Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Lord Brooke of Alverthorpe and Lord Phillips of Sudbury

Tuesday 20th March 2012 Lords Chamber

[Lord Brooke of Alverthorpe]

My Lords, I support the line taken by our Front Bench. Without any question, there are risks with referral fees but they are fairly minimal. The questions that the noble Baroness, Lady Deech, and others should ask themselves are whether they believe that there will be more of the kind of litigants who at present benefit from the union offering these services, admittedly through using referral fees, especially given what we are doing to legal aid in this Bill; or whether there will be fewer people taking action. My view is that if these changes are put through, the likelihood is that unions will not be able to offer services on the same kind of basis that they have in the past. As a consequence, fewer people will pursue cases and the people who will not be pursuing those cases will be the ones at the bottom of the pile, and not those who are higher up with a fund of money to pursue the law without any trouble whatever. I put those very serious questions to those who are pursuing this line.

[Lord Phillips of Sudbury]

My Lords, I shall intervene briefly. I declare an interest in that a firm in which I was a partner had major arrangements with a number of trade unions.

I say to the noble Lord who has just spoken that the unions and the firms who do their work will be able to adjust their arrangements. For a start, by not paying the referral fee, the solicitors doing the work will be able to drop their charges to take account of that fact, and the trade unions will be able to adjust their arrangements with their members, although it will not be a major adjustment. The point that the noble Lord reasonably made is capable of adjustment in a way that will enable the abolition of referral fees—which, in general, are extremely deleterious to justice—to be effected.