Arbitration Bill [HL]

Lord Bellamy Excerpts

2nd reading
Tuesday 30th July 2024 Lords Chamber

[Lord Bellamy (Con)]

My Lords, again I take this opportunity to welcome and congratulate the Minister on his appointment, since this is the first time that we have faced each other across the Chamber at the Dispatch Box, and our roles are now reversed. I thank him particularly for his courtesy and common sense in the previous Parliament and I am sure that that those qualities will serve the ministry and this country in very good stead in the years ahead. It is a marvellous appointment and I congratulate him.

His Majesty’s loyal Opposition support the Bill and I thank the Government for bringing it forward so quickly and expeditiously when it was so unfortunately lost as a result of the Dissolution of the last Parliament. I also take this opportunity to thank everyone who has contributed to the result we have achieved, particularly the Law Commission team and all those who gave evidence to our Special Public Bill Committee. It has been a notable example of co-operation in achieving the result that we now have.

As the Minister has indicated, although this is formally the Second Reading, it is in effect the Third Reading or perhaps even the fourth reading, since many of these issues have been much gone over and the Bill is in effect in exactly the same form that I would have had the honour to present to this House at Third Reading had the election not intervened, in particular in relation to the insertion of new Section 6A(3), which affects investor protection-type arbitrations. I would have moved that wording at Third Reading as a government amendment—it was consulted on and I approved the wording—so I am delighted to be able to support not only that clause but the Bill as a whole. Indeed, I could do no other, since the previous Government worked very hard—in close collaboration with the then Opposition and with all stakeholders—to arrive at the result that we have now arrived at.

On the Bill itself, I will ask the Minister one question about the background that I have just mentioned. I think our procedures looked somewhat absurd in the eyes of the world when we lost the Bill when we did. Can the Minister say whether the Government in due course would be prepared to co-operate with all parties across both Houses to consider the procedures and rules for carryover between Parliaments, so that we avoid similar situations arising in the future, at least in relation to Bills that are uncontentious and apolitical? I am sure the Minister would be prepared to take that under advisement, but I look forward to his reply on that issue.

On the Bill itself, this is a very technical area, and there will always be certain what ifs, or questions that the Bill does not address. The Minister has indeed mentioned one such area in relation to the situation that may arise if there is in fact no choice of seat in the relevant arbitration agreement. The position of His Majesty’s Opposition is that one cannot cover everything in a Bill of this kind, and we should have absolute confidence in our excellent judges, who are well equipped to deal with any remaining lacunae there may be. As at present advised, we support the Government’s view that has just been expressed on that particular issue—there may be others—that we would welcome possibly a further comment in the Explanatory Notes but are entirely content to rely on the Commercial Court to sort out any questions that may remain. That is indeed what judges are for.

In our view, the Bill has, for one reason or another, been delayed long enough, and should now reach the statute book as early as possible. However, there is one point that has been drawn to my attention. It was drawn to my attention only today and relates to Clause 13, which relates to the situation where one needs the “leave of the court” to appeal on a certain issue. It apparently relates or could relate to a case called Inco Europe v First Choice. As I understand it, the issue is related to the question of whether the “leave of the court” means the court of first instance and/or includes or should refer to leave from the Court of Appeal. The normal situation is that you apply for leave from the court trying the case; if you do not get it there, you ask the Court of Appeal for leave. The question is whether the Inco Europe decision—a decision of this House sitting in its judicial capacity some years ago—is fully reflected in Clause 13. I simply leave that question with the Minister; I have no idea myself what the answer is, but that is a point that has been raised with me.

In relation to the points made by the noble Lord, Lord Hacking, also referred to by the noble Lord, Lord Beith, on corruption, I first thank the noble Lord, Lord Hacking, for his contribution today, his continuing interest in the issue of corruption and indeed his contribution to our Special Public Bill Committee. It was a great pleasure to have the opportunity to work with him, and he is by far the most experienced Member of this House on a number of these issues. At this stage, to take the point raised by the noble Lord himself, the position of the Opposition would be that it is now important that the Bill reaches the statute book. We would therefore hesitate to support further delay or dealing with the issues of corruption in this particular Bill. There are a number of important, albeit fairly technical, improvements made by the Bill, and it is quite important that those reach the statute book as soon as may be.

However, as the noble Lord, Lord Beith, has already said, the issue of corruption was raised before. I believe the ICC Commission on Arbitration and ADR has commissioned a task force to explore the issues of corruption, and in my previous capacity, I also wrote to the Chartered Institute of Arbitrators, the ICC, the LCIA, the London Maritime Arbitrators Association and GAFTA, asking for their views on the issue of corruption and the Government should take this forward. I ask the Minister what replies he has had to those letters I authorised and personally wrote, and if and when the Government are able to come to a view on how we should take forward this important issue of corruption. As the noble Lord, Lord Hacking, has rightly emphasised, we cannot leave things where they are.