Public Bodies Bill [Lords]
Lord Beith Excerpts(12 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)
I beg to move,
That this House does not insist on their Amendment No. 47 to which the Lords have disagreed.
Following consideration of Commons amendments in the other place last Wednesday, hon. Members will know that the Government no longer intend to abolish the Youth Justice Board as part of the Bill. Therefore, I will not be asking hon. Members to insist on the Government amendment agreed by this House on Report. The amendment has reintroduced the Youth Justice Board into schedule 1 to the Bill. As my noble friend Lord McNally made clear in the other place, the Government have never waivered in our commitment to maintaining a distinct focus on the needs of children and young people in the youth justice system. We have never proposed to remove youth offending teams or dismantle the dedicated secure estate for young people.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
It is an unusual experience for a Committee to publish just after midnight a report containing recommendations that are accepted by midday the following day. As my hon. Friend has mentioned youth offending teams, I wanted to remind him that the Justice Committee, as well as pointing to the dangers of abolishing the Youth Justice Board, stated that if it survived it would have to take a lighter touch and a less centralised approach to the management of youth offending teams than it had taken in the otherwise good work it had done.
Mr Djanogly
I thank my right hon. Friend for that contribution and acknowledge that the recommendation appeared in his report. I will certainly take it back to the Under-Secretary of State for Justice, my hon. Friend the Member for Reigate (Mr Blunt), who will take up the matter in due course.
Jon Trickett
I am grateful to the right hon. Gentleman for his comments and for the moderate way he expressed them. We will see over time exactly what the Government’s intentions are.
The Government have set out to remove the independence of the youth justice system. The Minister repeated that they want, in effect, to bring it under direct ministerial accountability. There is no financial case that I can see for what the Government are trying to do. I have reservations about something as important as the operation of the criminal justice system, whether or not it deals with young people, being brought under ministerial direction. That is not a debate to be had this afternoon because the Government have withdrawn the proposal. However, any attempt to bring the criminal justice system under direct ministerial accountability will be resisted in this Chamber and in the other place, because it is a long-established tradition that the criminal justice system should, as far as possible, operate independently of the Executive.
The Government have not recognised the case for independence. As my hon. Friend the Member for Wallasey (Ms Eagle) said in Committee, the Government are committed to bringing the YJB under the remit of central Government. It is, in effect, a nationalisation. The Government want to nationalise the criminal justice system, whereas we want to defend its independence, as one would expect. In my view, none of the YJB’s core functions will be able to be carried out within central Government.
I do not wish to repeat all the arguments that have been debated elsewhere, but I simply urge the Government to keep in mind, in whatever review they carry out in future, that the independence of youth justice and of the criminal justice system in general needs to be maintained. After all, as has been widely acknowledged, the YJB does an amazing job. It has reduced youth offending, it has protected young people, and on the whole it has made the youth justice system better. In Committee, the YJB was praised, as it has been here today and was in the Lords the other week, by Members on both sides. I am glad that the Government have now recognised formally that it does invaluable work, and that they have withdrawn this proposal. We look forward to seeing in due course whatever the Government do next in relation to this matter.
Sir Alan Beith
The hon. Member for Hemsworth (Jon Trickett) is slightly confusing the very necessary and important independence of the courts with the status of a body such as the Youth Justice Board. The Executive are, and must be, accountable to Parliament for the efficient provision of things such as custody and alternatives to custody. They may choose to do this by way of a semi-independent or arm’s length body, but that is much more an administrative decision than a decision about judicial independence, for example. The two concepts are different and should not be confused.
I rise to underline and clarify the points made by the Justice Committee in its 10th report, which was published on 23 November, just after midnight. In that report, we set out our concerns about what would happen if the Youth Justice Board was abolished and what the Ministry of Justice would have to do in order to ensure that youth justice got the focus that the YJB had given it in the good work that it had done. We also set out what needs to happen in the circumstances in which we now find ourselves, whereby the Government have taken the decision not to abolish the YJB. Our concern was that one of the YJB’s weak points—perhaps the only one that came out strongly in evidence—was that quite a lot of people working in the sector felt that it was too “top down” in its approach to youth offending teams. The success that we have seen in youth justice has been achieved by youth offending teams bringing together every agency at local level and working together. That has been encouraged and supported by the YJB. However, the YJB itself told us that its oversight of youth offending teams will be lighter touch in future and that it is working to
“promote peer support and allow more room for professional judgement”.
That lesson needs to be learned. Indeed, when the Minister gave evidence to us, he gave examples from his own experience to underline that that approach was necessary. He also set out his own case for having greater ministerial accountability and greater ministerial awareness of what the YJB is doing.
The Youth Justice Board will continue. Many people will welcome that because it has provided a very specific focus and enabled things to be achieved in youth justice that have not been achieved in the rest of the criminal justice system. There has been a much better understanding of where to strike a balance between custody and alternatives to custody in youth justice than in other fields. There has also been much better local co-operation between the various agencies that deal with young people. We need to build on those experiences.
I wish the board well in the future. However, I underline the point that the Select Committee made in its report and hope that Ministers have noted it.
Sir Alan Beith
The hon. Gentleman talks as if the appeals system exists and is about to be removed, but in fact it does not exist, because the chief coroner was not appointed and the clauses were not put into effect. The situation that he is describing as some strange and horrific future possibility is actually what we have now.
Jon Trickett
Of course it is, and I am baffled by that intervention, given that I have just said that section 40 allows for an appeals system to be introduced in due course. What was envisaged was a proper coronial system with an appeals process and a chief coroner who would have authority over the whole system. The Government are seeking to stop that logical process, which could be tested first by a pilot, and to put in an illogical system, with a chief coroner who would effectively be reduced to a purely administrative post.
In response to a series of parliamentary questions and freedom of information requests, Ministers have revealed that at no stage have the Government estimated the likely costs of additional judicial reviews, as opposed to an appeals system. On that basis, it is odd to argue that savings will be inherent in this decision.
Mr Deputy Speaker (Mr Nigel Evans)
Order. Before I call the next speaker, may I point out that discreet use of hand-held devices is allowed in the Chamber? If it were not, I would have disallowed it in this instance.
Sir Alan Beith
The Select Committee on Justice has taken extensive evidence on the failings in the coronial system and the need for reform. We felt strongly that there should be a chief coroner and I continued to press that argument with Ministers on many occasions. The Government found alternative ways of trying to achieve the same things, and it would be wrong to suggest that in their use of the powers of the Lord Chief Justice they were not hoping to achieve significant reform.
Clearly there is consensus about reform. Anyone who has seen the experience of families who have had delayed inquests or poor service from coroner’s offices, and who is aware of the completely patchwork system of support for coroners around the country, realises that fundamental reform is required. That can now be achieved through the office of chief coroner, which I felt all along was the sensible way to do it. That involves professional leadership, training and tackling the jurisdictional issues so that, for example, the chief coroner can move inquests to a coroner who is in a position to provide the service when there is too much pressure in another coronial area.
Where there is not consensus is on the appeal issue. I know how strongly the Royal British Legion feels about that and I respect its campaign, but significant legal questions are raised by whether we substitute the decision of one coroner for that of another—that is a quite different process from judicial review. We do not have time to debate that in detail today, but I simply say that there is wide consensus on the need to reform the coroner system. There are many good coroners and many excellent coroner’s offices, but it is a very uneven system. The chief coroner should now be a mechanism for undertaking that reform, but the issue of appeals is one on which there is much more to be argued over and we might be holding out to families the false promise that they will somehow be in a better position than they would be with the present system. It would be wrong of us in this House to do that, so I urge the Minister to get on with the crucial reforms of the system, which the chief coroner can achieve.
Simon Hughes
I strongly endorse the views just expressed by my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith). I represent a coroner’s court in Southwark and we have had very good coroners—Monty Levine, who was very famous, and Andrew Harris, the current coroner, who is a friend of mine. However, like other colleagues, I have had experiences, involving constituents and others, of really bad coroner’s decisions. The Taylor family have been mentioned by the hon. Member for Stoke-on-Trent South (Robert Flello), and Michael, who died, was a constituent of mine. I am also talking about the inquests after the Marchioness sank in my constituency, the battle that the lovely late Eileen Dallaglio had to fight on behalf of her daughter and the battles that all the others like her had to fight. In the end, they had to go through a judicial review because they were terribly treated by the coroner who dealt with that case.
I welcome the fact that the Government have changed their mind and that the scheme introduced eventually by Labour—we had to push but it was eventually put on the statute book—can now be implemented in respect of creating a chief coroner. I urged, as others have, that that decision be taken. It is reasonable to proceed gradually along the road that has now been accepted by the Government. They are clear that they are going to report back on Army coroner’s inquests—the Armed Forces Bill does that. As Lord McNally said in the other place, this is not just about training; it is about monitoring, reporting and direction. That will give us a good base. There will also be an annual report to Parliament.
May I end by saying that I also have the privilege of being the Member of Parliament for the headquarters of the Royal British Legion, and I know that INQUEST has worked with the RBL very well. They are very honourable organisations, they have fought an honourable fight and they have won an honourable victory. The House owes its gratitude to them and to the Government for understanding the strength of feeling on this case.
Oral Answers to Questions
Lord Beith Excerpts(12 years, 8 months ago)
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Mr Clarke
My hon. Friend has rightly been chasing me on this subject, and with her I have approached the Cabinet Office. My right hon. Friend the Minister of State, Cabinet Office, hopes to make an announcement shortly about the distribution of the money. As the sort of people we are talking about need the general advice offered by such voluntary bodies, I very much hope that he will soon make an announcement on behalf of the Government.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
Is it not clear that what most people will need with these changes is well-supported advice services, a user-friendly tribunal system, and Government Departments that give people what they are entitled to in the first place?
Legal Aid, Sentencing and Punishment of Offenders Bill
Lord Beith Excerpts(12 years, 8 months ago)
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Mr Slaughter
I know the Minister does not want to hear this, but in relation to the director the point is that the Government wish to decide who has merit and who does not. That is the charge that the Government have to answer, and in this case they will do so only by ensuring the independence of the director.
Let me move on, because we are in the midst of a radical reform of the social welfare system. The Secretary of State for Work and Pensions has embarked on restructuring the way benefits are assessed, calculated and provided, local authorities have had budgets radically reduced, and a housing benefit cap is being introduced. In short, the benefits system is in a period of turmoil, and as a consequence the system of checks and balances on state decision making through the first-tier tribunals is also significantly under pressure, such that more staff are being taken on daily to deal with a growing number of appeals against decisions taken by Jobcentre Plus.
When in October last year the coalition produced its Green Paper on the reform of legal aid in England and Wales, we were shocked to see that there were cuts of £450 million, as defined in the latest impact assessment, and that they overwhelmingly came from civil legal aid. Things such as education, employment, welfare benefits, debt, housing matters and clinical negligence were taken out of scope, either in their entirety, as in the case of employment, welfare benefits and clinical negligence, or substantially, as in the case of debt, housing and education.
Means-testing will also change. The Government have proposed the abolition of capital passporting, by which those receiving certain income-based benefits are automatically eligible for legal aid, and the introduction of a new minimum capital contribution, a personal financial contribution towards legal costs.
The philosophy behind the cuts is explained in the Government’s impact assessment, in which they state:
“Legal aid may be regarded as a redistributive transfer of resources from taxpayers to those who are most needy, in relation to both the nature and merits of their case and also to their financial position… The Government may consider intervening if there are strong enough failures in the way markets operate…or if there are strong enough failures in existing government interventions”.
The amendments under discussion simply seek to address the Government’s failure to abide by those principles as set down in their own impact assessment. We are in a period of great need and of great changes to the system, and many meritorious cases are being referred to tribunal. By definition, the financial position of those requiring help with welfare benefits, employment law, debt and housing is necessarily the most precarious of any in society, and £70 a week is often all that stands between some of my constituents and utter destitution. They are in a desperate place.
Let me give the House one example, in relation to eligibility for disability living allowance. There are so many problems with the private contractor Atos that many seriously ill people are being judged fit for work. I leave aside operational issues, such as the fact that, according to its own website, 20% of Atos’s 141 medical assessment centres do not have wheelchair access, because, according to a newspaper report, one third of those refused DLA by Atos have appealed to the first-tier tribunals, and 39% of decisions have been overturned. Furthermore, the report states:
“The tribunals service…has had to double its capacity in the social security section to deal with the large number of appeals, recruiting an extra 170 paid medical panel members.”
In a letter to The Guardian, leading mental health charities and a senior consultant from the Royal College of Psychiatrists say:
“We’ve found that the prospect of incapacity benefit reassessment is causing huge amounts of distress and tragically there have already been cases where people have taken their own life following problems with changes to their benefits.”
These are not just economic issues; they profoundly affect the most vulnerable individuals.
The Government’s proposals will seriously damage access to justice for the most vulnerable in society, and their own impact assessment shows that there will be a disproportionate impact on women. Similarly, there is the potential for the cuts to impact disproportionately on black and ethnic minority clients and on those with disabilities.
That is something the Minister himself acknowledges. When it was put to him that groups with protected characteristics would be affected, he dismissed it, as only a Conservative Minister can, although the Liberal Democrats are getting there, by saying, “Well, that’s because they are disproportionately represented among the most vulnerable.” That is the logic of the Government’s case—“Because vulnerable people get legal aid, and we are cutting it, what do you expect to happen?” Those principles show an absolute absence of moral guidance.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
I understand the hon. Gentleman’s argument, but is he proposing cuts in other areas of legal aid in order to maintain his objective of cutting the overall cost while putting legal aid back in place in those fields?
Mr Slaughter
I was going to deal with that at the end of my remarks, but let me do so now. I am grateful to the right hon. Gentleman for giving me the opportunity to do so, because two days ago the Minister said, “Oh, the Labour party wants to reinstate £245 million of cuts.” On the same day, however, he put out a press release saying that the Labour party wanted to reinstate £64 million of cuts, and I have grown tired of responding to him. He has heard my response from this Dispatch Box, in Westminster Hall and in Committee time and again, and it is simply this: we would not have made at present the cuts to social welfare legal aid.
The Minister quantifies those cuts as £64 million, but why did he not proceed with the final parts of Lord Carter’s review and go through the criminal tendering exercise, which was in place and ready to go when the Government took office last year, and which included savings that might have raised twice that sum? I anticipate the figures changing. The figures on savings have changed from £350 million to £450 million within two impact assessments, but, without being more precise than that, we believe that if the Government looked for efficiencies in the criminal legal aid system, first they would save more money than they are by cutting social welfare legal aid, and secondly there would not be the same social or financial consequences.
The Green Paper talks frequently about the possibility of self-representation as a reason for withdrawing legal aid provision, but data provided in answer to a written parliamentary question indicate that there are considerable differences in success rates between those with and those without representation. Owing to a lack of representation, 51,223 meritorious cases that were successful in 2010 at the first-tier tribunals, many of which involved applicants for DLA, incapacity benefit, jobseeker’s allowance and so forth, would not have been successful if the proposed cuts had been in place. The changes will close or severely reduce the operation of law centres, citizens advice bureaux and hundreds of independent advice centres, and limiting the scope of issues which legal aid-funded advisers can help with means that they will not be able to solve people’s problems fully.
New clause 17, in the name of my hon. Friend the Member for Makerfield, addresses precisely that issue. At the end of Monday’s debate, I gave the example of the Wiltshire law centre in the constituency of the hon. Member for South Swindon (Mr Buckland). That will lose 90% of its funding, and that is not untypical of the cuts being made. In most cases they are above 80%.
The specific issue that is dealt with my hon. Friend’s new clause is the interconnectivity of people’s problems. We are all too familiar, as constituency MPs, with the individual who comes in with two plastic bags full of paper and is unable to convey the scale of their distress, let alone the complexity of their problems, which may include unpaid debts, threats of eviction, underlying mental health problems and the inability to access the welfare benefit system. Sometimes we can help, and I pay tribute, as I am sure all hon. Members do, to the constituency staff who have developed phenomenal skills at unpicking these issues and dealing sympathetically with them. In many cases, however, legal expert help is needed, but that help will now be severely compromised. If one is allowed to deal only with the threat of eviction but not with the underlying issues of accessing benefits and dependency on debt, one is working with one hand tied behind one’s back.
The exceptions to the withdrawal of legal aid in certain cases, such as when an applicant for legal aid is at risk of homelessness, are nonsensical distinctions. People who come for aid early on, while they still have manageable rent arrears, can see their case deteriorate rapidly and drastically. The legal aid that would help exactly those people has been withdrawn, and that is Shelter’s No. 1 priority for what should be restored. Let me add, at this point, that we support the hon. Member for Carmarthen East and Dinefwr in his wish to undo what is a calumny in the Bill—measures allowing the Secretary of State by order further to restrict what is in scope for legal aid, but not to expand it. I do not know whether the hon. Gentleman is going to press his amendment to a vote tonight but I hope that, if he has an opportunity to speak, the Minister will give an indication that that glaring error in the Bill will be corrected.
The cost of dealing with a single case of homelessness has been estimated at £50,000 by Shelter. Early intervention is an extremely efficient and cost-effective way of preventing cases from becoming more complex, difficult to resolve and commensurately expensive. The legal aid Green Paper suggests a shift to telephone advisory services, and this brings us to amendment 148. Although these methods are an efficient and often effective means of delivering certain types of advice, clients presenting with complex or chronic problems gain far better outcomes from face-to-face advice.
Research by the Legal Action Group has highlighted the issues faced by the most vulnerable in utilising telephone advisory services. It found that full-time employees were the most likely to access an advice service through the telephone line or the internet, at 43%, whereas people in the lowest social class, DE, were least likely to access advice through an advice line or the internet, at 26%. This class of people was also the most likely to experience a social welfare law problem. The Minister’s own impact assessment says that the bottom 20%, in terms of income, will represent 80% of those who suffer from the withdrawal of these services. Overall, people of social class DE are twice as likely as people in all other social classes to experience problems with debts or benefits.
Issues facing the most vulnerable people include language, comprehension and somewhat more prosaic economic issues such as the expense of calling an 0845 number from a pay-as-you-go mobile when trying to get advice upon being rejected for jobseeker’s allowance. Citizens Advice has noticed a dramatic rise in the volume of cases and the number of people seeking advice in this recession. Advice has been focused on debt, housing, employment and difficulty accessing the benefit system. For example, between April 2008 and 2009, CABs in England and Wales saw daily inquiries relating to redundancy increase by 125%. Local authority cuts combined with the cuts in the Ministry of Justice have inflicted a double whammy on law centres, CABs and third sector organisations. Many organisations that are staffed by a mixture of volunteers and modestly paid staff will be forced to close or reduce staff and service breadth, depth and reach. Indeed, that is already happening.
We agree that the legal aid budget needs to be contained, as I have already said in response to the intervention of the Chair of the Justice Committee, the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith), and that ways of making savings need to be found. When we were in power we did not shy away from taking those decisions and containing the budget. We had begun and were continuing to implement the recommendations of Lord Carter of Coles and we believe that those outstanding recommendations should have been implemented by this Government. Frankly, we are at a loss to understand why the Government have not looked at the scope of criminal legal aid or at how it is delivered in this country, preferring instead to target the poorest and most vulnerable. I accept that those changes would not have been popular with all the legal sector but they would have delivered substantial savings, which would have been greater than the total cuts to social welfare legal aid we have discussed this week. Let me pay tribute to my colleague the noble Lord Bach who, as Minister with responsibility for legal aid, took exactly that line. He was prepared to be very tough on his own profession but he always protected social welfare legal aid.
Tom Brake
The hon. Lady makes a point that is worth considering. Clearly, certain organisations are financial beneficiaries of some of the funding, but I do not want to throw out all the concerns that have been raised because, equally, there are legitimate concerns that the Government need to monitor very carefully.
I turn to new clause 17. I had hoped that during the debate on Monday we would reach the group of amendments on social welfare in which my amendment 149 on complex welfare benefits was listed. Also in the group was amendment 131, which sought to ensure that advice on housing repossessions was available sooner. I regret that we did not reach that group, as, I am sure, does my hon. Friend the Member for Eastbourne (Stephen Lloyd), who is chairman of the all-party group on Citizens Advice. However, new clause 17 touches on many aspects of what was included in amendment 149. I welcome the fact that the hon. Member for Makerfield has put the matter up for debate today because it provides an opportunity to discuss some of the points that would have been raised on amendment 149. Her definition in trying to ensure that legal aid is extended to complex cases is
“that the individual has complex, interconnected needs”
and that
“not all of those…legal services would otherwise be available to the individual”.
It is reasonable to speculate that many, or most, individuals with complex and interconnected needs will also have welfare benefit issues that will often also be complex. Under the Government’s proposals, welfare benefit cases, complex or otherwise, are excluded from the scope of legal aid.
I acknowledge that the scope of the hon. Lady’s new clause is slightly different from what was proposed in amendment 149. However, if it had been restricted to individuals with complex and interconnected needs who require legal help with complex welfare benefit issues, I suspect that we would have been discussing exactly the same area of legal aid, because virtually every individual who has a benefit advice problem involving issues of legal complexity, significant evidential hurdles or daunting adjudication processes will have complex and interconnected needs. According to Citizens Advice, that more targeted approach would help to achieve a compromise position whereby more complex cases can be covered by the legal help system. When we asked Citizens Advice what it would identify as a single priority as regards what the Government should change, that is what it proposed.
Citizens Advice has calculated the cost impact of its proposal. It says that the current welfare benefits advice spend is £25 million on just under 140,000 cases, and that restricting it to complex welfare benefit cases covering only reviews and appeals, which applies to two thirds of the current welfare benefit cases, would cost £16.5 million and help around 100,000 people. The cost could fall further if, as the Government and all hon. Members intend in practice, decision making first time round is improved and becomes much more effective. The CAB calculation is that if we were to improve first-time decision making by 30%, the costs of that provision could fall to £12 million.
Sir Alan Beith
Is it not absurd that the Government should be scrabbling around for money to meet the costs of bad decision making and bad communication between Departments and those who are affected by their decisions? Ought not the Government’s priority be to ensure that those Departments change those processes, which they are more likely to do if they have an incentive, which is provided by the fact that their budget will meet some of the costs if they do not do so?
Sir Alan Beith
Does my right hon. Friend agree, however, that in just those cases a high proportion of the advice required is not legal advice, but the advice of a sensible person with some experience in the area? Bodies such as Citizens Advice are very good at providing it.
Simon Hughes
For example, there is an organisation based in the constituency of my hon. Friend the Member for Bradford East called Christians Against Poverty, and it has people working in my constituency who are really good at dealing with debt. They have been tried and tested by me and others, so if one such element is debt I will often refer my constituent to them. They will unravel those issues and try to get them sorted even when in the county court there might be a legal issue, such as a possession action by the council or a housing association for the person’s flat, which one might need to manage as well.
Legal Aid, Sentencing and Punishment of Offenders Bill
Lord Beith Excerpts(12 years, 8 months ago)
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Mr Clarke
I shall just finish explaining this point and then answer questions.
The new sentence can be given for any sexual or violent offence, provided that the court thinks the offender presents a risk of causing serious harm through reoffending, and that the offence meets the four-year seriousness threshold that is currently in place for IPP sentences and extended sentences for public protection. The new sentence can also be given when the offender does not reach the four-year threshold, but has previously been convicted of an offence listed in proposed schedule 15B. I will cut out further detailed explanation, but that means that any offender who would previously have received an IPP will be eligible for the new sentence if he has not received either the mandatory life or the tougher, discretionary life sentence.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
I very much agree with what my right hon. and learned Friend is trying to do, but he is writing what is the likely practice of the court into the statute book. He mentioned the Parole Board and new clause 34, which causes me concern. He appears to be giving to himself and the Executive the power to direct a court when dealing with existing IPP prisoners, because the Parole Board is regarded in law as a court, and he will give directions to it under new clause 34.
Kate Green
I am extremely grateful to the Lord Chancellor, as will be the many disabled people and their families who have been in contact with me. I am delighted that a Government amendment will be brought forward in the other place and I shall not detain the House further.
Sir Alan Beith
The hon. Member for Stretford and Urmston (Kate Green) must be delighted that so brief and concise a speech has produced so immediate, thorough and satisfactory a response. I welcome what the Government are doing about this.
I want to be brief so I shall resist the temptation to go into the extraordinary intellectual journey that the right hon. Member for Tooting (Sadiq Khan) seems to have undertaken. I shall also resist the temptation to go into the habit of the previous Government of releasing people from prison at any moment when the jails seemed to be rather full without any reference to sentence planning or, for that matter, to the annual criminal justice Bill to which new clauses were always added on Report as far as I can recall—a practice I rather deplore because, as in this case, it denies us the opportunity to give new clauses proper scrutiny. I want to make it quite clear that the continuance of what I regard as a blot on the system—the use of indeterminate sentences—is something that I do not support. I therefore welcome the Lord Chancellor’s action to remove such sentences from our system, and I believe that view is widely shared in the criminal justice system.
People are concerned about the possibility of serious criminals re-entering society and committing other very serious offences, but how can they conclude that the best thing to do with such people is to put them in prison without our having any idea how long they might stay there? Surely, it is better to have a much clearer idea that they will be in prison for a long time and that if they are ever released, it will be under licence for life. I do not see why it should be preferable for the public to be told, “Well, we’ve put the chap in prison, but we’re not really sure when he’ll come out and a board that you know very little about will decide whether it’s safe.” I think most members of the public would be quite suspicious of that and would rather hear that there was a clear and long sentence. I am suspicious of mandatory sentences, but as a means of giving reassurance on how the courts might be expected to behave in the sort of cases we are discussing, the mandatory sentence we are discussing can be justified, especially as it is very carefully worded with appropriate provision for justice.
However, all this is only part of the story. None of it is any use unless we have proper sentence planning and proper offender management. Proper sentence planning is virtually impossible under the indeterminate sentences for public protection system, especially for those on shorter terms. People have not been completing the courses that they need to have completed to satisfy the Parole Board that they could be released. That system is untenable. We need effective sentence planning—and more determinate sentences are a better way of achieving that. We need proper offender management for offenders who are eventually going to leave prison. The Justice Committee has regularly stressed that the concept of offender management needs to include proper control. It should not be a system in which people are handed from one agency to another without a continuous process of supervision.
The trouble with the procedure in the new clause is that we do not have the opportunity to probe the details by tabling a probing amendment. I asked the Lord Chancellor earlier about new clause 34. I think that it is well intentioned in that it is an attempt to deal with existing indeterminate public protection prisoners, but I am bound to question it because it gives to the Executive the power to direct the Parole Board on what should be done with an individual. That is a direction to a court—there have been court cases that have ruled that the Parole Board must be regarded as a court. So it is an odd way of proceeding and one that we might have amended in Committee had we been able to consider the measure. If there is an opportunity, I hope that I can hear a little more about why the measure has been introduced as a new clause tonight.
Mr Djanogly
New clauses 18 to 22 seek to prohibit the payment and receipt of referral fees in personal injury cases by regulated persons, namely solicitors, barristers, claim management companies and insurers.
I pay tribute at the outset to the work of the right hon. Member for Blackburn (Mr Straw) in pursuing the case for a ban on referral fees. I know that there are some differences between us about the detail of how we should implement the ban—we will come to his amendments in due course—but those differences of detail should not obscure our agreement in principle on tackling this important issue. I acknowledge his efforts in this regard.
I must also mention the consistent campaign by the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) as Chair of the Justice Committee, who has also been a very keen supporter of the ban. I note that last week his Committee formally welcomed our commitment to the ban, which will be implemented by these clauses. I should also acknowledge the work of the Transport Committee, chaired by the hon. Member for Liverpool, Riverside (Mrs Ellman), before whom I was privileged to appear last month.
My right hon. and learned Friend the Secretary of State for Justice announced the Government’s intention to ban the payment and receipt of referral fees in personal injury cases by way of a written ministerial statement to the House on 9 September 2011.
I strongly believe that the current arrangements under which lawyers and others are able to pay and receive fees for referring work have led to both higher costs and the growth of an industry that pursues claimants for profit. By introducing the new clause, the Government are taking decisive and much needed action to remove these incentives.
Right hon. and hon. Members will be aware that Lord Justice Jackson recommended that referral fees should be banned as part of his comprehensive package of recommendations to make the costs of the civil litigation more proportionate and this recommendation was echoed by Lord Young in his report “Common Sense Common Safety”. The Bill already includes provisions to implement the other key elements of those recommendations. The referral fees ban under our new clause will complement the wider Jackson reform already in the Bill by further reducing the costs of personal injury litigation and deterring frivolous or unnecessary claims from being pursued in the courts.
The new clause creates a regulatory offence for any breach of the prohibition. It will be for the appropriate regulators, for example the Law Society, the Financial Services Authority or the claims management regulator, to enforce the prohibition. The regulators will also be responsible for taking appropriate action against regulated persons for any breaches. We have thought carefully about how to ensure that all the main players, including insurers, are captured by the ban, which is why there is a separate clause, new clause 20, giving the Treasury powers to make regulations allowing the FSA to enforce the ban under its existing regulatory powers.
There have been calls from some people, but not most people, for the payment and receipt of referral fees to be made a criminal offence. Not least among those who have called for that is the right hon. Member for Blackburn, who has tabled amendment (e) to that effect. We considered the matter carefully but believe that creating a criminal offence would be a very blunt instrument in this case. One would have to prove beyond reasonable doubt that consideration had changed hands for the referral of a potential claimant, but the grounds for determining whether something was or was not a referral fee could be blurred. It would be very difficult to convict in many cases on the basis of the complexity of those arrangements. That is why we consider a regulatory offence to be more appropriate, whereby the principle of what is happening can be looked at by the regulator and a view can be taken.
I am conscious that a criminal offence would impose additional costs on the police and the courts in investigating and enforcing a ban. I believe that a regulatory prohibition covering all the main players in the sector, including lawyers, claims management companies and insurers, is the most appropriate and effective response to the issue. I am confident that the industry regulators are best placed to investigate and enforce the regulatory ban.
Sir Alan Beith
As my hon. Friend has indicated, I strongly support the action he is taking, but is it not the case that in many of those circumstances a criminal offence may well have been committed by way of a breach of the Data Protection Act 1998? The problem then is that custodial sentences are not available for someone who is doing that on a large scale and making a great deal of money by releasing personal information and committing a criminal offence.
Mr Djanogly
My right hon. Friend makes a good point. It is not one that is covered by the Bill, but it is something that the Government are looking into, and I hope that there will be further developments on that in due course.
Mr Straw
As a preliminary, I wish to draw the House’s attention to the fact that against my name on the amendments relating to referral fees there is an R, which indicates that I have a declarable interest. It arises from three engagements that I undertook for fees on matters relating to referral fees and the motor insurance industry generally. They were on 28 September, 12 October, and earlier today. In respect of the first two, I have made a declaration to the Registrar of Members’ Financial Interests, who told me that because I have not yet received payment, the time for these is not yet running. The declaration for my engagement this morning will be made tomorrow.
I tabled amendments to new clauses 18 and 19 and, as my hon. Friend the Member for Hammersmith (Mr Slaughter) indicated, in the absence of a sudden Pauline conversion from the Government Front Bench between now and when the question is put, I shall press amendment (e) to new clause 18 to a vote.
According to the AA, over the year to March 2011, there has been a 40% increase in motor insurance premiums. In many areas of the country, mine included, although it is by no means the worst, the increase has been even higher. As a number of colleagues of all parties have pointed out, that has very severe social consequences.
May I say that I am extremely grateful for the wide support that my Motor Insurance Regulation Bill has had throughout the Chamber? Motor insurance is the only insurance affecting an individual that is compulsory, and in certain areas and for certain categories, particularly younger drivers, premiums are now so high as to place motor insurance out of reach altogether. A driving licence is often a necessary qualification for taking a job. In any case, people in areas that are not blessed with a high level of public transport, which means most places outside inner urban areas, need a motor vehicle to go about their business. The increase in premiums, and the fact that they are much higher in some areas than others, is leading to some people not being able to work or move around.
The increase is also unquestionably leading to an increase in criminality, both through people going around uninsured and, increasingly, through people deciding to borrow a friend’s address with a lower-premium postcode. People also fail to disclose relevant information about themselves, to enable them to become insured. It cannot serve any public purpose that we have ended up with such a dysfunctional system.
I readily concede that that has happened because of a nexus of factors going back a number of years. The operation of the conditional fee system was introduced in the Access to Justice Act 1999 for good a reason: it was thought that it would improve access to justice. To some extent that has certainly been true, but as we all know, it has had the unintended consequence of generally —I am not talking the Trafigura case or one or two others—creating an imbalance in the equality of arms between parties on either side of a legal action. It has gratuitously encouraged the so-called compensation culture.
That, in turn, has been compounded by the costs of the road traffic accident electronic portal being too high. In a recent statement, the Minister said that the figure that was introduced when I was Secretary of State had been agreed in the Civil Justice Council. It was agreed to by both sides, which was why I did not interfere with it. I believe there is now widespread agreement that the current fee, of at least £1,200 for claims under £10,000, is at least twice as high as it should be. It is leading to lawyers advertising as two firms at the end of my street in Blackburn do: they have great banners across their windows saying, “Bring your claim in here, we’ll pay you up to £650 in cash for it.” They can do that and still make a profit out of the £1,200, because the actual costs of running the portal are about £100.
Claims for whiplash, which I have described as an invention of the human imagination, undiagnosable except by dodgy doctors employed by claims management companies, have got completely out of control. The level of whiplash claims is not related to the level of accidents or physical injuries. Accidents are reducing, as is the possibility of being injured in an accident, because cars and road engineering are much safer. It is related principally to the density of claims management companies operating in a particular area. The evidence of that is incontrovertible.
I concede to my hon. Friend the Member for North Durham (Mr Jones) that the regulators have acted properly on claims management companies in some ways, but the regulatory system established under the Compensation Act 2006, during our Administration, has not had sufficient resources to control the trebling in the number of claims management companies that has taken place in recent years.
Another change that took place was in the 2004 solicitors conduct rules, which allowed solicitors to pay referral fees that were previously banned. I will come back to that point when we deal with the enforcement of a ban on referral fees.
Sir Alan Beith
I very much welcome all the effort that the right hon. Gentleman has put into this matter. I hope that in talking about referral fees, he will recognise that although he has devoted a lot of his effort to motor insurance, the same problems affect the cost to consumers in numerous other areas, such as employment law, conveyancing and divorce—all areas in which quite large sums change hands.
Mr Straw
The hon. and learned Gentlemen may have noticed that I need to research that point, but I have in the back of my mind a number of cases where breaches of regulations are dealt with both by the regulator and in criminal proceedings. He is experienced in the law and will know that plenty of criminal offences are also civil wrongs of some kind in common law or by regulations.
Sir Alan Beith
The right hon. Gentleman has an arguable case on the merits of a back-up criminal offence, but will he concede that the system proposed by the Government can be made to work, because it combines the regulatory framework with the criminal offence behind it, particularly if there is a custodial sentence? The data protection offence, which lies behind the Government’s proposal, is already a criminal offence.
Mr Straw
Christopher Graham, the distinguished Information Commissioner, made the point that one reason why the penalty for breach of section 55 of the Data Protection Act needs to be increased—as it is by sections 77 and 78 of the Criminal Justice and Immigration Act 2008 to a maximum of two years imprisonment or an unlimited fine—is to send a message to people in those industries that they could end up in prison if they go in for an egregious breach. Of course, other breaches of data protection rules could mean that an organisation loses its licence, but in extremis, we need criminal proceedings for a criminal offence.
My view is that the same must apply in respect of breaches of the law banning referral fees. My amendment (e) would produce exactly the same penalty—it is entirely proportionate—as applies under sections 77 and 78 of the 2008 Act, which I hope the Government bring into force quickly given that they are already on the statute book. With that, and because I know that many others wish to speak, I thank Members on both sides of the House for the support that they have given to my campaign, and commend the amendment to the House.
Sir Alan Beith
Like the hon. Member for North Durham (Mr Jones), I had coal mines in my constituency. There were three working mines there, and I saw evidence of the scandal that he described. It was absolutely dreadful in many ways. Today, I want to ask for clarification of the Government’s intentions in two areas. One relates to the broadening of this issue beyond personal injury. New clause 18 provides for the Lord Chancellor to make regulations specifying wider ranges of legal businesses. I hope that there is a clear intention on the Government’s part, probably involving consultation, to move on to all the sectors in which referral fees have the potential to distort or damage competition or to undermine the position of the consumer. I would like a clear indication that the Government are going to examine a number of other areas.
Secondly, the Minister was very helpful earlier on the question of custodial sentences for breaches of the Data Protection Act, and I hope that that means that the Government have moved on from their position of saying, “We’ll have to wait until the end of the Leveson inquiry.” That represented a complete misunderstanding of the situation. The question of custodial sentences for data protection offences is not primarily about the issues that have been raised in the Leveson inquiry about the media; it is about the everyday circumstances of our constituents whose personal information is abused by the organisations that hold it. That matter ought not to have to wait until the completion of an inquiry into a wider range of issues. I hope that the Minister’s earlier helpfulness will be repeated in implementing a measure on which the House has already decided—namely, that there should be a custodial penalty in such cases.
Mr Djanogly
We have had a good, far-ranging debate this afternoon. Given that another important debate needs to be completed by 8 o’clock, I am sorry to say that I shall have to make my way quickly through the points that have been raised. I am pleased to hear at least a grudging agreement in principle with our ban on referral fees from the hon. Member for Hammersmith (Mr Slaughter). I thank my right hon. Friend the Member for Carshalton and Wallington (Tom Brake) and all the other right hon. and hon. Members for their support for our desire to implement the ban. I am pleased that the debate today has been about how that should be done, not about whether it should be done.
The hon. Member for Hammersmith asked why we had not consulted on banning referral fees, and I can tell him that Lord Justice Jackson made 109 recommendations, and it would not have been practical to consult on them all at once. It also made good sense to await the outcome of the Legal Services Board’s work in this area. Many respondents to our consultation on implementing Lord Justice Jackson’s recommendations included their views on referral fees. Those views, along with the work undertaken by the LSB and the Transport Committee, have been carefully considered. The hon. Gentleman clearly raised some serious issues relating to the regulation of claims management companies, but they were not directly relevant to the Bill. I must point out that, in the past year, the Ministry of Justice has cancelled 349 authorisations of CMCs, whereas in the last year of the Labour Government, it cancelled only 35.
The hon. Member for North Durham (Mr Jones) asked a number of important questions. If he does not mind, I will write to him about those issues. I can say, however, that under the Compensation Act 2006, it is an offence to provide regulated claims management services unless authorised or exempt. The hon. Gentleman will not be surprised to learn that the exemption applies to trade unions, and that is part of the problem that he rightly highlighted. I was present at the debate that he held on that subject several years ago.
The hon. Member for Hammersmith covered several other matters, but he essentially spoke to tomorrow’s debate, and we will deal with those issues then. My right hon. Friend the Member for Carshalton and Wallington asked about some important aspects relating to the consumer. The Chairman of the Transport Select Committee, the hon. Member for Liverpool, Riverside (Mrs Ellman), rightly mentioned that share premiums had risen by 40% in the last year alone. This is of course a matter of concern, and we have discussed it with the Association of British Insurers. It has said that if the proposals are effected with the other changes to recoverability of success fees in after-the-event insurance, it would hope to see a fall in insurance premiums. I certainly hope that that is a credible position.
As I said at the outset, there is broad support across the House for a ban on referral fees, although there is some disagreement on how best to implement the ban. The right hon. Member for Blackburn (Mr Straw) spoke to his amendments with typical passion, but I would like to set out briefly why the Government cannot support them. Amendments (a) to (c) to new clause 18 seek to capture within the prohibition all arrangements to pay or receive referral fees, even when a payment has not yet been made. These amendments might have been tabled in support of his amendment to make the payment and receipt of referral fees a criminal offence. However, I am concerned that capturing an agreement to pay referral fees when payment might not have occurred would be very difficult to enforce. A solicitor’s accounts, for example, might well show that a particular payment had been made that could, on the face of it, be a referral fee. However, it is unlikely that agreements, which in some cases might be no more than verbal agreements, could be so readily identified without time-consuming investigation. In any event, we do not think that it is necessary to provide for this eventuality, first because such agreements would be unenforceable under subsection (6) of new clause 19 and, secondly, because whatever might be agreed, the payment of the referral fee would still be prohibited. So, in practice, it is unlikely that a party would enter into an agreement to pay a referral fee when payment would be a breach of the prohibition and the agreement would not be enforceable.
I have already dealt, in moving the new clause, with the arguments against amendment (e), which seeks to create a new criminal offence. I should just reiterate that the Government are fully committed to ensuring that the ban will work effectively.
Mr Slaughter
I thank the Minister for his clear account of the effects of these proposals, but I wonder why they are being introduced at this stage. He may wish to explain that. They are not controversial. We do not intend to oppose them as we think their measures are sensible, and we are glad that the Government are, for once, in favour of judicial discretion. They made certain concessions in Committee, one of which was not withdrawing magistrates’ powers to impose longer custodial sentences. We believe the magistrates system serves this country extremely well—this year marks its 650th anniversary. However, although these are sensible changes to current magistrates powers, we are concerned about the fact that, once again, they are part of a package of new measures.
I will not take up any more of the House’s time as we shall shortly come on to discuss two very important and significant new provisions in the criminal law, of which we have had very little notice as they have been introduced at a very late stage. I therefore simply ask again why we have had to wait until Report stage for the measures currently under discussion to be introduced. We do not oppose the proposals, however, as we consider them to be sensible and uncontentious.
Sir Alan Beith
How nice it is to hear the hon. Member for Hammersmith (Mr Slaughter) in conciliatory mood. The Minister has made a perfectly good case for increasing the level of fines available in magistrates courts. He gave several reasons for doing so, and I would add to them the giving of further encouragement to magistrates to deal with cases themselves wherever that is possible, rather than referring them upwards to the Crown court. This is part of a general increased empowerment of magistrates to deal with cases.
The Minister has mentioned the wider issue of community penalties and non-custodial sentences, and the review and consultation that will address them. I hope that proves to be a fruitful process. There is a danger that he is giving two signals at once, however. He is hoping to give the necessary signal to the public that many offenders consider community sentences to be more demanding and rigorous, and much less congenial, than very short terms of imprisonment. Some offenders who have appeared before the Justice Committee have said they committed further offences because it was easier to spend the time in prison than to continue with a community sentence. The Government must also give a signal to the judiciary that it should make the maximum use of the available range of penalties, on the basis of what is most likely to reduce reoffending. If a rigorous, well-supervised and policed community sentence is more likely to reduce reoffending, the judiciary should be encouraged to choose that option. I hope people do not find the signals too confusing, that we end up with a well-supported system of community penalties, and that people have confidence that for many offenders such penalties reduce reoffending more effectively than prison does.
Gareth Johnson
Although I support the Government’s proposals, it would make sense to remove the upper limit on financial penalties imposed by magistrates courts. The proposals do not relate to levels of compensation, so if magistrates are asked to sentence for, say, a theft of £5,000-worth of goods, they will still have to refer the matter to the Crown court for sentence if they do not have the power to award more than £5,000 compensation. I therefore wonder whether the Government would be willing to look at the levels of compensation in the future, to see if there is any scope for lifting the upper limit of compensation awards that magistrates courts can impose.
Legal Aid, Sentencing and Punishment of Offenders Bill
Lord Beith Excerpts(12 years, 8 months ago)
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Mr Clarke
I will address that when we reach the amendments in two days’ time—[Interruption.] Well, that is exactly where the Labour Government were two years ago. We are attempting to clarify the law and reassure people that the use of reasonable force is indeed legitimate in English law. The main thing it deals with is the fact that there is no duty to retreat when facing a dangerous or threatening attack, but we will discuss that when we come to that part of the Bill. If that was a fundamental change in the law, I would probably face objections to its introduction on Report. It is an attempt once more to build up public confidence in the perfectly reasonable right people have to use legitimate force when defending themselves and their property.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
I happen to be sympathetic to all three things the Secretary of State is trying to do, but surely he must take account of the fact that the procedures of the House, which he is trying to bypass, provide that there should be a general discussion on the principle of doing something, followed by a detailed discussion in Committee of how it can be done and then an opportunity to make further amendments on Report if necessary. Does he not have to mount quite a strong case that that is unnecessary in these circumstances?
Mr Clarke
The case I am making is that there are essentially no surprises here, because Members have been perfectly well aware of the proposals for all three subjects. They have been debated widely and consulted on, and we are introducing them in a form that I do not think adds a great deal of controversy to the Bill. As we all know, the Bill is very large and included some very important elements. These three subjects are relevant to what we are trying to do to the justice system. The right to self-defence was in the coalition agreement when the Government were formed, so everyone knew that we would return to it, and the Prime Minister announced it again in June. Banning referral fees was in Lord Justice Jackson’s report on reform of civil litigation costs, which we are already acting on, as far as no win, no fee arrangements are concerned. We delayed making proposals on referral fees because we were waiting for the Legal Services Board to give its opinion following consultation. We have been consulting on squatting, as I have said. The inclusion of these subjects is hardly surprising. All three have been referred to and debated on the Floor of the House, so I hope that it will agree to extend the scope of the Bill.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
I want to add briefly to the intervention that I made earlier. The hon. Member for Rhondda (Chris Bryant) has been quite honest about the fact that all Governments get into this kind of situation, including the one of which he was a member, when he exercised responsibility for the conduct of the business of the House. He has made some sound points about the lack of an adequate amending procedure for material introduced at this stage. I can see that there has been extensive public discussion on all three of the issues, but the Government ought to find a way of ensuring that the House has a proper legislative process.
There are a number of ways in which that could have been achieved in this case. The Government could have put down their initial plans in the content of the Bill or by amendment in Committee, making it clear that, if the consultation led them to believe that the proposals should not be proceeded with in that way, they would accept that at a later stage. Alternatively, parts of the Bill could have been recommitted by a recommittal motion, to allow a couple of Committee sittings to deal with those matters. We ought to be very cautious about a motion that contains the word “notwithstanding”, because that means that the procedures that the House has set in place to ensure proper consideration are not being observed in this case. That is why I pressed the Lord Chancellor to provide a strong defence of what he was doing.
Question put and agreed to.
Legal Aid, Sentencing and Punishment of Offenders Bill
Lord Beith Excerpts(12 years, 8 months ago)
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Mr Djanogly
I am not entirely sure whether the right hon. Lady is talking about all cases of divorce or partners separating, or just those where there is domestic violence. However, I can tell her that in 90% of cases where there is a separating of the ways, the couple will reach an agreement. We are therefore talking about the remaining 10%. What we are saying in terms of policy is that for basic divorce—if divorce can ever be basic—people should not rely on legal aid for carving up the family assets or settling contact issues. However, I want to make it clear that funding for victims of domestic violence who seek a protective order will remain available.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
Is it not also important to point out that the family courts have great difficulty dealing with contact issues, many of which are naturally unsuited to such treatment? Frankly, it is not very easy for a court to sort out arguments about whether a child can go to the scout group on a Friday night or whether they have to be with the other parent.
Mr Djanogly
My right hon. Friend makes an important point. I can tell him and other hon. Members that it has become clear to me, from my many meetings over the last year and a half with mediators and lobby groups such as those already mentioned, that in the vast majority of cases the parties are better off sorting out their problems together with the help of the mediator. For the most part, mediation is empowering. In most cases, the best way forward is for people to be able to sort out their own futures and those of their children without being told what to do by a judge, and that is what the Government support.
Sir Alan Beith
What that 61% success rate on appeal demonstrates is a bad decision-making system. Ought not the Minister be more sympathetic to the Justice Committee’s view that Departments that make their decisions so badly that they generate large numbers of successful appeals should be penalised, perhaps even to the extent of contributing to a fund for the advice agencies that help the people who are affected?
Mr Djanogly
My right hon. Friend makes a good point. High levels of successful appeals perhaps show that too many cases are going before the tribunals in the first place. The other day, I saw a figure of about 80% for special educational needs tribunals, which was not very impressive either. I can also tell him that I am personally engaging with Ministers in the Home Office, the Department for Work and Pensions and the Department for Education with the specific intention of getting them to work with the Department of Justice to improve their initial decision making. I am pleased to say that they are all are working with us, and that they want to make the system better. This is a matter of significant concern to me, not least because I would like to see fewer appeals relating to my Department coming through the courts and tribunals.
The hon. Member for Brighton, Pavilion (Caroline Lucas) talked about domestic violence, immigration and legal aid. She also talked about people who fall outside the domestic violence immigration rule, such as EEA nationals. As I mentioned earlier, we are looking at cases of EEA spouses who have suffered dramatic abuse. The right hon. Member for Dwyfor Meirionnydd mentioned immigration judicial reviews. I think that he accused the Government of putting appellants into a Catch-22 situation because legal aid would not be available for immigration appeals or for some judicial reviews. I can tell him, however, that people will still be able to appeal immigration decisions themselves and, as is often the case at the moment, they will still be able to get legal aid for a subsequent judicial review, as long as it is not on exactly the same or substantially similar issues, or on a removal direction. As I said earlier, we are making various exceptions to the exclusions, which will include ensuring that, when there has been no possibility of an appeal, legal aid will remain for judicial review.
My right hon. Friend the Member for Bermondsey and Old Southwark raised various points about immigration, and I will write to him about those. He specifically mentioned children, as did other hon. Members, so I shall briefly address that point. In most immigration cases, a child’s interests are represented by their parent or guardian. Most cases in which a child is unaccompanied involve an asylum claim, and legal aid will remain for those cases as at present. Unaccompanied children with an asylum or immigration issue would have a social worker assigned to them, whose role would include helping the child to gain access to the same advice and support as a child who was permanently settled in the UK. They could also offer assistance with filling in forms and explaining terms, and give emotional support. Legal support in such immigration cases may be found, if needed, from law centres and from pro bono legal representation. The Refugee Council provides services for separated children, which can include litigation friends.
A number of hon. Members asked how we justified plans that could disproportionately affect women. That question has also been asked in relation to disabled people, ethnic minorities and people who live in rural areas. The equalities impact assessment, published alongside the Government’s response to consultation, sets out our analysis of how the reforms will affect people with protected characteristics as set out in the Equality Act 2010. We have identified the potential for the reforms to have a greater impact on some groups, but we believe that those impacts are proportionate, and justified by the need to meet our objectives, including the pressing need to make savings from legal aid. We are also keeping discrimination claims relating to a contravention of the Equality Act 2010 within the scope of legal aid, which we consider will make a significant contribution to the fulfilment of our public sector equality duty.
The hon. Member for Stretford and Urmston asked about the removal of legal aid in many family cases, which she said would remove access to justice from many people. She asked how that could be right. Legal aid will remain available for family mediation and private family law cases, including private law children and family proceedings and ancillary relief proceedings. We want to encourage more use of such mediation. In ancillary relief cases, courts will be able to make orders for payment against a third party or a party who has the means to fund the costs of representation for the other party. Removing costly and often unnecessary legal aid does not mean removing access to justice. Litigants in person already feature in the justice system. Judges and magistrates currently assist litigants in person without compromising their impartiality, and we expect that to continue.
Finally, I was asked whether we expect all cases to be resolved through mediation. As I said earlier, the answer is categorically no. Cases involving domestic violence and child abuse, and emergency cases will still not be required to go through mediation. In addition, exceptional funding will be available when necessary for the UK to meet its international and domestic legal obligations via a proposed scheme for excluded cases. On that note, I rest my case.
Amendment 10 agreed to.
Stephen Phillips
I am grateful to the right hon. Gentleman for his observations, but he may be eliding two matters. The first is the unavailability of legal aid for what we might call cases in the middle—neither the severe cases that will be picked up by the exceptional funding arrangements or CFAs, nor the cases in which solicitors and counsel will be prepared to take the case on and earn their money well down the line. I agree that that middle group of cases is the difficult group, but as well as the CFA arrangements mentioned by the hon. Member for Kingston upon Hull East, one must consider whether those cases are likely to be picked up and run with by the legal profession. My judgment is that they are.
Never having done a clinical negligence case, and having no expertise in those cases at all, I base that judgment partly on my experience of the position as it prevails in many jurisdictions in the United States, where of course no state or federal funding at all is available for civil cases. A legal profession has grown up in which attorneys have had to educate themselves about which cases they should be prepared to take. They consider which cases are worth taking forward, but also those that they believe have merit from a perspective of social justice and ensuring that there is access to justice for all.
Having worked with many attorneys across many jurisdictions in the United States, I can tell the right hon. Member for Dwyfor Meirionnydd that there are attorneys who take cases that they suspect will lead either to a settlement, out of which they will get very little or nothing, or to an eventual loss if they have to take the matter to court. They consider that part of their professional obligation.
I hope that both limbs of the legal profession in this country will come to appreciate that we owe an obligation not merely to try to make money out of the practice of law, but to do what we all did when we first came to the law—have a burning sense of justice on behalf of our clients, so that they are properly represented whether or not we believe them, whether or not we think their case is meritorious and certainly whether or not we think we will make money out of it. I hope that that deals to a large extent with the right hon. Gentleman’s points. I am, of course, as concerned as he is that there may be a group of cases in the middle that will somehow fall through the net. If that is the position, we may have to revisit the issue later.
Stephen Phillips
With the leave of the House, I was about to make my final few remarks.
Sir Alan Beith
I apologise to my hon. and learned Friend; I thought he had concluded his speech.
Stephen Phillips
The amendment proposed by my right hon. Friend the Member for Carshalton and Wallington (Tom Brake) addresses schedule 1 and the non-exclusion of clinical negligence cases in the context of convention rights. As I have informed the House more often than, perhaps, I ought, I have never conducted a clinical negligence case. [Interruption.] Mr Deputy Speaker tells me that the House has taken that point on board, and I am pleased it has taken at least one of my points on board.
Notwithstanding the Government’s insistence on the exclusion of clinical negligence in this context, I find it difficult to envisage any circumstances in which a case could be brought under the convention that engages this part of the law. I am not sure that my right hon. Friend addressed that point adequately—or, indeed, at all—when I intervened on him earlier, but he has said that this is a probing amendment that may have to be debated further in another place. At present however, I remain perplexed by the amendment.
Stephen Phillips
It may be an area the Government have to come back to. The amendment would change schedule 1 and, specifically, the cases for which civil aid is, and is not, available in the context of breaches of convention rights by a public authority. It addresses the convention rights contained in the Human Rights Act 1998, a piece of legislation of which the House will know I am not greatly enamoured. Clinical negligence is itself defined in paragraph 20(6) of the schedule, and the amendment suggests that civil legal aid should continue to be available in cases where a breach of convention rights is asserted in the context of clinical negligence. Although I think the Human Rights Act is bad law, I find it difficult to envisage circumstances in which the convention might be used and legal aid ought, in any event, to be available.
I therefore do not support the amendments, as they are unnecessary and misconceived, and the Government will have my support tonight.
Sir Alan Beith
I apologise to my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips) for having misinterpreted—and for perhaps leading you, Mr Deputy Speaker, to misinterpret —his meaningful pause, which sometimes occurs when senior counsel are delivering their well-chosen words, and which led me to think he had finished his speech.
I commend the members of my Committee who have brought this issue to the attention of the House: the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) and the hon. Member for Kingston upon Hull East (Karl Turner). The current system reveals many shortcomings in dealing with matters of this kind. I can recall a case, which went on for many years, of a young man who was brain damaged for life because he was not provided with proper recovery following an operation after a road accident. It was only when I managed to drag some information out of a health authority that the third firm of solicitors involved sued the second firm of solicitors for its professional negligence in allowing the matter to run out of time when a claim against the health authority would have been successful had it been undertaken with that information in the first place. These very difficult matters frequently involve the kind of cases that most of us are concerned about tonight: lifetime injury cases with very high care costs for those involved. My understanding is that when it comes to recovering costs from people who have been awarded damages in these circumstances, they will be recovered not from their damages for care, but from the other aspect of damages; a provision that the court has made for someone’s lifelong welfare ought not to be affected.
Justice and Security Green Paper
Lord Beith Excerpts(12 years, 9 months ago)
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Mr Clarke
I thank the right hon. Gentleman for his extremely constructive response, which is important. As I said, these problems were just as acute for the previous Government as they are for the present one, and with the mounting number of actions being brought in this field, the situation is getting steadily worse. I can assure the right hon. Gentleman that the Government hope to get cross-party agreement. This is a very green paper. We are genuinely open to suggestions as to how to tackle the issue.
It is very much in the national interest that we do that. As the right hon. Gentleman has just said, we intend to protect our system of open justice and at the same time to protect the security of our intelligence agencies and public safety. It is essential that we set aside the ordinary partisan debate and seek to produce a system whereby our public and our allies can be reassured that these matters will be handled sensitively in this country. People will share intelligence with us knowing that it will be used properly, will not be misused and will not be disclosed in areas where it would do damage. At the same time, the public will be able to find out more often the outcome of complaints and actions involving the security services, and have a judge take the matter to a conclusion. I welcome what the right hon. Gentleman said.
I have indeed read the article in The Independent produced by the shadow Home Secretary. I have to say that she, too, was briefed on Privy Council terms, I think. I am used to that. I have been briefed on Privy Council terms quite frequently in the past by members of the previous Government and did not always leap out to the nearest newspaper in order to give a reaction to the briefing that I had just had, but of course in the spirit of bipartisanship that I have just proclaimed, I will take her views seriously. She is trying to find reasons for disagreeing with us on both sides of the argument, but sooner or later she will decide whether we are being too draconian and protective or too indifferent to individual liberties. I look forward to further instalments as, no doubt, does my right hon. Friend the Home Secretary.
The first question that the shadow Justice Secretary asked is key. He asked who will decide that the closed material procedure is the right way to proceed in whatever civil action we are talking about. In the first case it will be put to the court by the Secretary of State, but the final decision will rest with the judge. That is absolutely key. The special advocate is quite entitled to challenge the fact that this evidence is being given under the closed procedure, and the judge will have to be satisfied that on what he or she knows of the claim, it is indeed reasonable to proceed on that basis and there is indeed a threat to national security. That is a considerable reassurance.
I do not know how many cases there will be. The present pattern is that the numbers of cases is steadily increasing. It is becoming fashionable, almost, to start challenging the courts in encounters of any kind with the intelligence agencies. I do not dismiss all these actions, but there are about 30 coming through the pipeline now, so it is urgent that we address the matter.
Accountability is like the ordinary accountability for the court process, but the ISC will no doubt play a part in seeing how the proposal is working and its impact on the Security Service. On the Intelligence and Security Committee’s views on its own reform, as I have already said, we have based many of our recommendations on what the Committee itself has said. It is my understanding—I may discover more clearly in a moment, if any of my right hon. Friends intervene—that the ISC is broadly supportive of where we are going. We are undoubtedly strengthening the Committee. It is being made a Committee of Parliament. It will be accountable to Parliament as well as to the Prime Minister, and it will have increased powers if our proposals gain favour in the course of the consultation.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
I welcome the publication of the Green Paper because it is better to find a way of getting intelligence material into closed court proceedings than for the cases to remain unresolved. May I point out to the Secretary of State that if that is extended to inquests, it will strengthen the case for a chief coroner, which I have put to him? As someone who has served on the Intelligence and Security Committee for a long time, I believe very strongly that that Committee has to have access to operational information in order to do its job properly.
Mr Clarke
On the first point, we canvassed opinion on the prospect of it being extended to inquests. There will be a range of views on that, so this is a genuinely green part of the Green Paper. My view is that in cases where families are desperately anxious to have a proper inquiry and for someone to make some judgments about what caused the death of a family member, it is particularly unsatisfactory if the whole thing cannot be brought to some sort of conclusion because the proceedings are too open to members of the public so the evidence cannot be heard. We will therefore consult carefully on inquests. I am not sure that the legislation proposing that we have a chief coroner would have given him any powers to do much about such inquest cases, but no doubt that issue will be raised if we continue to debate whether we need a chief coroner.
We propose to improve the ISC’s powers to require information to be brought before it. There are of course difficulties and sensitivities relating to operational information, but those will no doubt be raised in response to the Green Paper and are touched on, rather carefully, in the document I have published today.
Oral Answers to Questions
Lord Beith Excerpts(12 years, 10 months ago)
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Mr Djanogly
We remain committed to fundamental reform of the coronial system. I know that there are particular issues to address in the hon. Gentleman’s constituency, and they are being dealt with. Implementing the office of the chief coroner would require new funding, which simply is not available in the current economic climate. Our proposals will allow us to deliver those reforms, but without those additional costs.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
Does my hon. Friend recognise that there is a much cheaper and more cost-effective way of raising professional standards and creating a head of the coronial profession? That would involve designating a serving coroner as chief coroner and giving just minimal assistance to support him in that role.
Mr Djanogly
Unfortunately, the existing legislation would not allow that; the job would have to be done by a High Court judge or a circuit judge. The point of the matter is that we are putting in place a ministerial committee, which will answer to Parliament in a way that a chief coroner never could.
Business of the House (Police (Detention and Bail) Bill)
Lord Beith Excerpts(13 years ago)
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Sir Alan Beith (Berwick-upon-Tweed) (LD)
I am no fan of emergency legislation, which I think is generally a bad thing for the House to get involved with. However, the circumstances we face are such that the Government have been right to act and to bring the procedure forward in this way. I have looked at the concerns of the House of Lords Committee, but it seems to me that the procedure advocated for today is necessary and appropriate, so long as in the subsequent debate, the House can be satisfied that what the Government are seeking to do is to put the law on the footing that we all thought it was on in the first place. They should not make changes to the law without much more detailed and careful consideration. We should support the programme motion and ensure that Ministers can satisfy us that what they are doing is putting the law back to what we thought it was. If changes to the law are advocated, that should be done through a legislative process that allows consideration at greater length.
Legal Aid, Sentencing and Punishment of Offenders Bill
Lord Beith Excerpts(13 years ago)
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Mr Clarke
No, I am sorry. I respect the right hon. Gentleman, but I must move on.
I have said that ordinary citizens find the civil law a rather nightmarish experience when they resort to it. Thanks to the present scope of legal aid and the way in which the no-win, no-fee system operates, many people and, in particular, many small businesses live in fear of legal action. I accept that access to justice for the protection of fundamental rights is vital for a democratic society—something on which I will not compromise. However, our current legal aid system can encourage people to bring their problems before the courts when the basic problem is not a legal one and would be better dealt with in other ways. The scope of legal aid has expanded too far. It cannot be right, for example, that the taxpayer is forced to pay for legal advice to foreign students whose visa applications are turned down. There are many other examples.
Our legal aid system also faces a completely unignorable problem of affordability. I have listened to arguments in the media today challenging that, but we have by far the most expensive system in the world, after Northern Ireland, where I am sure the same problem will be tackled. It costs £39 per head of population in this country, each year, compared with £8 in, for example, New Zealand, which has a similar system of law. In any circumstances our system would need reform; in the country’s current financial crisis reform is imperative.
I have some advice for Labour Members. I do not usually give gratuitous advice, but I think the Labour party is facing one of the problems that we faced in 1997. It should find the courage to admit that it made some mistakes and left some things in a mess. It has been acknowledged by my opposite number, the right hon. Member for Tooting (Sadiq Khan), that, on Labour’s watch:
“Playing tough in order not to look soft made it harder to focus on what is effective”—
wise words. I thought, when we set off on this process of consultation, I had the widespread support of many Opposition Members. I ask the right hon. Gentleman to reflect on the way in which he started his consideration before he gets on with the rest of the debate.
In fact, when Labour was in office, its strategy for our prisons and our courts was legislative incontinence combined with kneejerk populism. On prisons, the Labour Government made the mistake of being unable to make proper provision for the demand for places that they stimulated. Overcrowding devoured the very budgets that should have been used productively to cut reoffending and improve public safety in a lasting way. What was the final result that we all remember? They had to reduce the release point from two thirds to halfway through the sentence. They then had to resort to the financial chicanery of keeping the cost of building prisons off the balance sheet—the so-called Carter prisons. Finally—the ultimate absurdity—they had to let out 80,000 prisoners early, before the end of their sentence, to offset the cost of the allegedly tougher sentences that they had imposed. That is why we need reform now—to reverse that nonsense.
On wider justice matters, the Labour Government proved little better at getting a grip. They had 30 consultations on legal aid from 2006; they did not act decisively, put the system on a sustainable footing or address the litigiousness to which its excessively widely available funding contributed.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
My right hon. and learned Friend has had a consultation, to which I hope he has listened, particularly in respect of criminal negligence affecting children with multiple injuries that may have resulted from birth. It is not clear to me yet that the Government have found a way of ensuring that that very deserving and small group of people will have access to justice and to the settlements that they need.
Mr Clarke
We have addressed clinical negligence, a large part of which is now conducted on a no-win, no-fee basis. That is the way we should proceed. Clinical negligence cases of the kind to which the right hon. Gentleman refers are especially expensive and it is quite difficult to decide whether to proceed with them, so we are making special arrangements, particularly for the expensive medical reports that have to be obtained before a case can properly be decided on. We are making arrangements to make the insurance reimbursable in those cases. I would also like to see a system developed by the NHS litigation authority and the best of the practitioners to exchange expert medical reports at a very early stage, so that we can avoid unnecessary litigation about whether a tragic disaster to a newborn baby was actually a natural tragedy or the result of negligence, and so that such cases need not drag on for the many years that they can take to go through the courts. I accept that that is a special case, and we considered it carefully during the consultation. We made quite a lot of changes during the consultation, some of which were referred to dramatically in outside comment.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
The Bill deals with two important issues on which the Justice Committee has reported. Sentencing was at the core of our report on justice reinvestment towards the end of the previous Parliament, and it has been the subject of several reports on Sentencing Council guidelines. The Government’s legal aid proposals were also examined in detail in our March report.
The content of the Bill was originally the product of two major and conflicting factors: the need to respond to the financial crisis and the Lord Chancellor’s determination to make the criminal justice system more effective in preventing crime and more cost-effective in the use of resources. We recognise the financial circumstances and we welcome the willingness to think radically. Recently, however, the Bill got ambushed, and some of its content and a lot of its presentation—not to mention its title—were the subject of No. 10’s preoccupation with getting favourable tabloid headlines. Evidence-based policy does not tend to prevail in those circumstances. It is not clear, for example, that the knife crime provisions will add anything to the existing practice of the courts, which take threats involving knives very seriously, and rightly so. Personally I am not so concerned about the dropping of the 50% discounts, which had nothing to do with encouraging appropriate sentencing. The problem is, however, that, although it was unlikely ever to achieve the £100 million of savings that were canvassed for it, the Department is now expected to find alternative savings to replace them.
Thankfully, the baby has not been thrown out with the bathwater. The Lord Chancellor is still pursuing his objective of making community sentences strong and effective enough to win more confidence from both the judiciary and the public. Furthermore, payment by results will, as part of the reform of the probation service’s vital work, continue—we will be reporting on that subject shortly. We are also getting rid of the disastrous indeterminate sentences and replacing them with life sentences in the most serious cases.
The Bill could, however, have begun a process leading to the commissioning of prison and probation services more locally and by the same body. Until we do that, we will not encourage rational sentencing. Resources will not be available for things such as drug treatment and intensive supervision if they are automatically taken up by the constant expansion of the prison system. Members have a responsibility to use money effectively to prevent crime—that is what we are engaged in—and not to give people the answer that seems the most obvious one. We have a responsibility to prevent them from suffering from crime in the future by spending money as effectively as we can.
The Committee recognises the need to contain and reduce spending on the world’s most expensive legal aid system, but it has serious concerns about some of the groups affected. We suggested alternative ways of making savings, including better court and case management and restrictions on legal aid for judicial review—we welcome the Government’s moves on aspects of that latter point. We were particularly concerned that citizens advice bureaux and neighbourhood law centres would be flooded by demands for legal advice without the resources to help, so we welcome the Government’s initial response to the transition fund and debt advice. However, more will be needed. We welcome the agreement to secure savings in the wastefully inefficient administration of the Legal Services Commission, and we agree with the wider objective of discouraging unnecessary litigation. We are also glad that the Government have responded to our concerns about the definition of domestic violence.
The Government have missed an opportunity in not taking up our recommendation on the “polluter pays” principle. If Departments faced a financial penalty for having too many decisions overturned on appeal, they would change their behaviour and public money would be saved. The Government’s response concentrates on individual cases. This is an overall proposal under which, if Departments rose above a certain threshold, they would have to pay money out of their budgets. That is the only way we will effect the behavioural change and get the right decisions first time.
As I have indicated, I have particular concerns about clinical negligence cases in which determining liability is a complex problem, particularly those concerning children with serious handicaps arising from birth injury. The Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly) wrote to me about this and said that the Department was discussing with the national health service litigation authority and other stakeholders how the commissioning of reports could be improved with joint reports, and the Secretary of State has also referred to that. However, I understand from my discussions with the NHSLA that that is not proceeding or is not proving to be practical. I hope that the Minister, when he winds up, will explain what is happening on that front. The other element in the Government’s attempt to deal with this problem was retaining after-the-event insurance for cases of this kind, but it is not clear to those who understand the system that there would be a viable market in after-the-event insurance in such a narrow field, when it has been abolished in other areas.
The Bill introduces some of Lord Justice Jackson’s proposals but not others. The proposals are a package, so if bits of them are missed out there is a real danger that they will not achieve the intended effect.
Jonathan Evans (Cardiff North) (Con)
Does my right hon. Friend share my concern, which has also been expressed by the right hon. Member for Blackburn (Mr Straw), about the absence of proposals on referral fees, which have been properly described as a “scandal”? They were a scandal at the time of the miners’ compensation scandal, which resulted in 27 law firms being disciplined. Does he think that that is a missing part of the Bill?
Sir Alan Beith
Yes I do, and I was just coming to that as my final point. First, just let me complete my earlier point by saying that the absence of qualified one-way cost shifting leaves an imbalance in the implementation of the Jackson proposals. It is not even clear from the Bill precisely what the Government are doing.
Finally, let me address what I, too, have described as the scandal of referral fees under which insurance companies and some other bodies, such as trade unions, make money from selling the details and claims of the victims of accidents. It will not be enough merely to ban referral fees, because the Government and the industry must deal with a system of fees that has a fundamental fault. If there is a system of fees in which a lawyer can still make a profit from a relatively small claim having paid hundreds of pounds for the privilege of pursuing that claim, then we have to address the fixed costs as well as the referral fees.
Mr Clarke
The reason why we did not deal with that part of Jackson was because the Legal Services Board had taken it on itself to review the future of referral fees. We now have its report and the Under-Secretary of State for Justice, my hon. Friend the Member for Huntingdon (Mr Djanogly), and I are considering referral fees. I take on board what my hon. Friend the Member for Cardiff North (Jonathan Evans) and the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) have been saying.
Sir Alan Beith
I am grateful to the Secretary of State. I know no one who agrees with the Legal Services Board’s conclusions, but I hope that the matter will be considered urgently to see whether the Bill can be used to complete the process of dealing with what is undoubtedly a scandal, which puts up costs for our constituents.
The Bill is part of a necessary process of reform in both sentencing and legal aid, but it needs a great deal of work before it leaves this House and a great deal of monitoring when it comes into force.