department rushed the start of the project”
and failed
“to follow proper procedures. Ineffective checks and balances during initiation and early stages meant the Department committed itself to the project on the basis of broad-brush and inaccurate estimates of costs and benefits and an unrealistic delivery timetable, and agreed an inadequate contract with its IT supplier. The Department under-appreciated the project’s complexity, and then mismanaged the IT contractor’s performance and delivery. The Department failed to provide the necessary leadership to make the project successful, over-relying on poorly managed consultants and failing to sort out early problems with delivery by the contractor. The Department took a firmer grip of the project from 2009 and terminated the contract in December 2010 to avoid even more money being wasted”.
That is a classic example of a failure to take one service and work with the other services. That project was introduced at a time, not necessarily of plenty, but when there was an awful lot of money in the Government’s coffers. Notwithstanding the efforts of the Department for Communities and Local Government to fund projects on an ongoing basis, as it has successfully done this year—certainly in my part of the world—it is patently clear that, in times of austerity, it is vital that the emergency services work together.
I will go into the detail of that with an example from my constituency. Setting aside the amazing efforts of the GP’s practice and the fact that the paramedics are increasingly situated in the location of the practice—in other words, in Wooler, and in Bellingham going forward, a paramedic is working with the GP—if an ambulance was required and a paramedic was not available, for whatever reason, we would wait for the ambulance. I have met the area’s paramedic, who is outstanding. Why could not the individual police officer or fireman, with improved, suitable training, step in and act as first responder? It is manifestly wrong not to train individual firefighters and police officers to address such issues on an ongoing basis.
Aside from being a very fat jockey, I was formerly a business man. Just as in business there can be one man, two jobs and everyone works together and can mesh and interlink their respective jobs, so it should be with the individual firefighter, police officer and ambulance man. Another example is the community support officers who we already have in the police. They perform a manifestly brilliant role throughout the country. They are able to assist the police in the performance of their duties, but are fundamentally members of the public given basic training. Why can we not have a community support fireman or paramedic? Why is the fireman unable to interlink with individual police officers and assist the police officer as a CSO? I see absolutely no reason whatsoever why that cannot be the case. Surely, these things must be done in future.
I have discussed the suggestion with my local emergency services. Without naming the individual organisations, it is fair to say that there may be somewhat of a turf war and an issue with individuals protecting their domains. Whether that is about unions or about power, it is not the way forward. Given that these are shared services that we all need and enjoy, there must be a better way going forward. Speaking for myself, if I could secure the construction of one substantial building for the future—for example, in Bellingham—that housed police, fire and ambulance services, I would regard that as a major success.
Mr David Hanson (Delyn) (Lab)
It is a pleasure to serve under your chairmanship, Mr Havard. I congratulate the hon. Member for Rugby (Mark Pawsey) on raising this important subject. He made some very sound points about the need for national co-ordination, efficiencies and interoperability between emergency services. I look forward to hearing the Minister’s response. Co-ordination is vital.
I am reminded, as you will be, too, Mr Havard, that only this weekend there were very difficult circumstances of flooding throughout mid and west Wales. Looking at the reports from places not too far from my constituency or yours, we see that major rescues were undertaken involving Royal Air Force Sea King helicopters from the military, inshore lifeboats, fire service rescue boats, Dyfed-Powys police, the Environment Agency, Ceredigion local council and voluntary agencies, all working together to respond to an emergency that flared up in a very short time.
A lot of planning is done for events such as flooding, major aircraft disasters, fires, building collapse, and indeed terrorist incidents. That planning is vital. Interoperability of the emergency services and the need to co-ordinate their efforts is an important part of the planning process, but, as the hon. Member for Rugby highlighted, it can be improved. Whatever any Government do, now and in the future, there are always efficiencies, improvements and information exchanges that can help those services to be provided in a much stronger and more efficient way and to prevent failures. I echo the tribute paid to those who put their lives on the line on any occasion. It is valued by all Members.
The flooding happened this weekend, but as has been mentioned, a simple, regular, unfortunate incident, such as a road crash, involves operability between services. Major events such as the recent jubilee weekend, the forthcoming Olympics and the events of 7/7 also demand responses from a range of agencies across the board. The riots of last summer involved police forces coming into London and needing to work with other police forces. I can recall as a Minister being in Cobra for 7/7, for fuel and prison strikes, and to look at the question of riots and services in Northern Ireland. There is a need for planning, but it is also vital that operability and information flow requirements are met.
The landscape that the hon. Gentleman outlined is indeed complicated. There are not only the three UK Government Departments that he mentioned, but, as I said in my intervention, the devolved Administrations, which deal with health and the fire service in Wales and Scotland and with much of everything in Northern Ireland. We have a range of bodies—the national health service, the coastguard, the police, the British Transport police, the Army and voluntary agencies outside Government, such as the air ambulance service, St John Ambulance and the Red Cross—that very often deal with emergency response.
The hon. Gentleman made some valid points, and I agree with him on the need for the dissemination of common language and an examination of efficiencies in equipment, and to ensure common equipment that is compatible with all services. I will return to Airwave in a moment, but I want to talk about common practices. I was struck by the example of arguments about whistles and what they mean. Common practice is important, and common information should be provided. I take the point made by the hon. Member for Hexham (Guy Opperman) that there should be a drive toward shared facilities by Government and local authorities. The ambulance service in one town in my constituency is considering removing its station and sharing a facility with the police and fire service, to provide a better service—the same level of service but provided more efficiently. We can look forward to that.
In the few minutes available, I want to focus on the dichotomy highlighted by the debate between the need for greater central planning and control, with efficiencies driven from the centre through the Cabinet Office, Government co-operation and work with devolved Administrations, and the present Government agenda. I do not say that to be critical, because this is not the time to be critical; but it is fair to say that the Government agenda is driving many services into a more local context. That is true of a range of issues highlighted by the hon. Member for Rugby. Cobra will have an overarching view from the Cabinet Office, as Ministers and officials look at major international and national events, and there will be co-operation between the Department for Communities and Local Government, the Home Office and others at national level, but I want to put things into context and get a feeling from the Minister about how things fit together.
For example, on 15 November, England and Wales will get 43 police and crime commissioners, who will be able to set their budgets, issues and agendas locally. The National Policing Improvement Agency will soon be disbanded, as the hon. Gentleman mentioned. It recently issued guidance on issues pertinent to this debate. There is also the potential for the abolition of the Association of Chief Police Officers, which has a co-ordinating, overarching responsibility for many policing issues. The Government have not yet made it clear to me what will replace it for the co-ordination of operational policing services and the provision of operational guidance on the issues we are debating today. In the context of search and rescue and coastal agencies, the Government recently split and put out to tender private contracts covering two different parts of the country. As I understand it, the Government have so far failed to provide the assurances needed about how that will work operationally. Major changes are being made to the coastguard service at local level—again, devolving downs and removing services.
For me, there is the smidgin of a question about how things will fit in together at the local level, when the Government’s agenda, rightly or wrongly—I have my own views—is driving things down locally. How can the co-ordination that the hon. Member for Rugby so eloquently advocated be required when police and crime commissioners decide their budgets, the National Policing Improvement Agency has disappeared and ACPO is no longer in place? How can it be achieved when contracts are let to the private sector for coastguard services and local government is under pressure in relation to fire services, reportedly resulting in, at the last count, more than 2,200 firefighters being cut, 50 stations being closed and 1,000 non-operational staff being lost? A separate issue is the loss of 16,000 police officers, which I shall always mention, in every debate about emergency services.
The localism agenda needs to be examined in the light of how we co-ordinate services nationally. What are the Government’s thoughts when the demands of operational activity are becoming ever more national and regional—including the Olympics, the jubilee, the terrorist threat and major operational challenges such as the flooding at the weekend? Set against those are the Government’s drive to localism—local decisions and local budget control. How will the Minister and his Department deal with mandating services and co-ordinating the efficiencies to which the hon. Members for Rugby and for Hexham rightly drew attention, when the localism agenda says, “Do what you want in the regions and nationally we will stand back a little bit more than perhaps we have in the past”?
Airwave is an important topic in the constituency of the hon. Member for Rugby, and I have also taken an interest in it, both as a Minister in the Department and, recently, shadowing that Department. The Minister will know that the current contract for Airwave comes to an end in 2016. In a written statement on 26 March the Home Secretary said that the
“management of the contract for the Airwave radio system and its replacement (including associated staff)”—[Official Report, 26 March 2012; Vol. 542, c. 95WS.]
will be further considered by the Home Office shortly. She said that the matter will be transferred into the Home Office later this year. I have tabled questions to the Minister, and the answer I have had is:
“The programme is at an early stage and is in consultation with all stakeholders, including the police, to define their requirements.”—[Official Report, 17 April 2012; Vol. 543, c. 305W.]
I should be interested to know the Minister’s current thinking on Airwave, because in Government terms 2016 is not that far away. What is the Minister’s vision of Airwave’s replacement, post-2016? How does he envisage the replacement being commissioned? What does he think about the requirements for the system, taking on board the points that the hon. Member for Rugby made about operability, and the devolved Administrations and Government Departments? Does the Minister plan to have management of the system located in the Home Office permanently? What representations has he had from outside groups about the post-2016 contract? What discussion is engaged in with the Department for Communities and Local Government, the national health service, Scotland and Wales and other colleagues in his Department about the system requirements? It is important that there is efficiency in the system and value for money for the taxpayer, but it is also important to have something that works and meets the needs of the whole community.
I am anxious to give the Minister time to reply to the questions raised by the hon. Member for Rugby, but I want to mention the three driving forces that should come into play in his consideration. The first is effectiveness. The speed and type of response that the emergency services give save lives and prevent injury and are incredibly important. We need to ensure that whatever we do, and however we organise the system—I have some worries about the localism agenda supplanting the national and regional ones—there is a speedy and effective response to all incidents, and that it is planned in advance, measured on delivery, and evaluated afterwards for continuous improvement. There is a need for efficiency and cost to be considered by Ministers in relation to such matters as the potential helicopter contract now coming to light, and in terms of contracts generally. We need to consider how we drive efficiency and cost improvements in national contracts. Again I ask how, with 43 police and crime commissioners, the changes in the NHS and the localism agenda, the Minister believes we can drive the value for money agenda forward and make savings. Even more than in the past, the Minister will not be in control of how budgets are spent, unless he mandates forces and organisations to sign up to contracts, in which case he will have to set their criteria, and co-ordinate and oversee them.
Guy Opperman
The right hon. Gentleman is making an impressive speech, but I am a little curious about a couple of points. Clearly, there would always have been reductions and changes, even under the Opposition’s budgetary proposals. What would you have done differently to avoid the impacts that you describe as the Minister’s problem?
Mr Dai Havard (in the Chair)
I could outline what I would have done, but the right hon. Gentleman will no doubt want to say what he thinks.
Mr Hanson
I could argue about funding for ever, but this is not the time for such a discussion. The hon. Member for Rugby talked about the need for national standards, national training, national examination and national co-ordination, but the Government’s agenda is to drive things locally, with the new police and crime commissioners, a national health service that is freer from the Government, and a general lack of target setting. There is a dichotomy. Although I would happily debate at any time the difference between the 12% cuts that I proposed as Minister and the 20% cuts in police that the Government are introducing, my question is how, when the challenges are regional and national, the Minister intends to meet the challenges of greater co-ordination during a period of localism, when the levers he has available are becoming ever more distant from his Department. There is a real challenge there that he must address. How will he drive forward that agenda? How will he make those efficiencies and savings, and who ultimately retains accountability in that changing landscape?
The Parliamentary Under-Secretary of State for the Home Department (James Brokenshire)
It is a pleasure to serve under your chairmanship this morning, Mr Havard. I echo the clear and common message that has emerged from this debate, which is to thank the emergency services for their contribution, day in, day out, to keeping us safe. I thank them for their significant professionalism and bravery, examples of which have been cited during the debate. I am sure that the House would underline that clear message of gratitude for the work of our blue-light emergency services.
I congratulate my hon. Friend the Member for Rugby (Mark Pawsey) on securing the debate and on chairing the all-party parliamentary group on the emergency services, following that work through and facilitating a good and constructive discussion on the issues that are relevant to interoperability, to which I will seek to respond in my comments. I am certainly pleased to have this opportunity to update the House on some of the work that we have been doing to support the emergency services and to promote a better joined-up working approach.
It is clear that police, fire and ambulance teams work together on a daily basis with successful outcomes. Although the response to major incidents from our emergency services is among the best in the world, we are not complacent. The emergency services face significant challenges in responding to major incidents, particularly in the initial stages of a complex and fast-moving situation when the picture can be confusing and there may be unseen dangers. The three services must be able to come together as quickly as possible to share information about what is going on, to manage the risks and rescue any casualties. When the emergency services work together in that way, they save lives.
We continue to learn from events, such as the 7/7 London bombings and the shootings in Cumbria, and from regular national exercises designed to test the joint response. The severe impact and complexity of major incidents and other civil emergencies mean that we must strive for continuous improvement in the combined performance of the emergency services in joint operations.
The Home Secretary has asked the emergency services to set up a new programme of work designed to further improve our joint response to emergencies. The overall aim is to ensure that the blue-light services are trained and exercised to work together as effectively as possible in response to a major incident, including fast-moving terrorist scenarios, so that as many lives as possible can be saved.
The programme will be led by the emergency services through a joint forum, which will enable them systematically to plan, test and learn together. We fully support the delivery of the programme and have provided dedicated resources to look at how future improvements can be made.
I am conscious that a number of contributions highlighted the need for effective co-ordination and joined-up working at national level. Let me assure my hon. Friends the Members for Rugby and for Hexham (Guy Opperman) that the Government are working collectively on this important issue. There have been a number of cross-departmental ministerial meetings to agree how to promote interoperability. The most recent was last month when the Home Secretary and her colleagues met senior representatives from the emergency services to discuss the plan for the new joint emergency services interoperability programme, which I will talk about in more detail shortly.
It is also worth highlighting that the Home Office, the Cabinet Office, the Department of Health and the Department for Communities and Local Government are working closely together on a daily basis. The Home Secretary, the Secretary of State for Health, the Minister for the fire and rescue service, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), and the Minister for the Cabinet Office will oversee that work through a cross-departmental ministerial board. We understand that we cannot work in silos and that a unified Government response is required.
The right hon. Member for Delyn (Mr Hanson) rightly highlights the need for engagement with the devolved Administrations, as policing, health and fire and rescue are devolved matters. We continue to work with our counterparts in the devolved Administrations, as do our emergency service partners, on the breadth of the programme, to promote a consistent approach to the development of responses and response capabilities and to facilitate the sharing of best practice.
At local level, the local resilience forums have an important role to play. Emergency services are required by the Civil Contingencies Act 2004 to come together with other organisations defined as Category 1 or Category 2 responders to identify and assess the risks in the area and develop and validate plans to respond to them.
Let me talk a bit more about how we will address the need for overarching co-ordination. At national level, the Government have set out in both the draft strategic policing requirement and the draft fire and rescue national framework, the requirement for connectivity between the emergency services. The strategic policing requirement will, for the first time, set out the national threats and the appropriate national policing capabilities that are required to counter them. The election of police and crime commissioners allows Government to get out of the way of local policing, rightly putting accountability in the hands of local people. The strategic policing requirement demonstrates our commitment to get a better grip on the national threats that we face and to ensure a unified approach. Under the strategic policing requirement, police forces will consider consistency between forces and connectivity with other emergency services so that we can improve interoperability between the police, other blue-light emergency responders and other partners in responding to significant emergencies.
The new police professional body will take on the policy functions of the Association of Chief Police Officers and set standards for police professionals. It will ensure that police officers and police staff have a common skill-set and common tactics, where appropriate.
We have talked about the need for interoperability. My hon. Friend the Member for Rugby said that it was important to recognise joint working between individual agencies: the fire service, the ambulance service, the police and other agencies. Equally, there is a need for individual agencies to operate effectively themselves, and communication is certainly one element of that. I shall highlight some of the work that has been done around communication.
At this stage of the programme, our highest priority is the interoperability of police, fire and ambulance responders operating in a time-critical environment, where speed and accuracy of information are fundamental to the saving of life. However, we accept that the requirement for interoperability extends to a wider group of emergency responders and other agencies, who will be involved in and consulted on the development and implementation of the programme. I join right hon. and hon. Members in praising the work of local resilience forums, including their efforts to bring local responders together and to plan for risks that local communities might need to deal with, and I agree that such forums are a strong example of interoperability in action.
Future work, led by the joint emergency services interoperability programme, will ensure that responders have effective communications, guidance, training and exercises to support their response to a major incident. In response to the point made by my hon. Friend the Member for Hexham, the programme will also consider opportunities for equipment and procurement sharing.
There are three key priority areas for the programme. The first is communications. Rapid sharing of information and intelligence is at the core of an effective response. It is needed to establish the type of incident, and to mobilise and co-ordinate the appropriate response. Ongoing communication within and between the emergency services will support on-scene commanders, who need to work together to make decisions and take urgent action.
The sharing of information within and between the emergency services is supported by Airwave radio communications. My hon. Friend the Member for Rugby clearly highlighted the importance of strengthened joint communication. The programme will seek to ensure a common approach to the use of mobile communications during major incidents. Effective communications will also be enabled by the national resilience extranet, which is an information-sharing tool. In addition, the Government are working to pilot the direct electronic incident transfer, which will allow the electronic exchange of incident logs between front-line responders.
The right hon. Member for Delyn highlighted the future of Airwave and it might assist him if I gave a further response on that subject. The Airwave contract across the police and other emergency services expires between 2016 and 2020; I think that the right hon. Gentleman himself indicated that that was the case. As a consequence, the emergency services mobile communications programme has been commissioned by the Home Office to examine potential replacement solutions for the emergency services post-Airwave. Future service provision will be based on a review of the anticipated operational needs of the emergency services, and the technical capabilities and commercial opportunities available. Various technologies are being considered, but at the moment the programme is at an early stage of technology evaluation, with the first version of the strategic outline business case due in October.
For the future, interdependent relationships with the emergency services mobile communications programme will ensure that interoperability is a central feature of the future replacement for the Airwave service, when the current commercial contract expires. We will certainly provide further details to the House, as and when they are available.
James Brokenshire
As I think I have already indicated in my comments thus far, the work is ongoing. It is important to recognise—as I think I have done—the need to join up the emergency services, and to consider that broader context for the use of Airwave and its replacement in the future. Therefore, it is clear that careful consideration will be given to the implementation of the new emergency services mobile communications programme.
I am conscious of the need to deal with guidance or doctrine, which is the second element of the joint emergency services interoperability programme. I think that my hon. Friend the Member for Rugby pointed out that there is a requirement for a well understood set of joint operating principles that apply to all major incidents and risks, including terrorism, public order incidents and civil emergencies. That is exactly what the programme will seek to develop. I should point out that currently there is not an absence of emergency command doctrine, but we agree that doctrine and guidance is a priority area, which is essential to support the emergency services working together to use a common approach.
If my hon. Friend reads the Government’s response to Lady Justice Hallett’s recommendations following the 7/7 inquest, he will perhaps note that the use of plain English was a key element that was highlighted. Although it was not a recommendation, it is something that the Government have been taking forward in providing an updated lexicon. I draw my hon. Friend’s attention to the Government’s response, which was published a month ago.
Geoffrey Clifton-Brown
I have been listening carefully to what my hon. Friend the Minister has said. It is all very well putting all these protocols and procedures in place, but does he agree that emergency planning, emergency training and interoperability between all the emergency services—not only between the blue-light services but between the blue-light services and those in all the other silos that he has mentioned—are equally important?
James Brokenshire
I absolutely agree; indeed, my hon. Friend’s intervention is timely, because I was about to come to that precise point. Thirdly and perhaps most importantly, joint training and exercising is a key part of the joint emergency services interoperability programme. It will be at the front and centre of all our future work. We strongly believe that interoperability comes down to individual behaviour—knowing fellow commanders and responders. These foundations are built through joint training and exercising. Of course, interoperability needs to be supported by the right equipment and assets, but at its heart it is about working together at the scene of an incident. Training and exercising work will build on the programmes that already exist, including the counter-terrorism national exercise programme, which involves the blue-light emergency responders. Forward Defensive, conducted in February, was part of a series of exercises to test and rehearse Government and police readiness for the Paralympic and Olympic games, ensuring that the joint operation—going all the way up to how the Government, through Cobra, operate—is followed through and tested.
My hon. Friend will be interested to know that interoperability training is taking place this week in Moreton-in-Marsh, involving the police, fire and ambulance services, specifically training for the response to a firearms attack and examining how such major incidents occur. That is the third set of exercises that we have run to test the joint response since January 2010. I hope he will be reassured by that, and by the emphasis that we absolutely give to the issue.
I shall talk briefly about the co-ordination of air assets. We have developed a project that is scheduled to become operational later this year. The National Police Air Service is a police aviation service designed to provide centralised air support to the 43 territorial police forces in England and Wales, replacing the current structure. The creation of the NPAS demonstrates co-ordination of air assets within the police service.
In conclusion, I hope that my comments this morning have underlined the importance that we attach to interoperability between the emergency services. I thank my hon. Friend the Member for Rugby for securing the debate, and I again thank the emergency services for their continued commitment to public protection, reducing harm and, of course, saving lives.
Homelessness
(12 years, 5 months ago)
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Mr Dai Havard (in the Chair)
The Minister for Housing and Local Government is caught in some flooding—an emergency with which he is no doubt getting assistance from the emergency services. In the meantime, the Whip, the hon. Member for Scarborough and Whitby (Mr Goodwill), will sit in his chair and the Minister will take part in the debate as soon as he arrives.
Ms Karen Buck (Westminster North) (Lab)
I am grateful to have the opportunity to introduce this debate under your chairmanship, Mr Havard. The Minister rang me to explain that he is, I think, paddling across the flooded Thames plain in a small coracle and that he will get here as soon as he possibly can.
Ms Buck
Exactly. I entirely understand his predicament.
We all know from official figures that the pressures of homelessness are rising, and sharply. Homelessness, along with unemployment, is one of the most devastating events that can happen in a person’s life, and I want to talk for a minute or two about its definition. It is important to stress that it is not, as the Secretary of State for Work and Pensions sought to justify on the “Today” programme, a predicament that simply involves having children sharing a bedroom. He told the programme in January:
“The homelessness definition…is in fact very misleading for the public. The public thinks that homelessness is about not having any accommodation; reasonable accommodation to go to. That’s not the definition. The definition inside Government and places like Shelter is that children have to share rooms. Now for most people who are working whose children share rooms they would find that a strange definition.”
That definition is simply wrong. It is simply and profoundly misleading, and it is important that this House corrects that misapprehension. Homelessness has, in fact, a very strict and clear legal meaning, and it is interpreted as such by the courts and local authorities alike every day and can be seen in some of the judgments and statistics on intentional homelessness.
I would very much like the Minister, when he arrives, to respond to this interesting point: the variation in local authorities’ performance regarding accepting homelessness applications is striking. Figures for boroughs such as mine show that about 40% of people who apply as homeless are accepted. Westminster city council is in a tri-borough arrangement with Kensington and Chelsea and Hammersmith and Fulham, and last year Westminster accepted an average of about 40% of all homelessness applications, whereas the figure from Hammersmith and Fulham that I have just seen is only 6.5%. That is truly extraordinary, and it is for the Department and the Minister to explain how it is that there can be such variation in performance. Although it is absolutely beyond dispute—it has always been the case—that homelessness applications can be found to be incorrect in law, because people are satisfactorily housed or at a wrong stage in the process and it is therefore right that a local authority finds against them, many applications are refused on technical or incorrect grounds. Above all, the nature of the applications should be roughly consistent between local authorities, and certainly within a region—in London, say. There is no reason for such variation in performance between local authorities.
The public perception, as fuelled by the Secretary of State for Work and Pensions, would be that people made applications simply because their children were forced to share a bedroom. In fact, on the day of that “Today” programme, the press asked the Prime Minister whether he considered, according to the Secretary of State’s definition, his children to be homeless because they shared a bedroom. However, if that were so, people in cases such as the one I am about to outline would not be found to be intentionally homeless.
I shall read into the record from a letter from the charity Action for Children in support of a case that we have recently dealt with in my office:
“C was referred by his school to have a mentor because his mother is seriously unwell and he has significant behavioural difficulties. She is partially disabled down one side of her body and she lost her speech following a large stroke in May 2011. She suffered another stroke last month because of the stress of being made homeless. Ms A is being supported by her family to meet the needs of her medical condition, which includes someone to be with her for 24 hrs a day. In February the family were evicted from the house they were living in in North Paddington and put in temporary accommodation”—
elsewhere in the borough. Following that, Action for Children started to become involved. The letter continues:
“Since this time I have referred C to an Educational Psychologist and to Children’s Social Care…I informed both social workers who were allocated to the case about the gravity of the situation…In April the family were given notice to move out of the hotel they had been placed in. The social work manager also told me that they were referring the case back to Adult Social Services as they should be supporting the family. In addition the cap on housing benefits will make it”
impossible for them
“to find a suitable property in Westminster.”
Following their eviction from the hotel, the family were found to be intentionally homeless because the mother had moved, briefly, out of the borough that had been her lifelong home into a relationship, which broke down. The family ended up
“sleeping on the floor of the sister’s, wherever they can find space. Their clothes and belongings are spread all over and the situation is not suitable for the family’s wellbeing at all.
This family need a place to live near to their wider family. C has witnessed his mother go from a healthy adult to a disabled parent who he now has to help care for. He has extreme behavioural problems at school, for example he has recently banged a child’s head on a concrete wall and is also becoming really obsessive. His school and I have made a referral to the Child and Adolescent Mental Health Service…all of these services need to continue. Being moved out of the borough will mean the cancellation of all of these services. He will be thrown into a totally new school and situation, where it will take months to get these services in place again and…to build positive working relationships.
Ms A needs someone to be with her 24 hrs a day and help with child care. It is therefore important for her to remain close enough for her family to care for her. They are doing this at no cost to the state. If Ms A and her family are moved to a borough that is too far for her family to support her, as now seems likely, that borough will have to provide 24 hr care and…support for the children as well.”
The family were found to be intentionally homeless. Despite all those circumstances and all those traumas, they were unable to persuade the local authority that it had a duty to care for them. Also, because of the new housing benefit cap they are unable to afford a home in the private rented sector large enough to enable them to stay near the grandmother and the rest of the family who provide informal support, so the entire family has now been moved into a one-bedroomed flat, in an attempt to find a property within the housing benefit cap, despite the fact that the school and the agencies involved are concerned that it is a wholly inappropriate form of accommodation.
I have explained that case at some length because it seems that before we even get into homelessness and what is happening with the rise in accepted cases and local authorities’ responses, we need a clear understanding that the majority of people who make applications and do not even get through the narrow gateway are not people whose children are sharing a bedroom, whether in Downing street or elsewhere. They are frequently highly traumatised, highly vulnerable and highly damaged families.
David Simpson (Upper Bann) (DUP)
I congratulate the hon. Lady on obtaining the debate. She is correct that homelessness is not just about sharing a bedroom. We have this problem of homelessness across the whole United Kingdom. Surely there is an onus on the authorities to provide proper advice for families such as the one she has just talked about, to help them to achieve a proper home. Also, there are a lot of empty homes across the United Kingdom that authorities should bring back into use.
Ms Buck
The hon. Gentleman is absolutely right. It is a matter of great concern, although not central to this debate, that advice services are being cut all over the country. It does not help that legislation that this Government passed in the previous parliamentary Session removes almost all housing support from the scope of legal aid. Advice services all over the country are reducing their hours and their capacity. Indeed, Westminster city council, which is at the heart of my concerns about homelessness, has just announced plans for a further 10% cut in its advice services, which will inevitably affect such families. On the specific point about intentionality, I have absolutely no doubt from my office’s experience that many families and individuals who apply unsuccessfully to a local authority for appropriate housing support are turned away because they have made a simple error in their application. If they had been given good advice and support through the process, it would have led to a different and more satisfactory outcome.
Like unemployment, losing the roof over one’s head is traumatic and can have deep and damaging consequences, particularly for children. Evidence is growing about the impact of homelessness and enforced mobility on vulnerable families, their well-being and their educational outcomes. Nearly half a century ago, the campaigning organisation Shelter grew from one particularly vivid representation of what homelessness could do to a family: the film “Cathy Come Home” exposed its devastating consequences. We have come a long way in our attitudes since then. We have also come a long way since the homelessness catastrophe that engulfed this country during the late 1980s and early 1990s, when 1,000 home owners a week were losing their homes, and there was an extraordinary escalation in the number of families found homeless or in temporary accommodation. However, we have not come far enough. By the late 1990s, the number of people treated as homeless was declining significantly from that peak, but even so, when I was first elected to Parliament, families were spending months and sometimes more than a year trapped in a single bedroom in bed-and-breakfast accommodation with no facilities, sometimes in the most shocking conditions, involving pest infestations, violence and disruption.
I was delighted by the Labour Government’s decision in the early part of the last decade to limit the time that any family with children could spend in bed-and-breakfast accommodation. I hope that I made a small contribution to that decision by taking the then Minister around a hotel in Bayswater to meet families caught in those unfortunate circumstances. However, the truth, then as now, was that bearing down on one manifestation of the problem—in that case, bed-and-breakfast accommodation—does not resolve the underlying problem if other factors are not dealt with, in particular the supply of affordable housing. We accept the Government’s criticism that one thing that the Labour Government did not do as well as we should have was build a sufficient supply of affordable homes. We built homes and introduced the decent homes initiative, and much progress was made during our later years in Government, but we did not build enough homes. However, the bed-and-breakfast crisis was largely resolved by legislation and support. It did not lead to a knock-on catastrophe, as happened in the previous decade, because other economic and social conditions did not underpin a worsening of the problem.
Where the last Government went wrong, I am afraid, is in deciding to seek to halve the number of households in temporary accommodation. It was an arbitrary decision that would have knock-on consequences, which are part of the problem that we are dealing with now. The Government made a well intentioned decision to reduce the number of people in temporary accommodation by diverting families and vulnerable individuals into the private rented sector under the prevention and relief of homelessness duties. Cumulatively, 200,000 or so families have been placed in the private rented sector as a consequence.
This Government have made that reorientation of homelessness duties into a crisis by restricting housing benefit. Unquestionably, we would all like the housing benefit bill to be cut, families to be housed in lower-rent accommodation and rents to come down, but if the Government choose to place vulnerable and low-income families in the private rented sector while at the same time removing the means for them to sustain their tenancies, it will be no surprise to anyone that the consequence is a rise in homelessness, which is exactly what has happened.
Some £2 billion in cuts have been made to housing benefit, the number of working people relying on Government help to pay their rent has increased dramatically and the number of affordable homes being built has collapsed. New statistics just released confirm a 68% fall in affordable housing starts in the year 2011-12, the first full year for which the Government are responsible. The Government are now reaping what they sowed. They were warned in a letter sent by the Department for Communities and Local Government to the Prime Minister last year saying that the housing benefit cuts would lead to a rise in homelessness, which was adamantly denied.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
Does the hon. Lady agree that one factor in making those on housing benefit less attractive to private landlords has been the decision to give rent directly to the tenant? Therefore, unfortunately, in some cases, it is not passed on to the landlord.
Ms Buck
The Government were warned that direct payment in a housing market as unstable as ours now is would have exactly those consequences. Yes, direct payment is a concern. It is of grave concern to social landlords, who need a reliable income stream against which they can borrow to invest, and it is of concern to private landlords, but it is not the only problem.
Part of the problem—it is particularly pronounced in London—is that the private rental market is booming. Huge numbers of people can no longer afford to buy their own homes, so they are moving into the private rented sector. Competition is strong for homes there, and low-income families whose only bargaining tool is housing benefit can no longer compete. That is the absolute opposite of what we were told by Ministers. We were told, particularly by Lord Freud, that because housing benefit is such a major purchaser in the private rented sector, rents would fall for people on low incomes. That has not happened. Westminster council has managed to reduce the number of families on housing benefit in the private rented sector by only 52, from 6,000. It is a complete and catastrophic failure of the policy, and the Government were warned about it.
What are the statistics? In 2011, 106,070 people approached their councils as homeless—an increase of 10% from the previous year. Of those, 48,510 households were accepted as being owed a homelessness duty—a 14% increase from 2010. Government street counts and estimates show that 2,181 people across England sleep rough on any given night—a rise of 23% from the previous year. Homelessness agencies report that 3,975 people were seen sleeping rough in London in 2010-11—an 8% rise from the previous year. The number of new rough sleepers rose by 73% compared with the same period last year. The number of people in London living in bed-and-breakfast accommodation increased by 26% last year. The number of families now forced to stay in bed-and-breakfast accommodation for longer than the maximum of six weeks increased threefold between 2010 and 2011.
London Councils warns that housing benefit restrictions are
“leading to a lack of private rented supply in which to place homeless or potential homeless households…which results in an increased number of borough placements in expensive bed-and-breakfast accommodation. This situation is deteriorating and is expected to continue to deteriorate”,
and the introduction of the universal credit is expected to worsen the scenario further.
We cannot say that the Government have been idle in responding to the situation. They have written a letter to local authorities in breach of the six-week limit on families in bed-and-breakfast accommodation. The Minister, whom I am sorry is not in his place, wrote to my council and others saying:
“Whilst this Government has removed targets in the area of homelessness and elsewhere, this does not mean that I am relaxed about local authorities placing families in B and B for extended periods. The detrimental effects of B and B on families are well documented… I do understand that some local authorities are facing increasing homelessness pressures… However, I urge you to prioritise this issue.”
Westminster council—a cheerleader for the restrictions on housing benefit and other measures supported by the Government—is understandably irked at having received that letter. It points out, not unreasonably, that the increase in bed and breakfast is due exclusively to a set of measures introduced, not, to be fair, by the Department for Communities and Local Government, but by its evil twin, the Department for Work and Pensions.
Westminster council said in its response:
“The use of non-self-contained TA—Bed and Breakfast—is the result of demand for housing from homeless households outstripping supply and a shortage of accommodation for households where a duty has been accepted… When Housing Benefit caps were introduced, the Council planned for an increase in homelessness applications”.
That is strange, because Ministers were arguing at that point that there was not the slightest risk that there would be any increase in homelessness as a result of the housing benefit caps. Westminster council was telling us something completely different, as were most other local authorities. Westminster council went on to say that
“it is proving very challenging to procure new units in sufficient volumes to meet demand. The fact that the current funding framework runs out in 9 months and there has been no announcement of any replacement formula and how the LHA and household benefit caps will be applied in practice means it is difficult to provide landlords with surety of income.
The market for properties available for letting within the funding framework is reducing as landlords move away from letting to benefit dependent groups and have alternative markets”.
Stripped of the diplomatic language, that means that homelessness is rising, as families lose their private rented homes because of housing benefit cuts, that the council cannot find anywhere to put them, because homelessness accommodation is also being capped, and that landlords are leaving the market. On top of that, on the one hand, local authorities are being told by the DCLG that they are not supposed to send their homeless households to other parts of the country, while on the other hand, they are being told by DWP that they cannot afford to keep them where they are. Those two Departments are fighting each other in the trenches, leaving vulnerable families caught in the middle.
It gets worse. Even if it is possible to put households in temporary accommodation, under the household benefit cap, which will be introduced in a few months, they will not be able to pay their rent. This is a mystery to everyone. I have not found a single person—I would love it if the Minister, who is not yet in his place, could answer this question—who has been able to tell me what will happen. Last week, two families approached me—they were the first of many—because when their housing benefit is deducted they will be left with nothing. They will not have a single penny to pay for the temporary accommodation that the council has placed them in. They will not be left with £50 to buy food, or £30 to pay their electricity bill and for food. They will be left with nothing. That cannot happen, but nobody has been able to tell me what will happen in those circumstances.
In practice, families who have lost their homes because of a benefit shortfall of £50 or £100 a week are now spending months—I know of families who are spending 10 months—in bed and breakfast accommodation, which is costing the state far more than the amount saved by the cap on housing benefit. That is madness. The situation also means that councils are being forced, with varying degrees of reluctance, to choose which order they break—the time limit on the use of bed and breakfast, or the guidance on local connection, even for those families with many years residency, jobs, children in schools and other family ties.
I will highlight a few cases to illustrate that point. The first reads:
“I am a single mother with a hearing impaired 4 year old and a 6 month old baby girl with hemangioma on her back which is badly ulcerated. I can’t work to rent a flat as my deaf son has speech therapy and audiology appointments at least twice a week, and when I’m not attending therapy or appointments, I’m at Great Ormond Street Hospital for my daughters back.”
She goes on to say that her mother, with whom she was living until being made homeless recently, is a very sick lady. She has cancer and multiple sclerosis and has recently been diagnosed with diabetes. As a consequence, my correspondent and her two sick children were unable to remaining living with her mother. She goes on to say that, fortunately, the council
“put me in a hotel in Victoria which isn’t too far from my sons school, but unfortunately, it’s literally one room with a bathroom”.
There is no fridge or cooking facilities, which is
“very difficult as I’ve been having to go out every time my children get hungry. This is very expensive and even if I can afford it now, in a couple of days I won’t be able to.”
She called the council’s housing department
“and asked them how do they expect me to feed my children if I haven’t got a cooker or a fridge in my room. They said they can’t do anything. Do you know if that’s true? All I want is a self contained place so I can feed the children.”
That letter was written at the end of March; at the end of May, the family were still there. In April, when I asked the council whether they could be moved into self-contained accommodation with cooking facilities, it told me:
“Unfortunately we have had to use the 2 self-contained units which have become available in Westminster or surrounds since your email for even more pressing cases”.
The second case involves Ms E, who was in a privately rented flat off the Harrow road in Westminster. Sadly, she suffered a stroke, was in hospital for seven weeks and is now restricted to a wheelchair. She is 81 years old. During her stay in hospital she was evicted from her home for non-payment of rent. Since being discharged she has had to spend one month in a hotel in the west end, six weeks in a hotel in Kensington, and she is now in another hotel. I am told that housing options is trying to find somewhere suitable for that wheelchair user, who is 81 years old and has suffered a stroke, but surely, after almost 14 weeks, the search should be complete.
In another case, a lady wrote to me:
“I need your help, I am in a complex situation. I am in a private flat and housing benefit will be cut by 30th July 2012.”
She is a single mother with three children, aged nine, seven and six. The oldest is disabled: he has severe sickle cell disease, chronic hypoxaemia and low oxygen. He is at high risk of a stroke and has abnormal transcranial dopplers, and a hospital is monitoring him closely during his painful crises. They have been in their flat since 2009 and in the Westminster borough for 10 years. She continued:
“On 5th March I went to housing options, I asked the housing adviser for them to find us a property because the land lord is not going to accept the new housing benefit rate. He also phoned the land lord and he told me he is not going to lower the price. He told me that I can apply for the DISCRETIONARY HOUSING BENEFIT, but if it is awarded it will be for a limited period till November 2012.
I DO NOT WANT TO BE HOMELESS AND I DO NOT WANT MY CHILDREN TO SUFFER.”
Those are random examples of the kinds of cases that we have been dealing with over the past few weeks, but there are many more.
I am glad to see that the Minister is now in his place. I have talked so far about the pressures driving the increase in homelessness and the increased reliance on bed and breakfast, but I want to turn now to local connection. It has always been my belief that we should find a way to share responsibility for families with no local connections to any area—they should be more fairly distributed among different local authorities—and that we should also make it easier for families who want to move to other parts of the United Kingdom to do so. I know of families who would love to move. They tell me that they have family members in Manchester or elsewhere in the north of England and that they would love to be able to move there, but that there is no mechanism available for them to do so. I know of the HomeSwapper scheme, but if that does not work, there is no statutory framework available that allows people to move.
Those people who have local connections, such as children settled in schools, work—it is a complete myth that everybody who is homeless or on housing benefit is workless; that is not the case—caring responsibilities or other family and voluntary duties, should be supported, and that duty should not cease simply because the home borough happens to be in central London.
I am talking about people like Carol—I have not used anyone’s real name—who is a lifelong Westminster resident. She became homeless after suffering domestic violence and was given temporary accommodation in Dagenham. Her three children attend a school on Church street, where one of them, who has a speech problem, sees a speech therapist, and another receives additional, special learning support. Moving school is therefore not an option. Carol travels from Dagenham to Church street every day to take her children to school and to care for her disabled grandmother and agoraphobic mother. She spends four hours a day travelling, with her small children, from and to her temporary accommodation in east London.
Maryan is homeless due to the housing benefit cuts and currently lives in a hotel in Barnet. She is 29 weeks pregnant and suffers from endometrioses and related problems, which recently resulted in the removal of part of her bowel. Her placenta is not located correctly and moving around or taking the stairs is risky, but she has no choice because her room is on the hotel’s second floor.
Ms T was placed in private accommodation three years ago by housing support. It had an extra and illegal bedroom that was only discovered when we sent an environmental health officer to visit. Her violent ex-partner found out where she lived. She therefore had to make a second homelessness application, and at the time of writing, she was in a hotel where she has been for 10 weeks with her young son and newborn baby.
Family V are homeless owing to housing benefits caps. They have one child with hemiplegic cerebral palsy who attends St Mary’s hospital and is at a special school in Hammersmith. The family have two babies at home and a child at school in Paddington. They are in east London, and they are getting up every morning at 5 am to get to school.
Those are the kinds of cases where families have been located in other London boroughs. Local connection is very strictly defined and usually applies only to people who are taking public exams. That is not right and is not in line with DCLG guidance. The impact of that issue on families is devastating and counter-productive. Yet everything that the Department for Work and Pensions is doing, and that it is underpinning the DCLG to do in terms of housing supply and the weakness of the guidance for local authorities, is driving more and more councils to place their disabled and vulnerable families miles from their schools, caring responsibilities and work. That makes any attempt to rebuild their lives impossible.
Hammersmith council’s draft homelessness strategy has just been published and confirms that point even more strongly. Absolutely in contravention of the Minister’s words and flying in the face of the guidance given to local authorities, that strategy states:
“There is expected to be a reduction in the amount of locally available temporary accommodation… Due to rising local private rents”—
I thought that the Minister told us that they were not rising, but Hammersmith council does not agree—
“and the change in the Local Housing Allowance methodology, the private rented sector outside the borough will be increasingly used to meet the council’s statutory homelessness duties and other housing obligations”.
Considering those words from the mouth of the local authority and the cases that I and other Members increasingly have coming to our doors, it cannot be the case that the Minister is correct in saying that there is a duty to maintain local connection. He cannot be correct in saying that, other than in the case of genuine and short-term emergencies, local authorities are not placing families far outside their local authority and that families are not staying for more than six weeks in bed-and- breakfast accommodation, because all those things are happening.
Everyone we talk to in London Councils, local authorities, the housing sector and the specialist agencies that deal with homeless families tells us that the problem will get significantly and possibly dramatically worse in the coming months. Hardly anyone affected by the housing benefit cap has lost their home yet. A very small proportion of those people have got to the end of their lease, gone to court, perhaps seen a bailiff and ended up making a homeless application. The worst is very much still to come, because temporary accommodation has not yet been brought into the housing benefit regime. That is why local authorities are struggling so hard. In addition, the household benefit cap has not come into effect, which will make it impossible for families even to pay the rent for the accommodation that the local authority has placed them in. It is time for the two Departments to sit down, work this out, get a grip and prevent what is currently a crisis from turning into a catastrophe.
Simon Danczuk (Rochdale) (Lab)
I thank my hon. Friend the Member for Westminster North (Ms Buck) for securing this important debate on homelessness.
I have two basic reasons for wanting to speak in the debate. First, I have some knowledge of the subject, which I will touch on in a moment. Secondly, as has already been indicated, the increase in homelessness both locally in Rochdale—I will come to that—and across the country will have a devastating effect. As my hon. Friend pointed out, there is no doubt that the situation is getting worse.
I worked as a social researcher for about 10 years from 1997 until 2007. I started off with the Big Issue in the North, which is a homelessness agency and charity. From there, I went on to do lots of homelessness research projects across the country for a variety of agencies; for example, Crisis, the Rough Sleepers Unit, Shelter and local authorities such as Camden, Islington and many others. There is probably not an elected Member who has visited more homelessness projects than me right across the UK over a 10-year period.
I mention that because I made three significant observations while doing that research. First, it will not surprise anyone who has an interest in the subject to hear that homelessness is not just about housing; it is about drug treatment, mental health, alcohol and a whole range of different issues. We must not forget that. As we are now seeing, housing—the number of houses, flats and different types of accommodation provided—is critical, but it is not the only issue. That is my first observation.
From the research I have conducted, my second observation is about clustering. I have seen very little on that subject, but the clustering of homelessness services in a particular area for historical reasons is significant. Let me give three examples. In south Yorkshire—with the exception of Sheffield, which has many homelessness services—Doncaster has a lot of homelessness services, while Barnsley and Rotherham have very few. So Doncaster is an area where there is clustering in the provision of homelessness services. Another example is Blackburn, where there is a disproportionately high number of homelessness services. However, in Accrington, Burnley and other surrounding towns, there are fewer such services. Rochdale is another place where there is a high proportion of homelessness services, whereas the number in Bury and Oldham is disproportionately low.
The clustering of homelessness provision is important. I am not being partisan in saying that; I am making an important observation. We should either celebrate the fact that those towns and cities are providing homelessness services, hold them up as beacons and give them additional resources because they are carrying a disproportionate responsibility for homelessness in that sub-region, or we should try to ensure that local authorities who are not doing as much increase provision. It should be one or the other. That is an important observation that people have tended to miss in such debates.
By coincidence, I started social research into homelessness in 1997 and continued right up to 2007. My third observation is that, as has been pointed out, there is no doubt that the Labour Government were very successful during that time. First, they tackled the critical issue of rough sleeping. They appointed Louise Casey, who is a great civil servant, to deal with the problem. I am pleased that the Government have chosen her to lead the challenge on troubled families.
The Labour Government dramatically reduced rough sleeping, and they then moved on to the issue of bed- and-breakfast accommodation. Through a systematic approach, homelessness was reduced by 70% during the Labour Government. I am not being partisan about it; those are the facts. I studied the subject during that time and we could see homelessness reduced to the point that the Labour Government were moving on to try to address other issues, such as people in temporary accommodation and bed and breakfasts. As with unemployment, some people will always fall into homelessness. There is some inevitability about that, and people will inevitably find themselves sleeping rough on the streets. However, we can reduce the problem. The Labour Government did a fantastic job of reducing homelessness to somewhere near the lowest level it could be, and we should give them credit for that.
There is no doubt that homelessness is increasing again. The statistics and the facts show that we are going backwards. In 2011, homelessness increased by 14% and rough sleeping by 23%. As I mentioned, the number of houses being built is a significant problem. My hon. Friend the Member for Westminster North mentioned the Homes and Communities Agency figures. There has been a 68% reduction in the building of affordable houses in the past financial year. That, in addition to the cuts and the Government’s inability to get the economy going, is absolutely devastating news for the homeless.
I talked earlier about other factors that push people into homelessness. There has been an increase in unemployment, lower living standards and house repossessions, all of which move people toward homelessness. As a consequence, the number of people who are homeless and sleeping rough is increasing. My hon. Friend mentioned benefits. This morning I spoke with Dennis Skelton, the co-ordinator of Petrus, a Rochdale-based homelessness charity. Shared-room rents and the reduction of housing benefit are a massive concern, and perpetuate the problem of increased homelessness.
Homelessness is not just a national issue; cuts to local government and related agencies are having a significant impact. Drug treatment provision is being cut. Provision for mental health services, hostels and day care centres is being stretched. Homeless Link’s most recent survey shows that the number of clients using homeless day centres has risen by nearly a third. On average, there are 22% fewer empty beds in emergency accommodation for homeless people, per night. Charities, voluntary groups and other agencies that support and provide assistance to homeless people are being affected by the cuts. We are seeing a return to the 1980s, with more people sleeping rough, more people going into bed and breakfast, and more people sofa-surfing. That is the reality of how the Government’s policies are affecting people at the bottom of the pile who are struggling and finding things really difficult.
We should not politicise or play politics with homelessness. In May 2008, before he was Prime Minister, the right hon. Member for Witney (Mr. Cameron) said:
“I think that it is simply a disgrace that in the fifth-biggest economy in the world that we have people homeless, people sleeping on the streets, sofa-surfers, people in hospitals.”
He said it was a disgrace. The problem with playing politics with this type of issue is becoming a hostage to fortune. He made those comments when the previous Government had taken radical steps forward to reduce homelessness and it was probably at an all-time low. In 2012, as Prime Minister he is overseeing a dramatic increase in homelessness, yet he is doing very little to stop the problem. In fact, all indications suggest that it will get worse. There are no indications that the problem will stop.
According to research undertaken by Shelter last year, my constituency of Rochdale is the 10th-worst place in the country for repossessions. In December 2010, 53 people presented to the local authority as homeless. In December 2011, the number had gone up to 160—a 200% increase, and the biggest rise in Greater Manchester. We are seeing real problems. Thirteen local agencies that provide homelessness services have had their contracts cut, and their services are being reduced. More people going into bed and breakfast in Manchester and Burnley are being placed outside the borough.
I am not saying that the council has got it exactly right. It has had a very difficult time, with one of the worst settlements from central Government, compared with some of the more leafy suburbs in Conservative-controlled local authorities in the south of England. Where we have poverty and difficulty, we have seen some of the worst cuts to local authorities; Rochdale is an example. The council has removed the ring-fence from the Supporting People programme budget and it has been salami-slicing homelessness budgets, so it has not got it exactly right. I am happy to be critical of the local authority—even a Labour-controlled authority; it should have awarded more contracts to local charities, which have a better grass-roots understanding of homelessness, yet some contracts have been awarded to national homeless charities. That is a mistake, but there is no doubt that Rochdale council, like many other local authorities, is operating in an exceptionally difficult climate that has been created by the Government. If the Government are genuinely serious about tackling homelessness—there are no indications yet that they are—they have to do something radically different to get on top of the issue.
Jack Dromey (Birmingham, Erdington) (Lab)
It is a privilege to serve under your chairmanship, Mr Havard.
I pay tribute to my hon. Friend the Member for Westminster North (Ms Buck), who has been a remarkable and outstanding champion of homeless people for many years. In a most dramatic and vivid way, she has brought home the sheer scale of human misery felt by hundreds of thousands of those we represent. The voice of homeless people has been heard in Parliament today.
Like my hon. Friend, I see the ever-lengthening queues of the desperate in my constituency: families trying to get a decent home at a price that they can afford who are being evicted; and those whose lives have come apart, who have spiralled down and ended up homeless on the streets. They are good men and women who deserve better in 21st-century England.
Homelessness and rough sleeping in 21st-century Britain, the seventh-richest nation on earth, are a disgrace and a scar on our society. Those were the sentiments of the Prime Minister when he was in opposition in 2009. Indeed, in August 2011, the Housing Minister said:
“Tackling homelessness and rough sleeping is what first got me into politics”.
No one doubts the Minister’s desire to bring an end to homelessness and rough sleeping. In opposition, he set up the Conservative homelessness foundation. In government, he has set up a cross-Government working group on homelessness and introduced a “no second night out” policy. However, with sadness I have to say that as we have seen all too often with the Minister and the Government, the rhetoric and the reality are very different indeed.
On the Minister’s watch, the consequences of the Government’s economic, housing and benefits policies have been devastating. We now have the biggest housing crisis in a generation, and, at its heart, the depressing statistics of homelessness up by 14% and rough sleeping up by 23%. The truth is that homelessness is rising precisely because their economic and housing policies are failing.
I have some questions for the Housing Minister. Does he accept that the Government were warned that the 60% cut in investment in the 2010 comprehensive spending review would have catastrophic consequences and that they have led, as today’s figures from the Homes and Communities Agency have demonstrated, to a 68% collapse in the building of affordable houses? Does he accept that the Government were warned that the toxic combination of increasing rents in the private sector, collapsing affordable house building and ill-thought-through changes to the benefits system would mean thousands of families being uprooted, particularly in London? The private secretary to the Secretary of State for Communities and Local Government wrote last year that the cap and other housing benefit reforms could result in 40,000 people being made homeless and that the policy could cost more than it saved. Does the Minister accept that the Government were warned about the consequences of the biggest cuts to local government expenditure in history and the cuts to Supporting People?
As we have heard my hon. Friend the Member for Rochdale (Simon Danczuk) and the hon. Member for Upper Bann (David Simpson) say eloquently, the consequences have been serious. The city of Birmingham, which I am proud to represent, has had the biggest cuts in local government history in the past two years: £312 million, including £15 million in cuts to the big society through cuts to the charitable and voluntary sectors.
In Birmingham, and throughout Britain, there have been cutbacks in services to homeless people. Again, the statistics are depressing; 58% of projects have received reduced funding, leading to a reduction of one in 10 staff— 1,400 people—caring for the homeless. The number of clients using day centres for the homeless has risen by nearly a third and there are 22% fewer empty beds on an average night. The research report, “SNAP 2012”, produced by Homeless Link, shows that there are 1,544 fewer bed spaces in 2012, compared to the previous year.
As a result of the Government’s actions—their failed economic policies—there is higher unemployment and the greatest squeeze on living standards in a generation, with families and individuals struggling to stay in their homes, whether owned or rented. Increasing numbers of people are presenting as homeless or are out on the street, not to mention the cuts to services that provide the safety net. There has been a catastrophic fall in construction, which is at the heart of the double-dip recession made in Downing street.
The Government’s failed housing policies are contributing to the growing housing crisis and the collapse in affordable house building. The private rented sector is defined by ever-increasing rents and, all too often, poor standards, with one in two homes in the sector not meeting the decent homes standard. Social housing providers are increasingly unsupported and their tenants shamefully demonised by Government.
My hon. Friend the Member for Westminster North used powerful case studies to demonstrate eloquently that the combination of the Government’s failing housing and economic policies and their benefit changes is leading, as the Housing Minister was warned, to misery on a grand scale. Tenants are forced out of their private rented homes because of the housing benefit changes and councils cannot find anywhere to put them. Many landlords are increasingly leaving the housing benefit tenant market. Councils are told by the Government that tenants should not be sent elsewhere in the country, but councils cannot keep them locally, so tenants end up in hotels paid for by the taxpayer, costing the taxpayer more and leading to more misery for the tenants. That is the economics of the madhouse.
We Labour Members learnt in government that homelessness can only be tackled by addressing all the factors contributing to it. Above all, more homes are needed. In government, Labour delivered 2 million new homes—500,000 affordable homes—and introduced Supporting People, bringing together seven income streams from across central Government to give the necessary housing and related support, particularly for vulnerable people.
My hon. Friend the Member for Rochdale is right to say that as a consequence of Labour’s determination to tackle the scandal of homelessness and bad housing, there was, progressively, a 70% reduction in homelessness. That reduction has gone dramatically into reverse under this Government.
Kate Green (Stretford and Urmston) (Lab)
Does my hon. Friend agree that there is an incomprehensible lack of logic in the Government’s now telling local authorities that they cannot transfer people to other local authorities, when that is the inevitable conclusion of the Government’s policies? Indeed, Ministers highlighted that conclusion in respect of the welfare reform and housing benefit changes of the past two years.
Jack Dromey
My hon. Friend is right. I have seen at first hand some utterly tragic cases resulting from those policies. For example, a young woman, who understandably chose to remain anonymous, appeared on the “Today” programme. She lived in Waltham Forest, was married to a professional man and they had a nine-year-old. The couple broke up and stayed close, but sadly he died. She then lost her home and ended up in temporary accommodation and was told that because there was no available alternative accommodation that the council could provide for her, she would have to go from Waltham Forest to Walsall. She said, “I can’t do it. My nine-year-old is distraught because of her dad’s death. She hasn’t gone to school for the last three months, with the agreement of the school, as she recovers. I go every day to my mum, who looks after her granddaughter while I train to get back into the world of work.” I do not mind admitting that after she told me that story, with its consequences and the pain that she felt, I was in tears. It is about time that Ministers faced up to the consequences experienced by the victims of their policies.
It appears that there is consensus in this Government that housing does not matter and should not be centre stage. Labour believes strongly—we know—that it does matter. Does the Housing Minister accept how important housing is to the economy? Construction accounts for 3% of gross domestic product, £91 billion of economic output and 1.5 million jobs. Does the Minister accept that it matters to health? The annual costs to the national health service of poor housing and homelessness have been assessed at £2.5 billion. Another depressing statistic shows that, on average, the homeless on the streets die 30 years younger.
Does the Minister accept that homelessness matters with regard to educational attainment? Again, the depressing evidence shows the impact on a generation of young people brought up in poor housing or temporary accommodation.
The Minister for Housing and Local Government (Grant Shapps)
Will the hon. Gentleman remind hon. Members how many debates on housing the Opposition have called?
Jack Dromey
My predecessor and I have stood up for all that is decent in terms of putting housing centre stage, and fought hard on behalf of the homeless, the badly housed and the millions who need a decent home at a price that they can afford, whether to buy or to rent. The Housing Minister should not make flippant comments but, instead, take his responsibilities seriously, as Labour is doing.
Jack Dromey
We have—as the Government have not—put housing at the heart of our economic recovery plan to kick-start the economy and get it moving.
Ms Buck
We might reflect on the fact that, in a full-day Opposition debate, we discussed the impact of the housing benefit cuts on housing, in the context of the collapse in housing supply. We warned of the interaction of the policies bringing about exactly the conditions that we have been debating today.
Jack Dromey
My hon. Friend is right, and I would compare our record with that of this Government at any time, including on what kind of action should be taken now. When there was global collapse in 2008, did we stand back? No, we did not. We acted on the one hand to keep people in their homes, avoiding the tide of repossessions to which my hon. Friend referred earlier, and on the other hand by way of the kick-start programme, which saw 110,000 homes built and 70,000 jobs and 3,000 apprenticeships created. To this day, the benefits of that programme are feeding through.
What do we see now? We see the reverse. We see a Government who have done scarcely anything, as a consequence of which we see today the depressing statistic that there has been a 68% fall in affordable house building. That is why we want the Minister to listen to our case for a repeat of the bank bonus tax, enabling us to start with 25,000 badly needed affordable homes, the creation of jobs for 100,000 young people and a cut in VAT on home improvements, which will both upgrade housing stock and create jobs in the economy. If we were in government, our argument is that we would do what this Government are refusing to do, which is to act: to raise standards in the rapidly growing private rented sector, protecting tenants and good landlords alike, to create a more stable, secure and affordable sector and to encourage investment in major new build in that sector. The Housing Minister has gone in exactly the opposite direction; for example, repealing crucial protections that Labour put in place when in government, dismissing them as red tape. Much needed protection for tenants, many of whom are suffering in the private rented sector, is not red tape.
In conclusion, what strikes me as the most shocking thing about homelessness is not that it exists in a rich nation such as ours but that we know how to solve it. Therefore, I hope that the Minister has not completely forgotten what brought him into politics and that, instead, he listens to the voice of those concerned, such as the verdict on homelessness in the second edition of the powerful “Housing Report” produced by the National Housing Federation, Shelter and the Chartered Institute of Housing, whose annual conference he and I will be addressing later this week. I hope that the Minister hears the report’s assessment:
“The large increase in homeless acceptances and rough sleepers is deeply troubling. Ministers need to respond urgently to this growing problem, which could be exacerbated by further cuts to Housing Benefit in 2013.”
It is true that there was once a noble tradition in the Conservative party that took housing obligations seriously. It was the tradition of Harold Macmillan. Sadly, that tradition now appears to be all but extinct in the modern Conservative party.
The Minister for Housing and Local Government (Grant Shapps)
It is a pleasure to serve under your chairmanship, Mr Robertson. I offer my congratulations to the hon. Member for Westminster North (Ms Buck) on securing the debate, as well as my thanks to her for understanding my predicament this morning, trapped as I was when trying to reach the House, our inclement summer weather not letting me make the journey.
The housing debate is incredibly important, and homelessness even more so. I pay huge tribute to the hon. Lady for her long-term commitment to this subject, going back many years. Housing does not always get the attention that it rightly deserves, whether from Government or Opposition—I will say more about that in a moment—but not so with the hon. Lady, who is a passionate advocate on housing and in particular on homelessness, on which I have heard her speak often over many years.
We need to set the context. Far from being a recession “made in Downing street”, as the rather glib soundbite from the hon. Member for Birmingham, Erdington (Jack Dromey) suggests, sensible people looking at today’s circumstances appreciate that we need only to look across the water to see what is happening in Europe—the bail-out in Spain and events in France, Greece and so many other places—to understand that the problem is global and not one experienced only in the UK. In fact, the problem has a source, a reason, a cause, which was spending money that we did not have today and expecting our children to pay it back in the future. That was unsustainable; it could not be maintained forever. Only a fool imagines that we can spend money that we do not have forever. We had to do something about it, which means reducing the deficit in every area of the economy. Yes, that includes reducing the capital available to build homes—there is no point pretending that that has not been affected. Our great challenge has been to reduce the deficit while finding ways to increase the amount of house building, which, as we would not know from the contributions of the Opposition Members, fell to its lowest level since the 1920s under the previous Administration’s plans, resulting in a huge housing crisis.
We must look at the overall housing picture to understand the situation in a bit more detail. We have such enormous pressure on housing in this country because house prices were able to double in only 10 years, which is precisely what happened between 1997 and 2007. Lo and behold, what a great surprise, we end up with a large proportion of our fellow citizens finding it almost impossible to buy a house. As a result, rents and the number of people trapped in their housing position grow and grow exponentially. That did not happen overnight but over a decade and more. A lack of house building is at the very heart and is the very root of the problems of homelessness.
Jack Dromey
I am aware that the Minister struggles with his statistics, but perhaps he can take the opportunity today to confirm his Department’s own statistics. Under a Labour Government, there were 2 million new homes, 1 million more mortgage holders, 0.5 million affordable homes and, as a consequence of the kick-start programme in precisely the same kind of difficult economic circumstances as we now face, 110,000 new homes, 70,000 jobs and 3,000 apprenticeships. That is a record to be proud of. Can the Minister confirm those statistics?
Grant Shapps
The problem with statistics, as the hon. Gentleman should know, is that they can be played any which way we choose. For example, six months ago, when the Home and Communities Agency produced the house building figures for the previous six months, the hon. Gentleman made great play of a 97% reduction in the amount of affordable housing starts, although it was a natural consequence of the switch from the old programme to the new affordable rent programme. In the light of analysis of the figures six months on, he has failed to come to the House to explain that there has been 3,500% increase in starts based on his measure. I agree that we are not building sufficient homes in this country, but I am not happy with him ducking and weaving and using one set of figures six months ago and a different set of figures today in order to make a point.
Grant Shapps
I would like to make progress on the essence of this debate, because I have a feeling that we will never agree on the housing stats, although it is undeniable that house building had slumped to its lowest level since the 1920s, and starts were up by 29% in 2011 compared with 2009, so some progress has been made.
I want to focus on the excellent speech by the hon. Member for Westminster North—I have caught up on the notes—and to address some of the issues. I heard clearly her description of some of the people who are trapped in homelessness, and there is no doubt that the anxiety and pressure is immense. We have all seen that in our constituencies. I have been the Housing Minister or the shadow Minister for five years, and I challenge the hon. Member for Rochdale (Simon Danczuk) on who has visited the most homelessness projects. However, he is spot on to say that when one hears such stories and understands what is going on in people’s lives, it is often surprising and even shocking to realise how little of the problem is simply down to the roof over one’s head. I have yet to meet someone who is homeless and who does not have a catastrophic tale of complex circumstances such as family break-up, financial problems, health problems, sometimes mental health problems, having been in prison and not having got their life back together, and sometimes following active service. There is almost always a combination of some of those contributory factors.
I decided early on, following our work with the Homelessness Foundation, which was set up in 2008, that we need to make Government Departments work better together. That is why I set up the ministerial working group on homelessness. It is the first time that Ministers from different Departments—eight of them—have come together to work on these issues. They include the Department for Work and Pensions, which works closely with us.
I think we must accept that the Government and the Opposition start from slightly different positions. I passionately believe in a safety net to ensure that people are not made homeless, and Members on both sides of the House can be proud that this country probably has the best safety net in the entire world.
Grant Shapps
I will give way in a moment. It is a tribute to the Opposition as well as the Government that in this country we do not see families and children homeless on the streets. We do see single people homeless on the streets, and I will talk about the measures that I am taking to try to address that problem.
When people talk about homelessness, there is a confusing set of definitions; that has come out in our debate today. For example, when we talk about homelessness, we are usually talking about homelessness acceptances: people who have been accepted as having a right to be helped and who, in other words, will not be homeless because they will be provided with a home. Until now, that has been an offer in the social sector of a home for life, which more often than not can be passed on to a future generation.
It is still true, although one would not know it from the Opposition’s comments—I even wonder whether they are aware of it—that homelessness today is lower than it has been in 28 of the past 30 years, and half the average level during the 13 years of the previous Administration. I do not want to paint an overly rosy picture, because I am alive to the many real pressures and difficulties for families and family budgets posed by the extended downturn and the world economic problems. Opposition Members, including the hon. Member for Rochdale, rightly talked about not playing politics with these issues, but he then proceeded to play politics. It is not simple to resolve the problems, and the Government must find the right responses.
Jack Dromey
Does the Minister accept that his statement is misleading, because where we are now is a consequence of the 70% reduction under a Labour Government, and that is now in reverse with a 14% increase in statutory homelessness and a 23% increase in rough sleeping?
Grant Shapps
One of the problems is that it depends where the figures are taken from. The high point in the number of people in bed and breakfast accommodation was in 2004, which was a long time—seven years—into the previous Administration. We may say that there was a big reduction in, for example, the number of homeless people in temporary accommodation, and that may have been from halfway through the previous Labour Administration, but we must be very careful when trading figures. I am much more concerned about the outcome for people on the ground, and when I talk about people on the ground, I sometimes mean people at the bottom of the pile who are sleeping on the streets.
I am sure that the hon. Member for Birmingham, Erdington and other Labour Members feel some shame that the true size of the cohort of people living on the nation’s streets was buried under the previous system of counting. For example, if someone was sitting upright in a sleeping bag, they were not counted, and they had to be there at a certain time and so on to be counted. One of the first things I did was rip up the system that tried to claim that only 424 people in the country were sleeping rough. Any observer with any knowledge of the system, let alone hon. Members who had spent a lot of time studying homelessness, knew that that was nonsense. I have tried to reveal the true size and scale of the problem and not to bury it or hide it away, but I want to go further.
Reference has been made to the importance of the Supporting People budget. Despite the enormous pressure on reducing budgets to deal with the record deficit, we have kept almost the entire cash amount for the Supporting People programme. In fact, there was a 1% reduction in Supporting People over four years—£6.5 billion. I know that there have been problems on the ground—the hon. Member for Westminster North described them clearly—about the way in which Supporting People money has been spent. I understand that there are challenges when such funding is not ring-fenced—it was not ring-fenced in 2009—and that with other pressures the Supporting People budget has been pressurised on the ground, but it is not that the money has not been going in. Nor is it the case that we have reduced by even a penny support for homelessness. The homelessness budget was £400 million—£100 million a year—for the spending review period, and that has not been reduced.
I do not know whether it has escaped the attention of the hon. Member for Birmingham, Erdington, but during the past year, I took another £70 million, which was not in the spending review and aimed at homelessness, and put it into homelessness programmes, because I passionately believe in maintaining that fantastic homelessness support in this country. When we talk about people being homeless, we generally mean that they have been accepted as being homeless so that they can get a home, but there is a category of single people who do not receive help and support through our system. If a single person—the sort of people we are familiar with from our constituency surgeries—turns up at their local authority, under the rules that have applied until now they would simply be told, “I’m sorry, you are not covered as a preference category. We can do nothing for you.” That is not good enough, and I am sure that other hon. Members agree, so I have made £18.5 million available in the last few months to ensure that tailored advice is available for individuals, in addition to £10 million to Crisis to do the same.
I would dearly like to make the category of single people without dependants a preference category, and that should be the objective of any Government when money allows. I have not only protected all the preference categories that Opposition Members talked about—the work of Louise Casey was praised, and I echo that—I have added to those preference categories and I am trying to go further.
It is crazy that anyone who sees someone sleeping rough in this country must call the local authority; they may or may not get a response, and will not know what has happened afterwards. That is not good enough, so I am setting up a national helpline and a website to ensure that assistance can be brought directly to that individual. It will be run with the assistance of Homeless Link and will be in place by Christmas, and I hope that the whole House will join me in supporting it. When we see somebody sleeping rough, we have a terrible moment of dilemma about whether we should try to assist them directly—even if we do not know whether the money will be used in that person’s best interest—or do something else for them. Now we will be able to use the helpline, and information will be available so that people can see whether that person was helped and in what way. I think that is important.
We have also announced the “no second night out” initiative nationwide. “No second night out” came from the first cross-ministerial working group report, and I hope that Opposition Members will welcome it. The £70 million that I mentioned includes £20 million to back that programme, and it means that nobody in this country who is found sleeping on the street should ever experience a second night in that situation. I slept rough for a night to see what it was like: it is frightening and one feels vulnerable. We do not want any of our citizens to be in that position, and there is no reason for them to be because we have also allocated £42.5 million of funding to the hostel system, to ensure that new and refurbished hostel places are available.
The problem in this country, and particularly in London where we have the excellent combined homelessness and information network—CHAIN—database, is generally not about whether a hostel place is available on any given night, but about finding the individual, connecting them with the hostel, and sometimes persuading them to go into it. “No second night out” and the national reporting line is designed to help deal with that, and I am pleased to say that it has been taken up in Merseyside, Manchester, Leeds and Newcastle. It is an excellent, practical example of the way that we are trying to work.
Mr Andy Slaughter (Hammersmith) (Lab)
The Minister mentions telephone lines, advice and websites, but people need houses. In particular, those who are homeless, as well as those living in overcrowded and poor conditions, need new social rented homes. I am sorry that I was not in the Chamber for the speech by my hon. Friend the Member for Westminster North (Ms Buck). I understand that she mentioned Hammersmith and Fulham—perhaps the worst housing authority in the country—which builds no social rented homes. As a consequence of that, its homelessness strategy, which I commend to the Minister and ask him to read, states that anybody who needs a three-bedroomed house, or bigger, should be discharged to the private rented sector outside the borough. That is contrary to the housing policy of the Government and the Mayor, but is it something that the Minister supports?
Grant Shapps
No contribution from the hon. Gentleman would be complete without a reference to his own time as leader of housing in Hammersmith and Fulham. I think, however, that that council has a good record of looking for constructive measures that help to take people off the housing waiting list. For example, it was one of the forerunners in a programme that I launched recently with the Prime Minister to sell 100,000 homes under the right-to-buy programme. Critically, and unlike the previous programme, every penny of that money will be used to build more homes for affordable rent, and that seems to be a great solution. Not only can a family achieve their aspiration of purchasing their own property, but they can do so in the knowledge that somebody else is being taken off the housing waiting list. I have yet to hear whether the Opposition support the return to the right to buy, with the money going towards affordable houses.
Grant Shapps
I will happily give way so that I can understand the hon. Gentleman’s policy.
Jack Dromey
A straight answer to a straight question. Labour has supported the right to buy, but—crucially—we are not convinced about the bogus figures put forward that somehow suggest there will be one-for-one replacement. Councils are not able to retain the bulk of the receipts, and there is no guarantee that if a home is sold in a local authority area, a matching home will be built in the same area. We therefore fear that we will see a significant reduction in available social council stock, without any new build to compensate. Time will tell, but the sad reality will soon dawn.
Grant Shapps
I am still not entirely sure whether the Opposition support the initiative, but one-for-one replacement is part of the policy and is what we intend. The hon. Member for Hammersmith (Mr Slaughter) challenges the Government by saying that the answer is to build more homes. I absolutely agree.
Ms Buck
A question has been posed by my hon. Friend the Member for Hammersmith (Mr. Slaughter) and by me, and I am anxious to have a response. What are the Government going to do about the two rules that are being breached and, indeed, are in conflict with each other? The maximum time that local authorities are supposed to keep families in bed and breakfasts is increasingly being breached, and the respect of local connection rule has been breached in the examples that my hon. Friend and I described. Will the Government enforce those orders?
Grant Shapps
As the hon. Lady knows, I have written to the 20 authorities that were responsible for 80% of the breaches of the six-week bed-and-breakfast rule. I pointed out that they are in breach of the law and asked for their plan or strategy to resolve the issue. It involves a small number of authorities, although I share her concern. I make no distinction politically or otherwise—the authorities concerned come from across the board—and I expect them to put plans in place to deal with the issue.
As the hon. Member for Stretford and Urmston (Kate Green) noted in her intervention, there are enormous pressures in every direction and the problem is not simple to resolve. None the less, the changes we are making are designed to make it easier for authorities to discharge those all-important homelessness duties. Through the Localism Act 2011, we are allowing a discharge of those duties into the private rented sector on a fixed-term lease, with protections in place, which I think is an utterly sensible approach. Quality homes in the private rented sector could massively expand our capacity to deal with families who require assistance. Again, I have not heard—although on this occasion, I do not think I will provide them with the opportunity—what the Opposition think of discharging that homelessness responsibility into the private rented sector, but I think it is an important element.
Ms Buck
This issue goes to the heart of the debate, and I do not feel that we have had a response. In order to comply with the Minister’s request, local authorities that have exceeded the limit for families in bed-and-breakfast accommodation need to find somewhere to place them. My hon. Friend the Member for Hammersmith mentioned guidance from Hammersmith and Fulham, and Westminster’s response to increasing demand states:
“Increasing procurement of family-sized properties in East London where the council has focused its out of borough procurement. Investigating procuring new properties in areas outside of London…a number of properties within Kent and Essex and we consider other proposals from organisations who approach us, including areas outside London.”
Does the Minister agree with that or not?
Grant Shapps
Guidance is already in place, which I am strengthening, to make it clear that local connections are critical and that people should never be shipped hundreds of miles away. There will, however, be cases where somebody may move from one borough to the next—the local housing area can encompass one, two or three boroughs, depending on location. I have been clear, however, that the kind of Newham games of writing and threatening to send 500 residents across the country are neither fair nor right. I was absolutely appalled by that approach. Interestingly, when I was approached by the leader of that council some time afterwards, he sort of half apologised and suggested that those letters should never have gone out.
In the last minute or two I will return to the comments made by the hon. Member for Birmingham, Erdington. He says that housing has never been a priority for this Government, but he is absolutely wrong. The truth is that housing was never a priority for the previous Government. Those are not my views, and when the Leader of the Opposition stated:
“We refused to prioritise the building of new social housing”
he was absolutely right. The critical figure that nobody in this House and beyond should ever forget, is that after 13 years there was a net loss in the number of affordable homes for rent in this country. That is a terrible, disastrous record that we are in the process of turning round, with 170,000 new affordable homes for rent that, as shown by HCA figures published today, are on track to be built by the end of this Parliament. I would have thought that that would be welcomed across the House, although bizarrely it is not. The idea that the Labour party is interested in housing is belied by that quote from the Leader of the Opposition and by the nine people who occupied the position of Housing Minister when Labour were in government. It is belied by the fact that the hon. Member for Birmingham, Erdington is the eighth shadow Housing Minister I have faced. This Government are prioritising housing and doing something about getting homes built, which is the best way to prevent people from entering the world of homelessness.
Homophobic Bullying (Schools)
(12 years, 5 months ago)
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Iain Stewart (Milton Keynes South) (Con)
It is a pleasure to speak under your chairmanship, Mr Robertson, for what I think is the first time. Why do we need a debate on homophobic and transphobic bullying in schools? Is it not the case that any form of bullying is bad and should be tackled? I agree with that up to a point. Bullying is not a new phenomenon. It has always been the case that some children are cruel and will pick on others because they are perceived to be different in some way. Perhaps they are not wearing trendy clothes; they wear glasses; they are overweight; they have acne—there are all sorts of reasons. Schools should have in place effective anti-bullying policies, both to foster a general culture of respect, so that the likelihood of bullying is diminished in the first place, and to be able to nip bullying in the bud quickly when it does take place. That is certainly true, but I want to demonstrate today why I believe that there is a particular problem with homophobic bullying that needs to be tackled.
Research commissioned by Stonewall in 2009 and conducted by YouGov found that 90% of secondary school teachers and 40% of primary school teachers had regularly witnessed homophobic bullying in schools. An earlier survey of young gay people found that 65% had been bullied themselves and 98% were aware of homophobic language being used. Although we do not yet have the figures, Stonewall is carrying out a major research programme and will publish an updated set of figures in the next few weeks. That will demonstrate—I had a meeting with Stonewall last week—that the problem very much remains.
There is clearly a problem to be tackled, but statistics do not convey the human cost of bullying. I want to draw attention to the case of the Crouch family, which has been covered in the press in the past few months and certainly does show the human cost of bullying. Dominic Crouch was a 15-year-old schoolboy in Gloucestershire. During a school trip in 2010, he played a game of spin the bottle with his classmates. As a forfeit, he had to kiss another boy. That event was videoed on a mobile phone and quickly spread virally round the school. Dominic suffered severe taunting for being gay. It is not actually known whether he was gay, but the intensity of the bullying was so great that Dominic committed suicide by jumping off a tall building. His father, Roger, commendably and bravely, spoke up publicly about his son’s suicide, to help to raise awareness of the problem and to encourage people to take action. However, Roger’s grief was so intense that he could not cope and he took his own life last November. Those two lives were lost utterly needlessly.
Sadly, the Crouch family’s story is not an isolated case. Last year in my area of Milton Keynes, there were four teenage suicides. Of those, three were young gay men. Does that not tell us that there is a problem that needs to be addressed?
Homophobic bullying can leave very deep emotional scars that can take a long time to heal and sometimes will never heal. I know that from personal experience. At school, I knew that I was gay, but I did not dare admit it, either to myself or to others. It was inconceivable for me to do that as a teenager growing up in the west of Scotland in the mid-1980s. Indeed, with you, Mr Robertson, in the Chair, I will say that it was easier for me to admit that I was a Tory in Glasgow than it was to come clean about my sexual orientation.
Iain Stewart
I do not want to over-egg things. I was not physically bullied and the verbal bullying that I experienced was very mild and short-lived, but I was perceived to be different and it left deep scars. It was enough to make me feel isolated and introverted, and it took me a very long time to overcome. It is clear from the research that Stonewall and others have done that those consequences of bullying can severely impair a young person’s academic and social development. Further evidence shows that, where there is a culture of bullying in schools and particularly homophobic bullying, it drags down the performance of the class and the school as a whole, so it is not just those who are bullied who suffer; it is their classmates as well.
Social attitudes have changed enormously in the two decades or so since I was at school. Thankfully, we live in more enlightened times. However, it is wrong to think that homophobia does not exist among young people. I challenge hon. Members to read some of the horrifying stories in the recent special youth edition of Attitude magazine. Some pretty appalling things have gone on and are going on in classrooms in our schools today.
In preparing for this speech, I took the time to speak to some of the pupils in my constituency to find out what their experience of bullying in schools was. I found some pretty surprising and appalling things. One girl told me that she was doing a media studies class and part of the research involved looking at the portrayal of homosexuality in the media. The class had to view an episode of, I think, “EastEnders” in which two men were kissing. The phrase “dirty faggot” was shouted out in the classroom and clearly heard by the teacher, but the teacher did nothing about it. Such incidents take place; they are happening today. The girl also told me that a Facebook page was set up so that pupils at the school who were thought to be gay could be outed.
Stuart Andrew (Pudsey) (Con)
I congratulate my hon. Friend on securing the debate and on talking so personally about this issue. Bullying, in whatever form, is a terrifying experience for those who suffer it. Sadly, one of my friends committed suicide because of bullying, although it was not homophobic bullying, and that had a profound effect on me personally. My hon. Friend mentions Facebook, and there is also Twitter. In this age of modern technology, there seems to be no escape for some bullying victims, because even when they go home, whether through the mobile phone in their pocket or the laptop in their bedroom, the bullies are ever present. Does my hon. Friend think that that is another aspect of the issue that needs serious consideration?
Iain Stewart
My hon. Friend, as ever, makes an important point. Cyber-bullying is very much with us. It takes place in many different forms. It extends the boundaries and the times of the school, as my hon. Friend said, so that pupils feel victimised in their own homes and not just when they are within the school gates. From what I have been able to research, I do not think that there is a particular problem with homophobic bullying in cyberspace—it is just another vehicle through which homophobia and homophobic bullying can take place—but my hon. Friend is absolutely right that it needs to be part of our response to the problem.
What can we do to tackle this important problem? The Government have made a good start. It was very good that the schools White Paper included a specific reference to preventing and tackling homophobic bullying in schools. I am aware that new anti-bullying guidance has been produced for schools to use. I am glad that within the Ofsted inspection framework is the expectation that schools should create a safe learning environment for lesbian, gay, bisexual and transgender students. I certainly applaud all those initiatives, but more needs to be done.
For all the toolkits available, research by Stonewall found that the vast majority of teachers want to combat homophobic bullying but do not feel that they have the appropriate training or support. If we isolate only one thing that needs to be done—many more things need to be done—it is to improve training for teachers, so that they have the skills to prevent bullying from happening in the first place and to tackle it when it does.
Chris Bryant (Rhondda) (Lab)
I apologise for arriving late, but I have been attacking the Church of England on a very similar issue.
An organisation called Diversity Role Models, which plays an important role in London schools, would like to be able to play a role more widely around the country. It provides role models to go into schools who are expert at talking about such issues. In one class, 95% of the kids at the beginning of a session said that they would never have a gay or lesbian friend, but by the end, only 20% said that they would not have one. That is the kind of difference that we need to make, is it not?
Iain Stewart
The hon. Gentleman makes a good point; indeed, he has anticipated my mentioning Diversity Role Models. I spoke to it yesterday and it sent me some reports about its work. I agree that it performs an excellent role by going into schools, as does Stonewall.
Sometimes, it is not that schools do not want to tackle such bullying, but that they do not perceive it as an issue that they have to deal with. Part of my reason for initiating the debate today is to put on record that there is a problem that should be tackled. Every school will have gay pupils who need support. I want schools to realise that there is help from the Government and organisations such as Stonewall and Diversity Role Models to assist them in tackling the problem.
The record in schools is mixed. There are some very good schools, with very effective policies. The evidence shows that when schools have good policies in place, instances of bullying drop dramatically, so it is not some airy-fairy idea that would be nice, but something that shows tangible results. I do not have a preconceived idea of how this should be done, but we need to do more to share best practice from the schools that have policies to those that either do not have such policies or have policies that are not delivering.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
I congratulate my hon. Friend on securing the debate. On his point about teachers, in the 1970s and ’80s, teachers faced the same problem with a different issue—racism in schools—and it was dealt with. It was not just about training, which he alludes to and is fundamental, but about teachers feeling that they had the support of the wider community, whether governors, education authorities, councillors or Members of Parliament. In a classroom, teachers need to feel that they have the support of wider society to be able to deal with the issue. We dealt with racism in schools in the ’70s and ’80s, and we can deal with this.
Iain Stewart
My hon. Friend makes an important point and brings considerable experience as a teacher to the debate. The analogy with racist bullying is powerful. It goes back to my opening remarks about why we need a specific policy on homophobic bullying. No one would dare to argue now that we did not need a specific policy to tackle racist bullying; the same can be said for homophobic and transphobic bullying. His point about the reflection of wider social norms is important. Teachers cannot exist in isolation; they are part of the broader community. Tackling such bullying requires everyone—parents, teachers and everyone in society—to challenge it and say that it is not right and cannot be allowed.
Sport has an important role to play. Rightly, there are lots of campaigns to stop racist abuse on the terraces at football games, and we have seen some of the controversy with Euro 2012 at the moment. We do not hear as much about homophobic chants at grounds. If young people go to football, they will pick up on it and think that it is acceptable, so this is not only about schools; there is a broader challenge to society to say that homophobia is not acceptable, because not doing so creates the breeding ground for such sentiments.
I will conclude my remarks now, because I want to give the Minister enough time to respond. I hope that by securing the debate today, I have helped to give the issue the publicity that it deserves and that more schools will take steps to address bullying, which blights far too many young lives.
The Minister of State, Department for Education (Mr Nick Gibb)
I congratulate my hon. Friend the Member for Milton Keynes South (Iain Stewart) on securing a debate on an issue of great importance and on his very moving and powerful speech. I know that this is a matter of interest to him; he asked the Secretary of State for Education about the Government’s plans to tackle homophobic bullying in the debate on the schools White Paper in November 2010. In reply, my right hon. Friend said:
“Homophobic bullying is on the rise in our schools, and homophobic terms are increasingly used towards gay students and straight students in a way that seeks to undermine the tolerance that we have built up over the past 15 years. We therefore need to work with organisations such as Stonewall and the Anti-Bullying Alliance, and to shine the light on schools such as St George’s Church of England school, which has done a fantastic job in tackling homophobic bullying. This requires work not only by school leaders but by political leaders and all of society to tackle a growing prejudice that is scarring our tolerant society.”—[Official Report, 24 November 2010; Vol. 519, c. 278.]
The Government are committed to tackling this issue. In the coalition programme for Government, we said:
“We will help schools tackle bullying in schools, especially homophobic bullying.”
In the White Paper that my hon. Friend referred to—“The Importance of Teaching”—we said that we would
“empower head teachers to take a strong stand against bullying, especially racist, homophobic and other prejudice-based bullying.”
My hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw) was right to equate pejorative terms used against gay people, or the pejorative use of terms such as “gay”, with the racist phrases that we have almost managed to eliminate from schools owing to the action taken in the ’70s and ’80s. We now need the same approach to the use of phrases directed against gay people.
Bullying, for whatever reason, is absolutely unacceptable and should not be tolerated in our schools. It can have a devastating effect on individuals. It can bring misery, distress, fear and in extreme cases, such as the tragic case referred to by my hon. Friend the Member for Milton Keynes South, suicide. It has no place either in our schools or in wider society. The figures tell their own story: according to the TellUs survey data published in February 2010, 26% of children had been bullied in school in the preceding year and 21% had been bullied outside school. Overall, 46% of pupils experienced bullying at school at some point in their lives.
The Anti-Bullying Alliance in 2011 found that a quarter of 11 to 16-year-olds have directly experienced verbal bullying, with the vast majority of it—79%—happening at school. Almost 40% reported being bullied online or by mobile phone. In 2011, Beatbullying figures showed that more than a third of young people aged between 16 and 25 reported having suffered a severe physical or sexual attack during childhood by a fellow young person. Beatbullying’s 2009 research of 11 to 18-year-olds found that more than 60% had witnessed some form of cyber-bullying. Stonewall reported that two thirds of lesbian, gay and bisexual pupils have been victims of bullying.
Homophobic bullying is often directed at heterosexual pupils as well. Stonewall found that 98% of young gay pupils hear the word “gay” used as a form of abuse at school. Even when the language is used pejoratively without thinking, it is still offensive and still unacceptable. I expect teachers to react in the same way as they would to an offensive racial slur.
We know that poor behaviour can affect attainment. Pupils who said that they had misbehaved in most classes had lower predicted key stage 4 attainment—predicting a capped GCSE score 29 points lower than those who said that they had not misbehaved. Bullying can have a serious effect on the education of children and young people, as my hon. Friend said. Our schools must be safe and calm places where pupils can study free from disruption, and that includes being free from the distraction and distress that comes with being the target of bullying. Ensuring good behaviour and tackling bullying is therefore central to meeting the Government’s priority of closing the attainment gap between disadvantaged children and their peers.
It is important that schools take the necessary action to ensure good behaviour and to prevent and tackle bullying. We cannot dictate how they should do that, but we have made available clear and succinct advice. That includes the checklist prepared by Charlie Taylor, the Government’s expert adviser on behaviour, of the key principles that head teachers may wish to follow to improve behaviour in their schools. In addition, we have updated our advice to schools on preventing and tackling bullying. Schools have a specific legal duty to tackle bullying, and we know that they need clear anti-bullying policies and procedures. Our advice gives information on how to prevent and deal with bullying. It sets out the action that schools can consider when determining their approach to bullying, and it explains the legal powers that schools have to discipline pupils when bullying incidents occur off the school premises. It signposts schools to specialist organisations that can provide further help, such as Stonewall and Beatbullying.
I should like to recognise the work of organisations such as Stonewall, the Anti-Bullying Alliance, Beatbullying, Educational Action Challenging Homophobia and the Diana Award in highlighting this important issue. In April, I was pleased to be invited to speak at an event that the Diana Award had organised for its anti-bullying ambassadors. Those young people play an important part in tackling bullying in their schools and communities and set an example to others.
Alongside our advice and guidance for schools, we have given teachers the legal powers that they need to ensure good behaviour. Under the Education Act 2011, we have strengthened their powers to search pupils. New search powers have given teachers stronger powers to tackle cyber-bullying by providing a specific power to search for and, if necessary, delete inappropriate images on electronic devices, including mobile phones. We have removed the requirement to give parents 24 hours’ written notice of a detention. We have banned items such as tobacco and fireworks, which have no place in our schools; and from October, we are granting teachers anonymity when they are accused by pupils of abuse. In addition, the new system of independent review panels will ensure that decisions by schools permanently to exclude a pupil can no longer be overturned by an appeal process that can force reinstatement against the best interests of the school.
Schools are now held more closely to account for the way that they tackle bullying. New school inspection arrangements, which took effect in January, focus on four core areas: teaching, achievement, leadership, and behaviour and safety. When evaluating the behaviour and safety of pupils at the school, inspectors must consider pupils’ behaviour towards and respect for other pupils and adults. That will include freedom from bullying and harassment, including bullying based on sexual orientation and all other kinds of prejudice-based bullying.
Chris Bryant
It is all sounding a bit rosy, and, much as I recognise all that the Government are trying to do, the experience in many schools is still pretty awful. In some schools, that is because there is no proper sex and relationship education, teachers are not prepared to talk about the issues openly and properly, and there is inadequate preparation. Sometimes, school governors impede the development of proper policies. How are we going to ensure that we address those issues?
Mr Gibb
The points that the hon. Gentleman makes are important. The issue cannot be tackled overnight with any instant panacea. We have made it clear that the Government regard any form of prejudice-based bullying in schools as unacceptable. We expect teachers to take action when pejorative phrases are used, or when a pupil shouts out in the way that was mentioned by my hon. Friend the Member for Milton Keynes South. Teachers should take action against pupils who use those words in the same way that they would against a racial slur. Those things will not be dealt with overnight. There is no clear and simple solution, such as the solutions proposed by the hon. Member for Rhondda (Chris Bryant). We need a range of answers. However, one of the relevant issues is ensuring that schools have proper behaviour policies and that there is an intolerant approach to poor behaviour and bullying, from whatever cause and of whatever type. That is a key priority of the Government.
As my hon. Friend the Member for Pudsey (Stuart Andrew) pointed out, widespread access to technology such as the internet and social media outlets such as Twitter and Facebook have provided another avenue by which bullying can occur. Such bullying is not confined to the school site or day, but can happen at any time. As has been mentioned, there is no escape from bullying. Going home is no longer a safe haven from bullying for pupils.
To help children and young people to use the internet safely, the Department supports the UK Council for Child Internet Safety—a voluntary organisation that works to protect children from risks including cyber-bullying as well as harmful content, sexual images, grooming, loss of privacy and scams. Earlier this year, UKCCIS launched child internet safety guidance, including on the theme of cyberbullying. Facebook, the BBC and others are using the guidance, which should ensure that, whichever online service children use, they receive sound and consistent messages about what to do if they want to prevent harm or if they have become upset by something online.
In addition, children’s charities such as Childnet and Beatbullying, which are active UKCCIS members, offer expert advice on cyber-bullying for young people to raise awareness of online safety and how to protect themselves. Beatbullying has developed the CyberMentors peer support programme, with dedicated websites using a social networking model to allow young people to help and support one another.
Bullying is not an issue that is just for the bully and the bullied. It can affect a whole school and so can need a whole school to create an environment that prevents bullying from being a problem in the first place. Each pupil has a part to play in preventing and tackling bullying. All pupils should show respect and courtesy towards one another and should be encouraged in that by their parents. Pupils can demonstrate that attitude by not going along with a bully. As Stonewall would put it, “Don’t be a bystander.” That applies of course to teachers as well—a point made by my hon. Friend the Member for Milton Keynes South about a teacher who failed to admonish pupils for making anti-gay remarks. Prejudice-based bullying in schools, such as homophobic bullying, is unacceptable. When I spoke last July at the Stonewall “Education for All” conference I said:
“We need to send a message that homophobic bullying, of any kind and of any child, is unacceptable.”
I am happy to restate that message today and will continue to send as clear a signal as I can that we cannot and should not tolerate homophobic bullying.
I have set out our expectations of schools and what they should do to prevent and tackle bullying. We have taken action to support them by ensuring that they have the powers that they need to maintain good behaviour and discipline. We have taken action by giving them clear advice on their duties and their powers. We continue to work with specialist organisations that can provide help and advice, not just to schools, but to those who experience bullying. Schools now need to be able to demonstrate the impact of their anti-bullying policies to Ofsted. I believe that that provides a comprehensive approach to ending not just homophobic bullying, but all bullying in our schools.
Food Crisis (The Sahel)
(12 years, 5 months ago)
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Tony Cunningham (Workington) (Lab)
It is a great pleasure to serve under your chairmanship, Mr Robertson, and I am delighted to have secured this debate. I also thank my colleagues for joining me here this afternoon.
To put the debate in context, 18 million people across seven countries, from Senegal to Eritrea, are now feeling the effects of food shortages. The horn of Africa crisis is beginning to fade in our memories, and as it is not the force it was in the media, our attentions start to turn to another crisis. Although we have an opportunity to do better this time, I am concerned that the world community is not acting swiftly enough. These crises illustrate how food security is a growing problem, which will show no sign of lessening unless there is a global commitment to tackle the issues. That global commitment must deliver its promises to the world’s poor.
I want to focus on a few issues, including children’s welfare during food crises, long-term investment and short-term recovery, and funding and the international community. Living in the region when times are not too bad is difficult. Four of the Sahel countries, Niger, Chad, Burkina Faso and Mali, are in the bottom 15 human development index countries. Even in a very good year, Oxfam says, 300,000 children die from malnutrition. These communities are some of the most vulnerable in the world and they lack almost all of life’s most basic requirements. To meet the millennium development goals, the Government must work to protect these people by investing in their future and protecting their present.
The current crisis has recognisable traits plus the added complication of conflict. We have seen it before, but this time we must deal with it differently and better. Cereal production across the Sahel in autumn 2011 was 25% lower than in 2010. A change in the climate can be an inconvenience here in the UK. We saw that with the Queen’s jubilee when it rained throughout the pageant. When we have water shortages, we might not be able to bowl on our favourite bowling green because it has not been watered. In the Sahel, however, such shortages can be a matter of life and death.
One of the most dangerous consequences of a food crisis is malnutrition, which often hits children first, and the most vulnerable children at that. Malnutrition is destroying the potential of thousands of children across Africa. In early May, UNICEF warned that 1 million children could die from malnutrition in the Sahel. We have been warned and we continue to be warned about the ramifications of not acting. The Government must act now to prevent not only deaths but the spread of malnutrition.
The Save the Children report, “A Dangerous Delay” highlights how damaging malnutrition can be, as it directly affects education and future earning power. The impact of not acting now will affect generations to come. Oxfam estimated that it cost $1 a day to protect a child from malnutrition before the 2005 food crisis in Niger, but $80 a day to save a child’s life from severe malnutrition once the crisis had peaked. It makes sense both morally and economically to act now.
David Simpson (Upper Bann) (DUP)
I congratulate the hon. Gentleman on securing this very important debate. We are all aware of the number of debates that have taken place on this matter in this Chamber and elsewhere in the House. There is a problem of food security right across the globe, but in these countries some 300,000 children will die from malnutrition. Of course there is an issue of aid, but does the hon. Gentleman agree that it is good not only that we send aid to those regions but that the aid reaches the people who need it? There is also an issue of education and, where possible, irrigation should be introduced. However, I am sure that the hon. Gentleman will agree with me on the need for security of food.
Tony Cunningham
I thank the hon. Gentleman for his comments and pay tribute to him for the work that he has done on this problem over many years. I wholeheartedly agree that we need to do more, but the problem is broader than just malnutrition; lots of other factors are involved as well.
Although some money has been pledged to Save the Children, UNICEF and elsewhere, not nearly enough is being spent to protect children from the harmful effects of long-term malnutrition. World Vision estimates that in Niger nearly 50,000 children have dropped out of school since the crisis began, and that 44% of school-aged children are migrating for work. The food crisis is not just about food; it affects a child’s health, mental well-being, education and future. We sometimes forget that education is a once in a lifetime thing. Malnutrition does not just affect the child while they are hungry; it is a life sentence. If a child misses out on education at a vital period in their life because of malnutrition, they never recover. Malnutrition is a life sentence for many people in this region.
Although UK funding has increased, it has not taken into consideration that the need has grown since 2010, when funding was £20 million. I urge the Government to act swiftly, not only to provide crisis funding but to invest in the future of the Sahel communities.
Mrs Helen Grant (Maidstone and The Weald) (Con)
I congratulate the hon. Gentleman on securing such an important debate. On the point about contributions, the Department for International Development has already made significant contributions of food, water, seeds, medicines and vaccinations for cattle, and the Minister will have even more details. Some 1.4 million people are being helped at the moment. Does the hon. Gentleman also agree that this humanitarian crisis is so grave that we need leadership and involvement from the entire international community, and that further assistance and contribution from some of the wealthier middle east countries would not go amiss?
Tony Cunningham
I thank the hon. Lady for her contribution and pay tribute to her for her work on this matter over a long period of time. I noticed that the Minister was shaking his head. I do pay tribute to the Government for what they are doing and I will come on to say that we very much welcome the extra money. The point that I was trying to make was that we need to be doing more on a world community basis. We need to involve Europe and other bodies. I certainly was not minimising what the Government are doing.
Anas Sarwar (Glasgow Central) (Lab)
I congratulate my hon. Friend on securing this debate. Following on from the hon. Lady’s point about global leadership, does he agree that it was disappointing that the G8 leaders did not take a stance similar to the one taken in L’Aguila in 2009? We need a global response to food security, ensuring that we tackle not only the urgent crisis in Sahel but future crises in other parts of the world.
Tony Cunningham
I very much agree with my hon. Friend. The UK Government can do their bit and provide support and additional funding, but unless we get a global commitment and involve multilateral institutions, we will not solve the problem.
As I have already said, I urge the Government to act swiftly, not only to provide crisis funding but to invest in the future of the Sahel communities. The long-term investment should include investment to build capacity and resilience within those communities. The region’s long-term problems must be tackled before a crisis emerges; it is so important to deal with crises before they happen, rather than wait until they happen to act. Not only do we risk lives if we wait but the cost of the delay will also be huge; that was another point that I made before.
Recent humanitarian disasters have shown the importance of heeding early warning systems and not delaying before taking action. “A Dangerous Delay”, the report produced by Oxfam and Save the Children, highlighted the mistakes that were made in the response to the east African crisis. The report said that national Governments, donors, NGOs and the UN needed to
“act decisively on information from early warning systems and not wait for certainty before responding”
and
“actively seek to reduce drought risk in all activities, ensuring that long-term development interventions increase resilience and adapt to the changing context”.
I am sure that the Minister has been waiting to hear my next point: I very much welcome the news that the Department for International Development has increased funding. However, what I am saying is that the Sahel crisis is so huge that we need even more money, and we also need the UK Government to make sure that everyone else is pulling their weight too. The extra £10 million from DFID could not have come at a more important time, but the UN states that we are still missing £300 million to fight the worst of the crisis. Food security is no longer just about the human imperative of having enough to eat; it also impacts on government and on the very structures of the societies in which these people live.
I will conclude as quickly as I can, because I want to give the Minister ample opportunity to tell us what he is doing—not only what he is doing as part of the UK Government’s efforts, but what he is doing in relation to the actions of international organisations, other donors and other countries. I hope that he will paint a picture of the UK being hugely active in trying to deal with an incredibly difficult crisis.
As I have said, Oxfam has warned that 400,000 children may need life-saving treatment for malnutrition. A donor-pledging conference is crucial. Can the Minister comment on the possibility of having such a conference? Is a conference feasible? I would very much welcome one as soon as possible, because the crisis is getting worse as we speak. We need a donor-pledging conference to minimise the risk that the crisis poses to children and severely affected communities.
The UK is respected worldwide for its commitment to aid and for the difference that it makes globally. That was the case under the last Labour Government and I hope that it will be the case under this Government too. I hope that they will make a commitment to do the best they can for some of the most vulnerable people in the world. I hope that this Government will continue the UK’s work in this area and, as I have already said, that they will encourage as many other individuals and organisations as possible to get involved. What role can the UK play to encourage more funding? That is the key question for the Minister. The Government must increase their own funding, but they must also encourage more funding from other organisations. That additional funding is desperately needed.
I thank Members for being here in Westminster Hall today and I thank the Minister for coming along. I am sure that we are all hugely concerned about the growing crisis in the Sahel, but this is a debate. We have uttered warm words; we have all said how vital it is to act and how desperate the crisis is, but those are simply words. What we need now is action, and I hope that action is what we get.
The Parliamentary Under-Secretary of State for International Development (Mr Stephen O'Brien)
I am delighted to have this opportunity to ensure that we give a high degree of attention and recognition to what is unquestionably one of the most pressing issues facing the people of our planet today. It is therefore very timely that the hon. Member for Workington (Tony Cunningham) has secured this debate. I saw it listed on the Order Paper some time ago, and I think that it has been brought forward to today, when Parliament has reconvened. I am glad that we now all have the opportunity not only to catch up with the facts on the ground as we now best understand them, but to understand what our response on behalf of the British people has been to date.
I particularly seek to respond to the hon. Gentleman’s questions about where we go from here. We are not only focused on the immediate humanitarian needs, although we are rightly focused on them at this stage, but on the resilience issues highlighted by him and my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) and the hon. Members for Upper Bann (David Simpson) and for Glasgow Central (Anas Sarwar). Indeed, we also focus on the year-on-year challenges that face that area of the world.
The crisis in the Sahel is something that we need to debate, to ensure that it is kept in the public eye. As the hon. Member for Workington said, it is currently estimated that about 18 million people are at risk of food shortages, of whom 8 million need immediate assistance. We are witnessing exceptional circumstances, as almost 1.5 million children are expected to suffer from severe acute malnutrition this year, which is obviously a large increase on the number of children affected by food insecurity in the Sahel year on year. The worst affected countries are Niger, Chad and Mali, where 72% of those who are affected by the crisis live, but a huge swathe of land is affected, from Senegal and Gambia on the Atlantic coast to the northern parts of Nigeria and Cameroon, as well as areas to the north and east of those areas.
The humanitarian crisis in the Sahel is getting worse. Increasing numbers of people are being forced to resort to coping mechanisms that store up trouble for the future, such as reducing the number of meals each day or going without food altogether for days at a time. The physical condition of the livestock that provide the livelihoods for many families in the Sahel is beginning to deteriorate, and some animals are now too weak to reach pasturelands. Admission rates of severely malnourished children to therapeutic treatment centres are on the rise, and greater numbers are being admitted to treatment centres in Niger than at the same stage of the 2010 crisis.
I will respond in particular to a point made by the hon. Gentleman about the cereal deficit. He said that cereal production in 2011 was 25% lower than in 2010. That is certainly factually true, but 2010 was actually a bumper year, so we need to be extremely careful about how we understand the phenomenon for the resilience argument going forward. In 2011, cereal production in the Sahel was actually about 3% in deficit compared to the overall running average. There is, of course, a structural problem about what that average represents in terms of meeting the ongoing and continuing need.
Tony Cunningham
Does the Minister accept my point that, even in the good years, life is desperately hard for people in the Sahel?
Mr O'Brien
Absolutely; I was seeking to make that point. It is helpful to reinforce the point that, in any event, we are dealing with an extraordinarily challenged area of the world, which has a year-on-year crisis; that is no exaggeration. However, as I have just pointed out, we have an exceptional situation now—this minute, this year—and a fairly tight window in which to do something about it before the weather conditions in the normal weather patterns arise in the next few weeks and make it even more difficult to gain access to the area and deliver aid, even where security issues do not make that more difficult than it already is climatically and geographically.
That is why, as Ministers in the Department for International Development and on behalf of the British people through the coalition Government, we announced yesterday an additional £10 million to be provided immediately, to help just over 1 million people in six countries of the Sahel, by giving food, health care, clean water, animal feed, treatment for children and aid to refugees. That brings our total funding commitment to the region to date to £20 million, which will assist more than 1.4 million people at risk of hunger in the Sahel—a point that was made by my hon. Friend the Member for Maidstone and The Weald in her intervention.
The UK has shown leadership by being one of the first international donors to respond to this crisis, at the same time as we have pushed others to do more. Our initial £10 million, which was given some weeks back, is already starting to demonstrate results. An example of UK aid impact in April includes assistance to more than 43,000 men, women and children. Of those 43,000 people, 15,000 people in Niger have received food; 27,000 people, or approximately 3,464 families—that is a rather precise number for an approximation—in Niger and Mali have received inflation-proof cash vouchers to purchase food and other critical supplies; and 1,700 Nigerien children have been vaccinated against measles.
In addition to our direct support, the UK has provided a substantial share of multilateral contributions to the response to the crisis in the Sahel. The UN’s central emergency response fund has released £57 million, and the European Community Humanitarian Office has provided £105 million. So the UK is taking its fair share of the burden. But for our intervention and contribution, the situation would unquestionably have become even more serious at an even earlier stage. Families would have used up seeds and plants, and breeding animals would have been eaten and household assets sold to meet immediate food needs.
We have to be clear, however, that our links with the Sahel are not as strong as those that we have with other areas of Africa. We do not have the local presence or knowledge to take a lead in the Sahel, as we have done in the horn of Africa, for instance. Therefore, in response to the hon. Gentleman’s urging on this point, it is vital that we get other donors to be encouraged to step forward to carry their share of the international response, particularly those that have the shared history, the knowledge and the presence on the ground in the countries of the Sahel that the UK does not. My right hon. Friend the Secretary of State and I continue to lobby our counterparts in other Governments, to urge them to increase their support.
Things are made even more difficult, of course, by things such as the coup in Mali. The rebellion in the north of the country has added a new and potentially dangerous dimension. More than 300,000 people have been directly affected by the conflict. Humanitarian agencies are increasingly concerned by reports of human rights violations, of increasing malnutrition and of armed groups seeking to place restrictions on humanitarian access. We have witnessed the effects of the deadly combination of drought, food insecurity and conflict in Somalia.
Tony Cunningham
Now that the Minister has mentioned conflict complicating things, does he also accept that what has happened in Libya has had an impact on the Sahel region, with returning soldiers and so on? That does not help at all.
Mr O'Brien
I absolutely agree. I prefer in this debate not to get too far down into the security implications, but suffice it to say that, perhaps a little unusually for a Minister of the Crown, I have driven right the way through the Sahara and this area and know the geography well. It was many years ago, but in the years when I was going there, it was seen as relatively safe, without the pressures that have come from returnees from some of the conflicts—in Libya, for instance—and the access to cut-price AK47s and other munitions. There were already very insecure parts to the region, because it has always been borderless from the perspective of how people perceive and identify themselves and adhere to various ways of life. That presents additional challenges. We have already closely monitored, and will continue to monitor, the humanitarian situation in northern Mali, to the extent that access and information are obtainable, and encouraged the Economic Community of West African States to continue with its efforts to find a diplomatic solution.
The international community has learnt from previous crises in the area in 2005 and 2010 and has brought those lessons to bear, as best it can, this year. Early interventions have helped many people to cope, including the UK’s cash voucher programme, which has enabled more than 3,400 families to hold on to their livestock during the start of the hunger season. However, we are now approaching a critical point in the crisis, with historical experience suggesting that acute malnutrition rates will rise to reach a peak in July and August. The rains expected to start this month will make it more difficult for aid agencies to deliver supplies across the region and will increase the risk of diarrhoeal diseases and malaria.
The urgency of the situation requires an intensified and co-ordinated international response. The UN’s appointment of a regional humanitarian co-ordinator for the Sahel will support a more coherent and prioritised response, and that is welcome. The UN has revised its estimate of the funding needed to meet humanitarian requirements to almost £1 billion, which is more than double its initial needs estimate and is an indication of the growing seriousness of the situation. It is therefore right to put pressure on other donors, and I can assure the hon. Gentleman that, as we speak, calls are being placed—I happen to know because I am personally involved—through to Germany, Norway and Canada. There are, of course, continuing and very active discussions with ECHO, through Brussels and through our French counterparts, as they have the strength of historical connection that perhaps replicate ours in the east and in the horn of Africa.
It is right that we focus our attention on meeting the immediate needs of people in distress, but at the same time we must continue to learn lessons from the Sahel’s third humanitarian crisis in less than a decade, so that there is much less likelihood of a repeat in the coming years. The underlying causes of the crisis are deeply rooted and long-standing.
The Sahel is a climatically vulnerable area and its vulnerability will be exacerbated by climate change. Even in so-called good years, some areas have rates of acute malnutrition chronically above 15%. It takes only a year of below average rainfall to push many more people over the edge; many poor households are still recovering from the 2010 crisis. It is not, however, simply a problem of uncertain climate; it is one of poverty, rooted in poor governance, political instability, endemic conflict and weak economies.
The key point is that there is enough food to feed the people of west Africa in 2012, and in many areas of the Sahel food is available but at prices that the poor cannot afford. In the markets of Mali, Mauritania and the north of Burkina Faso, food prices are historically high—more than double the five-year average for this time of year in Mali’s capital, Bamako, and 85% higher in Ouagadougou. It is a problem of economic access made worse by protectionist measures of Governments, such as restrictions on grain exports and border closures. We must continue—I can assure the hon. Gentleman that we are continuing—to support the free movement of trade and food affordability to ensure that even the poorest can eat. At the same time, we must help Governments and communities to withstand a harsher and more uncertain climate, unlocking the region’s economic potential and helping to build a stronger contract between peoples and states.
The coalition Government are implementing recommendations from the humanitarian emergency response review to strengthen the resilience of poor people in Africa to withstand and recover from future shocks and to increase food security. We are developing safety net programmes, supporting work to improve agricultural livelihoods, funding research into higher-yielding and drought-resistant staple crops, and building stronger health and education systems. By 2015, 20 million young children around the developing world will benefit from our nutrition programmes.
Although we do not have a bilateral programme in the Sahel, the UK retains significant development investment in the region through our contributions to the multilateral development organisations. The European Union’s security and development strategy for the Sahel will commit €600 million over the next 10 years to provide basic services, increase economic opportunities and rebuild the contract between state and communities. The UK is also the second largest contributor to the World Bank’s global facility for disaster risk reduction and recovery, which is helping 20 developing countries, including Mali, Senegal and Burkina Faso, to cope with disasters, adapt to climate change and build long-term resilience.
In picking up the hon. Gentleman’s point, I remind the House that the meeting of the G8 identified food security as a major theme that it wished now to focus on, and we are not only fully behind that but have had some help in ensuring that it is the focus of the agenda. We will continue to push that, both at the G20 and at other gatherings. It is vital that we recognise that worldwide, as a top development, humanitarian and aid issue—whichever way we define it—addressing food insecurity through resilience and other food security measures is now a huge and important priority for us, as the UK Government, with our development programme and humanitarian response, but also increasingly among the international interlocutors and partners.
The long-term investments in resilience and development not only are needed to give poor people in the Sahel and other vulnerable regions the means to take control of their lives again, but represent far better value for money than emergency humanitarian aid alone—a point underlined by the hon. Gentleman. So now that we have made our commitment clear and have stepped up not only bilaterally but particularly and equally through the multilaterals, urging the prioritisation that is required, it is the moment to build on working with others to try to get them to make up their equal shares. I am pleased to see that the responses are beginning to come forward and that we are seeing much greater prioritisation of, and focus on, this very immediate crisis that we all face.
Tony Cunningham
Will the Minister please assure me that he will take a personal interest in monitoring the situation as the days, weeks and months go on?
Mr O'Brien
I can give the hon. Gentleman that absolute assurance because for the past 14 weeks I have been making sure that I have a daily report. For reasons that he will understand, plans about how close I can get to having eyes on are in development.
In the meantime, I am grateful to have had this opportunity to update the House on the significant work that the coalition Government, on behalf of the British people, are doing to encourage the rest of the international community, as well as to contribute our fair share to what is a very difficult crisis that the world faces today.
Rail Infrastructure (Merseyside)
(12 years, 5 months ago)
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Alison McGovern (Wirral South) (Lab)
I thank the Speaker for providing me with the opportunity to hold this debate. I am a railwayman’s daughter. I am also a railwayman’s granddaughter and great-granddaughter, and had the opportunity to work for Network Rail for a few years myself.
Karl MᶜCartney (Lincoln) (Con)
I thank the hon. Lady for giving way so early in her speech and congratulate her on securing the debate. On the subject of fatherhood, is she aware that Merseyrail provides free travel for pensioners travelling from the Merseyside area to Chester, but that pensioners who catch the train at Hooton must pay to travel to Chester?
Alison McGovern
I thank the hon. Gentleman for his intervention. It is always important to speak up for pensioners, especially those related to us. I am sure that people outside this place will take note of his comments.
As I was saying, I come from a long line of railway people. I mention that not to emphasise a lack of imagination in the McGovern family but to say that in this debate, I will be demanding in speaking for the future of rail in Merseyside. However, I do so in the knowledge of how difficult questions of investment can be.
For reasons that I will suggest shortly, public transport should be central to the current national debate about the economic future of our country. This afternoon’s debate focuses on Merseyside and the surrounding areas of north Wales, Cheshire and Lancashire, but my point—that infrastructure planning is at the heart of economic development and poverty alleviation—could be made about many places in our country.
This year, the Secretary of State for Transport will set out the Government’s investment priorities for our rail network for the five-year period from 2014 to 2019. It is a significant opportunity. It will set the agenda for investment and begin thousands of conversations about how we can speed up, increase capacity and provide access to markets for our many citizens who are looking for a job or need access to parts of our economy.
Ian Lucas (Wrexham) (Lab)
I am pleased to be here as the MP for Wrexham and to support my hon. Friend in her debate. Many big businesses such as Jaguar Land Rover, General Motors in Ellesmere Port and Airbus provide jobs not just across Merseyside but in north Wales. It is important to enable access to those jobs for people who do not have private transport. We need a good public transport network in the region.
Alison McGovern
I thank my hon. Friend for his intervention. He and I have tried to work closely together on these issues, for the reasons that he mentions. People do not respect administrative boundaries when it comes to getting a job. We must ensure that people in residential areas, a lot of whom need work, have access to big businesses such as the ones that he mentioned. I hope that I can suggest exactly how we might do so.
Steve Rotheram (Liverpool, Walton) (Lab)
Hopefully, my hon. Friend will agree that many people separate, isolate or segregate transport as just a means of moving goods or individuals from one place to another. Does she agree that there are also massive economic, health and well-being and social benefits to infrastructure, and that it creates the sorts of job and employment opportunity that she will know are all too needed on Merseyside?
Alison McGovern
I thank my hon. Friend for his intervention. He is quite right. If we consider the body of evidence produced by, for example, the Thameslink and Crossrail projects in London, we find exactly what he suggests. Transport infrastructure underpins economic development, but it also gives access to employment, and to the personal dignity involved, to those who currently do not have it. With that point in mind—
Rosie Cooper
I thank my hon. Friend for giving way so early in her speech. Does she agree that for places such as Skelmersdale, the most populous town in my constituency, not to have a rail service in the 21st century places the town and its residents at a massive disadvantage and reflects the desperate need for investment in local rail services? To amplify the comments made so far, communities such as Skelmersdale must have rail services, which will deliver significant regeneration benefits socially, economically and culturally—
Alison McGovern
Thank you, Mr Robertson. I promise not to test your patience any more by taking further interventions. My hon. Friend and I have mentioned Skelmersdale in this Chamber before. She will correct me if I am not right, but I believe that the reduction in rail service happened just before Skelmersdale became a new town. How ironic that such a residential centre should not have a rail link. That must be addressed as well.
Rosie Cooper
Absolutely. There will now be significant investment in the new town centre in Skelmersdale. It would be a travesty if that development were to go ahead without some land being reserved for a prospective rail station.
Alison McGovern
I thank my hon. Friend for that intervention.
With all those points in mind, the test that I would set the Government for their priorities is this. First, whatever those priorities are, will they help rebalance the UK economy? Secondly, will those priorities address existing pockets of poverty in the UK? I would be grateful if the Minister addressed those points of principle.
I remind everybody that Merseyside has an important place in rail history. In 1829, Stephenson’s Rocket set a speed record at Rainhill in Merseyside. One year later, the Liverpool and Manchester railway opened as the world’s first steam passenger service. However, wonderful though that history is, it is not enough. We need a fantastic economic future as well. Luckily, that seems to be happening for Merseyside. We have a brilliant, burgeoning visitor economy.
During the recent “Sea Odyssey”, I am told, hotels in the city were at 99% occupancy, against the backdrop of a large increase in the number of hotels. We have a successful visitor economy on our hands. Our port is also growing, and more development is possible through the Wirral Waters schemes and others. What infrastructure does Merseyside require to ensure that economic growth is achieved, and that growth, when it comes, significantly benefits the least well off?
Turning to the specifics, Merseyside’s rail network is very busy already, and it is well used. Especially through the east side of my constituency, services are busy and getting busier by the day. However, a key problem is the existence of what I call railway black holes. That was not always the case. Many parts of Merseyside and the surrounding area suffer from poor connectivity because their railway station was closed or their service reduced many years ago, when it was not clear that railways would be as popular and necessary as they now clearly are. There are public transport gaps across Merseyside. As a result, perhaps unsurprisingly, some of the most disadvantaged communities in our region are in those blackspots. We have already mentioned Skelmersdale and the surrounding area, just across the border in Lancashire. Parts of north Liverpool also suffer. They are important population centres. Parts of the Wirral, such as the Woodchurch estate, which need a railway station within a short distance so that people can get to work do not have that connectivity.
There are some important issues for the Government to consider. The Minister might mention the northern hub. It is important to finish the northern hub in order to get the full benefit. Only through quick links—four trains an hour between Liverpool and Manchester—will we open up the commuting area. We also need to look at the Halton curve, which could provide two routes into Liverpool and help with managing the west coast main line.
Parts of my constituency of Wirral South are very well connected to employment centres in Liverpool and Chester, and onwards to Warrington and Manchester, but other parts are less fortunate. They are served by a railway running from Bidston, on the Wirral, through Heswall, Neston and Deeside to Wrexham in north Wales. I stand to be corrected, but I believe the route has received little or no significant investment for years. The unreliable and infrequent service means that those of my constituents in Heswall who have the choice tend to opt for their cars rather than the train. Members representing constituencies in north Wales tell me that it is also common in Flintshire and Deeside for people to opt automatically for their car rather than the train. Those without access to private transport are then left with either rail services that are not as good as in other places, or slow buses. Electrifying the line, which is fewer than 30 miles in length, would tie it in and provide through services to Liverpool and more frequent trains.
I know that these are difficult times and I understand that even if we were to start planning for further electrification, it would be a long process to find funding over a number of years. During the economic instability of the 1980s, however, the then Government electrified parts of the Merseyside rail network, namely the line through Rock Ferry, on the other side of my constituency. That has underpinned today’s economic development, so investing in rail, even at times like these, really works. Unfortunately, some parts were left out and those areas form today’s gaps, but if it was possible to invest in our rail network in the 1980s, I am sure that it should be possible to do so again today. There are long-term benefits to electrification.
I would like to add, as a slight caveat, that we need rolling stock as well as infrastructure. There will be a cascade of new rolling stock as the Thameslink programme comes online. Will the Minister comment on how that is proceeding? It would be helpful if the rolling stock could make more trains available.
In my test for the Government’s priorities, how will my proposal for extra electrification help? First, it must be recognised that the railway line happens to link the potential of Wirral Waters, in north Wirral, with industry in Deeside, where we hope to see much growth. It runs between those two flagship zones for economic development. North Wales and Liverpool have a historic connection: many people from one area visit the other on holiday, and vice versa, and more people from Merseyside now want to visit the beautiful surroundings of north Wales. We want a direct rail link between the two to serve those people well.
Secondly, on poverty reduction, we know that we have to tackle worklessness by reducing travel-to-work barriers. This is not a “get-on-your-bike” mentality; people are already trying to make journeys between centres of population and centres of employment. We have to plan for how we can support them to do that in a way that will give businesses the confidence to invest because they know that there are skilled people available to hire. This is about addressing historic imbalances in rail investment and seeing whether we can do some infilling of pockets with a relatively modest investment that could have a long-term impact on economic development.
In conclusion, I hope that the Minister will plot a journey for us on how we can make progress with this project, which has been an aspiration for many years. My predecessor worked on it and other Members present have spent a great deal of time promoting it. On economic development and the difficulties that we face, especially in an area where a large number of people are employed in businesses that export to the eurozone, we need to continue to support the underlying infrastructure investment that will keep our industry strong.
More than simply arguing for the investment from which my own constituents could benefit—I do not apologise for doing so, although it is not enough to do just that—I hope that I have made a case for the potential in Merseyside and its surrounding areas in north Wales, Cheshire and Lancashire. Our region has much to offer a rebalanced UK economy. I hope that the Government will seize tomorrow’s opportunities and, by doing so, set in progress some of the answers to today’s economic strife.
The Minister of State, Department for Transport (Mrs Theresa Villiers)
I am pleased to be able to respond to this important debate and congratulate the hon. Member for Wirral South (Alison McGovern) on securing it. I concur with her that Liverpool’s real place in railway history is as the home of the first passenger railway. On the railway’s opening day, an MP got run over, which was a little unfortunate, but I will try to avoid such an incident in the future. Today, the city of Liverpool has one of the most intensive and busiest suburban networks outside London. A number of rail improvements have been delivered or are due to be delivered in the coming years and I will discuss them in a moment, but first I will address some the hon. Lady’s general points.
The coalition fully agrees that investment in our transport network is crucial. It can help to generate growth and improve competitiveness, which is why, despite the difficult public finances relating to the deficit, we have prioritised investment in our road and rail network. Our programme of rail improvements is bigger than any since the Victorian era. I agree that providing opportunities for employment, as well as widening labour pools and access to jobs and employment, is one of the key benefits of rail improvement schemes.
The hon. Lady was kind enough to refer to the previous Conservative Government’s activities in electrifying lines in the 1980s. The coalition Government also recognise the benefits of electrification, which is why we have a programme to roll it out in the north-west and on the Great Western line. We will also consider what more can be done. The hon. Lady asked about rolling stock cascade. Network Rail is programmed to deliver the electrification in the north-west and on the Great Western line that will start to deliver that cascade. The work is going well and is on schedule. We are also making progress on the Thameslink procurement, which is a key trigger for making available rolling stock to be cascaded elsewhere in the country, potentially to Merseyside.
The hon. Lady mentioned the aspiration to electrify the Wrexham to Bidston line. I am, of course, aware of the scheme and have discussed it with Merseytravel. I acknowledge its potential in relation to the economies of Wirral and Deeside, and she is right to mention the potential benefits of better links between north Wales and Merseyside. She will probably be aware that, a few years ago, Merseytravel and the Welsh Government asked Network Rail to undertake a study outlining the costs of the electrification proposal, and the figure produced was £207 million, so it is quite a high-cost scheme, which makes delivery a challenge. There was little follow-up on the study, and it must be recognised that, although we support electrification, if schemes are to go ahead they need to demonstrate value for money and be affordable.
Alison McGovern
Does the Minister agree that although railways are not cheap, compared with the billions that have been provided for Thameslink, which will have a great impact on London, the proposed investment is modest; that what matters is the resulting cost-benefit ratio; and that we need to clarify exactly what those benefits will be?
Mrs Villiers
I agree that we need to assess carefully the value for money of every scheme, but we also need to look at overall affordability. I am afraid that even when one is talking about Government spending, £200 million is a significant amount. I am impressed with the work that Network Rail is doing, for example, on how to get the costs of delivering electrification down. I hope that there is scope to see whether there might be a more affordable scheme in the future.
For a local line, we, like the previous Government, would normally look to the local authorities to seek out the funding to realise such a scheme. We know that such schemes are important to the local authorities and, if they attach a priority to them, we would expect them to consider their options for funding. That might include the major local scheme, which will reopen in 2015. That has funded some very important improvements, for example, at Kirkstall Forge and in Coventry. There are options open to Merseytravel and the Welsh Government. As we have done in the past, the Government are prepared to engage with them if they want to do further work.
We take broadly the same position on some of the other improvements mentioned in today’s debate. On proposals to upgrade the Halton curve, we recognise the potential local benefits and we would be happy to work with the local authorities on their aspirations. However, again, the local authorities need to identify the funding.
Steve Rotheram
I am sure that the right hon. Lady, like all Ministers, is used to special pleading and everyone thinking that their project is the most important, but is she aware of the huge increase in visitor numbers to Liverpool and the importance of the extra connectivity my hon. Friend the Member for Wirral South (Alison McGovern) talked about to the future of the city and to growing the local economy? That is what the Government keep telling us that they want to see in relation to rebalancing the economy.
Mrs Villiers
We fully agree that improving our rail network can help us to achieve our aspiration to rebalance the economy and close the prosperity gap between north and south. That is why we are investing in a major programme of rail improvements, a number of which will benefit Liverpool—I am about to come on to those—including the announcements we have already made about the northern hub.
It is very important that we consider how to get the maximum benefits from rail investment to help to provide the jobs and prosperity that I think everyone in this Chamber wants. I acknowledge that rail has been key to Liverpool’s success as a port. In recent years, there have been a number of measures to improve rail freight connectivity. Under the previous Government, the Olive Mount chord was reopened to facilitate better freight train access to the port. The upgrade of the west coast main line has cut journey times between London and Liverpool, and a total of 106 new Pendolino carriages will be in use on the line by December, amounting to a 20% uplift in capacity, which obviously benefits many people in Merseyside travelling between Liverpool and London.
A competition for the next west coast franchise is under way. We are emphasising the importance of raising passenger satisfaction and service quality and improving punctuality. However, I fully agree that it is not only north-south connections we need to focus on. It is vital that we improve connectivity between our great cities of the north of England, because that is another way we will achieve the goals, rightly set out by the hon. Member for Wirral South, of rebalancing the economy and boosting the economy of the north of England.
In our spending review, we confirmed the control period 4 programme of rail improvements, including line speed improvements between Liverpool, Manchester and Leeds. Electrification in the north-west, which was another programme we inherited from the previous Government, was also given the go-ahead. That includes electrification of the line to Wigan via St Helens, which will benefit commuter services in Merseyside. The Ordsall chord recently got the go-ahead, which is a key part of the northern hub scheme.
Mrs Villiers
I am sorry, but I need to conclude now.
Although located in Manchester, that scheme will benefit Liverpool because it will deliver those faster journey times between Liverpool and Manchester that the hon. Member for Wirral South rightly identified as very important. The combination of that with the electrification of the north trans-Pennine line to York means that we will see improvements to journey times between Liverpool and Leeds. When those very important improvements are complete, journey times will decrease from around 109 minutes to 77 minutes.
In the meantime, TransPennine Express is consulting on a new timetable that could result in an additional service between Liverpool and Newcastle. We welcome that because it could increase capacity on the route and deliver some journey time savings early, in advance of those infrastructure upgrades that are also going ahead. As I have many times before, I assure hon. Members that we are considering all the remaining schemes in the northern hub, including increasing the capacity of the Chat Moss route. That is very relevant to Merseyside. We will assess what is affordable and what can be included in the high-level output specification that we will publish over the summer.
I will end by referring to some of the real successes we have seen on the Merseyrail Electrics network, which was devolved to Merseytravel and supported by a grant of around £70 million a year from the Government. Passenger satisfaction ratings have risen significantly to 93% in autumn 2011 and high levels of reliability have been achieved. All the trains have been refurbished and automatic ticket barriers have been introduced in many stations. All of Liverpool’s five underground stations are to receive a £40 million overhaul in the next few years, and £20 million is being spent on refurbishing Liverpool Central station, which forms a key hub of the Merseyrail network. Merseytravel is putting together plans to replace every train on the Merseyrail network. That is an ambitious programme and my Department is happy to provide advice on developing the case for replacement rolling stock.
That programme provides an illustration of what the devolution of transport decision making can achieve. We have consulted on our proposals to devolve the local major scheme to local transport bodies. Local authorities might like to consider the scheme I mentioned in relation to their aspirations to improve local rail services. We are also discussing a city deal with the Liverpool city region, which has identified improving connectivity as essential to its future economic growth.
Last but certainly not least, our HS2 plans will see classic compatible high-speed trains running off the new network on to the west coast line to serve Liverpool directly. That will provide improved connectivity to London and faster journey times and will further assist in achieving the goals, which I am sure the hon. Member for Wirral South and I share, of regenerating the economy around Merseyside, promoting growth in the north of England and rebalancing our economy. A high-quality rail network is one of the means we can use to achieve those objectives.
Question put and agreed to.
Written Ministerial Statements
(12 years, 5 months ago)
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Anti-Avoidance
(12 years, 5 months ago)
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The Exchequer Secretary to the Treasury (Mr David Gauke)
HM Revenue and Customs (HMRC) are today publishing a consultation setting out detailed proposals for the introduction of a general anti-abuse rule (GAAR).
This follows the Government’s announcement at the Budget that they intend to introduce a general anti-abuse rule targeted at artificial and abusive tax avoidance schemes. This announcement was in response to the Aaronson Study Group report, published in November 2011.
The consultation asks for views from interested parties on the proposals and their expected impact by 14 September 2012.
The consultation document is available on HMRC’s website and copies have been placed in the Libraries of both Houses.
Tax Information Exchange Agreement (UK and Marshall Islands)
(12 years, 5 months ago)
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The Exchequer Secretary to the Treasury (Mr David Gauke)
A tax information exchange agreement (TIEA) with the Republic of the Marshall Islands was signed on 20 March 2012. The text of the TIEA has been deposited in the Libraries of both Houses and will be made available on the HM Revenue and Customs’ website. The text will be scheduled to a draft Order in Council and laid before the House of Commons in due course.
Reports from Research Commissioned by the Previous Administration
(12 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Communities and Local Government (Robert Neill)
Today the Government are publishing the 11th group of reports presenting the findings from research projects commissioned by the previous Administration.
There is a significant backlog of unpublished reports that were produced by the previous Government which we will be publishing in groups themed on a particular topic.
The reports and findings are of general policy interest, but do not relate to forthcoming policy announcements. We are publishing these documents in the interests of transparency and as part of our freedom of information commitment to publish the results of all commissioned research.
The 20 reports published below represent the findings from 17 research projects at a total cost to taxpayers of £1,042,850. These findings cover the topic of fire.
(i) Review of the adequacy and impact of integrated risk management planning in the fire and rescue service—This report, commissioned in 2008, evaluated the adequacy and overall impact of integrated risk management planning on the efficiency of the fire and rescue service and on national fire-related outcomes.
(ii) Asset management in fire and rescue authorities—This report evaluated the extent to which fire and rescue authorities manage their property assets to ensure effective service provision and achieve value for money, and to make recommendations for improvement.
(iii) A review of current processes for operational training and development in the fire and rescue service—The review was set up to provide part of the evidence base needed to inform the debate about fire and rescue service operational training and development. The project was also to identify good practice for wider dissemination and look for opportunities to improve and strength training for the future.
(iv) Effectiveness of operational intervention—Gap analysis paper—This report by Qinetiq Ltd identified gaps in the evidence base that may need to be filled in order to develop a computer model to simulate firefighting operations. The report makes suggestions for how these gaps could be filled.
(v) Effectiveness of operational intervention—Model development paper—This paper documented the development of a trial computer model to investigate the effectiveness of operational intervention at fire fighting incidents.
(vi) Effectiveness of sprinklers in housing, commercial, public and other buildings—This research was commissioned in response to concerns and pressure from the sector that the provision of sprinklers represents the most cost-effective way to maintain the downward pressure on fire deaths and associated economic losses.
(vii) Impact of the firefighter awareness campaign—The fire and rescue service has struggled to recruit women for operational firefighter roles. At the time of the study women made up less than 3% of the fire and rescue service’s operational workforce. Research has shown that one of the key reasons why women are not becoming firefighters is the service’s image and the lack of awareness of firefighting as a career for women.
(viii) The development of a centrally held line-by-line fire and rescue service human resource data—This study was an exploration of the possibility of using a different method for collecting various items of data from the fire and rescue service.
(ix) Lower cost domestic sprinkler (LCDS) systems—Evaluation of small-scale pilot trials in fire and rescue services (incorporating version 10 of the draft DCLG Design Guide)—The aim of this report was to record the progress made by fire and rescue services in installing lower cost domestic sprinkler (LCDS) systems as described in version 10 of the draft DCLG Design Guide.
(x) The shape, form and function of operational guidance for the fire and rescue service—This report by Greenstreet Berman presented the findings of work carried out to determine the shape, form and function of future operational guidance. A human factors approach was applied to ensure that future operational guidance is: fit for purpose; presented in a style appropriate for the target audience and the context; appropriately organised; and easily accessible.
(xi) Fire investigation reports workshop: Workshop summary report—Fire and rescue services undertake fire investigations and complete reports. Many of these reports contain valuable information which could be used nationally to inform practice and fire safety. This is a report of a workshop sponsored by DCLG and Chief Fire Officers Association (CFOA) to discuss how information from fire investigations could be better used and shared.
(xii) The competencies and skills for incident command: An initial exploration—This report by the Health and Safety Laboratory was the first stage of a larger project to look at incident command in the fire and rescue service. The findings of this first stage provide an examination of the different psychological components of successful incident command as well as the identification of the competencies, skills and personal qualities and attributes required of an incident commander.
(xiii) Comparison of European fire statistics—This report by Greenstreet Berman Ltd examined the statistics collected by European countries regarding the consequence and incidence of fire. Technical experts in 24 European states responded to an online questionnaire explaining how their country collects fire data. The contractors then contrast different approaches to fire data collection and make suggestions for which countries’ data could be directly compared.
(xiv) Developing a model to estimate the economic cost of Special Service Incidents in England—This report by Entec UK Ltd investigated the possibility of assessing the costs associated with special service incidents in England, with the primary focus being the costs to the fire and rescue service.
(xv) A review of the Fire Kills Fire Safety Education Programme—This report by Greenstreet Berman Ltd contains the results of a project to measure the level of awareness (among community fire safety staff) and use of the Fire Kills fire safety education programme packs within the fire and rescue service. The report contains case studies providing information on the fire safety education carried out by six fire and rescue services and is based on surveys from 2007.
(xvi) Collation and analysis of Fire and Rescue Service expenditure data—This report by Spikes Cavell and Co provided an overview of the results of a project carried out to provide a better understanding of the size, structure and opportunities within the fire market. The report identified opportunities for collaboration and procurement efficiencies.
Children and young people strategy
(xvii) Informing the development of the fire and rescue service strategy for working with children and young people: consulting with the youth sector—This report by the National Youth Agency provided the findings of a consultation with the youth sector about the draft children and young people strategy 2010-13. The report is based on the findings from an online survey, a series of semi-structured interviews and a focus group with young people.
(xviii) Evaluation of the children and young people Strategy: 2006-10—This report by GfK NOP social research provided an understanding of the awareness and use of the 2006-10 children and young people strategy, as well as suggestions of how the strategy could be improved in the future.
Impact of modernisation on the fire and rescue service
(xix) The impact of modernisation on fire and rescue services—This report by Actica Consulting Ltd assessed the impact of the portfolio of change projects initiated by DCLG on fire and rescue services in England. Senior members of staff were interviewed and provided key documents on which the findings and recommendations were based.
(xx) Project planning for fire and resilience directorate projects that impact fire and rescue services—This report by Actica Consulting Ltd follows on from the previous report assessing the impact of modernisation on the fire and rescue service. It contains the findings and recommendations of a short study to identify options to co-ordinate demands on fire and rescue service demands.
These reports and findings are of general policy interest, but do not relate to forthcoming policy announcements and are not a reflection of the current Government’s policies and priorities. DCLG is publishing these reports in the interests of transparency.
Copies of these reports are available on the Department for Communities and Local Government website. Copies have been placed in the Library of House.
Treasure Valuation Committee (Triennial Review)
(12 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey)
On 15 December 2011, I made a written statement to Parliament about the triennial review of the Treasure Valuation Committee, Official Report, column 114WS, volume 537. I am pleased today to announce the completion of the review.
The Treasure Valuation Committee provides the important advisory role of recommending to the Secretary of State valuations for the treasure items brought before it and providing advice on the apportionment of any reward for the treasure item.
The review concludes that there is a continuing role for the Treasure Valuation Committee as an advisory non-departmental body with secretariat support provided by the British Museum. It finds that the committee has good standards of corporate governance and it makes a number of recommendations aimed at strengthening transparency and openness.
The review of the Treasure Valuation Committee was conducted by my Department with the support of a review group made up of key stakeholders with a direct interest in the treasure valuation process. The review were publicised on my Department’s website and stakeholders were invited to contribute views.
I am grateful to everyone who contributed to the review. I have arranged for copies to be placed in the Libraries of both Houses.
Defence Rotary Wing Capability Study
(12 years, 5 months ago)
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The Minister for the Armed Forces (Nick Harvey)
The Defence Rotary Wing Capability Study was commissioned to ensure that the Department has the right plans in place to meet the demands on helicopter capability in the future. I am pleased to say that the study is now complete and, given the interest taken in the study by Parliament, I wanted to take the opportunity to announce its key findings. As the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff), who has responsibility for defence equipment, support and technology, stated in his response on 30 April 2012, Official Report, column 1142W, I should reiterate that the findings include no major changes to our previously announced plans.
The study reviewed the full rotary wing requirement for the land, sea and air environments. This encompassed all helicopter roles: attack, lift, reconnaissance and search and rescue. The study was broken down into six work strands covering future force structure, training and simulation, support, specialist roles, basing, and search and rescue.
The aim was to look across all areas of the Department to ensure that we are working as efficiently as possible to deliver the plans for rotary wing capability outlined in the strategic defence and security review. The study confirmed the following plans:
to move the MOD’s rotary wing capability to four core fleets, the Chinook, Wildcat, Merlin and Apache helicopters;
to complete the Puma life extension programme, which extends the out of service date for Puma Mk2 to 2025; this offers resilience to the Department’s lift capability as it transitions to the four core fleets; and
to transfer the Merlin Mk 3/3a to the Royal Navy’s commando helicopter force.
As a result of this review, the Department has:
identified opportunities in training and support as the most promising areas to achieve rationalisation and efficiencies. Broadly this includes making better use of simulated training and adopting a simpler approach to procurement and alternative models for support;
considered alternative ways of organising our helicopters and concluded that Joint Helicopter Command should continue to command land-based (battlefield) helicopters and Navy Command should continue to command maritime helicopters;
confirmed the end of MOD provision of Rotary Wing Search and Rescue at the remaining eight military bases upon withdrawal of the Sea King in April 2016. This will then be performed by a contractor through the Department for Transport, as the Secretary of State for Transport announced to Parliament on 28 November 2011, Official Report, columns 52-53WS.
The MOD and other interested parties will now consider the recommendations and these findings will now be taken forward as part of routine departmental business.
Child Protection
(12 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Education (Tim Loughton)
Today I am launching a consultation on proposals to reform radically the child protection system. We are seeking to move away from a culture of compliance to one which places trust in front-line professionals and allows them to carry out their vital work, without being hampered by unnecessary rules and targets. The three draft documents published today will help create such a culture by replacing overly prescriptive manuals with short, precise guidance and checklists clearly setting out roles and responsibilities.
Professor Munro’s final report, “A child-centred system”, concluded that over the years the child protection system has become overly focused on compliance and dependency on central prescription and guidance. This consultation on “Working Together to Safeguard Children; Managing individual cases: the Framework for the Assessment of Children in Need and their Families” and “Guidance on Learning and Improvement” proposes to replace over 700 pages of detailed instructions with concise, clear guidance. It places trust in health professionals, teachers, early years professionals, youth workers, police and social workers and gives them the space to exercise their judgment.
This revised guidance proposes to give local areas more freedom to organise their services in a way that suits local needs and will allow more face-to-face time with children and families. It provides a clear framework within which professionals must operate.
The revised “Working Together to Safeguard Children” guidance sets out the “must dos” and makes the statutory requirements clear for all organisations.
The revised guidance “Managing individual cases: the Framework for the Assessment of Children in Need and their Families” sets out a framework for managing individual cases when there are concerns about a child’s safety. Informed by evidence from eight local authorities which have been trialing more flexible approaches to assessing the needs of children, this guidance proposes to replace nationally prescribed time scales for assessment with locally agreed frameworks. The guidance puts the child’s needs, rather than compliance with inflexible time scales and recording processes, at the centre of assessment.
This Government are clear that serious case reviews (SCRs) need to be much more strongly focused on learning, rather than process, and that SCR reports should be published. Our proposed “Statutory Guidance on Learning and Improvement” proposes changes so that SCRs get to the heart of what happened in a particular case and why, and what improvements need to be made to help reduce the risk of similar tragedies in the future.
In parallel with this consultation, I am also publishing the new “Children’s Safeguarding Performance Information Framework” along with the Government response to the full public consultation. This framework is intended to move the focus of the child protection system from processes and indicators towards performance measures that improve professional understanding and drive improvements.
Today’s consultation forms part of our wider programme of reforms. These include Ofsted’s new inspection framework which began in May 2012 with a stronger focus on the quality of practice and the effectiveness of help provided to children, including early help to provide support to children and families as soon as a problem emerges in their lives.
We are also continuing to work with children’s services, police and the NHS to shift the focus on to earlier intervention, recognising that the earlier that help is given to vulnerable children and families, the more chance there is of turning lives around and protecting children from harm.
In addition, in 2011-12 we invested £80 million in a national programme of social work reform, to improve skill levels for social workers and tackle high vacancy rates in child protection. We are improving the social work degree and developing further the skills of existing social workers in critical areas such as child protection. We are well on the way with recruiting the first chief social worker for England, who will work with the new College of Social Work and the newly designated Principal Child and Family Social Workers in local authorities to drive improvement and raise standards.
Together these reforms will shift the child protection system from a culture of compliance to one where children and families are at the centre.
Copies of the consultation documents “Working Together to Safeguard Children, Managing individual cases: the Framework for the Assessment of Children in Need and their Families” and “Statutory Guidance on Learning and Improvement” have been placed in the House Libraries.
Executive Agencies (Key Performance Measures)
(12 years, 5 months ago)
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The Secretary of State for Environment, Food and Rural Affairs (Mrs Caroline Spelman)
The business plans for the following agencies and their key performance measures have been published today. Business plans are available on line at the agencies websites.
Centre for Environment, Fisheries and Aquaculture Science, http://cefas.defra.gov.uk/.
Veterinary Medicines Directorate, http://www.vmd.defra.gov.uk/.
Rural Payments Agency, http://rpa.defra.gov.uk/rpa/index.nsf/home.
Animal Health Veterinary Laboratory Agency, http://www.defra. gov.uk/ahvla/.
Food and Environment Research Agency, http://fera.defra.gov. uk/.
I have placed copies of the key performance measures in the Libraries of both Houses.
Tackling Sexual Violence in Conflict
(12 years, 5 months ago)
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The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)
I wish to inform the House of a new Government initiative on tackling sexual violence in conflict and post conflict situations.
Rape and other forms of sexual violence have been used as weapons against women, men and children in conflicts throughout the world. The scale of sexual violence in situations of conflict and repression is appalling; however, the perpetrators of the worst sexual crimes generally go unpunished. Too many victims are denied justice. And where there is no justice, the seeds of future conflict are sown and development is held back.
The Government believe that tackling sexual violence is an issue which is central to conflict prevention and to peace building, and are committed to tackling such violence, building on vital work that has been done in recent years through the UN and its agencies including landmark Security Council Resolutions, by many NGOs and charities, and by some of the countries themselves which have been most affected by sexual violence.
We want to see a significant increase in the number of successful prosecutions for crimes of sexual violence in conflict with the aim of ending a culture of impunity and establishing a culture of deterrence in its place.
To help rally sustained international action and push this issue up the global agenda, the Government will establish a new UK team of experts devoted to combating and preventing sexual violence in conflict. The team will be able to be deployed overseas at short notice to gather evidence and testimony that can be used to support investigations and prosecutions. It will draw on the skills of doctors, lawyers, police, psychologists, forensic specialists and experts in the care and protection of victims and witnesses. It will significantly strengthen the specialist capabilities that the United Kingdom is able to bring to bear on these issues.
The UK team will also be available to support UN and other international missions, and to provide training and mentoring to national authorities to help them develop the right laws and capabilities. It will also be able to work on the front line with grassroots organisations, local peace builders and human rights activists. Individual deployed teams will be configured to deal with specific instances of sexual violence, and in the light of where the UK can make the best contribution to existing international and national efforts.
The Government intend to use the Foreign Ministers’ track of the United Kingdom’s presidency of the G8 as part of a year-long diplomatic campaign in 2013 for stronger international action to deter and prevent sexual violence in conflict. The Government are already initiating discussions with G8 colleagues about this initiative and will also develop, with United Nations, international and civil society partners, specific action for 2013 and beyond.
I will keep the House informed of progress on this work.
The Turks and Caicos Islands
(12 years, 5 months ago)
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The Secretary of State for Foreign and Commonwealth Affairs (Mr William Hague)
My right hon. Friend the Secretary of State for International Development and I wish to update the House on progress on the restoration of good governance and plans to hold elections in the Turks and Caicos Islands (TCI), a British overseas territory.
Three years ago Sir Robin Auld’s Commission of Inquiry identified a high probability of systemic corruption in Government and the legislature and among public officers in TCI. This led us to suspend ministerial Government and set eight milestones for elections and a return to democratic Government. I am pleased to inform the House that the interim Government in TCI, led by the Governor and supported by TCI and UK public servants and specialist advisers, has made significant progress with an ambitious reform programme. We now judge there has been sufficient progress, on the milestones and on putting in place robust financial controls, to set 9 November as the date for elections.
The Foreign and Commonwealth Office and the Department for International Development assess progress against the milestones as follows:
Implementation of a new Turks and Caicos Islands Constitution Order, in support of recommendations of the Commission of Inquiry, which underpins good governance and sound public financial management
A new Constitution Order was laid before Parliament in July 2011. Once it is brought into force by the Governor, elections must take place within 30 days. The new constitution includes a wide range of provisions to safeguard good governance and sound financial management.
Introduction of a number of new ordinances, including those making provision for: (i) the electoral process and regulation of political parties: (ii) integrity and accountability in public life: (Hi) public financial management
A revised elections ordinance provides for clear and robust voting procedures and arrangements for conducting the ballot for the new “all island” candidates. The Conduct of Political Parties Ordinance regulates funding of political parties and campaigns, campaign methods and accounting practices. The Integrity Commission Ordinance increases the number of those required to give personal and financial data about their interests to the Integrity Commission. The Public Financial Management (PFM) Ordinance and the National Audit Office Ordinance improve oversight and accountability and create a strengthened independent audit and investigation function over public finances. The Chief Finance Officer (CFO) ordinance enables the UK Government to retain sufficient control over public finances and so protect the interests of the UK as loan guarantor and so is in line with the written ministerial statement of 9 December 2010, Official Report, columns 40-41WS.
Establishment of robust and transparent public financial management processes to provide a stable economic environment and a strengthening of the Turks and Caicos Islands Government’s capacity to manage their public finances
The new Public Finance Management Ordinance introduced a wide ranging set of verifiable accounting and compliance requirements. It sets out a clear mechanism for budget control and specifies the delegation of financial responsibilities within ministries.
Implementation of budget measures to put the Turks and Caicos Islands Government on track to achieve a fiscal surplus in the financial year ending March 2013
This milestone has not yet been met as it is too early in the financial year to determine whether TCIG is on track to achieve a fiscal surplus. Significant progress has however been made in helping to put the TCI Government on track. While the US$26 million deficit in 2011-12 was considerably worse than the US$3 million originally budgeted, nevertheless this still represented a significant turnaround from a deficit in excess of US$70 million in 2010-11. The Governor has now enacted a budget for 2012-13 that projects a surplus of US$20 million. Not only does this contain both prudent estimates of revenue and provision for contingencies, but these figures are the result of careful risk analysis led by the CFO and Permanent Secretary of Finance.
Achieving the surplus will be challenging. The UK Government’s continued control over public finances means that we can, through the CFO, take steps during the year to correct the budget trajectory if it starts to go off course. This greatly adds to our confidence that the surplus can be achieved. We intend to keep progress on this milestone under close scrutiny.
Implementation of a transparent and fair process for acquisition of belongership
A territory-wide consultation reported strong support for a process for the acquisition of belongership (the status of Turks and Caicos Islander) based only on birth, descent and marriage to a belonger for 10 years. A revised Citizenship Ordinance will implement this policy. The TCI Government will have no discretionary power to grant belongership.
Significant progress with the civil and criminal processes recommended by the Commission of Inquiry, and implementation of measures to enable these to continue unimpeded.
Thirteen people, including four former Ministers, have been charged with corruption and money laundering offences. An international arrest warrant has been issued for former Premier Michael Misick. It is now for the courts to decide whether the persons charged are guilty. The investigations and prosecutions will proceed independently of a future elected Government.
A civil recovery team was appointed to recover property and redress losses arising from corruption. The team has made significant progress including over 40 separate recoveries of money and/or land. Over US$12 million has been recovered, including payments already made, judgments obtained and still to be collected, and agreements to pay. More than 900 acres of land have been returned to the Crown—valued in the tens of millions of US dollars. The team expects to recover significant further amounts of cash, land or other assets.
Implementation of a new Crown land policy
The misappropriation of Crown land through questionable land allocations, under-reporting of land values and the avoidance of stamp duty were at the heart of the corrupt practices described in the Commission of Inquiry report. The new Crown Land Ordinance which came into effect in March sets out clear criteria for the allocation of Crown Land. To ensure the new arrangements for Crown Land are implemented successfully, the management of Crown Land has moved to the Attorney-General’s Chambers.
Substantial progress in the reform of the public service
Public sector reform continues to make good progress. The public service was reorganised into five new ministries (reduced from nine) each headed by a new permanent secretary, recruited through open competition. The public service has been reduced by 400 people (some 16%) through a voluntary severance scheme.
Conclusion
This is an impressive list of achievements. We judge seven of the eight milestones have been clearly met. The fiscal milestone has not yet been met but the PFM and CFO ordinances increase our confidence that the budgeted surplus will be achieved. Over the next few months, in the run up to elections, the interim Government will continue with the implementation and consolidation of reforms, in particular to strengthen the public sector and public finances, develop the economy, modernise legislation and make practical preparations to enable the elections to take place.
The UK believes that democracy, whether in an independent country or in an overseas territory, provides a solid foundation on which to build an accountable and responsive state. This belief underpins our work to advance democracy worldwide. We will support TCI to develop its democracy in line with our responsibility for security and good governance and our positive vision for our overseas territories.
I want to make clear this Government’s determination to ensure that there is no repeat of the maladministration that led to the suspension of democratic Government in TCI, either there or in any other British overseas territory.
Equality Act 2010 (Banning Age Discrimination in Services and Public Functions)
(12 years, 5 months ago)
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The Minister for Equalities (Lynne Featherstone)
Equality of opportunity is a core coalition objective. It is fundamental to building a strong economy and a strong society. We want to make sure that everyone can realise their potential—part of this means ensuring people are treated fairly regardless of their age.
So I am pleased to inform the House that the Government are today announcing their intention to ban age discrimination in the provision of public and private services. We intend to do this, subject to parliamentary approval, from 1 October 2012.
We are taking a proportionate approach. The new law will only prohibit harmful or unjustifiable treatment that results in genuinely unfair discrimination and harassment because of, or related to, age. It will not affect the many entirely justifiable instances of different treatment that do not cause any harm. To ensure this, we consulted widely on specific exemptions to the ban. The Government’s response to that consultation is published today, and a draft order will be laid before both Houses shortly.
I have placed copies of the Government response in the Libraries of both Houses and it has been published on the Home Office website at: www.homeoffice.gov.uk.
Justice and Security Bill
(12 years, 5 months ago)
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The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)
My right hon. and noble friend the Advocate-General for Scotland (Lord Wallace of Tankerness) made the following written ministerial statement:
Today (Tuesday 29 May 2012) my right hon. and learned friend, the Lord Chancellor and Secretary of State for Justice is laying before Parliament the Government’s response to the consultation on justice and security which was published on 19 October, as well as a response to the report by the Joint Committee on Human Rights on the same issue. I have also introduced the Justice and Security Bill which aims to deal with three main problems which have arisen with judicial and parliamentary scrutiny of the security and intelligence agencies.
First, a number of civil cases are not being heard in our courts because they hinge on national security sensitive evidence which the courts recognise cannot be disclosed openly. At present the Government’s only option is to try to settle these cases—often for large sums of money—even where the case has no merit.
Secondly, a damaging form of legal tourism has developed which allows someone fighting a case outside the UK to apply to a court in London to force disclosure of intelligence information held by the British, sometimes provided by our allies. This is seriously undermining confidence among our key allies, including the US.
Thirdly, parliamentary oversight of the intelligence community has been criticised as having too limited a remit.
There were 90 responses to our consultation, and the Government are grateful for the wide-ranging views we received. Many respondents recognised the underlying problems that they are trying to address. However, there was considerable concern that plans on closed material procedures (CMPs) were drawn up in a way that was excessively broad in scope and risked undermining this country’s proud tradition of civil liberties.
The Government’s position has always been that protecting the public should not come at the expense of our freedom. So, we have listened carefully to the views of those responding, including the work of the JCHR. We have extensively revised the measures in order to put beyond doubt that they are proportionate, targeted and include strong safeguards. On our central proposal to introduce CMPs we have now ensured that the judge has a more central role, and will be able to grant a CMP only in relation to civil cases involving national security evidence—not crime or international relations. Inquests have been excluded, and we were never intending to make CMPs available in the criminal courts. The Bill ensures that no evidence currently heard in open court will be heard in secret in future, but that claims such as mistreatment or complicity in torture brought against the intelligence and security services which cannot currently be heard, can be heard.
Closed Material Procedures
The Government are strongly committed to open and transparent justice. However, courts have long accepted that highly sensitive intelligence material—for example, the names of security agents or information about the techniques used by the intelligence agencies—cannot be disclosed in open court. Under current rules, the only way of protecting this sort of material is to remove it from the courtroom entirely by applying for public interest immunity (PII). A problem arises in a tiny number of cases which hinge on secret intelligence material, where—if a PII application is successful—all, or most, of the material central to the case is excluded from consideration. The result is that these cases are not heard in court at all, meaning that cases have to be settled with no independent judgment on very serious allegations.
The settlement of the civil damages claims brought by former Guantanamo Bay detainees is an example of the inadequacies of the PII system. The evidence the Government needed to rely on in order to defend themselves was highly secret intelligence material, which could not be released in open court. The only option would have been to claim PII for the material. This process could have taken up to three years to complete, but there would still have been no judgment on the claims made: if a PII claim was successful the very material the Government needed to rely upon to defend their actions would have been excluded. The Government’s only practical option was therefore to settle the claims, for significant sums, without admitting liability.
The Government are therefore bringing forward proposals to allow this material to be heard in court in what is known as a “Closed Material Procedure” (CMP) which provides the safeguards needed to ensure that sensitive material can be taken into account by the court, while ensuring that the damage to national security that would arise if it were openly disclosed can be prevented. CMPs are already available in a number of other areas of the civil law, in these cases the CMP would work as follows:
the Minister must first consider whether to make a claim for public interest immunity or whether to advise another to do so;
the Minister would then apply to a judge who will determine whether the CMP can go ahead on the grounds that there was some material relevant to the case, the disclosure of which would damage national security;
even where a CMP is granted, all evidence currently heard in open court would continue to be heard in open court, including all allegations against the state;
only the particular pieces of national security evidence would be heard in closed court, and in relation to these pieces of material the judge will decide whether a summary of the evidence must be made available to the other party for the proceedings to be fair. And, in all cases, a special advocate will have access to material on behalf of the claimant that would currently be precluded. The overall effect for the claimant will be that they receive at least as much information as they would following a PII exercise;
as recommended by the JCHR, judicial reviews of naturalisation and exclusion cases will be heard by the Special Immigration Appeals Commission (SIAC).
Many respondents to the consultation on these proposals made the point that closed material procedures are a departure from the tried and tested fundamentals of open justice. I entirely agree with them in principle—no Government propose measures in this area lightly. But CMPs are already available in a number of areas of law for the good reason that where the courts have recognised that the best option of hearing evidence in open is not available, they provide a fairer outcome than the alternative which is no justice at all. This is recognised by both the domestic and international courts. Lord Woolf finding for example that,
“it is possible.. .to.. .achieve justice” in a CMP (M v SSHD).
Norwich Pharmacal
The Bill also aims to ensure the protection of our intelligence sharing relationships and our domestically generated intelligence through reform of what is known as the “Norwich Pharmacal” jurisdiction—which has recently been used to allow someone fighting a case outside the UK to apply to a court in London for access to intelligence information held by the British, sometimes provided by our allies.
The aim of a Norwich Pharmacal application is to force a third party to disclose information which the claimant feels may be relevant to a case they are bringing elsewhere. Although developed in the intellectual property sphere, in the last three years there have been no fewer than nine attempts to use this jurisdiction in relation to secret intelligence which either belongs to the UK Government, or which our allies have shared with us. No other country in the world has such a jurisdiction. Indeed, there is not even a parallel jurisdiction in Scotland.
As the purpose of the proceedings is solely to gain disclosure of material, the Government do not have the option to withdraw from or settle these proceedings. If disclosure is ordered, and the Government do not succeed in an application for PII, the Government must release secret intelligence into the public domain.
We expect our allies to protect intelligence material we share with them from disclosure, and they expect the same from us. The inadequacies in our current ability to properly protect classified information provided by foreign Governments has already seriously undermined confidence among our key allies, including the US. Robust legislative measures are essential to restore confidence among our allies, which is vital to our national security.
Therefore the Government intend to make the following changes to the Norwich Pharmacal jurisdiction:
For agency held material—The Government intend to legislate to exempt material held by or originating from one of the agencies from disclosure under a Norwich Pharmacal application.
For national security or international relations material—The Government also intend to legislate to allow a Minister to sign a certificate in Norwich Pharmacal cases to protect non-agency material which would cause damage to national security or international relations if disclosed. That certificate can be reviewed on judicial review principles. If upheld, the information could not be disclosed.
These measures have no impact on claims that the Government, or the security and intelligence agencies, have been directly involved in wrongdoing, nor do they prevent someone enforcing their convention rights.
Oversight
Finally, and very importantly, the Bill will improve parliamentary oversight of the security and intelligence agencies, most notably giving the Intelligence and Security Committee (ISC) the power to oversee the agencies’ operations, not just their administration, expenditure and policies—as is the case now. The ISC will be given a wider remit, and will in future report to Parliament as well as the Prime Minister. Parliament will be given the power to vote to reject the ISC’s membership. The power to withhold information from the ISC moves from the heads of the intelligence and security agencies to the Secretary of State responsible for that agency.
The Bill deals with issues of profound importance which go to the heart of our democratic values. The proposals it brings forward aim to improve executive accountability, equip our civil court system to handle sensitive intelligence material, and improve parliamentary scrutiny of the security and intelligence community.
Emergency Towing Vessels
(12 years, 5 months ago)
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The Secretary of State for Scotland (Michael Moore)
The Scotland Office has been leading efforts to secure a long-term replacement for the emergency towing vessels (ETV) service in waters surrounding Scotland. The Government have listened carefully to all representations and reviewed the arguments put forward.
I am pleased to announce that the Government will continue funding of an emergency towing vessel for the duration of the spending review period. This commitment sits alongside our ongoing efforts to secure an additional vessel under a commercial call-out arrangement. The procurement process for the publicly funded vessel will be launched today and, if needed, further funding will be provided towards a temporary contract for a vessel until the longer-term arrangement is put in place. To ensure sufficient coverage across a wider spread of waters, the vessel will not be used habitually for passive escorts through the Minch, but could be tasked by HM Coastguard to undertake specific escort duties should they consider it necessary. Options for optimal stationing of the vessel will be sought from the market, however decisions on operational positioning and tasking will rest with HM Coastguard. This model is intended to ensure the best possible coverage across locations while accommodating practical considerations, in particular the distances involved, sea conditions and traffic density.
Combined with the host of significant technological advances and operational measures adopted by the Maritime and Coastguard Agency to enhance safety of shipping since publication of the 1994 Report by Lord Donaldson1, the Government are satisfied that this model will deliver a proportionate solution, balancing risk, operational considerations and value-for-money, including costs of an incident. I welcome the active participation of local authorities, including local harbour masters, who have assisted in this process, and we will continue to consult them on the detailed options available.
I remain very grateful to the companies who have participated actively in pursuit of a commercial call-out arrangement using oil industry vessels. This shows their commitment to corporate social responsibility, and I pay tribute to the efforts of Oil and Gas UK who facilitated this work. It is encouraging that considerable work has gone into preparation of suitable operational procedures, led by the Maritime and Coastguard Agency and discussions remain underway with industry on the commercial framework.
11994: “Safer Ships, Cleaner Seas”: Report of Lord Donaldson’s Inquiry into the Prevention of Pollution by Merchant Shipping (Command Paper CM 2560).
Mandatory Work Activity
(12 years, 5 months ago)
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The Minister of State, Department for Work and Pensions (Chris Grayling)
Today, the Department for Work and Pensions is publishing the next set of official statistics on mandatory work activity, accompanied by an impact assessment, which forms the first part of the evaluation of the policy. Later today I will place a copy of the impact assessment in the House Library.
I am also pleased to announce the Government have decided to expand the mandatory work activity scheme.
The expansion will enable Jobcentre Plus to make between 60,000 and 70,000 referrals to mandatory work activity each year, based on the current experience of the scheme, at a cost of an additional £5 million per annum. This decision has been taken as the result of careful consideration of the positive impacts demonstrated within the impact assessment.
The extra places will help ensure Department for Work and Pensions advisers can provide those jobseekers that require it the opportunities to gain experience of work and help focus their minds on their search for work.
In addition, the Department is currently evaluating the impact of a trial scheme carried out in London, Wales and the west midlands where most jobseekers who incurred a second sanction were specifically considered for a referral to mandatory work activity.
We will make a further announcement about this trial and our future plans later in the year.
House of Lords
NHS: Public Information and Advice
(12 years, 5 months ago)
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Lord Sharkey
To ask Her Majesty’s Government whether they plan to review, after an appropriate interval, the comparative performances of public health information and advice campaigns under (1) the new, and (2) the former, NHS architectures; and, if so, when and whether the findings of that review will be made public.
The Parliamentary Under-Secretary of State, Department of Health (Earl Howe)
My Lords, the department continuously reviews the performance of its public health information and advice campaigns. Our investment in campaigns reflects evidence of their effectiveness. Summaries of campaign research are published online as part of our freedom of information publication scheme. Publication typically occurs six months to a year after receipt of the final research report. As evaluation is ongoing, we have no plans to review the impact of campaigns against specific changes to NHS architecture.
Lord Sharkey
I thank the Minister for that Answer. He will be aware that the country faces an epidemic of obesity, with predictions that nearly a half of all adults could be obese by 2030. He will also know that changing childhood eating habits is the key to addressing this problem. What long-term plans do the Government have for information and advice campaigns aimed at influencing childhood eating habits?
Earl Howe
My Lords, my noble friend is absolutely correct to highlight the importance of preventing obesity, particularly obesity in the young. He will be reassured to know that the Change4Life Campaign, which we have continued from the previous Government, will include this as a major focus into the future.
Baroness Gould of Potternewton
My Lords, in light of the fact that the Minister talked about having a review, have the Government given any reconsideration to the need for a specific national prevention campaign designed to reduce the number of HIV infections? Does he accept that there is a necessity to reduce the increasing level of transmission, not only because it is spreading into non-high-risk groups but also because of the cost of treatment, which is extremely costly indeed? It seems to me that there is no question that the long-term savings would be substantial compared to the cost of a national campaign. Can the Minister also clarify the future of the two current targeted HIV campaigns?
Earl Howe
My Lords, I share the noble Baroness’s concern. She has highlighted a major area on which Public Health England and local authorities will wish to focus going forward. This is the great advantage of the architecture that we have put in place, with health and well-being boards responsible for determining local needs and the way in which to address them. Public health awareness campaigns have their place but they are not the total answer. The noble Baroness has drawn attention to the importance of having sufficient treatment facilities, and access to them, available. So, with the support of Public Health England at a national level, local authorities should be addressing sexual health as one of their key areas.
Baroness Gardner of Parkes
My Lords, as the Minister has said, the situation is constantly being evaluated. Has he looked into the recent problems of patients who cannot see displayed the costs for National Health Service dentistry procedures? Would it not be a good idea to set up an online application so that patients can see the information for themselves, with a simple form to fill in that lets them know what they should be paying before they go? That would remove all the arguments about whether or not there is a notice in the waiting room.
Earl Howe
My noble friend is right. Many dentists are good at conforming to the terms of their contract, which means making it clear to patients what it will cost them to have a particular course of NHS treatment. Other dentists, I am afraid to say, are less scrupulous. It is part of the contractual arrangement that dentists should be open on that score and it is an area to which we are currently devoting a good deal of attention.
The Lord Bishop of Blackburn
My Lords, one of the most startling ways that deprivation is measured is by health inequalities. We are all aware that, under the Act, the responsibility for public health passes to local authorities. As I understand it, local authorities do not have a duty under the Act to prioritise the reduction of health inequalities. How will the Government use the non-legislative processes open to them to reduce inequalities, especially with regard to local authorities?
Earl Howe
The answer to the right reverend Prelate, who makes a good point, is that clinical commissioning groups do have and will have a duty to bear down upon health inequalities and to ensure that they look after not only the patients on GP lists but the unregistered patients in their catchment areas as well. What we expect to see emerging from the joint health and well-being strategies coming out of the health and well-being boards is account being taken of those hard-to-reach groups in society who may not be on the immediate radar of GPs, but whose needs are nevertheless extremely acute and will have to be factored into commissioning plans.
Lord Hunt of Kings Heath
My Lords, first, I declare my health interests which are set out in the register. Perhaps I may take the noble Earl back to the decision of his department to reduce the number of national campaigns in relation to public health. A survey by the Association of Directors of Public Health published at the weekend shows that, in the transfer to local authorities, there has been a loss both of capacity and of funding. Given that, how can he justify the emphasis on local campaigns at the expense of national focus programmes?
Earl Howe
My Lords, there will be national focus programmes led primarily by Public Health England, but we see those as complementary to the work going on at the local level. By no means are we abandoning national campaigns. Indeed, we have seen considerable successes. In 2010-11 we invested almost £11 million to support 59 cancer awareness campaigns around the country. In 2011-12 we provided £8.5 million to support a range of cancer awareness campaigns, and this year we hope to spend even more on cancer awareness than we have in previous years.
Baroness Oppenheim-Barnes
My Lords, what is the reaction of the NHS to the explosive headlines appearing daily in newspapers about new cures, magic pills and other things of that nature? Surely these are being trialled for the NHS, which must be creating new demands every day as a result. Does the service have a plan to deal with this?
Earl Howe
The key is to make available to the public accredited sources of information because there is an awful lot of unaccredited information available. Through mechanisms such as NHS Choices and NHS Evidence, people can now see online not only what best practice looks like, but what clinical trials are available for the latest drugs and treatments. My noble friend is right; we have to direct people to the right sources of information.
Health: Needlestick Injuries
(12 years, 5 months ago)
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Lord Walton of Detchant
To ask Her Majesty’s Government what measures they propose to take in order to implement the provisions of European Council directive 2010/32/EU, which is designed to prevent sharp (so-called needlestick) injuries, prior to the implementation date of 11 May 2013.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)
My Lords, the Government have asked the Health and Safety Executive to prepare regulations to transpose directive 2010/32/EU, to come into force on 11 May 2013. However, most sharps injuries arise from the failure to comply with existing well established standards. Therefore, the issue is not a gap in the law but in compliance. The HSE will consult on the proposed regulations and seek views on how all healthcare stakeholders can contribute to raising awareness of the required standards.
Lord Walton of Detchant
My Lords, I thank the Minister for that reply. I have seen the Answers that he sent to my noble friend Lady Masham in response to her Written Questions. Is he aware that a considerable number of healthcare professionals injured by hypodermic needles are failing to report those incidents for fear that they have been infected with HIV or hepatitis B or C, which could have a serious adverse effect on their subsequent employability? Does the draft impact assessment prepared by the HSE deal with how individuals infected in that way can safely continue to practise within the NHS?
Lord Freud
My Lords, I am not aware of underreporting. The reporting figures are actually rather low. In the past decade, fewer than 10 people have reported getting infected from being hit by a needle or other sharp object. Usually the infection, particularly more recently, is hepatitis B or C.
Lord McKenzie of Luton
My Lords, in March last year the Government set out their plans for reform of the health and safety system in Britain, and these included reductions in inspections. The document they published talked about:
“Areas of concern but where proactive inspection is unlikely to be effective and is not proposed”,
which included the health and social care sector. On what basis was that judgment made?
Lord Freud
The judgment was made on the basis of the number of injuries or incidents. Industries with a higher proportion of these were clearly ones on which one would target scarce resources. As I have just explained, the declared figures for injuries from sharps with infection are that 100,000 people a year cut themselves. However, the real concern is how many are infected, and that number is rather low.
The Countess of Mar
My Lords, can the noble Lord say whether the directive referred to in the Question asked by the noble Lord, Lord Walton of Detchant, applies to members of the veterinary profession? At least human patients keep still most of the time. Animals do not, and I know from my own experience what a needlestick injury can produce.
Lord Freud
This applies to human health and not to other industries such as waste and veterinary.
Baroness Masham of Ilton
My Lords, will the Minister consider expanding the directive to include patients living in the community, because there is so much emphasis now on care in the community? It is very difficult to get rid of sharps boxes, and if people have to inject themselves before going on an aeroplane there are no sharps boxes at airports.
Lord Freud
My Lords, it is important to make health and safety proportionate. This is a very particular problem. People cut themselves regularly. However, the issue is not that you cut yourself but that you infect yourself. The numbers are rather small, and it would be disproportionate to widen this out further than the directive because we already have well established safety procedures that are applicable more generally.
Lord Patel
Can the Minister clarify the employment status of people who are HIV carriers? As I understand it, the new regulation allows people who are carriers of HIV to work in the health service, including as surgeons.
Lord Freud
My Lords, I am outside my personal sphere of expertise on that particular question. I will have to write on that matter.
Government of France: Meetings
(12 years, 5 months ago)
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Lord Dykes
To ask Her Majesty’s Government what principal issues they intend to raise in their forthcoming meetings with President Hollande and members of the new Government of France.
The Minister of State, Foreign and Commonwealth Office (Lord Howell of Guildford)
My Lords, France is an important partner for the United Kingdom and our dialogue is wide-ranging. The Government look forward to continuing their close co-operation with new French Government, including on foreign and defence policy, energy and immigration. My right honourable friend the Prime Minister had a warm first meeting with President Hollande in Washington. He has invited him to visit London after the French parliamentary elections this month. Other Ministers across government have also met or contacted their new counterparts.
Lord Dykes
I thank my noble friend for that Answer. With the French Government securing ever greater support for their EU-wide growth agenda, particularly now that they are armed with decisive strength in the French Parliament, including when next Sunday’s results are taken into account, does he agree that it would be very fitting for HMG to join that European-wide effort, because there is now an increasingly urgent need to offset the threat of an international slump?
Lord Howell of Guildford
Yes, we all have to join in the efforts to bring about recovery and end recession in our region and globally. These are matters that we discuss closely with the French. We agree with some of the ideas behind the various projects which Monsieur Hollande has put forward—what has been called the “Hollande vision”—but disagree with others. We have a perfectly amicable difference of view on, for instance, a financial transaction tax, which we believe would be damaging and would, according to the European Commission’s own analysis, take €200 billion out of the European economy. However, on other ideas of Monsieur Hollande—project bonds for infrastructure expansion, for instance—we concur. We reject the idea that there are two alternative strategies that are exclusive: austerity or growth. The answer is that sound budgetary discipline and growth all go together in a sensible and balanced programme.
Lord Peston
My Lords, do I understand the Minister to be saying that Her Majesty’s Government do not intend to tell off President Hollande for pursuing his foolhardy expansionary policies and not following our contractionary policies with all the enormous benefits of rising unemployment?
Lord Howell of Guildford
The noble Lord should not understand that, because I find his question rather hard to understand as well. The polarity of argument that he poses simply does not exist. The aim of Governments throughout Europe and throughout the global system is to restore expansion. We welcome the ideas of the French and of Monsieur Hollande where we think they would go in that direction, just as I think France and all responsible countries recognise that there has to be tight budgetary discipline as well, otherwise the efforts to expand if they immediately jack up interest rates would simply cancel out the policy. There is a matter of balance, and the noble Lord is better than most at understanding the need for balance in economics rather than one side or the other.
Baroness Falkner of Margravine
My Lords, does my noble friend agree that while a pro-growth pact in Europe is welcome, it seems to be a bit of challenge to reduce a budget deficit supposedly exceeding even Italy’s by 2017, while magicking up 3.5% growth next year and massively cutting unemployment? It is a very ambitious project. If it is likely to succeed, will we listen very carefully to the ideas that bring it about, particularly after next Sunday when we might see a few more details of these plans?
Lord Howell of Guildford
These are challenging demands, and they are obviously creating great strains and tensions in the countries affected. In a way, my noble friend has asked me to comment not so much on Monsieur Hollande’s wish to see expansion, which we all share, as on the German wish to stick very rigidly to certain austere budget disciplines. Somewhere between those two, and perhaps in talks between Monsieur Hollande and Chancellor Angela Merkel, there will emerge a sensible balance. We hope that there will and we shall certainly contribute to anything that achieves that.
Lord Grenfell
My Lords, will the Minister accept a mild rebuke from me on the pronunciation of the names of French Presidents? I declare an interest. It seems a failing of successive Governments to get the names of French Presidents properly pronounced. The previous President was inevitably and almost always referred to as Mr Sarkozy as if it was meant to rhyme with tea cosy, when in fact it does not; and President Hollande is President Hollande and not President Hollander.
Lord Howell of Guildford
I totally accept those extremely wise rebukes from the noble Lord about my French pronunciation. It has never been very good; I will practise a lot more to see whether I can improve it.
Lord King of Bridgwater
Does my noble friend accept that the Question goes generally to our relations with France, and in this connection to the very important issue of defence co-operation with France? I hope that we can see the continuation of the co-operation envisaged under the previous President.
Lord Howell of Guildford
Yes, that is certainly the intention. Those matters have been discussed both between the Prime Minister and Monsieur Hollande and between my right honourable friend the Foreign Secretary and Laurent Fabius, the new French Foreign Secretary. Obviously a question was raised by our decision to go for the JSF variant rather than the original pattern under the strategic defence review. That has been discussed. Any suggestion of misunderstanding has been removed and both sides fully intend to co-operate very closely in the future on all defence matters.
Lord Tomlinson
My Lords, in an earlier reply, the Minister talked about the policies for constraint in public expenditure as well as those for growth. Can he give us a quick summary of the steps that Her Majesty’s Government are taking to promote growth at the moment?
Lord Howell of Guildford
Not in the time allowed, no. There is a perfectly sensible proposition that, although the growth of public expenditure has been restrained—in some areas, not actually cut at all—this is a necessary part of getting a balanced, suitably relaxed monetary policy in as far as it can be relaxed, paving the way for further expenditure on infrastructure, of which some has been authorised. One hopes that in future there will be more. This is the rebalancing of the economy that all sensible people are aiming for.
Lord Anderson of Swansea
The Minister will recall with a certain amount of embarrassment that we on this side of the House welcomed candidate Hollande to London during his election campaign.
Going back to defence co-operation, the Minister well knows that we and France are the serious players in defence within the European Union. We both face economic difficulties. Has there been any signal yet from the new French Government that they wish not only to continue our substantial defence co-operation but even to enhance it?
Lord Howell of Guildford
On the second point, there has been a signal that they wish to enhance co-operation in a number of areas. On the question of welcoming opposition candidates to London, my right honourable friend is not physically in a position to be able to meet every opposition candidate. Other leaders such as Chancellor Merkel and Mr Monti in Italy did not meet Monsieur Hollande before he became President, but that was not taken as a snub or an offence; it was a perfectly normal procedure. Now they have met and have got on very well.
Lord Taverne
My Lords, will the Government discuss with the French President the problem that the present programme of imposed austerity offers no prospect whatever to either Greece or possibly Spain of ever recovering from depression?
Lord Howell of Guildford
There is emerging an understanding, not least from the contribution of the new French President but also from discussions with Germany—and, indeed, from the latest moves in relation to the banking union and the proposals for bank recapitalisation for Spain—that some balance has to be struck. Whether that will mean some easing of the conditions for Greece or not, I do not know. These matters are now being discussed between the eurozone countries. There is a sensible way forward and obviously my noble friend makes the perfectly valid point that if the cure is so violent that it kills the patient, it is not much of a cure.
Budget: Cost of Changes
(12 years, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Barnett
To ask Her Majesty’s Government what is their estimate of the cost of the recent changes to the plans outlined in the Budget.
The Commercial Secretary to the Treasury (Lord Sassoon)
My Lords, the recent changes are expected to cost less than £150 million. That is it. I know that the noble Lord, Lord Barnett, enjoys telling the House that I have not answered his questions. I trust that, on this one occasion at least, he will accept that I have answered the Question.
Lord Barnett
Yes, the noble Lord has. It makes me wonder why on earth the Government bothered with such controversial cuts if the cost was so small. I was not allowed to use the word “U-turn” in my Question because it was deemed too political. However, if the Government are listening, as they have said they are, are they still listening to and potentially acting on the words of people such as those in the IMF who normally support the Government but have suggested that they should now boost the economy and go for growth, as well as others such as those on the Treasury Select Committee? Why will they not do that? Is there any particular reason?
Lord Sassoon
My Lords, a great range of commentators, including the Governor of the Bank of England, the IMF, the OECD and so on, all believe that the Government should stick to their fiscal course, and that is precisely what we intend to do.
Lord Stoneham of Droxford
Does my noble friend agree that there is a source of revenue for the Government in that they can both protect and even extend the winter fuel allowance for the most vulnerable in society by asking higher rate taxpayers to pay tax on what they receive?
Lord Sassoon
My Lords, what this Government have done as far as the wealthiest are concerned is to raise five times as much tax from them as the Labour Party would have done under its plans, so that the top 1% of the population of earners pay 27.7% of tax. We are very concerned to make sure that tax falls where it should: on the broadest shoulders.
Lord Eatwell
My Lords, I am intrigued by the noble Lord’s estimate. Let us say that there is a £150 million cost to these changes. Can he tell the House whether that is the limit of what can be afforded? Could £151 million be afforded, or perhaps two or three times that £150 million, or maybe 10 times that £150 million? What is the limit that can be afforded?
Lord Sassoon
My Lords, the recent Budget introduced £9 billion of tax changes. There were a number of measures on which we said we would consult. We consulted and made the changes that were appropriate, which added up to a total in the range of £120 million to £150 million. I can give the House the breakdown if it wants it. Those were the numbers that resulted from the changes that we believed appropriate, having listened to what people had to say to us.
Lord Hughes of Woodside
My Lords, the Minister keeps saying that the Government consulted on these changes. As I recall, even 24 hours before they happened, Treasury Ministers were denying that there was any possibility of a U-turn, so please do not rewrite history.
Lord Peston
Will the Minister clarify his answer? Are we to assume that £125 million is a small number and that all the changes are therefore no big deal or that it is a large number and that the changes are therefore of overwhelming significance? What message is he trying to give us and, for that matter, the public at large?
Lord Sassoon
The message I am trying to give the House is that there were changes that we felt appropriate—on VAT on hot food, VAT on static caravans and the proposed cap on giving to charities—and that the total cost of the changes in those three areas was in the range of £120 million to £150 million a year. That is the only message that I am trying to give to the House.
The Earl of Listowel
My Lords, the CBI has suggested that a fund of £1 billion should be devoted to providing employment for young people. Have the Government had further time to consider this suggestion from the CBI? I hope that I have it correct.
Lord Sassoon
My Lords, the CBI and other groups are continually putting forward all sorts of interesting suggestions. We consider them and respond appropriately, Budget by Budget. We are listening to them.
Constitution Committee
The Chairman of Committees
That Lord Lang of Monkton be appointed a member of the Select Committee in place of Lord Renton of Mount Harry, resigned.
Crime and Courts Bill [HL]
(12 years, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Henley
That it be an instruction to the Committee of the Whole House to which the Crime and Courts Bill [HL] has been committed that they consider the Bill in the following order:
Clause 1, Schedule 1, Clauses 2 to 4, Schedule 2, Clause 5, Schedule 3, Clauses 6 to 8, Schedule 4, Clause 9, Schedule 5, Clauses 10 and 11, Schedule 6, Clause 12, Schedule 7, Clauses 13 to 15, Schedule 8, Clauses 16 and 17, Schedules 9 to 11, Clause 18, Schedule 12, Clause 19, Schedule 13, Clauses 20 to 22, Clauses 24 to 26, Schedule 14, Clause 27, Schedule 15, Clause 23, Clause 28, Schedule 16, Clauses 29 to 31.
Groceries Code Adjudicator Bill [HL]
Baroness Wilcox
That the order of 22 May committing the Bill to a Committee of the Whole House be discharged and that the Bill be committed to a Grand Committee.
Groceries Code Adjudicator Bill [HL]
Baroness Wilcox
That it be an instruction to the Grand Committee to which the Groceries Code Adjudicator Bill [HL] has been committed that they consider the Bill in the following order:
Clause 1, Schedule 1, Clauses 2 to 4, Schedule 2, Clauses 5 to 9, Schedule 3, Clauses 10 to 26.
Local Government Finance Bill
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)
My Lords, creating growth, reducing debt and handing back power to local people go to the heart of the Local Government Finance Bill. It is a limited Bill, confined to two issues: the retention of business rates, which appear in Clauses 1 to 8, and council tax, in Clauses 9 to 15. The remaining clauses, Clauses 16 to 19, deal with general provisions.
The new local retention of business rates will for the first time in a generation allow local areas to share in the proceeds of growth. The Bill incentivises local government to encourage growth through increased business and economic activity by directly linking financial benefit to the decisions that it makes. The Bill also provides a framework to allow local councils to design their own schemes for council tax support, replacing council tax benefit, which will be abolished by the Welfare Reform Act. There is wide recognition that welfare spending needs to be targeted better. Part of the way we can achieve that is for councils to have control over council tax support and for local authorities to have the freedom to decide how to help provide for the most vulnerable in their communities.
I shall spend a little time in explaining the background to the Bill and outlining the scrutiny and consultation prior to the proceedings in this House. The Bill originates in the core principles and agreement of the coalition Government and has evolved through extensive consultation. Local retention of the business rate emerged as part of the local government resource review in early 2011. The consultation on its provisions was published in July 2011, along with eight technical papers to explain the thinking behind the reforms. We have discussed the details of the scheme with local government through the Local Government Finance Working Group and its sub-groups, which have met frequently since January. Localising support for council tax is a pragmatic approach to delivering a spending decision to reduce expenditure on council tax benefit by 10%. That originated in the spending review of 2010. The welfare reform White Paper published in autumn 2010 set out the Government’s broad intentions. The department undertook pre-consultation engagement with local councils and other groups to consider the issues. Events were held in August and September 2011, and a full three-month public consultation took place from 2 August to 14 October 2011, which generated over 400 responses.
Set against this background of consultation and information-sharing, while the Bill was in the other place we published a series of statements of intent to provide clarity and assurance to both Parliament and councils about how all these reforms will work in practice. We have also published our proposals for funding localised support for council tax.
The Bill was considered at length in the other place and debate was extensive, having proceeded through a Committee of the whole House. As a result of this debate, the Government made a number of changes which we believe improve the Bill and reflect the views of Members of the other place.
On rates retention, the process for distributing any surplus levy income to local councils is being speeded up. The basis of distribution will now be set out in regulations which, once made, will enable the money to be distributed immediately to local authorities without having to wait for the next local government finance report. This change followed concerns expressed during Commons Committee stage that the process originally set out in the Bill was too long-winded and would mean that even when the Government had taken a decision to distribute some, or all, of any levy surplus to local government, authorities would have to wait between six months and a year before they received the money. Additionally, there were concerns that holding back some surplus levy income from one year to another potentially created a problem if there was a deficit in the levy fund in the early years, before any surpluses had built up. We have therefore amended the Bill to provide that, instead of holding back levy income, any deficit would be met by additional money being paid into the levy account.
Despite the Government’s assurances to the contrary, there were still concerns that the 50% central share would be seen as a cash cow and that the Government would use the money for their own purposes, avoiding returning it to local government. The Bill was therefore amended to define local government—namely, those authorities which are able to raise local taxes, precepts or levies, and to which the central share will be distributed in year.
We have also taken steps in the Bill to make things easier for local councils to press ahead with delivering local support for council tax. We have clarified that billing authorities can consult precepting authorities to produce a draft scheme and can consult more widely before the Bill receives Royal Assent. This will enable councils to start the process now if they choose to do so.
A little time might usefully be used to explain the key features of the main policies within the Bill—first rates retention, and then reforms to council tax. Business rates retention proposals represent a fundamental shift in the way that local authorities are funded, giving councils a strong financial incentive to drive local economic growth. There are some key elements to this policy, which I want to be clear on now, and I should like to take this opportunity to reassure your Lordships on a number of issues.
We will ensure a stable starting point so that no council is worse off as a result of its initial business rates base at the outset of the scheme. This will be achieved through a system of tariffs and top-ups, with councils with a business rate income that exceeds their local need paying a tariff to top-up those councils with a current tax base that is below their level of need. These payments will be fixed in future years so that councils can benefit from any growth in their business rates.
Tariffs and top-ups will be uprated by inflation to ensure, for example, that a major part of a top-up authority’s income is not eroded in real terms. We have also proposed further protections, including a safety net funded by a levy on councils with a disproportionate gain from business growth. The safety net will help to ensure that service provision does not suffer as a result of a sudden and significant drop in a council’s business rates base—for example, from a major employer going out of business. We have announced our intention to set the safety net threshold at a level between 7.5% and 10% and the proportional levy ratio at 1:1, subject to consultation this summer. I know that noble Lords will be reassured to know that where councils want to pool their business rates, sharing the rewards and risks with other local authorities and thinking together strategically about them, the Bill will allow them to do so.
Lastly on rates retention, through this system the Bill establishes the framework to deliver tax increment financing, allowing unfettered access to TIF 1 for all councils, without government control or interference. However, the Bill also allows for a second tax increment financing project. The 2012 Budget confirmed that the Government will make up to £150 million available from 2013-14 through additional funding for larger-scale projects in a number of core cities, to be financed through tax increment financing, which is known as TIF 2, if I may use the acronym.
I shall now address the measures in the Bill that relate to council tax. As your Lordships know, the Welfare Reform Act abolished council tax benefit. However, the Government are committed to retaining council tax support for the most vulnerable and the Bill therefore legislates for councils to develop their own local rebate schemes. This reform is part of the decentralisation agenda, making support for council tax an integral part of the council tax system and creating stronger incentives for councils to encourage people back into work.
Council tax benefit expenditure more than doubled between 1997-98 and 2009-10. Localising support for council tax will include a requirement for local authorities to achieve a 10% saving on council tax benefit expenditure and give them control over how this saving is found. The Government believe that councils are best placed to understand the needs of their vulnerable residents. This reform enables them to take local factors into account when deciding on levels of support. At present, councils can put up council tax without considering the impact on the cost of council tax benefit. Localising council tax support will change this and encourage greater local financial accountability.
Making councils financially responsible for addressing an individual’s need creates stronger incentives for them to encourage and assist people back into work. This reinforces the positive benefits of driving economic growth in their areas, provided through the retained business rates system. Together with the introduction of local council tax referendums, this helps make local authorities fully accountable for decisions over council tax levels and strengthens the incentive to provide value for money for the taxpayer.
I am also keen to provide reassurance that we are providing the detail and support required to ensure that councils are well placed to press ahead with the implementation of their local schemes by April 2013. For example, we have announced and paid out £30 million of initial funding to help councils meet the cost of planning and analysing draft schemes. We have also published detailed statements of intent on key regulations, including pensioner protections and the default scheme policies, so that councils understand the intended parameters of the new rebate support system.
The Government will put local authorities in the best possible position to develop and consult on their own local schemes. I stress that local authorities can make their own decisions about how they develop their schemes for working-age council tax payers, what protection they choose to offer and how they choose to fund that protection. Different areas face different challenges and will make different decisions, but that is localism.
I know that we will spend time going through the detail of the Bill but I hope that I have provided a certain degree of clarity and reassurance on the Government’s reforms. I reiterate that these reforms are designed to promote growth and decentralise power away from central government to local councils. All money raised through business rates will continue to be spent on and by local government, which will also now share in the proceeds of growth. No council will lose out on day one as we will ensure a stable starting point for all, so that no council is worse off as a result of its initial business rates base at the outset.
On council tax support, the Government have explained what the fallback default system will be if authorities do not make a local scheme in time; and in terms of administration, this is a continuation of the existing arrangements. Councils should not be fazed by using a system with which they are already familiar. Indeed, councils can build on this foundation with full flexibility to develop their own tailored schemes to support vulnerable people in their own local area. My noble friend Lord Attlee and I are keen to work with the Committee to examine the Bill in detail as it progresses through your Lordships’ House.
Lord McKenzie of Luton
My Lords, first, I thank the noble Baroness, Lady Hanham, for her clear introduction of the Bill. This may be a short, technical Bill but it has profound consequences for local government and millions of our fellow citizens. It is a framework Bill, which we would contend has been rushed through the other place—it was hardly considered at length—with implementation dates for some of its proposals, such as April 2013, which are wholly unrealistic. Despite the release of further information in the statements of intent just a few days before Report stage in the other place, there is still much that we do not know about the detail. Part of our job in Committee will be to get as much on the record as we can.
I will concentrate my remarks on the business rate retention scheme and council tax support proposals but should make clear that we have been advocates for tax increment finance initiatives and will support the progress in the Bill. However, the dead hand of the Treasury in limiting this to £150 million of infrastructure for option 2 of the TIF 2 schemes has blunted its prospects. Greater discretion over council tax and empty properties, such as second homes, are matters we can support. For some authorities, but certainly not all, the extra revenue might help to plug the funding gap that this Bill will generate.
The Government contend that their business rate retention scheme will provide a strong financial incentive for local authorities to promote growth. We do not agree. A policy to incentivise growth is entirely reasonable but it must be credible in terms of its effectiveness as an incentive and fair on its impact on outcomes for local authorities. We accept that local retention of business rates by local authorities can clearly be an incentive to grow the business rate base and to foster close relationships with the business community. How this translates into growing the local economy in terms of jobs and adding to national output is more problematic. Where is the trade-off between competing developments, one of which produces higher business rates but lower employment and less added value than the other? We need to give these sorts of issues an airing in Committee, together with an understanding of the consequences of excluding rental value increases, a matter on which we have received representations.
While an effective business rate retention scheme can help, it is entirely false to assume that local authorities have been sitting idly by in the mean time, careless of their local economies and employment. Up and down the country local authorities are already striving to regenerate and develop the economies of their areas, and seeking to redress the ravages caused by the economic failure of this Government—for example, the lack of a strategy for growth and jobs. But the cuts already imposed on many local authorities are making it difficult for them to sustain their economic development budgets.
The Government’s analysis of the economic benefits of local business rates retention acknowledges that whether a scheme could have a significant economic impact depends on the precise way in which the incentives are structured. Among the matters considered important are the need for simplicity and transparency, predictability, and being long term and credible. It cites the need for such considerations to be optimised while protecting the funding needs of authorities.
So how does the Bill measure against the Government’s criteria? Any fair system of funding for local government with hundreds of authorities with different needs and resources is bound to be complex, and this is certainly true of the formula funding approach. But it is also true of the business rate retention scheme on offer, which is fiendishly complex, in the words of London Councils, with its multiplicity of levers.
True to his localism form, the Secretary of State has included a raft of new powers to control these levers centrally. Ministers can set the local and central shares of the business rate, and can vary this. They will determine the level of the levy ratio and the parameters of the safety net. Ministers have ultimate control over the frequency and method of resets—the updating of the baseline. All these factors reduce the effect of the incentive, but perhaps none more than the 50-50 local-central split, and the continuance of this beyond 2014-15.
There are also the complexities and uncertainties around revaluations and appeals. We should recognise that the system may also introduce disincentives, and we would wish to examine concerns raised with us about leisure trusts, and what impact the Bill could have on them.
Of course, what this also entails is the shift from the allocation of local government funding solely on the basis of an assessment of need and resources to future increases in funding being on the basis of local economic growth, or, more precisely, the increase in the business rate base. There are major concerns that this will increase inequality, over time, opening up gaps between the wealthy and poorer areas. For a start, the baseline for the redistribution, which will determine tariffs and top-ups, reflects the 2012-13 formula grant applied to later control totals. This means that it reflects the consequences of two years of spending cuts under which the 10% most deprived areas lose four times as much in spending power as the least deprived 10%. Locking in this level of cuts will for some create real, unsustainable pressures on vital services.
Even if the baseline were a fair starting point, it does not mean that all local authorities have an equal ability to generate additional business rates going forward. This is not because of a lack of will or expertise; it will reflect in part the current state of local, regional and business infrastructure, and it may reflect the extent to which there is land available for development. It would be heavily influenced, say, by being close to a university research facility with existing business clusters nearby. Levies may dampen the effect for some, but it looks as though protection of the safety net will be available only for significant loss of the business rate base. Indeed, the risk of a reduction in the level of business rate income will in future fall on councils and will need to be taken account of in setting reserves.
Government retaining 50% of the business rates as a means of controlling overall levels of local authority spending means that reductions in the future, from 2015-16, are more likely to be met by reductions in grants, which are of course distributed between authorities in a completely different way to the formula grant, therefore hitting the neediest authorities the hardest. So a policy with decent intent is being undermined by obsessive control from the centre and lack of understanding of the needs of many of our communities.
The manner in which the Government are seeking to localise council tax benefit is especially pernicious. It combines two policies: a shift in financial risk from central government to local authorities and, at the same time, a cut in resources of at least 10%. It takes support for council tax outside of annual managed expenditure, meaning that demographic changes, adverse economic circumstances, and just greater take-up—because it is no longer a benefit—risks local authorities having a shortfall of funds.
At present council tax benefit provides nearly £5 billion of support for low income families. As the IFS points out, it has 5.9 million recipients; even with relatively low take-up rates, this is more than any other means-tested benefit or tax credit. It is all the more surprising therefore that the Government have set their face against including support for council tax within the universal credit. Failure to do so undermines the simplification which universal credit seeks to achieve. A coherence between council tax support and universal credit can be complex, particularly around work incentives.
Alongside universal credit there will be hundreds of different local schemes with different taper rates, applicable amounts, treatment of capital, income disregards and so on. During transition, council tax support will have to sit alongside universal credit as well as the existing benefit system. It seems from recent announcements that the introduction of universal credit is slipping. It was meant to apply to all new claimants from October 2013. I understand that this will not now happen until the middle of 2014. Will the Minister confirm that? Will she assure us that the reduction in support will be 10% of actual closing council tax benefit expenditure, reflecting the increase in case load because of increased unemployment and short-time working, and not the OBR’s assumed reduction in case load? As the IFS points out, the funding cuts will be larger in areas where council tax support is higher—the most deprived areas. It is estimated at £5 per dwelling in the City of London and £38 in Haringey. What else would we expect from this Government? Because pensioners are to be kept whole, it is calculated that nationally grants will cover only 81% of working-age claimant costs; and in one in 10 local authorities less than 75%.
As we have heard, local authorities that cannot get a local scheme in place by 31 January will have a default scheme imposed on them which will be equivalent to existing arrangements. This means that local authorities in this position will have to find the 10% shortfall because there will be no reduction in individual entitlements. For some there may be cover in additional empty rates charges, but for many it will mean further cuts in services.
The Government are also requiring that localised schemes protect vulnerable groups without offering their definition of who should be included. We will press them on this in Committee. In the mean time, local authorities are having to endure the breathtaking hypocrisy of being reminded of their equality duty and obligations under the child poverty and homelessness legislation, and this from a Government whose own policies caused them to preside over increasing homelessness and rough sleeping, growing child poverty, and whose cuts to disability benefits have created a climate of fear among disabled people.
Local authorities are being set a near impossible task to produce a truly localised council tax support scheme by January next year—just seven months away—and the Government know this full well. Those that cannot carry the burden of the 10% cut are being encouraged to adopt a scheme based on the existing architecture, hacking away at components where they can. That is just a crude approach for the Government to escape responsibility for their decisions, which are designed to cut support or services and to cut the income of the poorest. As the IFS points out, there is a trade-off between protecting those on the lowest incomes and incentives to work.
The timetable is tight in terms of necessary consultation, scheme and system design and forecasting the council tax base. In addition, we shall wish to discuss in Committee issues around consultations, disputes and risk sharing between billing and precepting authorities; the interface with universal credit and work incentives; and the challenges of collecting small amounts of council tax. We will further scrutinise the clauses relating to information sharing and tackling fraud, which were introduced late at Report stage in the House of Commons. Localised schemes for council tax support are not what we most wish to see. However, if this is to be the way forward, we will seek common cause with those who seek to defer the date of implementation so that local authorities have the chance properly to implement arrangements which are practical and as fair as funding will permit.
This is a rushed, ill-thought-through Bill which has the potential to cause great hardship to many. We will do our best to change it where we can and resist it where we cannot.
Lord Tope
My Lords, I thank the Minister also, not only for the full and careful way in which she explained the Bill’s provisions but for reminding us of the extensive consultation that took place before the Bill was produced and the papers that have thus far been produced through the process. I am a little surprised to hear the noble Lord, Lord McKenzie, describe the process as “rushed”. The Bill was, I believe, actually introduced in the other place before Christmas and had its Committee stage in January. It seems to me to have been a very slow process until now, when it is perhaps about to speed up rather dramatically. Like the noble Lord, Lord McKenzie, I look forward to a Committee stage when we will be considering—I am sure in the constructive way in which we always do—the many issues to which he rightly alluded. I do not wholly share the language he used but the issues are real and proper, and I hope that we will work constructively to try to produce the best solutions that we can.
As always, I should start by declaring my interest as a serving councillor in the London Borough of Sutton. Indeed, I was the leader of that council when the business rate was nationalised. Since then, successive opposition parties have pledged to repatriate it to local authorities, and successive Governments have failed to make any move to do so. I therefore very much welcome these first steps by the coalition Government towards returning the business rate to local authorities. However, they are first steps and, as usual, they are cautious and tentative with still too much central control retained. True localism would be returning the right to local authorities to set the business rate, but I recognise that that would be more of a great leap than a first step. It is not going to happen, at least for the time being.
It was always going to be a challenge to design a business rate retention scheme with the right balance between just and fair equalisation between local authorities and providing strong enough incentives for local authorities genuinely to drive for, and benefit from, economic growth in their local areas. I am not convinced that the scheme as currently proposed has yet got that balance quite right or that the incentives are yet as good and as strong as they should be. As the noble Lord, Lord McKenzie, has signalled, I am sure that we will spend much time in the remaining stages of the Bill considering that issue—not least the proposed reset and, in particular, the proportion that is intended to be retained by central government. These are important issues that have a fundamental effect on the success or otherwise of the good intentions of the Bill. I am sure that we will continue to do this in a constructive manner, as we did last year during the Localism Bill, with the Minister listening to as well as hearing what is being said.
I turn now to the provisions in the Bill for tax increment financing; I hope that we will all refer to it as TIF, which is a lot easier to say. My noble friend Lady Kramer is very knowledgeable on this subject and is taking a keen interest. Unfortunately, other unavoidable commitments prevent her taking part in this debate, although she expects to be able to do so in the remaining stages. However, I think that I can reflect her views accurately. As your Lordships will know, the Bill takes a significant step forward in creating the framework for tax increment financing—a mechanism that allows the financing of infrastructure and regeneration by capturing future value. The Bill is so shy of admitting this that the words “tax increment financing” do not appear in the Bill, but ironically, rather than it being an idea imported from abroad, TIF has its origins in the great cities of the UK and financed much of the infrastructure that made them the powerhouses of their day. We need that same economic drive again.
The Bill anticipates two kinds of TIF. TIF 1 is hampered by the reset period of the business rate to the extent that it will function more as a minor expansion of prudential borrowing. It will certainly not permit transformational schemes. TIF 2 can be ring-fenced against resets in the business rate but is to be rolled out with a national cap of only £160 million, which will not buy much across the country as a whole. The Treasury is also counting TIF borrowing as an immediate cost against the public finances, unlike enterprise zone financing, despite both using the same financing mechanism, so TIF 2 is ending up as a cash-limited competition between core cities. Surely government should consider schemes with each city based on the merits of the case. In Committee, we must flesh out these issues. Both the localism agenda and the growth agenda require that we make the most of TIFs, not the least.
I turn now to what is undoubtedly the most contentious part of the Bill—the proposals for the localisation of council tax support, on which I am sure we shall hear much more today. Views within local government about this have been divided. Initially it was welcomed—at least, in principle—by the Local Government Association but it has always been strongly opposed by London Councils, representing the 32 London boroughs and the City, which felt, as I did personally, that it would have been much better with universal credit. However, it is clear that that is not going to happen and, as the realities of the proposed scheme have become clearer, there has been a coming together with common concerns shared by all who will have responsibility for implementing and operating the council tax support scheme.
Those concerns are, in the main, twofold: the implementation timetable and, much more importantly in the longer term, the effect it will have on many of the poorer members of our communities. This so-called “localisation” comes with a 10 per cent cut in funding from central government and a central government directive to exempt pensioners and the most vulnerable, who together make up three-quarters of claimants. Inevitably, therefore, the full brunt of this funding cut must fall on the remainder of those currently in receipt of council tax support, sometimes referred to as the “working poor”.
Many councils will be able to mitigate this wholly or largely by the very welcome greater freedoms being given in the use of the various council tax discounts, and I hope that all authorities will take whatever advantage they responsibly can of the discounts that become available. However, the higher the proportion of pensioners in a local authority area, the greater the effect. My own authority is one of those where there is a negative effect, even with the maximum possible use of discounts, but I must say that I am very pleased not to be the leader of a rural district council in the south of England, where the effects will be very serious indeed.
We all accept, to a greater or lesser extent, the need for deficit reduction and the fact that this must mean difficult cuts in public expenditure. It is, sadly, inevitable that these cuts will be felt hardest by those most dependent on public funding. However, what work has been done or is being done to determine the cumulative effect on the poorer members of our society of the cuts imposed not only directly by central government but by local government and the many other publicly funded agencies? Government in our country still works so much in silos that I fear that nobody has any real idea of the cumulative impact that the range of different and separate budget cuts, and other changes, at national and local level will have on poorer people, especially as many of these cuts are not yet fully implemented. I can well understand why a Government who have to make these difficult but necessary decisions may prefer not to know but I do think that we need to know—and to know soon before it is too late.
The other concern that I mentioned is the timetable, and the noble Lord, Lord McKenzie, also alluded to it. From the outset, the timetable for implementation next April has been seen as “challenging”. Initially that concern focused on the need to have new software up and working by then, but I gather there is now more confidence that that can be achieved, although the software suppliers would still like to see the full regulations. When she replies, can the Minister say when those drafts will be available?
However, for me the far greater challenge has always been the need for each local authority to publish its proposed council tax support scheme by the end of January. Before they do that, they must have full and effective consultation, not least on their equalities impact assessment. There is now even more nervousness among local authorities about this, given that all those who lost in court on proposed library closures did so because their equalities impact assessments were held to be inadequate. That nervousness was there when it was expected—rightly or not—that this Bill would be enacted by the end of July, with the necessary regulations following shortly thereafter. Only in the past few weeks has it become clear that this Bill will not be enacted before the end of October/early November at best. The deadline of January seems even more fraught with difficulty and danger. I hope, therefore, that the Minister will say something helpful in her reply about the timetable, both for the further consideration of the Bill and for its implementation.
The Secretary of State for Communities and Local Government has been quoted as saying that the Local Government Finance Bill is not as interesting as it sounds. A couple of weeks ago, the leader of a Conservative-run London borough council told some of us that he thought it was the most far reaching local government legislation in his 16 years as a councillor. Probably the truth is somewhere in between. Just as with the Localism Bill last year, this Bill arrives in your Lordships’ House still in need of some improvement and with questions still to be answered. However, just as with the Localism Bill last year, I am sure that it will leave this House, whenever it does, in a much improved condition, and I look forward to achieving that in the same constructive way with the help of those on all sides of the House.
The Earl of Lytton
My Lords, about 25 years ago I stood before your Lordships and spoke for the first time on a local government finance Bill. I do so again with about as much trepidation as I had then. My interests are well known. I am a practising chartered surveyor and a member of several professional groups with an interest in non-domestic rating and property development. I am also president of the National Association of Local Councils.
Before I go any further, I pay tribute to the excellent quality, if somewhat overexuberant quantity, of the briefing material that has been produced—in particular, the briefing papers produced by the Library of your Lordships’ House and the Library of the other place, which have been enormously helpful.
A Bill about the way in which local government is financed when a significant part of that finance is sourced from charges on the occupation of property falls sort of within my bailiwick—a domestic one in the form of council tax and a non-domestic one in the form of business rates. It is certainly right to try to get this nearer to residents and voters and to reconnect businesses with the levying of non-domestic rates at the local level, but that would result in a very heavy reliance being placed on the valuation base for the tax.
Once upon a time, well within my professional memory, we had a unified system of domestic and non-domestic rates. It fell under something called the General Rate Act 1967. While the process was a bit lumpy, particularly at the edges, by whatever benchmark of fairness you would wish to import it was cost-effective, efficient, transparent and pretty much unavoidable, and people understood it. Since then various things have changed because there has been a succession of attempts to tinker with the system. None of the obsolescence of the concepts within the system and its architecture has been dealt with. The resources to refresh and modernise have not accompanied successive tinkering. While we have a system that is still administratively very efficient, it is incomprehensible to voters and ill serves business interests.
We come to the latest set of proposals embodied in the Bill. I welcome the fact that it is part of the localism agenda of moving more responsibility and resources to communities. That is extremely welcome, as are the coalition’s other localism policies, except that for a certain sector it does not fulfil much of the promise. There is nothing in it for the most numerous part of local government—the 9,000-odd parish, town and neighbourhood councils—nothing by way of financial benefit to match the promise of additional powers and responsibilities, and nothing to improve national guidance or co-ordination to increase the capacity of the sector. This stands in stark contrast to the resources made available to other comparable sectors. Therefore, I hope that the Minister will tell me that somewhere else, something will be done about this.
It is for others with much greater knowledge of the hard core of local government finance to explain how this rests with the difficulties that billing authority finance officers will have in balancing costs and risks, and in dealing with the tax base on which the finance will be based. With a revenue cut of around 10% that will have to be made good elsewhere, I do not see any prospect of offsetting it any time soon by expanding the tax base. Therefore, it will produce short and possibly medium-term problems that will have only an adverse bearing on the administration of the system or the services provided. Without other measures, the premise on which the add-back to billing authorities is put forward here seems very optimistic. Cutting costs is one thing; adding value is quite another. In that breath I pay tribute to local authorities that do add value and that are very successful at it. However, I suggest that it will not be of very general application, at least for some considerable time.
I referred to the tax base. The Bill bolts on a degree of additional complexity to an already complex system. It does not do anything to remedy the fundamental problems arising from the constant failure over many years to maintain and manage the tax base—I refer for instance to the council tax—or to resource the problems with non-domestic rates appeals. The impression given is of an out-of-date system being required to yield more than it is capable of.
Council tax was supposed to be a temporary measure. The bandings are 21 years old. The appeals system operated by the valuation tribunal deals with about 97% of business rate cases—I forget the exact figure—and about 3% of council tax cases. The system is creaking. The valuation tribunal’s forward business plan assumes a normal temperature and pressure scenario and makes no allowance for the backlog already accumulated, nor for the likely increased transfer from the social services appeal tribunal to the valuation tribunal. Depending on whose estimates you believe, there will be anything from a threefold to a tenfold jump in council tax appeals. They will start becoming quite significant, in particular because benefits will be challenged and people will realise that they may be faced with a cut and will have to justify things in much more detail, so the obvious default will be to look at the basis of the liability for the charge and the basis on which it is computed.
I flinch a little at devolving things from the centre, where the power to modernise the system rests, by having a series of measures bolted on to something that was designed for another age. However, we are where we are. I must leave that in park and hope that the Minister will be able to reassure me on that. My fellow members of the Institute of Revenues Rating and Valuation are most concerned, and my co-members of the Rating Surveyors’ Association equally fear a progressive gridlock in the appeals system.
It is not for me to refer to the obligations, risks and greater collection of uncertainties that will fall on billing authorities. That must be for others more learned than I am in this field. However, there are some significant problems. Contrary to the received wisdom about Governments internalising societal risks that the market will not underwrite, I perceive a raft of risks being transferred to where they cannot fail to inhibit growth, increase costs and devalue project outcomes. I hope I am wrong.
There are many aspects of detail in the Bill, including in areas where there is fundamental unfairness, where out-of-date elements of the tax base are manifest, and where the management systems that lie behind the maintenance of the valuation lists, the council tax banding and the appeal systems will come back to haunt us at a future stage. I make no apology for flagging them up because it will fall ever more increasingly on the billing authorities to deal with these matters as they go forward.
Next year, 2013, will be the antecedent year for the 2015 non-domestic revaluation. The likelihood is that, on the present count, values will fall. I hope that someone has factored that into the equation because, as the noble Lord, Lord Tope, mentioned, there are large numbers of variables involved. The need to get robust predictions and budgetary measures in place to take us forward in very uncertain times, and over some quite extended timescales where all kinds of things could happen before a 2020 reset, means that we should look at the Bill most carefully. I look forward to it being in a good deal better condition than it is at the moment.
Lord Jenkin of Roding
My Lords, I hope that my noble friend on the Front Bench will listen carefully to what the noble Earl has said. He speaks with great authority on these matters and probably knows more about aspects of rating than anyone else in the House. He was very modest about his own knowledge but he was quite wrong: he is in fact extremely knowledgeable and we need to listen to him.
I, too, declare my interests: I am a joint president of London Councils and, like many other noble Lords, a vice-president of the Local Government Association. I offer a warm welcome to the main objectives of the Bill. The retention of local business rates is intended to and will, to some extent, provide an incentive to encourage development, and therefore provide increased employment and increased yield of rates. Another aspect, which has not been mentioned, is that it will, or should, help to build relationships with the business community in its area. It has certainly been so looked at by the London Chamber of Commerce, with which I have been in touch, and it has raised one or two points to which I may return in Committee. However, that is certainly one of the objectives.
I support the localisation of council tax reliefs although, as my noble friend Lord Tope has said, it is not supported by all the local government associations. In particular, it is not supported by London Councils, of which, as I said a moment ago, I am one of the joint presidents. I accept the argument that local authorities should know better than central government the people who need support and the best way of supporting them in the context of the local situation. It cannot be right to operate a one-size-fits-all policy. When there are great variations right across the country, a single system does not make sense. However, the broad objective of returning to local authorities some responsibility for this is something I support.
My noble friend mentioned tax increment financing, which should improve the basis on which local authorities can raise money to finance infrastructure investment. It has been asked for for a long time and I welcome its proposed introduction.
However, I must go on to confess to a good deal of disappointment and a few real concerns. Perhaps I may take these three elements in turn. On the question of the retention of local business rates, I should start by saying that I was the Secretary of State who, in the phrase used by my noble friend, nationalised the business rates. I did so for a very pertinent reason: businesses were expected to pay, but they had no votes. There was huge indignation right across the country and it was seen as unfair. But, of course, it is now central government which sets the rates, but that does not mean that it has to keep the proceeds. The point has already been made by the noble Lord, Lord McKenzie, that it is disappointing that the Government still intend to keep 50% of the proceeds. I think that that is far too high a proportion. It means that the Government have to retain a large measure of central control and influence, whereas the whole process of localisation is intended to reinforce local accountability. There is clearly a conflict here. Ministers will not be surprised to hear some of the same arguments they had to listen to from me and others on the Localism Bill as it was going through, but happily on that occasion we did secure some quite significant changes. I hope that we may be able to do so here.
Perhaps the main argument about retaining 50% is that it substantially weakens the incentive to encourage local development. There is no question about that. Anyone would say that that 50% must be less than 100% or something in between. The Government have themselves published figures that in effect admit this in their paper, Business Rates Retention Scheme: The Economic Benefits of Local Business Rates Retention. I am not going to weary the House by quoting the figures, but the fact is that the Government’s own departmental analysis states that the incentive for councils would be greater if there were no central share. The paper sets out a very complicated economic analysis based on a number of assumptions and other work. The middle case of the scenarios predicts that given a 50% local share and a seven-year reset period, which has already been referred to, an additional £10.1 billion of GDP could be created. That is not to be sniffed at, but in the lowest case scenario it would be only £1.7 billion of GDP created over seven years. The best case would be a great deal higher, at nearly £20 billion. The size of the incentive is very much related to the proportion of the business rates that are to be retained centrally. The Government justify opting for the central share of 50% on the basis of the cost whereas the local authorities argue that the Government are putting,
“controlling local authorities’ funding above the objective of promoting economic growth”.
That is something which this House should challenge and it is an issue that we will want to explore in Committee.
The noble Lord, Lord McKenzie, referred to the system as being “fiendishly complex”. I also have that phrase in my notes since it is London Councils’ own analysis. But it is worse than that because so much still needs to be announced and published. Many vital factors still have to be decided. For example, the long list of current grants that are to be rolled into the system is a very welcome simplification, but it is not at all clear whether central or local government is going to pay for that. The Government say that further details are going to be consulted on in the summer. The precise definition of business rates income is again to be the subject of a summer consultation. It is quite difficult for the House to consider this complex legislation with these sorts of things still to be announced. The operation of the levy and the safety nets provisions have also been mentioned by a number of noble Lords. Many of the parameters there are still to be decided and will be the result of a consultation “in the autumn”.
Of course, it is a sensible aim to have all these complications to prevent cliff edges and perverse incentives but the effect is to expose local authorities to a degree of volatility in their income that will make it extremely difficult in the early years for finance officers to draw up anything like a clear, firm budget. I have to say to my noble friend that that is one of the major anxieties that the local authorities have about this. It is a good idea, but in practice it is going to be extremely difficult.
The main worry with the localisation of council tax reliefs is that, as the noble Lord, Lord McKenzie, said, it is being combined with a 10% cut in council tax support but also with a very long list of mandatory reliefs that have to be carried over. To say that local authorities have a great deal of discretion over how the system of council tax reliefs should be operated is something of an exaggeration. It does mean that the element over which they still have consideration may experience very substantial burdens and effects because so much of it is being prescriptively insisted on by central government. If you are going to have local reliefs for council tax, surely it is important to give local authorities the maximum degree of flexibility as to how this is going to be done, especially if it is being combined with a 10% cut in the funding of the whole benefit. If it goes through unchallenged, some people will be very hard hit and there may even be further cuts in front-line services.
The second main worry, which has already been mentioned, is that this is all being introduced at the same time as the reforms under the Welfare Reform Act and the universal credit. I have to say that I did not take a full part in the proceedings on that Bill but there are many who did. These reforms are complicated enough and are giving rise to a very considerable worry as to how local authorities, particularly their IT systems, are going to be able to cope. I am grateful to my noble friend for having met me the other day to discuss some of these things. It is here that there is the greatest danger of a serious breakdown unless something is done to ease the problem. It may be a question of timetabling. It may be sensible to delay the phasing-in of this so that the local authorities can deal with these things rather more effectively.
Finally, there is TIF, as my noble friend Lord Tope called it. Huge hopes were aroused when the Deputy Prime Minister made an announcement as long ago as September 2010 that TIF would be introduced, to the great advantage of local authorities. The Core Cities Group had campaigned for this for a long time and warmly welcomed the announcement. However, the high hopes that the Deputy Prime Minister aroused at the time are clearly not going to be delivered in the way in which people were led to believe. I cannot possibly go into the details today. I have, however, discussed this with officials in London Councils. One very senior official said to me:
“We’ve largely given up on TIF, it’s a theory with lots of potential but the government is so tightly constraining it that it’s difficult to see that it will make much difference on the ground”.
He went on to spell out why. I am afraid that that is a harsh criticism, but it is one with which I have some sympathy.
I end with two queries, again to reinforce my question as to the timetable for taking this Bill through. We were originally told that it would be committed to a Committee of the Whole House, with a few long sittings, going up to 10 pm or later, in which we could have got through it; now we are told that the Committee stage will take place in the Moses Room—and, of course, the House rejected the idea of much longer sittings there. What is going to be the timetable? I have heard it said with some authority that the Bill is unlikely to end its Committee stage in this House until the Summer Recess. Is that what the Government are aiming at? If so, it strengthens the case for an extension of the timetable.
I ask my final question with some feeling. The Government have made it clear that they do not think that Mr Speaker will regard any part of what we are likely to put in as subject to financial privilege. I look back at the Planning Bill, or Planning Act as it is now, and the local infrastructure levy proposals. We had to put it through in statute and then the other place decided that we could not have anything whatever to do with the regulations. Is there any risk of that happening with the regulations which flow from this Bill? Will we be told by the other place that we can have no role in the regulations? We need to have an answer to that.
I am sorry if I have appeared a little critical, but I have looked at the scheme from the angle of the local authorities which will have to operate it. I must tell my noble friend that many of them are very worried.
Lord Smith of Leigh
My Lords, I declare my interests: I am leader of Wigan Council and chairman of the Greater Manchester Combined Authority. I am also a vice-president of the LGA and the vice-chairman of SIGOMA—I shall not explain what that is, but it is concerned with local government finance.
It is 30 years since I took my first significant role in local government as a chairman of finance. I have remained over that period one of the small, select band of people who are interested in local government finance. In those 30 years, there was one exceptional moment when local government finance became a major topic of interest, which of course was the period of the poll tax. Given that it was so significant a change, I offered to do a road show around the different areas of my authority and found myself invited to a number of clubs of an evening. The clubs were always packed. They wanted an explanation and were not very happy with what they heard. I later heard that I was being organised in this, because it was very good on a quiet Wednesday night to get the poll tax road show in place and fill a club up. I remind Members that the poll tax ended because of the riots. That is a lesson for us to learn about local government finance: it may seem pretty boring to the Secretary of State, but if we get it wrong it can have serious consequences.
I am a localist, so I should want to welcome localisation of business rates and the council tax support system, but, unfortunately, I feel that this Bill is fundamentally flawed. It is not built on a firm, fair foundation, and it lacks the necessary consensual approach for it to be long-lasting. The financial basis of the measure, as my noble friend Lord McKenzie indicated, is unfair in two ways. First, it is based on the highly partisan 2012-13 settlement, with the wide variation in support that local authorities gained in it; and, secondly, it continues to dampen down about £380 million-worth of cuts. People understand that there are needs in authorities such as mine, but they have been dampened in this settlement and the cuts will be locked in for a further seven years. The basic building block of the Bill is uneven and its whole structure must therefore be insecure and unsafe.
I do not oppose the idea of setting business rates as an incentive to increase growth; in fact, one of the authorities in the Greater Manchester Combined Authority is talking to the Government about TIF. I am concerned that, however good a local authority is in attracting new businesses to its area, that will be marginal compared to the overall economic impact across the country. Looking back over the decade of 2000 to 2010, GVA growth across England was just over 50%, but that masked a wide regional variation. London grew by 65%. All of the south grew more than the England average; all of the north grew significantly less. Are we going to change the history of the imbalanced nature of the UK economy? Are we to assume that this change to business tax will do that? There will be a geographical bias to the implications of this tax.
Further, the ability of local authorities to raise revenue through business rates is unequal. In Kensington and Chelsea, as the Minister is probably aware, 1% growth would raise £22 million, but my authority area would have to grow by 3% to raise £22 million. Even that comparison is unfair, because, in terms of population, Wigan is bigger than Kensington and Chelsea. Therefore, if we take it on a per capita basis, Wigan would have to grow at five times the rate of Kensington and Chelsea to gain the same value for each of its residents. I do not think that that is fair. The Bill is institutionalising unfairness across local authorities.
The transfer of council tax support will further exacerbate financial problems for areas with more claimants, which will tend to be the areas with more dependents in the population. Members have talked about the passporting of the 10% cut, but what can be cut if we are allowing pensioners not to have their income cut? In Wigan, 50% of council tax benefit recipients are pensioners; therefore they will not be touched. Those with children will not be touched. That leaves a smaller base on which to achieve that 10%, so the cuts could effectively be well above 20%.
If we are honest, we know that the take-up of council tax benefit in the past was estimated at 70% of those eligible, with up to 40% of pensioners not claiming entitlement to that benefit. The value of that could be as much as £2.4 billion. Local authorities will probably be more effective at running the system than the present one, so there could be an increase in the number of people coming forward to claim benefits—support—to which they are entitled. If the estimates are right and 40% of pensioners are not claiming, that could be significant.
As many Members of your Lordships’ House have said, the effect of that in the risk to local authorities is enormous. For some local authorities, the impact is large. For Liverpool, for example, 32% of the council tax receipts currently come from benefits. That is the biggest proportion in England. The cut for Liverpool will be £6.1 million. We are relieved to know that in the City of London, only 4.8% of council tax comes from benefits, so the cut will be £27,000.
Authorities such as mine are already thinking about the future: how will we implement such draconian cuts in services? Frankly, it cannot be done without significant effects on the most vulnerable people in our society. Single people and families without children will bear the brunt of these cuts, in addition to the reduction they will have under the welfare changes.
Perhaps your Lordships can imagine this scenario. We have recently dealt with what became the Health and Social Care Act in this House, which would introduce competition between hospitals so that it could well be conceivable that a local hospital closes. For a local authority, not only would it have the loss of the services of that hospital but have a significant loss in business rate because hospitals are usually large owners of land and would be paying a significant amount. Yet it may not add up to 7.5% of the total and therefore will not come under the safety net. At the same time, hospitals are large employers of people and the number coming forward who would be entitled to council tax benefit would therefore be increased significantly. The secondary impact of changed spending patterns and a loss of spending would have further impact on the local economy. It could be a perfect financial storm for local authorities so, as many noble Lords said, treasurers are getting really nervous about all of this. I know that they, being worried about what might happen, are going to recommend that we increase the amount we keep in reserve.
I want to be consistent because in every opportunity that I have had to discuss local finance in my years in this House, I have never not taken the opportunity to talk about council tax—the noble Earl did that—and why we do not revalue it. Council tax is based on a system of values made in 1991 and, with all due deference to the noble Earl’s profession, I do not think it was done in too serious a way. From what we understood, the then Secretary of State sent estate agents around in vehicles to size up a street and say, “Band A”, “Band C” or whatever it was. This has been continuing forward, so that if a house is built in 2012 somebody has to say what its value would have been in 1991. A house might these days have wi-fi connectivity, thermal insulation, solar panels and integrated electrical equipment. How on earth is that to be done on a scientific basis—again, with due deference to the noble Earl—when it is not science but alchemy? We are just making a guess at what is going on.
The price of properties has increased fourfold since 1991 but those rises are not consistent across the country. We ought to reflect that in the actual valuations to make them understandable to people. When an ordinary person comes to me and asks, “Why is my council tax in this band?”, and you have to explain the system, they just find it incomprehensible. We should not be frightened of the media. If a revaluation increased the worth of a house by four times, it will not mean a fourfold increase in the council tax at all. We ought to start thinking how we are going to do that and moving forward to make the council tax a proper tax rather than something that was introduced hurriedly, to get rid of the poll tax, and now lacks a lot of credibility.
I share a lot of the sentiments, which again were expressed by noble Lords, about the timescale here. My reading of the whole House’s discussions in another place was that they were not what I would call serious scrutiny of this Bill, so this House has a job of work to do if it is going to get anywhere near making this acceptable legislation. That should be our prime aim. We should not try and meet a timetable that gets it imposed and able to be introduced by March or April of next year. We ought to be doing it properly and wisely, and doing the thing that this House does best.
Lord Palmer of Childs Hill
My Lords, I must also declare my interest as a serving councillor in the London Borough of Barnet, and currently as chairman of its audit committee.
The principle of the changes to business rates is to incentivise economic growth and to enable local authorities to benefit financially from such growth. As such, this aspect of the Bill must be welcomed, and I agree with this laudable aim. My problem is that I am concerned whether the Bill as drafted achieves that aim.
Central to the business rate retention is the real potential for it to be hugely and unnecessarily complicated, as some other noble Lords have mentioned. Councils will not simply retain the business rate income; it will be part of a complicated system where some elements will be retained, some will be paid to the Government and some will be used to fund councils that raise lower business rate yields. I hope that the Minister will say how the proposals can be simplified and what protection there will be against significant top-slicing of business rates by central government. After the current review period, in 2014-15 and beyond, it would be encouraging if the part taken by central government were progressively reduced from the starting rate of 50%. In fact, I would prefer that we did not start at 50%; as my noble friend Lord Jenkin mentioned, the Government must aim to reduce that, at least progressively.
The aim must be to financially encourage local authorities to increase their income from business rates by the expansion of business in the local area. That extra income can then be used for the encouragement of enterprise and jobs in the private sector. As drafted, the amounts available locally will be based on the increase in the physical number of new buildings, whereas any increase in existing commercial property valuations, which we have heard a lot about, will not be available to the local authority in terms of increased business rate income. If a local authority so increases the valuations of commercial property by the way in which it improves the desirability of trading in that local authority or borough, the local authority receives no financial recognition for its success in contributing to the increase in the valuation of those buildings.
The Bill, though welcome, tries to do too much by the overinvolvement of central government in taking a large slice of this new income, and the perceived need to share the additional revenue among less fortunate councils. The noble Lord, Lord Smith, talked about how the effect of the Bill was disproportionate in various parts of the country, but the fact is that business is disproportionate. The Government’s idea is to incentivise business—get more business, and you will benefit. The trouble is that by spreading out the benefit, you are reducing the incentive to those local authorities that can so do.
The proposals for council tax localisation come, as many noble Lords have said, with a 10% cut in the budget, which creates a significant funding issue. For the London Borough of Barnet, which is of course the one I know most about as I am still a councillor there, this means at least £3 million per annum. The figure of 10% is based on the historical amount of benefit for last year—in other words, at a given date—and it is very likely that, with local caseload growth, in real terms the 10% will be more like 15% of the historical figure. Local authorities will be substantially at risk for future caseload growth in benefits.
Like other councils, Barnet is required to pull together a local scheme that can pass some or all of this cut on to benefit recipients. One of the major concerns that noble Lords have mentioned is the timescale available to implement a local scheme, consult on it and then work with system providers to make the changes in the IT systems so that bills can be prepared and sent out, which is a practical necessity. I disagree with the noble Lord, Lord McKenzie, about the councils and local authorities that are not able to get a scheme together and have one imposed upon them. To my mind, it is imperative that every local authority gets a scheme, although the difficulty is how to send the bills out in the time available—it may be early 2013.
We then come to the thorny issue of which of the current council tax discounts can be changed in order to recover all or part of the 10%. The reforms will hit those in receipt of benefits, often—in fact, mostly—poorer people, whereas there is no scope to review, even if I wanted to, single-person discounts. Could local authorities be allowed some discretion to remove this discount in some way from affluent single occupiers? Why should they get a discount?
There will still be the sizeable anomaly where a house full of students attracts full council tax relief. However, no one will want to hit students further than they have already been hit by changes in university funding. What is the Government’s thinking on this? It seems that whereas home owners and home renters will pay council tax, landlords with a house full of paying students will continue to be free of any council tax liability. Although I am not advocating that students should pay, there could arise a gaping dodge—a gaping avoidance scheme—by which people put a student into an otherwise empty property so that no council tax is payable for that property. Councils will need to concentrate on reviewing discounts for empty properties and second homes.
Many local authorities will say that there is a problem with the proposal to give local authorities the ability to abolish or partially abolish the empty property exemption. The fact that a property is vacant could be due to a delay in the sale of the property; to a gap between tenants occupying an unfurnished let; to new owners having to do remedial works before moving in; to tenants moving out to sheltered accommodation; or to the fact that although the former tenants still have the lease, they have moved elsewhere possibly because of work commitments. In my view, taxing empty properties and removing the discount from second homes will not only produce revenue but bring empty properties back into use and free up second homes. I hope that local authorities will take the opportunities in the Bill so to do.
One city in the south, with a population of 207,000, reckons that if the empty property exemption were completely removed it could produce as much as £1,161,000. In my own borough it could raise about £1 million—although I think that the treasurers are, as usual, being cautious—whereas the 10% gap, the 10% reduction in benefits, will amount to about £3 million at current values, and that will go up as time goes on.
There is a great fear that the benefits case load will increase substantially because of the number of people unemployed. A significant number of pensioners who currently do not claim council tax benefits, although they could, will also be more likely to accept relief in the form of a “discount”—which is what it will now be —than as a “benefit”. In other words, do the Government —my Government—accept that there will be a substantial increase in the take-up of the pensioners’ discount because discount is not as bad a word as benefit?
My overriding concern about the localisation of council tax support, which I hope the Minister will address, and which my noble friend Lord Tope mentioned, is whether council tax support should not be incorporated within universal credit, with a system of direct payment to local authorities. The Bill is trying to do too much. Its provisions are laudable and necessary, but if the money which local authorities receive from ending the exemptions for empty properties or second homes is not sufficient, as it almost certainly will not be, then it will have to come from somewhere else in order to fund the 10% reduction. Where will it come from? You have two choices. It can either come from reducing benefits for poorer people lower on the ladder—those who are least able to afford it will receive less council tax benefit from the local authority, because the council will have to make up the difference—or the council will have to close more libraries, leave more holes in the road and so on so that it can reduce council expenditure. Localisation is great, but when it puts this sort of duty on to local authorities it creates a financial problem that is difficult to deal with whether you are in Wigan or the London Borough of Barnet.
Lord Warner
My Lords, I do not usually speak in local government finance debates, and I feel slightly as if I may have intruded into a private party, but I spent six years in local government as a chief officer and I well remember the annual scraps over setting budgets and a rate, as it was then.
I will speak briefly about the risks of unintended consequences from the Bill and the way that it is being rushed through on a tight implementation timetable. I very much agree with my noble friends Lord McKenzie and Lord Smith of Leigh about the Bill’s likely institutionalisation of unfairness. It is unfairness that I want to talk a little about. My particular concern is the possible consequences of the Bill’s proposed changes for the challenging problem for local authorities of funding adult social care with the inadequate resources that they have. The uncertainties and volatilities raised by several speeches in this debate only increase my concerns.
I briefly remind the House of the parlous state of adult social care funding, which consumes a growing proportion of local government expenditure. It is this serious situation that requires us to be extremely careful that, in adjusting the rules on non-domestic rates and making some of the other changes in the Bill, we do not make a bad situation even worse—possibly without realising that we are doing so.
It is clear from the Minister’s opening remarks that these changes to the rules have not been straightforward and that there is still a lot of detail to be worked out. At present, according to the Local Government Association, councils allocate more than 40% of their budgets to funding care services for vulnerable, elderly and disabled people. The current care funding bill to the taxpayer is around £14.5 billion a year but, with an ageing population, the adult social care bill is rising extremely rapidly, eating into discretionary services that local authorities have often provided. The latest LGA estimate is that this £14.5 billion bill will rise to £26.7 billion a year in less than 20 years. Councils have already raised their eligibility thresholds for services so significantly that eight out of 10 councils that provide social care services now do so only for those with substantial or critical needs. Increasingly, councils are unable to meet the true cost of care of those placed in residential care and funded by the state. The funding of social care is in crisis, while the Government continue to dither over a better funding system, yet we are introducing a Bill that may destabilise that system further.
I will not make a speech today about social care funding or the merits of the Dilnot commission report. I declare my interest as a member of that commission. I raise the social care funding crisis because of my anxiety that the provisions in the Bill could inadvertently worsen the situation for some councils. This is where things start to get somewhat technical. We are certainly in territory that is not a subject for a Second Reading speech and may, in any case, be well without my technical competence. Therefore, I will try to keep it simple.
It is clear from the Minister’s opening remarks that the complexity is considerable around local retention of non-domestic rates and how this interacts with the revenue support grant and the various levy and pooling arrangements. Without going into the mysteries of these computational arrangements, after those processes have been completed, somewhere along the way a figure emerges for local councils to spend individually. It is at that point that we must be concerned because we cannot tell what the mysteries of those computational arrangements are at the moment. We are creating a set of serious uncertainties among many of the councils for which social care accounts for a huge proportion of their budgets.
Given some of the timetables being considered under this Bill, it is possible that some of these councils will find themselves, very late in the day, unable to know in advance what they have got to juggle with in terms of their budgets for social care or whether, at the last moment, they are going to have to adjust many of their eligibility criteria for services and how they are going to fund the residential providers of care for vulnerable elderly and disabled people.
I want to pose a few questions for the Minister to think about, not necessarily today but certainly before Committee stage. Will she tell us whether she accepts that there is a risk that provisions in this Bill will adversely affect an individual council’s ability to fund adult social care beyond the day one protection, especially if business growth is not forthcoming in those councils which are trying to implement the Government’s policy in this area? What real-world road-testing of the new scheme has been or will be undertaken to check these possible inadvertent, adverse consequences? What is the Local Government Association’s assessment of the impact of the changes in this Bill on the ability of councils to fund adult social care?
Will the Minister write to me and other interested noble Lords before Committee stage setting out in detail the arrangements that will be in place to ensure that a council’s ability to fund adult social care will be in no way jeopardised as a result of these changes? Even better, will she spring a surprise on us and say that the 50% of business rate retention at the national level will be used by the Government to improve the funding of adult social care? I agree that that would be an unexpected bonus but I am always open to surprises.
We need to understand what this Bill will or could do for this important area of services for vulnerable people. For my part, I would want to consider her responses before deciding whether to put down amendments to safeguard levels of social care funding in council budgets after discussion with interested parties.
Lord Best
My Lords, I declare my interest as president of the Local Government Association and I express my appreciation to the LGA for its briefings on this Bill. The Bill has much to commend it in advancing the cause of localism. However, as others have made clear, there are ingredients which need the input of this revising Chamber. Most worryingly perhaps is the seemingly impossible timetable for implementing the new fiendishly complicated arrangements.
For my part, however, I want to concentrate on the changes to council tax benefit and the measures which the Bill will introduce for council tax support for those on the lowest incomes. Some, including London Councils, as the noble Lord, Lord Jenkin, has noted, have argued that council tax benefit should be determined centrally by the Department for Work and Pensions. However, the LGA believes that the localising of decisions about who should receive what rebate off their council tax should be a matter for locally elected politicians. Decisions about raising additional tax from properties left empty for extended periods, and from second homes, should be taken in the places where these are significant issues. The LGA is not so happy with the Government constraining this local decision-making by pre-empting local consideration with some significant centralised diktats.
My concerns are about the accompanying reductions in help for poorer households that are part of these arrangements. Councils must achieve an overall reduction of 10% from the council tax benefits currently paid. This is calculated to save the Exchequer £500 million per annum. Well over 2 million households will each lose an average of £247 per annum—£5 a week. A 10% cut in this benefit, which currently covers all the tax that most recipients would have to pay, may sound relatively trivial but it is the compounding effect of this reduction in support, on top of the cuts in the other forms of benefit, that adds up to a very severe reduction in living standards for those already struggling on extremely low incomes. Those affected will have to allocate a proportion of their other benefits, such as jobseeker’s allowance, to pay the tax. That means taking an average £5 a week from the benefits that have been calculated to cover food, heating, clothing and so on, and which, quite specifically, do not include anything to pay local taxes. Moreover, for those affected, the cut will not be just 10% of the support they currently receive. To the disapproval of the LGA, central government will limit the discretion of local government in how they cut council tax support to save the required amount by insisting that pensioners and other vulnerable groups are excluded from these benefit reductions, which mirrors the similar exclusion of pensioners from having to pay the “bedroom tax” when they underoccupy larger homes. As other noble Lords have noted, the full weight must fall on the remaining recipients, mostly younger, unemployed people, and those working part time and for very low wages. Because half of the recipients of the benefit, in some areas, will see their current rights protected, the other half will often be looking at a 20% cut. On average, the Institute for Fiscal Studies estimates that those affected will see a 19% reduction in the support that they receive.
I understand the Government’s reasoning on this—that everyone, including those on the lowest incomes, must play their part in reducing the nation’s deficit. This is the same argument as that made for the cuts to other benefits. But during the passage of the Welfare Reform Act, many of your Lordships expressed the view that the poorest in our society should not be asked to reduce significantly their standard of living or shoulder a disproportionate share of the burden of deficit reduction. This latest cut to previous benefits exacerbates the problem. It is worth remembering that, as the recent IFS analysis has made clear, the improvement in living standards in the UK since the previous royal jubilee in 1977 has been far less for those on the smallest incomes than it has been for the rest of us. I find it hard, therefore, to accept that this extra reduction in support to poor households can be justified on the grounds that all citizens are facing comparable falls in living standards.
The other argument for cuts to benefits, and therefore now to council tax benefit, is that these measures will provide the necessary push to get people into work, always assuming work is available, since it will be increasingly untenable for them to try to live on social security benefits. I applaud the efforts by the Secretary of State for Work and Pensions, Iain Duncan Smith, to make sure that “work pays” by tackling the taper—the rate of withdrawal of benefits—as income is earned. His universal credit, with its joint architect, the noble Lord, Lord Freud, aims to ensure that never again will earning £1 mean a loss of 80p, 90p or even more, before paying transport costs to work and so on, as benefits are withdrawn. It is hugely discouraging if a very steep taper means that getting a job and working hard leaves you no better off than you were on benefits. The taper for the universal credit seeks to make sure that people are always noticeably better off in work. But here is the problem with the cut to council tax benefit: this support, of course, will now fall outside the DWP’s universal credit; local authorities, as they withdraw this help from those who move into work, will find themselves in danger of recreating the employment trap—the work disincentive—whereby households that manage to get into employment are no better off for their labours.
Councils will not be able to borrow more to compensate for this further central government cut, on top of the 28% budget cuts already experienced; there will be very limited opportunities to raise large amounts from taxing empty and second homes. As the noble Lord, Lord Warner, has just made clear in relation to the social care crisis, they cannot further cut services. Few will be able to raise extra council tax to cover this. They are boxed in and will be forced into the invidious position of further impoverishing their poorest citizens and pushing those on the edge of employment into a poverty trap, whereby the loss of benefits will mean that work does not pay.
My questions on this issue to the Minister are twofold. First, will local authorities be provided with guidance, technical advice and IT support when devising local systems for cutting council tax benefit? In particular, will they be helped to ensure that they create a taper—a rate of withdrawal of support which does not wreck the key principle of universal credit that no one should lose more than about 70p in the £1 they earn? Secondly, if the maths simply cannot be made to work—this cut would break the back of one of the welfare benefit’s central and worthwhile purposes—will the Department for Communities and Local Government make available a specific fund for local authorities, just like the discretionary housing payments for those worst affected by housing benefit cuts, to keep the Government’s flagship policy for welfare reform on course?
The LGA would welcome more discretion for councils to model a discount scheme that could give protection to those in dire financial circumstances. However, the underlying problem is that the Government are taking this opportunity to extract further contributions to deficit reduction from local council budgets. My fear is that the outcome of the Local Government Finance Bill is that local authorities could be blamed for causing extra suffering to those trying to get by on the very lowest incomes and for undermining the best intentions of the Government’s Welfare Reform Act.
Lord True
My Lords, I declare an interest as leader of a London borough council, though not the one who served for 16 years, and as a member of London Councils’ Leaders’ Committee and of the assembly of the Local Government Association. That may be enough to make most people’s hearts sink. We all know that mentioning local government finance in the 21st century is like mentioning the Schleswig-Holstein question in the 19th. Almost nobody understands it and, given all the changes we have seen over recent decades, some of the few of us who thought that we understood it will soon find that we have forgotten it all. I may be told that later in the debate by my noble friend when she winds up.
None the less, this is an important Bill which affects many people, as other noble Lords have said. I join those who welcome the moves on TIF, albeit some have said that they do not go far enough. I also warmly welcome the first steps towards localisation of business rates. Business rates were nationalised a generation ago at a time of fear over soaring demands by some local authorities. Today, the political life of Mr Ken Livingstone is, thankfully, over and the spirit of “force tax up as far as it will go” is largely spent. Most authorities, given more authority over business rates, would act wisely. We recognise the importance of business, growth and jobs. Shops and businesses define our local communities and it was high time for this power to begin to come home. The party opposite was wrong to resist that when it was in power. I hope that it will support it now that it is in opposition. I warmly congratulate the Secretary of State and my noble friend Lady Hanham on taking this step. Unlike some, I understand my noble friend’s wish to retain 50% of the proceeds for the immediate future, but I join others in hoping that this Treasury derogation from localisation can be uncoiled a lot sooner than 2020, as I gather is currently suggested.
My noble friend stressed that no authority would lose. That is welcome. I understand the wish to base new approaches to local government finance on existing financing levels. It makes for a simple life for central government. However, as some have pointed out, fixing levels can fix many forms of rough justice. From my standpoint, those authorities that were long discriminated against by the old funding formula, or which, for spatial reasons, have limited capacity to increase business rates, should not be expected to suffer a decade-long financial penalty.
I hope that a way can be found to reflect the position of authorities whose residents make a huge contribution to economic well-being and growth, but do not make that contribution within their own local authority’s borders. You can see who they are and which authorities those are if you go to any suburban railway station or stand by any major road outside the centre of London or our other major cities during the rush hour.
We need consideration for authorities that feed the growth of businesses, shops and factories in our major cities. We occasionally seem to be falling into the error of believing that you get growth only by pouring concrete into every given locality. Labour is dynamic and a good business-tax system should recognise that. It is one reason why I am open to positive consideration of pooling arrangements. I welcome what my noble friend said about that in her excellent opening speech.
I now turn, perhaps with less enthusiasm, to the other major aspect of the Bill—council tax support. I start by expressing thanks for the initial discussions that I and other noble Lords have had with departmental officials, and I look forward to future discussion, particularly with other noble Lords, when we get into Committee. That discussion is vital and, as others have said, cannot exclude consideration of the timetable for implementation.
As others have said, the Bill may not complete its passage until October or even November. Meanwhile, scores of local authorities are being invited to set up mini-welfare systems—with risks of employment trap, unintended effects and other effects that have been mentioned by other noble Lords—when many final financial decisions are yet to be taken and some critical information is still not available. In those circumstances, I must join my noble friend Lord Tope who said that the timetable for decision by January 2013 seemed challenging. It may even seem to be a little heroic to some. Heroism can be a splendid thing but can be rather unwise.
I support localism but share the regret—it is a done deal, as I understand it—that council tax benefit was not rolled into the widely supported scheme of universal credit, whereby the needs of a whole person or family could be reviewed as one. Instead, London, my city, may have 33 different benefit systems in place by next April, if the Government’s plan works. The help that you may get may be different if you live on one side of the road than if you live on the other side. In such cases, the pressure will be on to equalise schemes up to the more generous ones.
Unlike many others who have spoken, I understand and support the need for spending cuts. Indeed, the Government’s actions across the board have not been forceful enough. Current levels of public spending are unsustainable and no debate about the use of public resources can ignore the continuing explosion of public debt, which will have surged by £85 million during the time that today’s short debate is estimated to take. However, I would have preferred the spending reduction to have been included in the rational and coherent whole of a national universal credit, or that if the money were to be required from local authorities—that is a perfectly legitimate demand from the centre—we had been asked to make a further cut of £500 million from overall spending rather than being invited to set it onto a narrow spectrum of residents who receive council tax support.
I do not want to repeat what others have said about the narrowing of the base from which savings are to be made. Pensioners, who in my authority account for more than 42% of claims, are already exempted by the Government’s request, whatever their wealth. No doubt, other exemptions will be suggested in Committee by noble Lords. Therefore, the notional cut in the level of support for local non-pensioner claimants is already nearer 18% in my borough, which is roughly similar to the 19% figure that others have used. Richmond is not the hardest-pressed authority. We have to save only the equivalent of just over 1% of council tax. Yet, within those figures, we have 5,800 non-pensioner claimants, of whom 1,700 are working, with an average weekly claim of £21; 3,400 claim income support or jobseeker’s allowance, with an average claim of £26; and just over 700 non-earners—people in receipt of benefit but who are not passported—with an average claim of £22 a week.
My noble friend Lady Hanham was right to point out the large-scale expansion in council tax benefit spending. Noble Lords opposite are wrong to say that any reduction in this area of spending must end in disaster. No doubt some of these payments could be reduced but—here I return to the timetable—fair decisions must be taken in possession of full knowledge of who is affected. Local authorities have been told, quite reasonably, that in designing schemes they must have regard to what are, as my noble friend Lord Tope said, still undefined vulnerable groups and to their duties to children, disabled persons and homelessness. Each local view of vulnerability may be open to legal challenge. Local authorities will need time to consult widely and fully consider the impact of any changes to their schemes as they come to decisions. This would include robust equalities impact and needs assessments. Given the potential for legal challenge, the timetable must allow time for authorities to complete this work. I urge my noble friends to reflect on this.
We are also urged to enhance work incentives—a principle that I strongly support. To do that local councils will, for example, need continuing access to details of universal credit claimants affected by the cap. An authority might, for instance, propose that, as with universal credit, no group earning over a certain level gets support. However, once we cease to administer housing benefit, we will have no need to access such information from the DWP. Therefore, the legislation will need to ensure that councils can access appropriate information to enable them to deliver on that objective.
All that must be considered, software must be designed, consultation carried out, EINA assessments made, decisions taken and published, and policy implemented against the ticking clock, described by many others who have spoken, while the Bill wends what now seems a rather leisurely way through Parliament. With these uncertainties in mind, and with the bait dangled before us in Clauses 10 and 11, as we have heard, many local authorities will decline to take the bold course and design the radical new schemes that Ministers may have had in mind, while the winners and losers tables are still shrouded in mist and the final shape of the law is still unknown. Instead, because of the pressure of time, many councils will, as we have heard, take up new and existing rights to limit council tax exemptions so as to raise new income to cover or offset the costs of running a council tax support system, which, if they can afford it, may turn out to be not too different from what we have now. If so, then instead of achieving a £500 million saving in overall public spending, much spending may be transferred from central government to local government spending, paid for by as large an extension of the tax base as councils can get away with.
I do not want to dwell further on the details. I simply want to add that the removal of exemptions, which will be attempted and considered by every local authority in this country, will not always offer easy solutions. For example, Clause 11 addresses long-term empty property. However, we have just 53 such properties in our borough. The richest seam for us, theoretically, would seem to lie in the so-called exemption C, awarded to properties unoccupied and unfurnished for less than six months. My noble friend Lord Palmer has addressed some of the potential difficulties with that. Many of these awards may be to landlords for short periods between tenancies. There is a risk that we will create a large number of small debts that are difficult and expensive to collect. The noble Earl, Lord Lytton, referred to related difficulties which may contribute to an overall decline in collection rates. Furthermore, landlords may simply add on the cost in higher rates to tenants.
My fear is that if it is left to every local authority to decide and publish a scheme by next January, we may reduce public spending by less than is needed, raise taxation—including in some places the council tax itself—by somewhat more, and, because we do not have all the facts at our disposal, risk unintended anomalies or, still worse, injustices on the way. I think that with careful thought many of these problems could be overcome but it will be harder to do and to implement safely within the compressed timescale consequent on the rate of progress of the Bill. That is why I am grateful to my noble friend for her typical willingness to engage in discussion, and I look forward to ways of ameliorating some of the potential consequences of the Bill before and during the Committee stage.
Baroness Donaghy
My Lords, although I do not claim to be knowledgeable about local government finance, I think that the Bill is intended to encourage local authorities to mitigate the 10% cut in council tax support with various self-help projects. Mr Andrew Stunell, in reply to a debate in the House of Commons, said:
“The savings from localisation are a vital contribution to deficit reduction, and it is essential that we have a credible deficit reduction plan ... It would be much easier to have this scheme without deficit reduction, but it is an unavoidable part of the scheme”.—[Official Report, Commons, 31/1/12; col. 744.]
The real question is: will the Bill achieve what it says? Have the Government considered any of the unintended consequences arising from its implementation, as other noble Lords have said? The Government set great store on the proposal to allow local authorities to raise revenue from empty or second homes. It is claimed that current discounts cost around £420 million and that if authorities exercise the flexibilities allowed in the Bill to maximise revenue, the extra revenue generated would relieve pressure on council tax to the equivalent of approximately £20 per Band D equivalent in England.
Three-quarters of the discounts or lost revenue are in exemption C housing which, as the previous speaker said, relates to a vacant dwelling that is empty and substantially unfurnished for up to six months. What constitutes “substantially unfurnished”? Under the new scheme a new dwelling could be liable to tax from the moment it is completed, or deemed to be completed —an important phrase. Who will do the deeming? It could incentivise owners to refurbish more quickly, as the Bill intends. However, the owner may not be able to afford refurbishment and will have to face the choice of trying to sell on a flat market at a huge discount, pay the council tax and keep the property empty for a couple of years until the market picks up, or be taken to court if he fails to pay the newly imposed council tax. Have the Government factored in the costs of chasing non-payment through the courts? The impact assessment states, with remarkable understatement:
“Collecting council tax from those who were previously exempted or who previously received a higher level of discount may be difficult. As a consequence, collection rates for these groups may be lower, reducing the revenues that may be raised from them”.
The proposal for an empty homes premium, allowing local authorities to charge more than 100% of council tax in some circumstances might encourage some owners to sell or refurbish their properties more quickly. However, such a proposal is hugely complicated and will bring local authorities into conflict with mortgage lenders and building societies, which will resist increased cost liabilities from possessed homes and will be in a much better position than individual homeowners to take councils on. There is no impact assessment on this proposal and no indication of what costs will be passed on to borrowers. We see that the October 2009 figures reveal that 3.4% of dwelling stock is empty. Of that, 41% of properties were empty for six months or longer. Of course empty homes are a problem. Will the Bill solve it? The impact assessment says that,
“we are unable to measure the impact our proposals might have on reducing the number of empty homes”.
We are heading into the unknown with the coalition Government. Is this a potential cash cow or a cynical diversion? Only 6% of dwellings receive the full 50% discount; 80% of local authorities already set the discount at the lowest level possible for at least some of their second homes; and 90% of dwellings receiving the second-home discount have a discount of only 10%.
On the council tax reduction scheme, it has been made clear already that pensioners and the most vulnerable in society will be protected from the proposed reductions. Pensioners currently account for 46% of council tax benefit expenditure. If overall expenditure is to be cut by 10%, the reduction can be met only by a disproportionate cut for the 54% of people of working age. Of course, this is a national average; there is a wide variation between local authorities in the proportion of claimants who are pensioners. For example, in my borough of Southwark the figure is 29%; in East Dorset it is 70%. East Devon Council calculated that there will be a shortfall of £800,000 for its working-age population compared with current expenditure. The council maintains that its existing working-age claimants will face a 25% cut in entitlement if it is to meet the Government’s savings target. If other vulnerable groups are included, the cut in the existing entitlement will be nearer 28%.
What happens then? How will the shortfall be met? Under the poll tax, everyone was expected to pay 20% of their poll tax bill. This system could lead to a return to one of the worst features of the poll tax, with large sums of public money being wasted as councils pursue payments through the courts. Have the Government factored in the possible increased costs of pursuing council tax payments through the courts? The Bill represents an attack on the working poor by a Government who want to make work pay. Instead of the right to a benefit, we will get a grant that is cash limited and will vary depending on where a person lives. The Government claim that councils will have increased financial autonomy and a greater stake in the economic future of their area. However, I believe—as has already been said—that the Bill will simply transfer the financial risk to local councils and hit the working poor the hardest.
The DWP indicates that 1.7 million households—40% of pensioners—do not claim the council tax benefits to which they are entitled. The Government have said that one potential advantage of localisation will be to increase the take-up, but will provide no finance to local authorities to meet the additional costs. Instead, any improved take-up by pensioners will be paid for by reductions to people of working age or cuts in local services, or both.
The timetable was mentioned by many noble Lords. What assurances will the Minister give that the tight timetable for implementation and the absence of detail in the most crucial parts of the Bill will not lead to administrative chaos and the poorest in our communities facing real hardship? Secondary legislation has not yet been published, and the Government expect local authorities to design their own scheme, consult major precepting authorities, publish a draft scheme, adapt IT systems, procure and test software, develop claims procedures, train staff and adopt finalised schemes by 31 January 2013. Why is so little information available? The council tax reduction scheme was announced in October 2010—20 months ago. If the Bill becomes law in October this year, local authorities will have four months to produce a scheme. It is no use saying that the Government’s intentions are already known and that local authorities can start planning; the crucial information is missing. What scope is there for raising money through empty homes? Will the amount of money an authority can raise through increasing its proportion of business rates be worth the candle?
On the business rate retention scheme, the Government plan a 10-year period for resetting, which is good. However, three major planks of this year’s Budget were reversed in 10 weeks, so how much faith can we put in a 10-year plan? Local authorities have been treated with disrespect. In addition to the 10% hit in council tax reduction and the absence of any useful information surrounding the Bill, they will have to cope with the formation of local Healthwatches, police commissioners, the cost of care—mentioned by my noble friend Lord Warner—and the fallout from welfare reform. Yet the Government are expecting a productivity rate from local authorities which is five times greater than their own productivity record on the Bill.
We should not forget in our discussions that these proposals affect real people, those who are just about coping. Inflation and cuts in council tax benefit—let alone anything else that might be thrown at them by greater job insecurity and cuts in welfare benefits—might make the difference between coping and not coping. I was president of NALGO, one of the forerunner unions of UNISON, 22 years ago. I travelled the country meeting local government staff who were immensely proud to be working for local government. Not only will they be expected to implement the proposals in the Bill, some will also suffer financially from it. I have examples of cleaners and assistant caretakers who stand to lose up to £2 a week from council tax benefit. It may not seem a lot but it does not take much to provide a tipping point. This is not making work pay.
Debates about the Poor Law through the centuries have been what Derek Fraser called,
“the impossible task of marrying deterrence and humane relief within the same system”.
There is a genuine debate to be had about the role of national and local government in social support systems, as William Rathbone described in 1867,
“to meet the conflicting claims of justice to the community, severity to the idle and vicious and mercy to those stricken down into penury by the visitation of God”.
There is a debate to be had but it will not take place in the confines of this contradictory Bill, which promises local but leaves immense powers in the hands of the Government.
Lord Shipley
My Lords, I declare an interest as a vice-president of the Local Government Association.
I welcome, in principle, the proposals for business rate localisation. The key reason for that is that I want local government to have a clear responsibility for driving growth and then to secure the benefit of the financial rewards from doing so.
I have had doubts about council tax benefit localisation given the introduction of the universal credit. However, I understand the case for it, which, frankly, would be better made if it did not include a 10% cut in the resource available and which will prove difficult to implement fairly.
I was glad to hear the Minister refer to the issue of the funding baseline as a stable starting point in which no council would be worse off—except that that is not worse off today and into the future as opposed to not worse off than in 2010 when the budget cuts, which were front-loaded, began to impact upon local government. The setting of that funding baseline of government support is very important and will be subject to a consultation over the summer. I hope that we get it right because it will inform the calculation of the initial tariff or top-up. We will have the outcome of that consultation by the time we reach Report stage and it will inevitably inform our thinking on the Bill at that point.
We should remember that cuts in council funding support since 2010 have been higher in the poorer parts of the country, both north and south, and it will be important to ensure that council tax resource equalisation is protected in future both in principle and in practice.
Student council tax exemptions are also being consulted upon. It is important because some councils are now only 75% funded through the current resource equalisation mechanism, and that percentage is likely to drop further in 2013-14. Student council tax exemptions, which are statutory, are supposed to be fully funded. I hope the Minister will be able to give us an assurance, if not today then at Committee stage, that if student housing continues to be exempt from both council tax and business rates, there will be full recompense from the national pot for councils that have to fund local services for dwellings which, in some cases, can be substantial.
I move next to the localisation of business rates. I agree with others who have talked about the 50% central share. It seems very high and it is much higher than I had anticipated. It has the effect of reducing the incentive for growth and, in my view, it is too restrictive. Local growth in business rates should not be used to fund local government grants that currently come from departmental budgets because growth inevitably requires additional basic local government services, and these are likely to outstrip the 50% allocated locally. A better way forward might be to share the baseline at 70%:30% in councils’ favour, but to allow councils 100% of future growth.
Mention has been in the debate about tax incremental financing, but the Treasury seems to have curtailed its potential: TIF 1 because of the 50% retention in business rate growth by central government, and TIF 2 because it is a very small sum, amounting to just £150 million of infrastructure costs to be competed for by the eight English core cities. It is not clear why the principles of enterprise zone financing have not applied to the TIF 2 funding. All 24 new enterprise zones are able to retain business rates over a 25-year period, so surely this accounting convention could apply to the TIF 2 schemes. This should not be seen as an immediate cost against government finances. It seems that the Treasury is putting control ahead of growth and treating TIF as a spending decision rather than as an instrument of growth, which is what it is intended to be. My fear is that, as currently configured, TIF is not going to deliver the growth we desire, so I hope that the Government will look at this again. It is most certainly in their interests to do so because growth delivered by local government delivers tax income for central government from corporation tax, VAT, income tax, national insurance and so on.
I turn briefly to collection rates, safety nets, reserve levels, reset periods and risk management. Risk is being transferred from central to local government, inevitably so since this is about localisation. But councils’ unearmarked reserves will need to be higher, to deal with unintended consequences such as successful back-dated appeals against the 2010 business rate list or a decision by the district valuer to impose a general reduction in rateable value in between scheduled revaluation dates, which can happen, as it did recently in Leeds. Given that a council will itself need to fund up to 10% of any loss, it is inevitable that reserves will have to rise, with a commensurate reduction in revenue spending as a result. Will my noble friend the Minister look again at that figure of 10% and consider whether, as the Local Government Association has suggested, a lower percentage might be more appropriate?
Could I also ask the Minister to look again at the problem with resets, because a full reset every seven to 10 years does not provide enough of a growth incentive? Councils will not feel secure about deriving longer term benefit from the growth it drives and will seek to delay starting schemes to the next reset period in order to get full value from the growth of an individual scheme. A solution to this would be a partial reset system, and I hope that Ministers will look further at that possibility.
Turning to council tax benefit, a 10% cut is inevitably skewed towards poorer areas. There is also a risk of future increases in the cost of this benefit being transferred to local government, which may prove to be higher than the 90% being transferred, even in the first year. As we have heard, the Government are offering powers to local authorities to make up the 10% reduction by reducing empty home and second home discounts. That is an acceptable proposal in principle, to give discretion locally for local councils to decide whether or how to do these things, but there are several problems.
First, the estimates of what can be collected are too high. In many places, second home totals are low, as are the number of empty homes. Secondly, many council treasurers think that collection rates will fall if a full charge is made, and of course recovery costs will rise. Thirdly, the impact on the housing revenue accounts needs to be considered because empty homes that are in council ownership will have to be funded by existing tenants, most of whom are not well off and are already subject to high rent rises. Fourthly, if a council cannot get enough income from reducing discounts on second and empty homes because it does not have enough of them, it will have to decide whether to load the resulting cut on to poor households or to spread it across all council taxpayers.
Local authorities with low numbers of empty and second homes and high numbers of pensioners and vulnerable people who could be exempt from any cut are clearly going to face some very difficult decisions. If councils consider the impact on disability and child poverty of a benefit cut—as they should—council tax bills could rise significantly for remaining groups, who will be working-age council taxpayers, by as much as £300 to £400 a year. For that reason, it cannot be right to load the cost on such a potentially small group of people who are themselves poor by any measure. As my noble friend Lord True has identified, inevitably many councils will adopt the default scheme from April 2013. That may be a good thing because it would enable the Government to understand better the implications of their policy change and what the noble Lord, Lord Best, referred to as the “compounding effect” across all welfare reform.
In conclusion, if the Government believe in devolution, they should do that. But in this Bill there are too many government controls still in place. TIF funding is inadequate and will not deliver government aims, and they need to act urgently on this. The Government should also examine carefully the case for including rateable value increases in business rate retention; and understand the need for local government, in its desire to drive growth and its willingness to manage risk, to have security in delivering this. This means the funding baseline has to be right, the reset period has to be right, the safety net has to be right, and the rewards for local government have to be right. There is a chance over the summer for consultation and discussion to take place. I hope that that will be productive, particularly on the crucial issue of pooling. Committee will be over by the autumn but I hope that the outcome of the consultation can be addressed satisfactorily when we return on Report after the Summer Recess.
Baroness Eaton
My Lords, I declare my interest as an elected councillor on Bradford Metropolitan District Council and as one of the vice-presidents of the Local Government Association—many of whom seem to be here this afternoon. I add my thanks to the Minister for the clear way in which she presented this Bill to the House today. Knowing her vast experience in local government over many years gives me greater confidence and enables me to broadly welcome much that is in this Bill.
Many noble Lords have already mentioned the complexities of local government finance, and nothing tends to make friends glaze over more the minute you begin to talk about it. However, most of us who have spent many years in local government would still not claim to be experts, because the finance agenda is constantly changing. The most knowledgeable of us would say that local government finance is very complex.
Therefore, we all found it very refreshing to hear the coalition Government express their pledge of radical devolution of power to local government and greater financial autonomy, supporting sustainable growth and enterprise and balanced across the country. All those aims work with the philosophy of localism which has been pursued and championed by local government for a good number of years.
Full business rate localisation would be a powerful move towards localism and a great driver of economic growth. It has been long requested and supported by local government. When I was leader of large metropolitan authority, I felt that it was terribly important to have very good working relationships with businesses in the area. I always tried to further our shared agenda of the growth of business, the development of the economy and the creation of jobs. Business rate localisation will help enormously in this regard. The Government’s policy is a first step towards this objective, but it raises a number of concerns, many of which we have heard expressed today. I have great confidence in your Lordships’ ability to address those concerns in Committee.
As we have heard, rather than localising business rates in full, the Government intend to implement the Bill in a way which would give the Treasury half the proceeds for the foreseeable future. Taxes paid by local businesses for local services would be taken on the basis of national priorities instead of local ones. This appears to be so that the Treasury can continue to enforce an overall limit on local government spending. I know that the Local Government Association’s view and that of its member councils is that this is a tax on local authorities. Naturally, I would be strongly opposed to it. The department’s own published economic analysis states explicitly that the higher the central share of business rate income, the lower the growth incentive created. This gives the impression that the Treasury is buying control of council funding at the expense both of economic growth and of future tax revenue. There does not seem to be a sound case that can be made for this.
I know that my noble friend from London Councils and others in local government do not always agree with me on localising benefits, but I feel that it is a good idea and I welcome it. Local authorities have the accountability and the democratic mandate to decide what is best for their area. The localisation of responsibility for decisions about who deserves relief from local taxation could be a sensible approach. However, at the same time as localising decisions about council tax reliefs, the Government are, as we have heard, reducing by 10% the funding available and severely restricting councils’ discretion about new local relief schemes. This was ably made clear to us by my noble friend Lord Jenkin.
Pensioners and the vulnerable account for three-quarters of claimants. Simple arithmetic shows that the Government’s policy of mandatory protection for those groups means that remaining claimants face cuts in relief of a third on average and, in some cases, of as much as a half. The flexibility that the Government plan to introduce on some other council tax discounts and exemptions may help local authorities to mitigate these impacts but, in some places, it will fall short of what is required. It is therefore inevitable that some councils will be forced to reduce the services that they provide, raise council tax or penalise those most in need of benefit.
The tight timeframe for implementing those changes has already been mentioned and places even greater burdens on councils. I urge the Government to give councils the necessary time to do that in the most considered, flexible and cost-effective way. Councils need to be given as much flexibility as possible to reform council tax discounts so that they can manage the financial risk. Councils want to get this right and help the most vulnerable people who rely on their support. The process should not be rushed though.
The restrictive approach proposed by the Government is likely to have significant cost implications in later years. Pensioner numbers are growing and there is also the prospect of increased take-up of local discount to replace some of the national benefits. The cost of nationally determined commitments to retain existing levels of benefit is likely to rise.
The Department for Work and Pensions’ current forecasts for the future cost of council tax benefit appear to ignore those impacts and to be out of tune with both recent trends in the cost of benefit and local authorities’ experience of growth in claimant numbers. It is surely inappropriate for those burdens to fall on local council tax payers. The Local Government Association believes that the total resources given for council tax support after 2013 needs to be increased to reflect realistic forecasts of growth in claimant numbers, the overall increase in levels of council tax and the potential increased take-up of local discount schemes. It would be most helpful and encouraging if the Government could indicate a commitment to keep the overall level of funding under review to recognise those factors.
I look forward to the Committee stage, when I feel sure that the many concerns raised today by all of us will be addressed.
Lord Whitty
My Lords, like almost everyone else, I had better declare that I am a vice-president of the LGA; I am also a vice-president of the Trading Standards Institute. However, my experience of local authority finance is much less than that of a lot of people who have spoken in this debate. I shall use most of my time to make a basic strategic point, which was referred to, among other things, by my noble friend Lady Donaghy.
The Minister, in her usual convincing and efficient way, presented this as a rather limited and technical Bill—important but nevertheless relatively straightforward. However, it is being introduced in a period of seismic change in local government: what the Government expect of local government and what the public expect of local government. We have a basic contradiction here. On the one hand, we have had serious cuts in finance from the centre to local government in both the general rate support grant and support for particular activities such as affordable housing. We also have a council tax reduction programme in the Bill. We have also had a clear determination to cut staff numbers, to reduce the staff pay bill and to impose other burdens on local authority staffing which have seriously affected morale in many parts of the country in the local government service.
We have also had a determination in other parts of the policy field to take away traditional functions of local authorities. I think particularly of education, where the role of the local education authority has been greatly reduced and the aim is to reduce it further by making most schools academies reporting to a central department. We have had reductions under the red tape agenda in the regulatory role of local authorities in relation to health and safety and environmental health.
On the other hand, we have had significant increases in the duties on local authorities. That is partly in pursuit of the localism and decentralisation agenda, partly as a result of the abolition of regional structures in England and partly as a result of other pieces of legislation. For example, the NHS Act places more duties on local authorities, particularly in relation to adult social care, as my noble friend Lord Warner said, on top of significant demographic pressures on that front. We have had other examples, as in the decentralisation of the OFT’s responsibilities in the consumer field down to local trading standards teams—all without additional resources. The Minister’s justification for the business rate changes in this Bill also implies a significant additional, or at least growing, responsibility on local government in relation to economic development.
We thus have a basic contradiction in the Government’s approach to local government. On the one hand, in line with their “smaller government” rhetoric, we have the diminution of the local state and its resources and, on the other hand, in line with decentralisation and localism we are placing the local state—local government —as the driver of some of the strategies which the Government hold dear. That is in relation to issues which have previously been more centralised, although they were in some cases regionalised. We now have local government, with diminished powers and resources, nevertheless being designated as responsible for the prosperity, well-being, planning and the environmental side of their localities. We also have ever more complex interventions, as other speakers in this debate have underlined, placing ever more complex requirements in the financial area.
I will fully accept, before the Minister makes the point, that this contradiction is not unique to this Administration. However, it has become much more acute, partly because of the large-scale reduction in resources—both those already seen and, more importantly, those impending—but also, if I may trespass on private territory, because this Government have an internal contradiction themselves. That contradiction is not only between the coalition partners but to some extent between the metropolitan leadership of the Conservative Party and the Conservative councillors in the country, who have a different view of local authorities.
I come from a different tradition entirely. I make no bones about it; I am an unashamed statist. However, I have always recognised that the nature of the state in Britain—in this particular context, in England—is hugely overcentralised. Compared with almost every other western democracy, the level of powers, resources and political importance of local government in England is much, much less. I had hoped that, at least on the resources point, this Government’s first Local Government Finance Bill would begin to turn that round because, to that extent at least, I agreed with some of their provisions in the Localism Bill. On the financial side, for example, I agreed with their reforms to the housing revenue account. In this Bill, I agree with the rhetoric surrounding the decentralisation of the business rates, but when one looks at its details it is only rhetoric.
The Bill is not all that clear—it is not all that clear in Schedule 1—but in reality the Secretary of State has huge powers to determine what exactly each authority will in practice get out of the business rate. Apart from the 50% cream-off, we do not know how that will be distributed. I would hope that the Minister could at least give us an assurance that before we complete the passage of this Bill, we will have an indication, in outline and in principle, of what kind of redistribution the Government have in mind for the 50% of the business rate that is to be rechannelled through the centre.
In reality, the position is that local authorities will not know how much they will get from the business rate. That is surely completely non-conducive to the alleged aim of this: to allow local authorities to stimulate local business and prosperity. Unless they know what kind of income they are going to get over a relatively long period, that kind of economic planning role will not be achievable. We have a Bill here which is probably going to be an example of the tensions within this Government and within any central government’s approach to local authorities. Yet the tensions are becoming more acute and the local authorities are going to find it much more difficult to deliver that.
I have three further points to make, one of which is in the Bill and I support, one of which is in the Bill and I oppose, and one of which is not in the Bill. I support the measures relating to the powers to tax empty homes and, to some extent, second homes. They are sensible and, apart from being a revenue-raiser to a limited degree, may actually be able to contribute to the housing role of local authorities. Like other noble Lords, though, I am strongly opposed to the localisation of council tax benefit. Because others have already made them, I will not go over the arguments that the burden of this change, particularly in the timescale proposed, will fall primarily on the working poor and the young unemployed, but the timescale will be impossible logistically if we insist on a start date of 2013.
My view is that housing benefit and council tax benefit should be dealt with in the same place and in the same way. Both are based on the same passport arrangements, relate to local costs and are administered and delivered locally. It could be argued that it would be sensible to decentralise both, but I argue that it would be better if both were dealt with in the present way and taken together into the universal credit system. What is entirely illogical is to treat them differently, and that is what the Bill provides for. Taking all those things into consideration, that I predict some chaos in local authority systems and some serious injustices for recipients of council tax benefit. Not only will local authorities and recipients be in trouble but central government will as well.
My final point is not in the Bill. It relates to housing, and I declare an additional interest as chair of Housing Voice, the campaign for affordable housing. Noble Lords will recognise that housing is in crisis in all forms of tenure and in pretty much all parts of England. The Localism Bill in effect put local authorities in the driving seat with regard to housing but never gave them the resources that they would need. I support the central role of local authorities in this arena, recognising that it will mean differential outcomes in different local authority jurisdictions. Housing markets are different, as are the needs of different populations, and it is right that a lot of those decisions should be taken locally. To be a strategic authority in this area, however, local authorities need resources whether they are going to build social housing themselves, help housing associations to do so, go into partnership with the private sector to build affordable homes in their area or help first-time buyers to purchase in their area. This role is not covered in the present rate support grant calculations; it is inhibited by the restrictions on local authorities being able to devise their own systems of local taxation, or even to make marginal changes to the council tax provisions in relation to banding and designation, and, above all, by the Treasury-imposed restrictions on borrowing.
Again, in most other European countries, local authority borrowing to build houses, or indeed other infrastructure, would not be set against central government limits, as even the rather pitiful level of TIF in this Bill will be, and I see no logical reason relating to economic management why that should be the case in this country. I am not arguing for the complete relaxation of credit and borrowing controls for local authorities but, unless they have more flexibility to raise their own finance from the market, neither they nor the private sector nor registered social landlords will be investing sufficiently in housing when, as we all know, there is a massive unmet demand and severe dysfunction in the housing market. I fear that we will not see that in the Bill, but I register with the Minister that at some point in this Administration we have to make some radical changes in the resources and powers available to local authorities in the housing sector. If she cannot be forthcoming on that in the course of the Bill, I hope that she will at least persuade her colleagues to bring something forward later in this Parliament.
Lord Wigley
My Lords, as a committed devolutionist, I have every sympathy with the objective of giving local government maximum freedom. However, in doing so, we must surely ensure that we are not undermining their ability to deliver services to vulnerable people who depend upon them or adding financial burdens to such people.
The Bill applies to Wales, but not to Scotland or Northern Ireland, so it is the Wales dimension that I will mainly be addressing tonight. I hope that in Committee there will be an opportunity to go after more detailed aspects relating to vulnerable people, particularly disabled people.
In terms of its effect on Wales, this Bill has greatly changed since it was first presented to the House of Commons. This is because of the introduction of new clauses, apparently supported by the Welsh Government, at a very late stage in the House of Commons. Indeed, it was such a late stage that I do not believe a single Welsh Member spoke in the Chamber when they were discussed. This creates some concern about the timetabling of consultation and legislation between Westminster and Cardiff, especially as the measures involved, the change in council tax benefit arrangements from April 2013, were first announced as far back as the 2010 spending review, which was nearly 20 months ago. Was it the Welsh Government’s fault that they had not responded in good time to be included in the Bill when it was first published or had the Government not consulted the Welsh Government in good time to enable that to happen? The amendments that have been introduced follow the Welsh Government’s consultation earlier this year. A legislative consent Motion for this Bill is yet to be discussed in the National Assembly, which will be scrutinising these proposals for the very first time later this month. Frankly, this is a procedural mess, and it is not good enough.
Criticism of the Bill is generally not related to the measures proposed in it but to how the Bill provides the framework for significant cuts to council tax benefits which will fall on vulnerable members of our society. I suggest that this is part of a localism and cuts agenda and will involve the devolution of administrative costs as well as the 10% other costs. According to the Welsh Minister responsible for communities and local government, Mr Carl Sargeant, the recent figures for funding transfer represent in total a cut of some 13%. I do not know whether the Minister agrees with that or whether she has discussed this with Welsh Ministers. The Welsh Minister also said in a recent response in the National Assembly that he would shortly be meeting Mr Iain Duncan Smith and the noble Lord, Lord Freud, to raise profound concerns about the financial implications. Is the Minister in a position to confirm whether that meeting has taken place and what was its outcome?
People in Wales who have kept up with the Bill are concerned about the effect of these proposals. As noted by the Minister in the House of Commons, the Welsh Government will be setting out their proposals for council tax reduction schemes in due course, but they propose to introduce a single national scheme set out in regulations and to include the reforms necessary to meet the 10% reduction. The fear is that the Government of Wales will be helping the UK Government to implement a scheme that may be detrimental to poor communities and, particularly, to vulnerable people in those poor communities. The Minister in the House of Commons seemed to believe that the Welsh Government intend local authorities to be given an amount of local flexibility in the new scheme’s delivery and that deviation from the national scheme will be funded locally. Their proposals will be scrutinised by Members of the National Assembly for Wales when they are laid before them. In England, following consultation, support for vulnerable pensioners will be delivered through a national framework of criteria and allowances, so pensioner council tax support will not be reduced. We must suppose that this means that the burden will instead fall on all working-age claimants of council tax benefit. As was said earlier, the Institute for Fiscal Studies estimates that this will mean that on average working-age claimants, most of whom are already in poverty or close to poverty, hence their eligibility, will be losing almost a fifth of their current support and, in some areas, up to a third.
In Wales, around 330,000 households—nearly a quarter of all households—receive some form of council tax benefit. However, Welsh Ministers have already accepted that they will not be able to shelter Wales from these Westminster-inspired cuts. My party, Plaid Cymru, has called for the Welsh Government to follow the Scottish Government’s example and protect vulnerable citizens from these cuts by using some of the recent £80 million Barnett consequential payment to prevent the cuts for 2013-14. This would at least allow enough time to work through the proposals and plan the way ahead.
I turn briefly to the non-domestic rating. Business rates raise some £940 million a year in Wales. This is an essential component of local government finance, which enables many vital local services to be delivered for communities. Therefore, any relief of business rates comes at a price and must be paid for. However, if we can use business rate relief as an economic lever to safeguard and create jobs, and to revitalise town centres, it is a price that may be worth paying.
In Wales, the business rates system is, uniquely, not devolved. There is a Welsh business rates pool at Westminster, which I believe will remain as a result of the Bill, even though the English system is being changed and despite local government and economic development being devolved responsibilities. Welsh Ministers are currently not empowered to design a Welsh business rates system that is substantially different from the present system in England. With business rates devolved in Scotland and Northern Ireland, and being localised in England, Wales will have a unique system of having its rates pooled at Westminster. If the UK Government insist on devolving council tax benefit, they should also give Welsh Ministers full control over the Welsh business rates pool. Leaving the system as it is would be an enormous anomaly.
At present, the Welsh Government are allowed only to fund varying levels of rate relief. They cannot alter rates in any other way or configure rate levels to meet policy objectives. Full powers over the business rates regime should surely be put in the hands of Welsh Ministers. In a recent speech to the Institute of Welsh Affairs at an economic conference in Cardiff, Professor Brian Morgan, who leads the Welsh Government’s review of business rates, which was published today, said that an expert whom the review had consulted had described the business rates situation in Wales as “ridiculous”.
In Scotland, local authorities retain 50% of any business rates income that they generate on top of a nationally agreed base. In Northern Ireland, Ministers use their control over the non-domestic rates to place an extra levy on large out-of-town retailers and redistribute the proceeds to town centres. Professor Brian Morgan’s report on how the business rates system in Wales can be reformed to streamline and stimulate economic growth calls for full control over business rates in Wales to be transferred to the National Assembly. Therefore, in conclusion, I ask the UK Government to discuss the implications of this report with the Welsh Government to see whether they can amend the Bill further at a later stage to ensure that the proposals put forward by Professor Morgan and his colleagues can be put into effect.
Baroness Lister of Burtersett
My Lords, it is always a pleasure to follow the noble Lord, Lord Wigley. I rise to speak not as an expert on local government finance—perhaps I should also say that I have no links to the LGA—but as a survivor of the marathon that was the Welfare Reform Bill. Clause 9 of today’s Bill, which provides for council tax reduction schemes, forms a coda to the Welfare Reform Act but it is a discordant one. As my noble friend Lord McKenzie of Luton has eloquently argued, it threatens to undermine some of the key objectives of that Act in the name of localism, although whether this represents genuine localism is disputed. I will focus my remarks on this issue but will also briefly mention another legacy of the Welfare Reform Act that has implications for local government finance—the localisation of key elements of the discretionary Social Fund.
During the passage of the Welfare Reform Bill, my noble friend Lady Hollis of Heigham, who unfortunately could not be here early enough to take part in this debate, delivered what the late and much missed Lord Newton of Braintree described as a “devastating critique” which demolished the rationale for localisation of council tax support set out in the original consultation paper. I am tempted to provide noble Lords with the Hansard references and say, “I rest my case”. But in the role of understudy I will make some of the arguments that my noble friend might have made.
First and most fundamentally, for those below pension age we are turning a nationally determined social security entitlement, paid out of a demand-led budget, into a local game of roulette, the rules of which will be shaped by the effects of a shift to a cash-limited budget that, as we have heard, incorporates a 10% cut on current expenditure. Instead of a clear entitlement which changes only in response to changes in a claimant’s circumstances, which will be the same regardless of where the claimant lives, there will be a patchwork of schemes in which the help for which a person qualifies will depend on the demographic make-up of the local population. As we have heard, the greater the number of pensioners whose entitlement is protected, the less there will be for other groups. The support available will be vulnerable to economic shocks, such as a factory closure, and the scheme could change from year to year. Instead of forming part of the overall structure of social security, council tax reduction schemes could spell financial insecurity. Low-income households will be the main losers, as many noble Lords have already pointed out.
As has already been noted, the Institute for Fiscal Studies calculates that unless councils find additional money from elsewhere, which seems unlikely given the pressures that they are under already, the requirement to protect pensioners in England will imply an average 19% cut in support for working-age claimants, which could be as much as 25% in some areas.
Citizens Advice has warned its bureaux that this means that the poorest non-pensioner claimants, who would have received full council tax benefit under the present system, will probably have to find about one-fifth of their council tax from their weekly income—a point made by the noble Lord, Lord Best. It reminds bureaux of the trouble that paying a 20% minimum caused in the days of the poll tax or the community charge. It said:
“Many claimants could not make up the shortfall and were pursued for arrears. We expect a similar scenario to develop”.
Similarly, the IFS warns:
“The poll tax experience showed how difficult it can be to collect small amounts of tax from low-income households that are not used to paying it”.
That point was made very well by my noble friend Lady Donaghy.
The Explanatory Notes assure us that:
“The Government is committed to ensuring that local authorities continue to provide support for council tax for the most vulnerable in society”.
But that is not being enforced for groups other than pensioners and there is some ambiguity as to who exactly counts as vulnerable. The impact assessment gives the example of disabled people or carers. The DCLG document Vulnerable People—Key Local Authority Duties refers local authorities to the public sector equality duty, including specifically relating to disabled people; to their duties under the Child Poverty Act and homelessness legislation; and to the Armed Forces covenant. That is quite a range of duties which local authorities must bear in mind when drawing up their schemes. Perhaps the Minister could tell us what the consequences will be if they do not meet those duties.
To take just the duties under the Child Poverty Act, a recent survey by 4Children found that fewer than half of English local authorities have a child poverty strategy in place and that 35 of those without a strategy do not even have a needs assessment in place, as required under the Child Poverty Act. If they do not have a needs assessment, it will be difficult to take proper account of these needs in any local council tax reduction scheme that is devised. The evidence from a JRF survey of local authority spending cuts states:
“It cannot be assumed that the needs of disadvantaged residents and communities will inevitably be to the fore as councils manage budget reductions”.
While there is evidence that strategies are being devised to try to ensure that the needs of disadvantaged places and people can continue to be met, there is also evidence of tensions emerging around the degree to which such needs should be protected and prioritised. Then it says that only half of the sample of authorities had adopted,
“protecting the needs of the most vulnerable clients or communities”,
as a principle guiding budgetary decision-making. In other words, this does not augur well for government assurances that protection of the most vulnerable will be safeguarded when council tax support is localised. The study highlights the potentially divisive consequences of the policy—divisive as between different vulnerable groups and low-income council tax payers and the rest.
There is also a tension between the supposed commitment to protecting the most vulnerable, vaguely defined as they are, and the policy objectives set out in the impact assessment to support the improved work incentives to be delivered through universal credit. The repeated assertion of this objective takes on a Lewis Carroll-like quality in the face of the widespread view that the opposite will be the case. This is policy-making through the looking glass. It is widely believed that if local authorities are to observe the various duties relating to vulnerability, low-income working council tax payers are likely to be the losers. In other words, this policy change has the potential to create a significant work disincentive and, as the IFS points out, to the extent that local authorities try to protect those on the lowest income through the use of aggressive means-testing, the greater a disincentive it will create to the extent that some people could be worse off with a pay rise, recreating the very worst excesses of the old poverty trap.
Moreover, the overlap with the universal credit taper, mitigated but not removed by a more generous income disregard for the latter, undermines universal credit’s policy objective of rationalising overlapping means tests and, again, improving work incentives. To quote the IFS again, separate means tests for council tax support has,
“the potential to reintroduce some of the extremely weak work incentives that universal credit was supposed to eliminate”.
It also points out that the policy “severely undermines” the simplification that universal credit was intended to achieve.
The noble Lord, Lord Freud, was quoted in the Financial Times earlier in the year as saying that the Government were,
“not going to let a ha’p’orth of tar around council tax benefit undermine the universal credit”.
But with a 10% cut built in, we are talking about £500,000 of tar, and the consensus is that it will undermine universal credit.
Having worsened the work incentives within the benefit system, the Government then turn round and tell local authorities that the reform will create stronger incentives for them to get people back to work. That argument was given pretty short shrift by the CLG Select Committee report, Localisation Issues in Welfare Reform. It commented:
“We have seen little evidence to support the hope that new and better-paying jobs for individuals, immediately sufficient to off-set the 10% reduction in the benefit budget, will inevitably follow from these incentives”.
Or as was argued in the House of Commons:
“I am not sure that local authorities can wave a magic wand and create jobs in six months, a year or two years”.—[Official Report, Commons, 31/1/12; col. 726.]
That was a Conservative Member, by the way.
Localising council tax support in this way could create some new perverse incentives, as the IFS has pointed out—an incentive to discourage low-income families from living in the area, with shades of the Poor Law, and a disincentive to take up the support. In addition to the principled arguments against the policy, in the interests of good policy implementation—as a number of noble Lords from all over the House have argued—we have to raise concerns about the reckless speed with which it is being pushed through, as did the CLG Select Committee, which therefore recommended a year’s delay. As the IFS has argued, councils face a difficult task in squaring a number of circles in devising their schemes, yet they have little experience or expertise in designing means-testing support schemes and very little time to do it. We also have to question why a Government committed to reducing bureaucracy are increasing it as myriad local schemes are developed.
The more I look at this policy, the more it seems fraught with pitfalls. A big hole is being torn in the social security safety net, all in the name of localism, yet the CLG committee disputed whether this can,
“be considered a great advance for the policy of localism”,
when in fact it provides,
“an illusion of delegation with a minimum of real discretion”.
Those points were made by the noble Lord, Lord Jenkin, and the noble Baroness, Lady Eaton.
Personally, I am not opposed to local authorities continuing to administer a national council tax reduction scheme because there are dangers in lumping all financial support together in one universal credit payment, which may not be paid into the account of the person responsible for making the payment and which is highly vulnerable should anything go wrong with that universal credit payment. However, it needs to be a national scheme, dovetailed with universal credit.
Finally, and very briefly, not only are local authorities having to take over responsibility for implementing their own local council tax reduction schemes, they are also being made responsible for elements of the discretionary Social Fund. Again in the name of localism, another hole is being torn in the social security safety net, threatening the well-being of some of the most vulnerable members of our community, who currently can turn to community care grants and crisis loans for assistance in times of emergency or acute need. The money currently spent on this assistance is being devolved to local authorities but without any duty being placed upon them to use it for the intended purposes. When this was debated during the passage of the Welfare Reform Bill, there was considerable disquiet on all sides of your Lordships’ House as to the likely consequences. I hope that we will be able to return to this issue during the passage of this Bill as it is very much an issue of local government finance and is part of the localism agenda—an agenda which, as currently framed with reference to social security matters, spells insecurity and unfairness for many people living in poverty.
Lord Beecham
My Lords, like other noble Lords I have to declare an interest as a vice-president of the Local Government Association, although whether I will be able to do so in future depends on the reaction to some rather critical remarks which I may make later. Along with other noble Lords, I also have to declare an interest as a member of a city council—in my case, Newcastle City Council. Like the noble Lord, Lord Shipley, I suspect, I am grateful for the extensive briefing we received from the very respected treasurer of that authority.
I suppose that local government finance is the political equivalent of the Schleswig-Holstein question, which perhaps accounts for the fact that there are only 17 speakers in this debate. The paucity of numbers, however, does not reflect the quality of the contributions from all sides of the House. Indeed, I echo the compliments paid to the Minister for the way in which she introduced it. Whether I will be able to compliment her on her reply remains to be seen, but I am sure that she will endeavour to meet the various points that have been raised.
The Government claim that the Bill decentralises control over finance, gives local authorities a strong financial incentive to promote local economic growth and, with the localisation of council tax benefit, gives councils increased financial autonomy while providing continued council tax support for the most vulnerable, including pensioners. Taken together, this prospectus is about as inflated as that which saw Facebook’s shares tumble on the closer inspection which followed that celebrated flotation a few weeks ago. To begin with, as the noble Lord, Lord Shipley, pointed out, it completely ignores the savage cuts in financial support for local councils willingly proferred to the Treasury by the Secretary of State, on which the funding baseline which will govern the progress of implementation of the Bill depends, and the full effects of which have still to be seen. For example, I cite the apparent recent decision of the Department for Education to cut children’s social care needs assessment by a third, or about £1.3 billion, plus funding for youth and community services, while, incidentally, protecting its own central departmental budget. There was also the Department for Transport’s decision to cut its contribution to concessionary travel by a fifth. Both those decisions will impact further on local council expenditure and require money to be found elsewhere, and there is much more to come—even without taking into account the consequences of demographic change and the rising tide of adult social care, which, as my noble friend Lord Warner reminded us, threatens within a decade to swamp the entire territory of local government services. Costs are not likely simply to reflect increases in the RPI, to which the business rate will be linked.
As my noble friend Lord McKenzie and others have pointed out, the proposals for business rates do not match the Government’s claims. What they actually mean is that government grant is effectively to be wholly replaced by business rates, localised only to the extent that part of what is raised locally will be retained locally but with a complex system of tariffs and top-ups. Moreover, the basis on which business rates will be distributed, as we have heard, will be fixed initially for seven years, and eventually for 10 years, with little flexibility for adjustment if circumstances should change in the mean time, save that the Secretary of State—and this particular Secretary of State is not known for his flexibility—can make changes, but with no apparent requirement for any objective assessment or review. I agree with the views of the noble Lord, Lord Shipley, on this; there should be more regular reviews to reflect changing circumstances.
There is also an issue around the relationship of enterprise zones and the new business rate provisions. Businesses in enterprise zones will not initially have to pay business rates. Eventually, when they are paid, my understanding is that they will go not to councils but to local enterprise partnerships. There is a potential conflict at the outset in local authorities promoting new business, because if a business is within an enterprise zone there will be no financial benefit to the authority initially, or perhaps at all, whereas if a business is not in an enterprise zone, there would be at least some additional funding. I invite the Minister, not necessarily today, to look further into this issue of the relationship between enterprise zones and the general operation of the business rate scheme.
Further, the assumption that economic growth can be incentivised simply by local councils is flawed. In the 1980s the converse argument was put—that business rates were impeding economic growth and development. The Cambridge studies of that era demonstrated that that was not the case. I do not know on what basis it can be said that local councils in particular can be made responsible for economic growth. Most local councils, as we have heard, already do their best to work with and promote local business. Under this scheme, however, there might be a temptation to enhance business rate income by encouraging retail or service sector development, because that sector produces eight times as much in the way of rates as manufacturing does, whereas manufacturing is the very sector that we as a nation need to encourage most. The whole thrust of the new system pays little attention to needs—the needs basis for formula grant effectively disappears—as opposed simply to crude numbers, and it builds on a substantial shift of resources away from the less well-off areas to the better-off areas over the past two years.
However, it is in the area of council tax benefit that the crudity of the Government’s approach is best seen. It is some 45 years since, as a newly selected young candidate in the council election in Newcastle, in the ward that I continue to represent, I put out a leaflet promoting the then Wilson Government’s rate rebate scheme. It was the ancestor of council tax benefit and to a degree, therefore, of the council tax support that the Bill adumbrates. The rate rebate scheme was an innovation and brought considerable help to many people. As we have heard, that help has grown over the years. The take-up is far from complete but, nevertheless, in recent years in particular, the amounts paid out have been considerable. However, the Government are now not only slashing central government funding in this area by £500 million or 10%, they are confining that expenditure within a cash limit. Hitherto, if claims increased—legitimate claims—then the Government paid up. No longer will that be the case because the cap limit will be brought into effect.
It is already far from clear that the amount currently estimated for expenditure on council tax benefit will prove accurate—the 10% cut could indeed be greater than the £500 million that the Government will be providing. That £500 million sits a little oddly with the £250 million that the Secretary of State was willing to spend on weekly waste collection or the £450 million which, he announced yesterday, will be devoted to his new initiative on problem families, as he describes them, with £150 million over three years. As others of your Lordships have pointed out, including the noble Lord, Lord Shipley, only £150 million for TIF 2 being available between the eight authorities puts those figures into some perspective.
The fact is, as my noble friend Lord Smith pointed out, that none of this recognises that much benefit goes unclaimed, even though the total paid out has been rising. I think that the estimate is that around £1.8 billion of entitlement is not claimed, much of it by owner-occupying pensioners. It may be that as a result of these changes more such pensioners will be induced to claim but, in answer to a question that I raised some time ago, the Government have made it clear that they have no intention of promoting take-up by either pensioners or anybody else.
Further, as the grant is not ring-fenced, councils which receive more than they need will be free to retain the surplus, while others which receive less grant will themselves have to meet any claims that they receive, funding the gap by cutting other services or increasing council tax, or by cutting even more benefits from non-protected groups. As we have already heard, roughly speaking, if you take just the amount relative to pensioners—approximately 50% of claims—a 10% overall cut translates roughly into a 20% cut for other claimants, but that is without taking into account other vulnerable people.
The Government ever so helpfully remind councils of their duties in relation to child poverty, the disabled, the Armed Forces covenant and equalities issues generally, implying that those groups should also receive protection. Of course, councils would be anxious to extend that protection, if at all possible. However, the corollary is that the even greater cuts in benefit would then be inflicted on those not counted among those groups, and in particular by people of working age on low incomes—in other words, the working poor.
The depths of intellectual understanding underpinning these proposals is revealed in some remarks by no less than the Housing Minister, Mr Grant Shapps—or “Grant Stops”, as he is known pretty universally in local government. He puts it in this way:
“if somebody is in work they will not be receiving the [council tax] benefit because they will not need to … The culture of ‘Let them rot in the houses while we pay them benefit’ must come to an end”.
I have two slight differences of opinion on that statement. The first is that people in work on low wages can and do receive council tax benefit, and so they should. The second is that the implication that councils of any political persuasion simply allow people to rot in their houses while we pay them benefit is, frankly, a disgraceful slur for any Minister to make on local government.
The position in which we are left is that, unlike with the business rate, which the Government will fix, councils will be free to devise their own schemes for the new council tax support with the default mechanism which has been referred to. Therefore, we are likely to see a rash of different schemes producing a pattern of different local benefit levels, effectively emulating the Poor Law regime of the 19th century, and here is where I take issue with the Local Government Association. I find it astonishing that the LGA should approve of this deeply divisive approach, which, as my noble friend Lady Lister pointed out, undermines the whole notion of national entitlements. Of course, it fits with the Government’s calls for regional and local pay determination. One has to ask whether this variable geometry will next be applied to universal credit—perhaps to be renamed “locally adjusted universal credit”—or to other national benefits. As others have asked, what is the logic of two separate systems, given a universal credit standing alongside?
There is another aspect to this lottery that is worth bearing in mind. Most noble Lords who have spoken hail from London boroughs or metropolitan authorities, but of course, in the shire counties, we have a two-tier arrangement. It will fall not to the county council, which is responsible for something like 80% of the expenditure, to devise the council tax support scheme for its area; it will be for each individual district council to devise a scheme. In some cases, they may come to an agreement and there may be a scheme common across the county, but that cannot be guaranteed. We could therefore have a significant difference just across a district boundary when most of the money that has been paid by the council tax payer goes not even to that district but to the county council. There is a question not only of fairness but of accountability.
In fairness to the LGA, the association has never directly involved itself in distributional issues because of different interests in different groups. The association facilitates the presentation of a case by a particular authority or groups of authorities, but that is all that it does. That is quite reasonable. However, I was a little surprised that the briefings do not set out the differential impact of the changes either to the flow from the business rate change or in relation to council tax benefit. The average loss per head of population is £8.31 in England, with a range of £11.71 for the north-east to £6.65 in the south-east. Of course, the average loss for claimants is significantly higher. Inner London, northern and West Midlands authorities do particularly badly. Their local economies will suffer as a result of reduced spending power in those areas and it is in those local authorities that the constant strain on council services is likely to rise. The same is true of the function of the pattern of business rates, to which the noble Lord, Lord True, referred.
The Government suggest that the gap may be closed by removing second home discounts and all reliefs for empty properties. As an illustration, the former of those moves would save Newcastle all of £54,000. Contrast that with Westminster’s gain of £750,000, or that of Kensington and Chelsea, which is presumably dear to the Minister’s heart, of £1.125 million. The latter—relief on empty properties—on the face of it looks more tempting and more useful, but as has been pointed out by the noble Lord, Lord True, and my noble friend Lady Donaghy, it is somewhat unpredictable in what it will yield. Others, including the noble Lord, Lord Shipley, referred to collection costs, which is certainly a factor. There are problems and in referring, I suspect, to the briefing that he and I received, the noble Lord, Lord Shipley, spoke of the potential impact on housing revenue accounts. It is not only local authority housing revenue accounts. We must think of registered social landlords who might have properties that are empty for a time or which are being repaired. They either have to meet the cost, as the council might have to meet it, or tenants might have to meet the cost, in which case we will see rents rise. That is another call on the working poor with knock-on effects on the local economy.
In any event, a study carried out by UNISON shows that many councils will remain substantial losers even if they sought to remove all the reliefs. The warnings from Members on the government Benches, such as the noble Lords, Lord Shipley, Lord Palmer and Lord True, should be taken into careful consideration by the Government.
Another area to which the noble Lord, Lord Shipley, referred, was the question of funding of student council tax exemptions, which are estimated to be underfunded by some 25%, as he rightly said. This affects a large number of towns and cities, as well as county areas where universities are outside metropolitan areas and student housing is a significant issue. This matter was not touched on in consultation and I join the noble Lord, Lord Shipley, in inviting the Minister not to make any definitive announcement tonight but to look into this as we go into Committee.
Finally, there is the issue of process. At this stage the Bill is unlikely to reach the statute book until October at the earliest. How can there be effective consultation with a range of interested parties over local schemes for benefits and changes to reliefs in a way that still leaves time to gear up IT, train staff and deliver a fully fledged system by the start of the new financial year? It would be sensible for implementation to be deferred for a year.
The Bill is not about localism per se. It is about localising blame for painful decisions affecting household incomes and local services. The Government are intent on passing the buck without passing the bucks. This House must seek to improve the Bill, and in particular to mitigate the hardship it portends for hard-pressed communities and householders.
Baroness Hanham
My Lords, I thank all noble Lords who took part in the debate. As I expected at the outset, it covered not just principles but details, and I will not be able to answer every point made. I think that some speakers recognised that as we went through. However, all the points raised will be noted, and I have not the slightest doubt that we will return to them in Committee.
One of the first criticisms made was of the timetable. Perhaps it is worth dealing with that first. We recognise that because of the time taken for the Bill to get through the other House and this, the process will be challenging—but we are quite clear that it will be achievable. Local authorities have already received statements of intent and impact assessments. They are well apprised of what will be involved. We have published guidance to all local authorities for them to understand what their responsibilities are and are likely to be, particularly in relation to vulnerable groups and the setting out of general principles of incentives. Therefore, they can start consulting, forming schemes and thinking about discount schemes. The noble Lord, Lord Beecham, shakes his head, but the information is there. Local authorities know the purpose of the Bill; they were involved in local working parties; and while they may not all agree with the outcome, there is not the slightest doubt that they will be able to go forward and start on implementation.
I hope and expect that we will be able to discuss the issues that have been raised. I will make an offer immediately: anybody who wishes to discuss points with me and my noble friend Lord Attlee, who will deal with some sections of council tax benefit, may do so. We are open to discussion. We may not entirely like or agree with what you say, and we may not conclude that what you say is right, but it is important that Members of the Committee should know that we are available if that is what is required.
I cannot cover all the points, but there were one or two that I cannot overlook. The retention of business rates is something for which local government has asked for ages. When I was a local government leader, I thought it would be a very good idea if we were able to retain local business rates. The process we have started does that. It makes it clear that local government collects the business rate and, instead of passing it all on to central government, can keep some. That is fine. The 50% Treasury requirement will absorb some of it, but the 50% will come back to local government in the form of grants. So it is not lost to local government. I totally accept that it is not within the power of local government to alter it, but it is not lost. It is not going into the Treasury coffers and staying there; it is coming back.
As to the points that were made about Kensington and Chelsea and the north, no Member has commented today on the fact that there is a levy system. That levy system will work on councils which raise what is called “disproportionate” sums of money. It will affect councils such as Kensington and Chelsea and Westminster, whose contributions will be top-sliced off because they are deemed to be too high. By any other name it is an equalisation scheme, and noble Lords will want to recognise that.
There has been a great deal of discussion on the relationship between universal credit and the welfare reform process and how council tax benefit is aligned up with that. I know that we will have those discussions at length in Committee but I will confirm immediately to the noble Lord, Lord McKenzie, that the implementation of universal credit is not slipping from 2013. The expected date for implementation is 2013 as it has always has been. There has been no change to that.
Lord McKenzie of Luton
Can the Minister confirm whether the implementation in October 2013 is in respect of all new claimants or only some new claimants?
Baroness Hanham
There is a nod from the Box. I shall have to let the noble Lord know. I said the scheme would be implemented in 2013. My noble friend Lord Attlee will retrieve that information and I will pass it on.
The noble Lord, Lord Tope, who I thank for his basically supportive speech, asked when the draft regulations for the council tax support would be published and whether we would have an opportunity to see them. The Government will publish those draft regulations for the pensioner and default schemes in July. These key regulations will be needed by local authorities and IT suppliers, which is why we published on 17 May the statements of intent on both pensioner protections and the default scheme. As I said earlier, that information is there and should be available to local authorities.
Indeed, I know of at least one local authority which has already constructed its scheme on council tax discounts on the basis of what it knows already and it is ready to announce it. So it can be done. It is not something that anyone needs to hide behind.
I am grateful that practically everyone has supported the principle of TIF. There is no doubt that with TIF 1 councils are free to put up projects and take them forward. TIF 2 is limited because of the general financial situation at the moment; we will not be able to spend a huge amount of money on it at present. However, it is there and, if it goes well, further consideration will be given to it. As noble Lords know, TIF 2 is confined basically to the core cities putting forward good projects. That is already happening and we know that there are projects which can be developed quite quickly.
My friend the noble Earl, Lord Lytton—I call him my friend because he was very nice last time and I hope that we will get the same this time—has raised with me the question of parish councils, the contributions that they make and the fact that they do not get support from the business rate. I will come back to that because I am sure it will come up in Committee. With regard to valuations and the revaluation, as the noble Earl knows, there is no intention to re-evaluate the council tax base at the moment. On the appeals process for current appeals, we are working with the Valuation Tribunal and the Ministry of Justice to establish the mix of expertise that may be necessary to hear these appeals and ensure that they are not held up.
On impact assessments, as I said earlier, we have published a statement of intent so that there is enough information available, particularly on the equality impact assessment. We are satisfied that the work is now well under way. The amendments made on Report in the Commons are intended to make it clear that there are no legal barriers to preparing for and carrying out consultation prior to Royal Assent. A number of noble Lords referred to the complexity of the scheme. It is only fair to say that the current scheme is blindingly complex, but it is anticipated that the new one will be less so once the situation is understood and we get through the legislation.
I touched on the 100% of business rate not being held by local government, and I am sure that it is something we will discuss.
I was asked about places that struggle to attract economic growth; it was a point made by the noble Lord, Lord Smith of Leigh. Part of that will be addressed by the system of tariffs and top-ups. The base, as noble Lords have said, will be that of 2010, but it will be supported by tariffs that take funding away from local authorities with more than the base and given to those with less. There is a level playing field when all this starts, and those tariffs and top-ups will be raised by RPI.
The noble Lord, Lord Best, asked whether local authorities will be able get guidance on how to support the universal credit taper. I am pleased to confirm that the department has already published guidance on the key considerations that local authorities will need to take into account in designing a scheme that supports work incentives and the objectives of universal credit, so that is under way.
I turn now to the noble Lord, Lord Wigley, with regard to the Welsh clauses. The amendments to the Bill moved in the other place were tabled at the request of the Welsh Assembly. As we understand the process—the noble Lord may differ from me on this—the legislative consent Motion can be tabled only after the amendments have been passed and the new clauses have been laid, and they must be considered by the Assembly before the Bill completes its passage through the House. I think that the procedural arrangements sound all right but if, having thought about it, the noble Lord still does not feel they do, perhaps he will let me know as soon as possible.
The noble Lord, Lord Warner, raised the question of adult social care. I cannot answer that specifically, but as he and the House knows, adult social care is at the front of everyone’s mind. The issue is not confined to local government because it covers a number of departments. A White Paper is being completed at the moment. I think that there will be other venues in which to discuss adult social care, and in a way I hope that it does not trip up in this Bill because, while it is part of local government finance, it is not the major financial implication for local government.
Lord Warner
I think the Minister is trying to avoid dealing with the issue that I was trying to raise. I do not expect this Bill to solve the problems of social care funding. What I was asking for was some modelling to be done to see whether this Bill would actually make the situation worse, before the Government come forward with their plans. We do not know when they are going to come forward with their plans. What I wanted to pursue—and indeed will pursue in Committee—is whether the Government know if implementing the provisions in this Bill will actually make the funding of social care worse. That is my point, and I think we need an answer to it.
Baroness Hanham
We will come back to that issue in Committee, I have no doubt. My noble friend Lord Attlee and I are looking forward very much to the next stages, and I thank all noble Lords for their contributions today.