Legal Aid, Sentencing and Punishment of Offenders Bill

Baroness Howe of Idlicote Excerpts

Wednesday 14th March 2012 Lords Chamber

[The Lord Bishop of Newcastle]

My Lords, I too support this amendment, which I think is really important. It is about the impact this Bill will have on access to judicial remedies for victims in host countries who are harmed by the activities of multinationals. Under the existing regime, it is already difficult for these kinds of cases to be brought in the UK. This Bill will change that system to make it virtually impossible for such cases to be brought in the future.

The cases in question are typically brought by poor victims who have had their livelihoods destroyed, their homes despoiled or their health gravely damaged by the UK or a UK-based company. As it stands, the Bill makes it economically unviable for both claimants and law firms to bring such cases due to the high financial risks. Provisions on success fees and insurance premiums mean that even if they were successful, claimants would have to pay such fees and costs out of their own damages.

This fundamental change is inappropriate, surely, because damages awarded would be typically too low to cover the costs involved. Damages in these particular cases are assessed according to developing country standards, whereas legal costs are incurred in the UK. As a result, as others have said, the Bill will create a practical barrier to justice and it is very unlikely that such cases will continue to be brought.

There would be no additional cost to the taxpayer if this amendment were accepted, but the benefits would be hugely significant in enabling poor communities to claim damages where they have been harmed and, just as importantly, in showing companies that they cannot act with impunity. I hope that the Government will reconsider this aspect of the Bill and move towards accepting this amendment.

[Baroness Howe of Idlicote]

My Lords, my name is not on this amendment but, having listened to the arguments, there seems to be absolutely no good reason why the Minister should not agree to it. It is not going to cost the taxpayer anything extra and it means that companies that have been the cause of this sort of damage should pay the proper price and the proper compensation. I certainly back the amendment moved by my noble friend Lady Coussins.