Prison Service Pay Review Body

Lord Clarke of Nottingham Excerpts

Wednesday 11th May 2011 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

I am pleased to announce that the Prime Minister has appointed Dr Peter Knight as Chair of the Prison Service Pay Review Body for three years commencing March 2011, and that I have appointed Vilma Patterson and Trevor Spires as members of the Prison Service Pay Review Body, also for three years, commencing March 2011. The appointments have been conducted in accordance with the Office of the Commissioner for Public Appointments code of practice on appointments to public bodies.

Judicial Appointments

Lord Clarke of Nottingham Excerpts

Tuesday 10th May 2011 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

I am today announcing that the criteria for appointing judges who, on appointment, will be authorised to chair restricted patients cases in the mental health jurisdiction in the health, education and social care chamber of the first-tier tribunal will be amended to better reflect the needs of the jurisdiction.

Restricted patients cases involve individuals who are detained in hospital by virtue of a restriction order imposed by the Crown court, or by virtue of being transferred from prison by direction of the Secretary of State. The convention has been that retired circuit judges or recorder QC judges who chair the cases must refrain from chairing cases once five years post retirement has passed. The convention was designed to provide assurance that an experienced member of the judiciary would be involved in decisions on whether to direct the discharge of a patient and the concept of experience was predicated entirely on current experience of criminal sentencing.

The existing criteria no longer provide the most appropriate basis for determining competency for hearing restricted patient cases. While experience of criminal sentencing remains central, I recognise that restricting eligibility to recorder silks for appointment to the tribunal for the purpose of chairing restricted patient cases excludes non-silk recorders with heavyweight crime experience or substantial relevant experience in such areas as restricted patients cases or the Parole Board. I also recognise that requiring retired circuit judges or recorders to refrain from sitting after five years on the panel, in the absence of other factors to suggest they are not suitable, removes individuals with significant and continuing experience of working in this specialist jurisdiction. Deployment of available judges is a matter for the senior president of tribunals.

The changes will increase the pool from which potential chairing judges are drawn, and will retain the services of experienced judges.

Prisons Competition

Lord Clarke of Nottingham Excerpts

Thursday 31st March 2011 Commons Chamber

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

With permission, Mr Speaker, I should like to make a statement.

The House will be aware that in 2009 my predecessor announced a competition for the management of five prisons: Her Majesty’s prisons at Birmingham, Buckley Hall in Rochdale, Doncaster and Wellingborough, and the new prison, currently called Featherstone 2, near Wolverhampton, which is due to open in 2012. I am now able to announce the results of that competition process.

Let me remind the House that these prisons were selected by the right hon. Member for Blackburn (Mr Straw) for a variety of reasons. Birmingham and Wellingborough are currently managed by the public sector and were chosen after being identified by the National Offender Management Service as performing poorly. Buckley Hall and Doncaster are establishments that have been previously competed for and their contract is due for renewal. Buckley Hall is currently managed by the public sector and Doncaster is currently managed by Serco.

During the preparations for the bid it became apparent that competition could not produce improvements at HMP Wellingborough without significant capital investment to secure its long-term viability. In the current financial climate, this is clearly not a tenable proposition, so I took the decision to remove it from the competition process. HMP Wellingborough will continue to be managed by the public sector, and will need to deliver approximately 10% efficiency savings, in line with other public sector prisons, over the next four years.

I am now able to announce the results of the four remaining prison competitions. HMP Birmingham will be run by G4S plc. HMP Buckley Hall will be run by HM Prison Service. HMP Doncaster will be run by Serco Group plc. Featherstone 2 will be run by G4S plc. The new contracts will be effective from October 2011 for the prisons at Birmingham, Buckley Hall and Doncaster, and from April 2012 for Featherstone 2. I would like to put on record my thanks to all the bidders for contributing to what has been a challenging contest, which will secure significant quality improvements and savings at all the establishments involved.

The Government are committed to delivering reform in our public services. This process shows that competition can deliver innovation, efficiency and better value for money for the taxpayer, but also that it can do so without compromising standards. Before the bids were evaluated for anything else, they needed to demonstrate their fundamental ability to provide safe and secure custodial services. I can confirm that over the spending review period the new contracts will deliver savings of over £21 million for the three existing prisons. In the same period, the new Featherstone 2 prison will be delivered at £31 million less than the costs originally approved by the previous Government. Cumulative savings over the lifetime of the contracts for the three existing prisons are a very impressive £216 million.

But public protection is not just about how we manage prisons in order to punish people. It is also about how we achieve genuine and long-lasting reductions in crime by cutting reoffending. I am therefore particularly pleased to be able to announce that, for the first time, the contract award for HMP Doncaster will include an element of payment by results in reducing reoffending. Payment by results is central to our rehabilitation reform plans, because it means that we can concentrate on paying for what works to reduce reoffending. The current system funds services, but not outcomes. Providers of services face few consequences if what they offer does not succeed in cutting reoffending, and little reward if they do succeed in cutting reoffending. Payment by results looks to change this by rewarding performance against the outcomes specified in a contract. In the Green Paper I outlined plans to develop this policy further and commission at least six new pilots for payment by results. The contract for HMP Doncaster is an important first step towards fulfilling this commitment.

The new contract price for HMP Doncaster will in itself deliver significant annual savings. In addition, however, the introduction of payment by results means that 10% of the contract price will be payable only if the operator reduces the reconviction rates of offenders a year after they are discharged from the prison by five percentage points. If they achieve this, the contract will, of course, have significantly reduced crime, and for a cost of at least £1 million below what we currently pay. I regard this as a win-win approach. It translates to savings for the taxpayer, lower reoffending rates and a return for the service provider that improves their performance.

I know that Members on both sides of the House recognise the benefits of effective competition—at least I hope they still do. Today’s announcement shows it has a significant role to play in delivering value for money, better outcomes and broader reform. I encourage providers from any sector to rise to the challenge. The public are entitled to expect safety and security and better results to go hand in hand with efficiency and innovation. I commend this statement to the House.

[Sadiq Khan (Tooting) (Lab)]

I thank the Secretary of State for advance sight of today’s statement, and I welcome its tenor and how he delivered it. He will be aware that our policy was and is based on what works, rather than dogma. During our time in government, nine new private sector prisons were provided and three new establishments had been opened and run by the public sector, and I recognise that they have played a successful role in our prison system. It is right that we began the market testing that he is reporting on today.

I wish to ask the Justice Secretary a number of questions arising from his statement. First, he refers to the fact that during the bid preparations it became apparent that competition could not produce improvements at HMP Wellingborough without significant capital investment, so may I ask him what plans he has for such investment at Wellingborough prison? How much will be invested, and over what period? Does he understand the frustration of hard-working prison officers and other staff working in public sector prisons that need capital investment when they are compared with prison officers and other staff in newly built or refurbished private prisons? Can he confirm that the decisions on the Birmingham and Doncaster prisons are no reflection on the hard work of prison officers and staff there?

May I echo the Justice Secretary’s comments about the importance of delivering efficiency, innovation and better value for money for the taxpayer without compromising standards? Indeed, he has referred to the £216 million that will be saved as a consequence of this process, which was begun by the Labour Government. Does he therefore accept that the savings he is now championing are actually the fruits of the previous Government’s attempts to improve the efficiency of the Prison Service? Can he confirm that he will reinvest that money in the Prison Service?

The Justice Secretary’s announcement on payment by results is interesting and welcome. He will be aware that we began piloting payment by results in Peterborough, where we were trying to reduce reoffending. However, that is a pilot scheme and we recognised that lessons would need to be learnt before any full roll-out. What lessons have already been learnt from the yet to be completed Peterborough pilot? Can he confirm that Doncaster is a pilot and he will wait to see the results before the approach is rolled out further? His statement referred to the criteria for payment by results. He will be aware that 20% of offenders reoffend within three months of leaving prison and that 43% do so within a year, so will he explain further the criteria by which he will judge “if the operator reduces the reconviction rates of offenders a year after they are discharged from the prison by five percentage points”?

Finally, I wish to ask the right hon. and learned Gentleman about the workers in the prisons that he listed. Staff at HMP Birmingham and HMP Doncaster will understandably be worried about their future in these uncertain times. Does he anticipate any redundancies as a result of his decision? Can he confirm to the House that public sector terms and conditions will be protected under Transfer of Undertakings (Protection of Employment) Regulations arrangements? In addition, he will doubtless have seen the newspaper reports of contingency planning by his Department to deal with any industrial action that might result from his announcement. We have read that troops have been put on alert. Will he confirm whether that is the case? May I ask what discussions he or his Prisons Minister have had with the Prison Officers Association and others who represent prison staff? Does he agree that it is crucial that he and/or his Prisons Minister should meet the appropriate representatives today and begin a dialogue to avoid the sort of speculation reported in the media from becoming a reality?

[Mr Clarke]

I am grateful to the right hon. Gentleman, because I was interested to see whether the Labour party was in the position that I thought it was going to be in, and I am reassured by what he said. As he said, putting competition into the system in order to ensure the best standards at the lowest cost to the taxpayer is a continuous policy, and things have moved on an awful long way since I was Home Secretary 20 years ago, when privately managed prisons were a highly controversial subject. We got the first one under way at Wolds, but under Blairism the policy was taken a whole lot further, with all the private finance initiative prisons. As I readily acknowledge, the right hon. Member for Blackburn (Mr Straw) started this tendering process, which we have taken to what I believe to be this successful conclusion. It must be in the public interest and it must be right—I readily acknowledge what the right hon. Member for Tooting (Sadiq Khan) just said—that we leave aside stale ideology and dogma, and instead look at what works and what produces the right solutions for the public.

We have problems with the building at HMP Wellingborough. It is not a terribly old building—as I recall, it is largely a 1960s construction—but we are under notice that something has to be done about it and it cannot just carry on as it is. The building is not going to be adequate for very much longer. We are considering what to do about HMP Wellingborough. Its staff are responding very well to the problems that they face, but I hope to be able to come back soon to announce what will happen at Wellingborough.

The contract for Birmingham prison is now going to G4S. I acknowledge that the staff at Birmingham have made considerable efforts and that they put in a good public sector bid as part of the tendering process, but the fact is that that process is objective and the private sector bid was just better, and somewhat less costly. On the right hon. Gentleman’s later comments, the National Offender Management Service will, of course, have high regard to the interests of the staff at Birmingham. A new prison is opening not far away, which may offer some opportunities, but we will give all the appropriate support and hope to avoid an unnecessary number of redundancies.

Payment by results was indeed initiated at Peterborough by the previous Government, and we strongly support that worthwhile experiment. The only political claim that I would make is that I believe the previous Government responded to the policies suggested by the then Conservative Opposition in advocating payment by results. We suffered the fate that often happens to Opposition parties—I hope that this will happen to the right hon. Gentleman, too—of putting forward good ideas which then get stolen by the Ministers in power. However, at least we are at one on this policy.

The Doncaster scheme is another pilot. For the first time, the prison operator is entering into having a payment by results element in the contract; the operator will get extra reward if it succeeds, but it will share the risk with the Government, and will lose if it does not succeed. Five percentage points is what has been negotiated—a somewhat impenetrable figure. It means five percentage points down from the current percentage, so an 8.3% reduction from the current reoffending rate would be required for the operator to be paid.

It is indeed true that we have undertaken contingency planning in case we get the wrong sort of reaction to today’s announcement, although of course we very much hope that we shall not, because industrial action will be no more in the interests of prison officers than it is in the interests of anyone else. Contingency planning for disorder in prisons has always been done, as it has to be. It has been done for as long as I can remember, although I think the previous Government suspended it when they reintroduced the criminal law making it illegal to strike in prisons. They carried out an experiment when they lifted the legal ban, but they had a very bad strike in 2007, and put it back again. We have been bringing the contingency planning up to date, but we very much hope that that is a mere precaution. In the interests of public order, we have to ensure that we are prepared in case anything goes wrong in a major prison, but we very much hope not to have to put any of this into effect. We have had discussions with the Prison Officers Association and we are open to further such discussions, and we hope to be able to answer its legitimate queries in any way that we can.

[Several hon. Members]

rose—

[Mr Peter Bone (Wellingborough) (Con)]

The Secretary of State’s announcement will be widely welcomed in Wellingborough. Is he aware that the POA there and the management worked tirelessly together, doing so against the national union policy, to come up with a bid that has driven down the cost to £19,000 per prisoner and has reduced the number of prison officers from 147 to 101? Could either the Secretary of State or a member of his team visit Wellingborough prison to see the improvements?

[Mr Clarke]

I join my hon. Friend in congratulating the staff at Wellingborough, because they face a difficult situation, given the uncertainties caused by the unsuitable and deteriorating buildings in which they are operating. They certainly have succeeded, and my hon. Friend the Prisons Minister says that he can certainly take up the invitation to visit to see what they have achieved. I hope that the uncertainties will be resolved as soon as possible, but obviously it is difficult to find money for a large capital programme, which is what Wellingborough really needs.

[Mr David Hanson (Delyn) (Lab)]

As the Prisons Minister at the time the decision was made to undertake the market testing, I can confirm that we not only undertook the market testing but encouraged public sector bids. Now that those public sector bids have failed in Birmingham, could the Justice Secretary tell the House what will happen to the assets of Birmingham and Doncaster prisons? What is the cost of the TUPE arrangements? Will it be borne by the private sector contractor? If there are redundancies, will it be the Ministry of Justice that bears them?

[Mr Clarke]

The right hon. Gentleman was indeed involved in the competition process, so he cannot start protesting—however mildly—about the outcome. I assume that he contemplated that either the private or the public sector bids would win, and that is what has happened. The public sector has the contract at Buckley Hall and the private sector has the contract at Birmingham and the other prisons. Serco was already the contractor at Doncaster. To show how ideology is fading, the irony is that Buckley Hall, when it opened, was a private sector prison, but it has been in the public sector and this renewal of the contract has been won by the public sector again. The law on TUPE remains in place, but we are consulting on the wider implications on transfers of ownership from the public to the private sector. The outcome of this competition should be the kind of thing that the right hon. Gentleman was perfectly happy to contemplate when he was party to the decision in 2009.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I welcome the Lord Chancellor’s decision to build reducing reoffending into the Doncaster contract, but will he assure us that he recognises that that will require the provider to work closely with a range of other organisations, and that they too increasingly need to be incentivised to reduce the reoffending that creates more victims of crime?

[Mr Clarke]

My right hon. Friend is right. There are two major voluntary parties with which the provider at Doncaster proposes to be in contact, but their names escape me—one is called Catch22 and the other is something else—and there will be local voluntary and charity groups subcontracted below them. Serco will manage the prison and will be the principal contractor, but the delivery that it hopes to achieve will be effected by subcontractors. I have emphasised to those who have attended seminars on this subject that I hope that the operator will deal responsibly with the small local contractors. Serco is entitled to use its bargaining power when negotiating with the representatives of Government to get the best deal it can, but I hope that it will not overdo it when dealing with smaller voluntary and charitable bodies that are also entitled to expect to boost their funds if they deliver the results required.

[Simon Danczuk (Rochdale) (Lab)]

It is important to put on the record the fact that my constituents and staff at Buckley Hall prison in my constituency have been concerned about the process, but I am sure that they will appreciate the stability that should now be provided. The reason why I raise this matter is that, as the Secretary of State pointed out, there has been constant change at Buckley Hall prison, and I hope that this decision will provide some stability. May I have some assurance that the staff, who do an excellent job there, can now get on with that, and that there will be no redundancies at the prison?

[Mr Clarke]

I think I can give the assurances that the hon. Gentleman requires. As far as I am aware, the public sector bid did not contemplate any redundancies; I do not have that information at my fingertips, but I would be surprised if it did. The provider has won a contract, and it is now up to it to deliver that contract on the basis on which it was won; the provider cannot now backslide from what was offered. I do not think that that is likely to happen, and fortunately, the staff at Buckley Hall now have some welcome stability for the period of the contract.

[Mr Stewart Jackson (Peterborough) (Con)]

I warmly welcome my right hon. and learned Friend’s statement, and I know that he and his ministerial colleagues have been to Peterborough. May I add my voice to the calls to consider the social impact project at Peterborough with a view to extending it across the private prison estate? It could have an impact on prisoner education and in reducing recidivism.

[Mr Clarke]

I entirely agree with my hon. Friend, and I was immensely encouraged by what I saw on my visit to Peterborough. I have discussed Peterborough widely elsewhere, and there was tremendous enthusiasm for the social impact bond that raised the ethical investment that has gone in to the project and for the determination to deliver it on the part of the St Giles Trust, which is the partner, the YMCA and the other people who are involved. We are finding this enthusiasm reflected elsewhere, and I hope—Peterborough being another private sector prison—that public sector prisons will get equally keenly involved. There are people in the public sector prison service who wish to contract on such a basis. I hope that payment by results will take off, and social impact bonds are one model for raising important capital to get them under way.

[Mr George Howarth (Knowsley) (Lab)]

I welcome the inclusion of reoffending rates in the Doncaster contract. Can the Secretary of State assure the House that Serco will not be allowed to cherry-pick which offenders it takes at Doncaster, so that it will be possible to make meaningful comparisons between that establishment and other institutions?

[Mr Clarke]

I think I can. A cohort will be allocated rather than some carefully selected group, so a positive result will reflect some move in reoffending rates, with the consequent reduction in the number of further crimes and victims. I give credit to Serco, because when I went to Doncaster I broached the subject slightly tentatively there, because we were already in a competition process and Serco could just have proceeded perfectly ordinarily on the basis it had already agreed for the tenders with the previous Government. Yet Serco was positively enthusiastic, and I think it sees the pilot as a way of finding out whether it can enter into more such arrangements elsewhere in the criminal justice system.

[Mr David Nuttall (Bury North) (Con)]

I too welcome the statement from my right hon. and learned Friend. Further to the previous question, in view of the fact that prisoners move around the prison estate, what proportion of a prisoner’s sentence must have been served at HMP Doncaster for that prisoner’s record to be taken into account in the statistics?

[Mr Clarke]

I will consult those who negotiated the details of the contracts and write to my hon. Friend with an answer to that extremely pertinent question.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

The Secretary of State will be aware of the recent report on HMP Bronzefield, a privately run women’s prison. It found seven cases of self-harm per day, one woman who self-harmed 93 times in a month, and one woman who was kept in segregation for three years with very little human contact. Health care was shockingly poor, with no female GPs, and pharmacy services were tortuous and inconsistent. How on earth can it be for the public good to extend private sector prisons?

[Mr Clarke]

Her Majesty’s inspectorate of prisons does extremely valuable work and over the years has exposed things that can be praised or strongly criticised in both public and private sector prisons. If we look back over the years, we see that no rule and no measure can be produced that shows that either sector is overwhelmingly likely to produce praise while the other is overwhelmingly likely to produce criticism. We must look at the inspectorate’s reports, take them seriously and ensure that where there are serious problems they are addressed. In my opinion—with respect—it is extremely out of date to say that what is wrong in such a case is the fact that the prison is private, whereas when another prison is criticised it somehow does not matter so much because it is public. The whole point of contracting and competition is that one specifies the quality one wants and the right price for the taxpayer, and then the inspectorate system ensures that real failings are addressed—and at the same time, we sometimes have penalties in the contract if providers fail to deliver.

[Ben Gummer (Ipswich) (Con)]

I enormously welcome the statement by my right hon. and learned Friend. Given the cross-party support for what he has just announced, what plans does he have to continue the excellent policy of the previous Administration in market testing across the entire prison estate? Will payment by results contracts be extended across other prisons? Finally, will he consider agglomerating PBR contracts in prisons with probation trusts?

[Mr Clarke]

We are out to consultation at the moment on the Green Paper on sentencing in general and we floated in that the prospect, about which my hon. Friend rightly asks, of having a regular programme of competitive tendering throughout the prison system so that we can revisit quality and cost, in an organised way, gradually over the years. We have not finalised the form, but we will come back in due course once we have finished our consultations and responded, and we will answer his question about exactly what we want to do on that front. Probation trusts are equally involved, I hope, in the development of the payment by results policy. We are as anxious to see public sector bodies involved as private sector bodies. The best of the probation trusts seem to me, in my contact with them, to be quite enthusiastic about becoming involved in such a contracting process.

[John McDonnell (Hayes and Harlington) (Lab)]

The Secretary of State may consider that privatisation is no longer controversial within this House across certain parties, but it is deeply controversial among Prison Officers Association members. He should meet the POA as a matter of urgency, and should look well beyond TUPE for the protection of staff who are currently being made vulnerable by privatisation; otherwise I believe that there will be industrial conflict.

[Mr Clarke]

I have every respect for the hon. Gentleman’s opinions, in which he has always been consistent. He has always been an articulate advocate, and I almost welcome him as a voice from the past. I realise that the POA is rather stuck in its traditional attitudes towards this kind of thing, but I really hope that it will reflect on what is almost a universal view in this House that we are moving on to a proper, fair, competitive basis for deciding how best to run prisons and at what cost, without being so obsessed about whether they are private sector or the public sector. Of course, the Under-Secretary of State for Justice, my hon. Friend the Member for Reigate (Mr Blunt) and I will continue our close contact with the POA. We have had to have contingency plans in case anyone is so foolish as to start industrial action—but it is illegal to take industrial action. The sensible thing for people to do is to look at the tendering process and, if they are in the public sector, decide how their prisons can achieve a better score in future. They have won one this time, but it is up to them to put in the best bids as we develop the policy.

[Mr Matthew Offord (Hendon) (Con)]

I welcome the statement, and agree that there is consensus in the House about this. I see that three of the four contracts mentioned today are being awarded to the private sector. Could the Secretary of State please advise the House of the percentage of prisons in England and Wales that are currently run by the private sector?

[Mr Clarke]

The answer is 11%, and that is one of the many things that surprised me when I started in this office. When I was Home Secretary we introduced the first private prison, HMP Wolds, which was regarded as a flaming political issue—we had crossed the Rubicon and it was a dramatic change. One way in which Britain has modernised is that we have inherited a lot of private finance initiative-financed private prisons, and now we have this open tendering between the two sectors across the country.

[Paul Flynn (Newport West) (Lab)]

To underline his claim that prisons are well run, will the right hon. and learned Gentleman remind the House of the precise number of prisons that are free of the use of illegal drugs?

[Mr Clarke]

I would not like to guarantee that for any prison in the country. In far too many prisons drugs are, although more expensive, rather more readily available than in the outside world. That is a serious disgrace and I assure the hon. Gentleman that we are working very actively on our plans to begin with drug-free wings and then drug-free prisons. This issue has to be addressed, and people in the service are keen to do that. I hope to come back later this year—as soon as possible—with some announcement of progress on that front.

[Rehman Chishti (Gillingham and Rainham) (Con)]

I welcome the Secretary of State’s statement. Can he confirm that armed forces personnel are being trained to be deployed to man prisons if the need arises?

[Mr Clarke]

Yes, and there always used to be military contingency plans, because Governments must have contingency plans for all kinds of disasters. Unfortunately, if people are so unwise as to take industrial action in prisons, the situation can rapidly become far worse than in a normal strike because we start getting disorder among the prisoners. We have updated those contingency plans, and the military are indeed involved, but I should make it clear that no one is contemplating a military takeover of any prison. The Prison Service and prison governors would still be in charge. None the less, it is only prudent to make sure that we have the military preparedness that could, but almost certainly would not, be required. It has not been required in living memory, because one begins by using management staff and other teams that have been drafted in. Only in extremis would one start using the military for perimeter guarding and that kind of thing.

[Mr Dennis Skinner (Bolsover) (Lab)]

Following on from the question asked by my hon. Friend the Member for Hayes and Harlington (John McDonnell), when the Secretary of State meets prison officers will he give them a guarantee regarding TUPE? He seemed a little vague at the beginning. Will he give an assurance that TUPE arrangements will apply not only in the present circumstances but in the whole period of this Parliament if there are any further changes?

--- Later in debate ---

[Mr Clarke]

TUPE is part of the law of the country, but the hon. Gentleman probably knows that there is currently a consultation about TUPE-related agreements that have previously been in existence in relation to transfers from the public sector to the private sector. I am not anticipating the outcome of that consultation, which is why I gave the answer I did.

[Tom Brake (Carshalton and Wallington) (LD)]

Does the Secretary of State agree that localism is as important in the prison sector as anywhere else, and that there is a risk that if a very small number of very large conglomerates take over the running of all the private prisons, the voluntary sector, social enterprises and charities will be excluded from taking part in the exciting rehabilitation agenda that the Government are pursuing? How can he ensure that does not happen?

[Mr Clarke]

I agree that localism is extremely important in this field, and I think it will be preserved because of the process whereby major contractors subcontract to voluntary and charitable groups. The relevant voluntary and charitable groups are different from place to place, and some of them are quite local. The people who set up the arrangements in Peterborough dealt with a collection of voluntary and charitable bodies quite different from those dealt with by the people who negotiated the contract at Doncaster, because local services and local ideas for tackling reoffending are different. I very much hope that, as the hon. Gentleman says, we shall keep that quality of local enthusiasm and commitment when we rope voluntary, charitable and third sector people into tackling reoffending.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Will the Secretary of State tell the House how many contracts awarded to private sector contractors have been terminated due to poor performance?

[Mr Clarke]

None has been terminated due to poor performance, as far as I am aware.

[Gavin Williamson (South Staffordshire) (Con)]

I am sure that my right hon. and learned Friend is aware that not only Featherstone 2 but Featherstone and Brinsford are in my constituency. The latter two are excellent prisons because of the dedication and commitment of their prison staff. Can he assure me that the same levels of training and support offered to the prison officers at those two prisons will be offered to the staff at Featherstone 2?

--- Later in debate ---

[Mr Clarke]

That is provided for in the contract and I very much hope it will be the case. Like my hon. Friend, I have great optimism about the future of Featherstone 2. It is very good that we have that kind of investment coming on stream so that we can help to modernise the service in all possible ways. The proper training and support of staff is a key part of delivering the contract properly.

[Mr Rob Wilson (Reading East) (Con)]

I congratulate the Secretary of State on his statement, and I particularly welcome the savings to the taxpayer. Some would have argued in the past that they would lead to a lower- quality service, so can he tell us whether Her Majesty’s inspectorate of prisons has shown any differences in recent reports between the quality of private sector and public sector prisons?

[Mr Clarke]

As I have said, I do not think it is possible to draw general conclusions such as “private sector good, public sector bad”—or vice versa—in any area. The regime at the best private prisons is very good and is hard to match in the public sector, and the savings are very considerable and useful. Sections of the media are enjoying themselves by constantly accusing me of letting people out of prison, but as far as I am aware I have not let anyone out of prison. I rather prefer cutting the costs of running prisons to letting prisoners out, and we are cutting costs in an extremely sensible way that should raise quality and performance in the Prison Service.

[Henry Smith (Crawley) (Con)]

I strongly welcome the awarding of two of the prison contracts to Crawley-based G4S. Can the Secretary of State say how long the contracts are for, and what reviews of performance will take place throughout the contract and over which periods?

[Mr Clarke]

G4S has done very well in this particular round. It had some strong competitors, which will no doubt come back in future rounds when we arrange them. The contracts are for 14 years, but are reviewable after seven years so that performance can be checked at that stage. I wish G4S well in delivering the very strong bids that it put in.

[Mr Speaker]

I thank the Secretary of State and colleagues for their co-operation.

Bribery Act 2010

Lord Clarke of Nottingham Excerpts

Wednesday 30th March 2011 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

The Bribery Act 2010 is an important piece of legislation which seeks to tackle the scourge of bribery in international commerce.

Last year, as part of the preparation for implementation of the Act, we consulted on statutory guidance about procedures that commercial organisations can put in place to reduce their exposure to bribery and understand the Act. The guidance cannot of course change the substance of the Act, but the consultation did yield a large number of practical suggestions for its improvement, some of which I have taken up.

I am now confident that the guidance will prove a useful tool which will help prevent businesses from going to unnecessary lengths to comply with the law, and having consulted the Scottish Ministers, I am publishing it today under section 9 of the Act.

The guidance remains centred on six key principles and is intended to assist businesses of all sizes and in any sector or market. In particular it makes it clear that anti-bribery procedures should be proportionate to the risk of bribery and to the size and structure of an organisation. I am also publishing a much shorter guidance document which summarises the key principles of the guidance and which sets out essential messages about the Act. This is designed to be of assistance to smaller businesses in particular.

Both the section 9 guidance published as “The Bribery Act 2010 Guidance about procedures which relevant commercial organisations can put in place to prevent persons associated with them from bribing (section 9 of the Bribery Act 2010)” and the shorter guide published as “The Bribery Act 2010 Quick start guide” will be posted on the Ministry of Justice website today along with a Government response to the consultation. Copies will also be placed in the Libraries of both Houses.

In order to allow a period of three months for businesses to familiarise themselves with the guidance before the Act comes into force I intend to commence all the provisions of the Act that are not yet commenced on 1 July 2011.

The Government have also decided that a conviction of a commercial organisation under section 7 of the Act in respect of a failure to prevent bribery will attract discretionary rather than mandatory exclusion from public procurement under the UK’s implementation of the EU Procurement Directive (Directive 2004/18). The relevant regulations will be amended to reflect this.

The implementation of the Bribery Act 2010 will ensure that the United Kingdom is at the forefront of the battle against bribery, allowing the country to tackle corruption without being burdensome to legitimate business.

Oral Answers to Questions

Lord Clarke of Nottingham Excerpts

Tuesday 29th March 2011 Commons Chamber

[Liz Kendall (Leicester West) (Lab)]

1. What plans he has for the future of the Land Registry; and if he will make a statement.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

The findings of the feasibility study of the options for greater private sector involvement in the delivery of Land Registry services have now been reported to Ministers. Given the registry’s importance in the housing market, we must give thorough consideration to those findings before making any decisions or announcements about its future direction.

[Liz Kendall]

The Land Registry provides a state guarantee of title for land ownership covering registered property worth more than £2.5 trillion across England and Wales. Can the Secretary of State confirm that previous reviews conducted by both Conservative and Labour Governments have found the registry’s public sector status to be crucial to the impartiality and integrity of its work? Will he agree to meet me to discuss the future of this vital service, which is a cornerstone of the housing market and the wider economy?

[Mr Clarke]

I agree that the registry’s state guarantee of title to land and property is essential, and that it must be retained in any arrangements that we make. Previous investigations of the registry have featured all the options that we are considering now, including the possibility of involving private sector partners—indeed, I have the original operational efficiency programme for 2008, which refers to private sector opportunities. We will, however, proceed with great care.

I know that the hon. Lady has a constituency interest because there is an important branch of the registry in Leicester. I, or one of my colleagues, will meet her in due course, once she has given us a little time to consider the findings of the feasibility study.

[Lilian Greenwood (Nottingham South) (Lab)]

I recently met local representatives of the Public and Commercial Services Union from the Nottingham branch of the Land Registry. Unsurprisingly, they expressed concern about not only their own futures but the future of the service. What discussions is the Secretary of State having with staff trade unions to ensure that their valuable expertise and experience are taken into account in shaping the future of the service?

[Mr Clarke]

We will certainly take account of all staff comments, and we hope to include the staff in our consultations. If there were any question of any change in the registry’s status, we would embark on a full and careful consultation before taking action. We are pursuing the same objectives as the last Government: guaranteeing title, improving efficiency, lowering costs, and taking advantage of the opportunities provided by the Land Registry system to offer further service to the public.

[Tony Baldry (Banbury) (Con)]

2. What steps he is taking to increase educational opportunities in prisons.

--- Later in debate ---

[Yasmin Qureshi (Bolton South East) (Lab)]

3. What the evidential basis is for his proposals on the future of universal jurisdiction.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

Requiring the consent of the Director of Public Prosecutions before an arrest warrant can be issued does not affect in any way the principle of universal jurisdiction or the Government’s commitment to that principle in the future. The reason for making this change is that at present a warrant can be issued where there is no realistic prospect of a viable prosecution.

[Yasmin Qureshi]

As the Lord Chancellor will know, universal jurisdiction is an ancient civil right: it is the right of an individual citizen to take court action against somebody suspected of committing a war crime. In the last 10 years, only 10 such applications for arrest warrants have been made, and only two of them were successful. As the Lord Chancellor will be aware, these arrest warrants are issued by the chief district judge for the London petty sessional area. In light of the fact that only two of these applications have been successful, why are the Government considering abolishing this ancient principle?

[Mr Clarke]

It is not being abolished. First, universal jurisdiction is not as old as suggested, but we welcome the application for, and enforcement of, universal jurisdiction here just as much as the previous Government did. The trouble at present is that the test for issuing an arrest warrant is so low that it is possible for a warrant to be issued when there is not the faintest chance of any serious prosecution going ahead. While I understand the feelings behind some of the applications, there is no doubt that publicity is being sought rather more than a prosecution, and the likely targets are people such as Israeli or Sri Lankan politicians coming here whom dissident groups want to be arrested. The DPP can act promptly, and we will enforce the law when there is a genuine case for a prosecution. Indeed, one Afghan warlord has been successfully prosecuted in this country and is currently in prison.

[Duncan Hames (Chippenham) (LD)]

In the DPP’s evidence to the Police Reform and Social Responsibility Public Bill Committee, he said about assessing such applications:

“We have people who can work around the clock and we have enough trained people so that someone is always available.”––[Official Report, Police Reform and Social Responsibility Public Bill Committee, 20 January 2011; c. 126, Q241.]

Can the Lord Chancellor confirm that it will be possible for cases to be submitted in advance of a suspect travelling to the UK so that decisions can be made in time to act?

[Mr Clarke]

I will check with the DPP, but I am almost certain he will confirm that that is the case, because I have had assurances from his officials that they are ready to act very quickly. In a proper case, they should act quickly and a warrant should be issued, but at present the fact that warrants can be comparatively easily sought and occasionally obtained is deterring people from coming to this country who are politically controversial but probably not guilty of any war crime or crime against humanity. Indeed, over the years attempts have been made to arrest people such as Henry Kissinger.

[Ann Clwyd (Cynon Valley) (Lab)]

The Foreign Secretary gave a very direct answer to my question last week on the same subject. He explained that the Government are changing the law in order to be able to talk to the Israeli politician Tzipi Livni. Does the Justice Secretary really think the request of one foreign Government is a good enough reason for changing the entire law in the UK?

[Mr Clarke]

The case of Tzipi Livni is a very good example of why the law needed to be changed. She was the leader of the opposition when an attempt was made to get an arrest warrant. It was believed she was in this country, but in fact she was not. However, she was a leading Israeli politician coming here for political purposes, and it is in the interests of our country that we have negotiations and discussions with a wide range of political representatives from many countries. If guilty of war crimes, they will be prosecuted, but we put people off coming here if they are liable to have publicity-conscious arrest warrants served on them.

[Stephen Gilbert (St Austell and Newquay) (LD)]

4. What plans he has for the use of innovative community sentences as an alternative to custody; and if he will make a statement.

--- Later in debate ---

[Jessica Lee (Erewash) (Con)]

9. Which organisations he has met to discuss the draft Defamation Bill.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

Prior to the publication of the draft Defamation Bill, my Department carried out informal consultations with a wide range of interested parties. Since the draft Bill was published on 15 March my right hon. Friend Lord McNally has held meetings with a number of these parties to discuss their initial reactions to the draft Bill, and further meetings will take place during the consultation period.

[Jessica Lee]

In explaining the difficulties of defamation litigation to my constituents in Erewash, does my right hon. and learned Friend agree with the President of the Supreme Court, Lord Phillips, who stated that when defamation cases can be so complex,

“jury trial simply invites expensive interlocutory battles”?

[Mr Clarke]

I agree with my hon. Friend and her quotation. Jury trial is rarely used in defamation cases, but it greatly adds to the length and the cost when used, so there is a wide consensus that it is not usually appropriate. It also cuts out the ability of the judge to settle a lot of preliminary points before going on to the full hearing, in a way that cuts down costs and speeds up justice for all parties. So far, there has been a favourable reaction to our proposals that in defamation cases there should be a presumption against jury trial. That has nothing whatever to do with the coalition Government’s commitment to the use of jury trial in criminal cases.

[Mr Denis MacShane (Rotherham) (Lab)]

But does the Lord Chancellor accept that one organisation that he will not be able to meet is the organisation of the little man and the little woman, because it does not exist? They are the ones who most often face defamation and malicious or inaccurate comments and reports, as do even right hon. and hon. Members occasionally, difficult as that may be to believe. Do we not need a small claims court for libel cases which could quickly and expeditiously, at a low cost in damages and expenses, deliver remedial justice, apology and correction?

[Mr Clarke]

I think we need low-cost, quicker, simpler and more efficient procedures in most of the civil justice system. The statement that I hope to be allowed to make at half-past 3 will take that further in various ways. Defamation has never been eligible for legal aid, but anything that simplifies the process and gets more matters treated as preliminary questions will make it more accessible to the ordinary citizen when his reputation is unfairly tarnished.

[Lindsay Roy (Glenrothes) (Lab)]

10. How many foreign national prisoners he expects to have repatriated in 2011.

--- Later in debate ---

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

11. What discussions he has had with representatives of the Serious Fraud Office on his proposed guidance in respect of the Bribery Act 2010.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

The Serious Fraud Office has been fully involved in the preparation of the guidance under section 9 of the Act about commercial organisations preventing bribery, as indeed has the Crown Prosecution Service.

[Mr Bailey]

I thank the Secretary of State for his reply. He will be aware that the continued delay in the publication of the guidance is causing considerable confusion and concern within the business community. Can he give me assurances that the guidance will be consistent with that for other OECD countries and that it will be published and issued quickly?

[Mr Clarke]

I am as committed to the Act as anyone else. The UK should remain at the forefront of the fight against corruption and bribery internationally. The delay, as the hon. Gentleman calls it, has been the result of consultation to ensure that legitimate business is not faced with additional costs and burdens that are not necessary for the implementation of the Act. We will announce the results of our consultation and information on when we will implement the Act very shortly.

[Robert Flello (Stoke-on-Trent South) (Lab)]

The United States has expressed concern about guidance watering down the Bribery Act. The OECD is concerned that Britain will be weak on corruption. Business is rightly worried about London’s reputation, as shown by the letter from investment fund managers in today’s Financial Times. Even the Ministry of Justice must be concerned, as it still has on its website an announcement that my right hon. Friend the Member for Blackburn (Mr Straw) is the anti-corruption champion. With the head of the Serious Fraud Office warning about weak guidance, will the Secretary of State now wake up to the seriousness of the issue and, with the eyes of the world on him, draw up robust guidance that protects Britain’s reputation and British business?

[Mr Clarke]

I have been in touch with the United States Attorney-General and with Angel Gurría, the secretary-general of the OECD, and reassured them that Britain’s commitment to the anti-corruption drive internationally is not remotely in doubt. I am happy to join the right hon. Member for Blackburn (Mr Straw), as his successor as a champion against corruption. We are introducing the Act in a way that will enable us to modernise the law and catch corruption without putting burdens and costs on legitimate businesses, which are easily frightened by some sections of the compliance industry into believing that millions of pounds need to be spent on complying with it and that perfectly ordinary hospitality has to be banned. It has other fears that we hope to be able to dispel.

[Mike Weatherley (Hove) (Con)]

12. What progress he has made on reform of legislation on squatting.

--- Later in debate ---

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

In recent years, the threat of costly libel actions has begun to stifle scientific and academic debate and impede investigative journalism. I have therefore published proposals for long-overdue reform of our defamation laws. The draft Defamation Bill will fulfil the coalition’s commitment to protect free speech and restore important civil liberties after a decade of neglect under the last Government. It will mean that anyone who makes a statement of fact or expresses an honest opinion can do so with confidence, but it will also restore a sense of proportion to the law, ensuring that people can defend themselves against untrue allegations and that a fair balance is struck between freedom of expression and the protection of reputation. I welcome hon. Members’ views on the draft Bill and on the wider issues raised in the consultation.

[Mrs Hodgson]

Yesterday in the other place, Members voted through an amendment to the Public Bodies Bill to remove the Youth Justice Board from the list of organisations to be scrapped. Will the Secretary of State confirm that he will accept that defeat? Will he also confirm that he endorses the excellent work of the Youth Justice Board and will no longer seek to abolish it?

[Mr Clarke]

Another place is taking a very long time to discuss this, quango by quango, and it is rescuing several of these bodies. There is an enthusiasm for outside public bodies in the upper House that I am not sure is totally shared here. We will of course carefully reflect on the debate and vote in another place on the future of the Youth Justice Board. Since it was created—it did a very good job at first—time has moved on; peers kept referring to circumstances that they remember before it was created. We now have youth offender teams who do not need the level of supervision that they are getting from the Youth Justice Board. However, I will see whether any of my former friends and colleagues, and current hon. and noble Members of the upper House, have persuaded me to reconsider the policy.

[Mike Freer (Finchley and Golders Green) (Con)]

T3. The Minister may be aware that the Gaddafi house is a high-profile squatting incident in my constituency. Just this week, we have had two further squats. Will he meet me and my hon. Friends the Members for Hove (Mike Weatherley) and for Bury North (Mr Nuttall) to discuss this pressing issue?

[Sadiq Khan (Tooting) (Lab)]

The Justice Secretary is not afraid to speak his mind, and he has many fans on the Labour Benches as a result. Does he agree that there has been a great deal of confusion on the Government’s policy on the Human Rights Act 1998 and the Bill of Rights? Can he explain in plain, simple English whether his Government are in favour of abolishing, or in favour of keeping, the Human Rights Act, which brought into domestic law the European convention on human rights?

[Mr Clarke]

I would welcome vigorous attacks from the Opposition on any of my policies. The lack of such attacks might undermine my credibility with certain sections of the House and the outside world.

We have carried out the coalition commitment to set up a commission to investigate the case for a British Bill of Rights. Of course the Government accept the commitments and obligations under the European convention on human rights. The commission will look at the whole range of issues in this subject. Personally, I would like the debate to concentrate on what is more immediately attainable, which is sensible reform of the Court in Strasbourg. That is much overdue. I think that we could command a wide range of support from other member states of the Council of Europe on such reform. Perhaps we might decide on subsidiarity, and on the role of the Court vis-à-vis the Parliaments and courts of member states.

[Stuart Andrew (Pudsey) (Con)]

T4. Will my hon. Friend inform me of whether the principles of joint enterprise will remain after the sentencing review, as they were instrumental in bringing successful prosecutions against a number of people who were involved in the murder of the son of a constituent of mine?

--- Later in debate ---

[Mr Clarke]

I share the hon. Gentleman’s concern entirely. There are people who enter prison drug free and leave with a drug problem. Drugs are more expensive in prison, but sometimes they are more widely available than in the outside world. We are therefore taking steps urgently to introduce the first drug-free wings. Alongside our rehabilitation programmes, we hope to get people off drugs and thereby perhaps get them away from crime, rather than introducing people to drugs when they go to prison.

[Karen Lumley (Redditch) (Con)]

T8. Given the great work that West Mercia probation trust does in Redditch with the payback scheme, which I know the Minister has also visited, will he reconsider the new form of payback contracts, which cover large parts of the country but not necessarily our local communities?

[Mr David Crausby (Bolton North East) (Lab)]

T7. How will the Secretary of State ensure that the tightening-up of no win, no fee arrangements will deliver lower insurance premiums, not higher insurance company profits?

[Mr Clarke]

With your permission, Mr Speaker, I hope to make a statement on that subject in a few minutes. We intend to lower costs for everybody, which should be reflected in, among other things, lower costs for such things as car insurance.

[Mr James Clappison (Hertsmere) (Con)]

Given the misery that is caused by the drug trade, does my right hon. and learned Friend agree that all those who choose to play a part in drug distribution networks should face a custodial sentence, not least because those who play even what is termed a subordinate role are often indispensible to the making of large profits by drug barons higher up the chain?

[Mr Clarke]

I agree with my hon. Friend that any connection with the drugs trade should be dealt with by the courts with considerable severity. I invite him to have a look at the Sentencing Council guidelines put out today, which I think he will find are more balanced than some of the reports have suggested. They will actually increase the sentence for the more serious dealers and retain the right to imprison anybody involved.

Some of the comments that have been made have arisen because sometimes very low-level runners, often women, who are themselves drug abusers, are used as carriers by serious drug dealers. The judges and the Sentencing Council have addressed that point. They are consulting and we will consider our reaction, but the guidelines are produced by an independent body, and underlying them continues to be the principle of dealing severely with those responsible for the trade in illicit drugs, about which my hon. Friend and I agree.

--- Later in debate ---

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

A report last year from the Prison Reform Trust found that children with developmental disorders were being processed through the criminal justice system without their having much understanding of what was happening to them. As a consequence, they were more likely to have a custodial sentence imposed upon them than those who were more articulate and more able to defend themselves. Does the Secretary of State believe that that situation exists, and if so, how does he propose to remedy it?

[Mr Clarke]

I certainly agree that that is a very serious problem, and we intend to address it. I had a meeting yesterday evening with the Prison Reform Trust, the Women’s Institute and my right hon. Friend the Health Secretary. Our two Departments, together with the Courts Service, the police and the Crown Prosecution Service, hope to set up diversion route services for those who in fact require treatment for mental illness. Often, those people should be diverted out of the prison system and the criminal justice system altogether, both for their good and the good of society.

Prison is often not a suitable place in which to treat mental illness. I am told that no fewer than 3,000 prisoners appear to be in prison largely because that is the most convenient place to hold them while attempts are made to get them care and treatment for their condition.

[Stephen Pound (Ealing North) (Lab)]

When the hon. Member for Aldershot (Mr Howarth) and I were in Dartmoor prison together, we noticed that the second most popular prisoner workshop produced excellent plaster garden gnomes. In view of the great and burgeoning success of the film “Gnomeo and Juliet”, will the Minister have a word with the governor of Dartmoor to see what advantage can be taken of that serendipitous circumstance?

Reforming Civil Justice

Lord Clarke of Nottingham Excerpts

Tuesday 29th March 2011 Commons Chamber

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

With permission, Mr Speaker, I wish to make a statement. I have today laid before Parliament two documents—the Government’s response to our recent consultation on Lord Justice Jackson’s recommendations for reforming no win, no fee arrangements, and a fresh consultation document on proposals further to overhaul the civil justice system. Copies of both documents will be available in the Vote Office and on the Ministry of Justice website. I hope to bring forward legislation on the Jackson reforms as soon as parliamentary time allows.

To many people in this country, the prospect of legal action is an expensive, daunting nightmare. One of the worst features of our compensation culture is that our justice system has increasingly become closed to vast rafts of the ordinary public by legal costs out of all proportion to the dispute or the claim. The proposals that I am announcing today will, I hope, begin to restore proportion and confidence in our system of justice, for both claimants and defendants.

First, following careful consideration of the consultation responses, I have decided to reform no win, no fee arrangements to stop the perverse situation in which fear of excess costs sometimes forces defendants to settle, even when they know they are in the right.

I can therefore announce that the Government will seek legislation to return the no win, no fee system to the first principles on which it was set up. We plan to end the recoverability of success fees and insurance premiums that drive legal costs; to award claimants a 10% uplift in general damages where they have suffered loss; and to ensure that they take an interest in controlling the bills being run up on their behalf by expecting them to pay their own lawyers’ success fee. We will also bring forward our plans to encourage parties to make and accept reasonable offers, to protect the majority of personal injury claimants from paying a winning defendant’s costs, and to allow claimants to recover the cost of expert reports in clinical negligence cases.

I am also publishing a consultation paper that I believe paves the way for the more efficient and effective delivery of civil justice after 15 years of stagnation. The current system is slow, stressful and expensive, and change is long overdue. My aim is to help people to avoid court wherever possible, while reducing costs where that is unavoidable. We are proposing that small-value cases should automatically be referred to mediation so that many people are able to avoid the experience of court entirely; and that the maximum value for small claims be raised from £5,000 to £15,000 to enable more cases to be heard through the simple small claims process rather than a more costly, complicated trial.

We are also proposing: to increase the value below which claims cannot be brought in the High Court to £100,000 so that the county court jurisdiction is extended and the High Court is reserved for only genuinely complex or high-value cases; new measures that will improve the ability of courts to tackle those who evade payment of their debts even though they have the means to do so, while ensuring that those who cannot pay continue to be protected, for example by setting a minimum level of consumer debt at which property could be put at risk for non-payment; and the extension of a successful online system to cut waiting times and legal expenses in personal injury cases, as recommended by my noble Friend Lord Young of Graffham.

We have a duty to deliver a civil justice system that is more equitable, accessible and just. Resorting to the law need not be the long, drawn-out and expensive nightmare that so many people experience today, but could become a sensible and affordable way of resolving disputes in a proportionate manner. I believe these reforms, on which we are now consulting, will help to restore those fundamental values of proportion and fairness in our civil justice system, and I commend this statement to the House.

[Sadiq Khan (Tooting) (Lab)]

I thank the Secretary of State for his usual courtesies and advance sight of his statement, which, on face value, is difficult to disagree with. We accept that the issue of costs in civil proceedings is worth investigating, and did so in government. I note that my right hon. Friend the Member for Blackburn (Mr Straw) is in his place. Those suffering injury through the negligence of public and private bodies who cannot afford to fund actions privately must have recourse to the civil justice system. There is a fear, however, that these plans go so far in trying to keep down costs that some claimants with meritorious cases will find it difficult, if not impossible, to find a lawyer to take on their case.

I am afraid that the devil will be in the detail of today’s announcement. I have a number of questions for the Justice Secretary that I hope will tease out some of the detail. He referred to the Lord Justice Jackson report to justify his announcement. However, has he taken into account Lord Justice Jackson’s view that his proposals are a package and should not be subject to cherry-picking, and will he take into account Lord Justice Jackson’s desire to retain civil legal aid for criminal negligence and housing cases currently under threat from the Government?

The Justice Secretary proposes that claimants’ solicitors will be able to recover up to 25% of their costs from the damages that a claimant recovers. He will be aware that the increase in compensation from defendants to claimants will be only 10%, not 25%, and will apply only to general damages, not to total damages. Why should someone who has suffered the trauma of an injury at work be told that the money they have justly received as compensation will go to their lawyer?

Has the Justice Secretary had a chance to assess the road traffic accident portal scheme, which was introduced by the last Government to reduce costs? The scheme uses fixed fees and efficient processing to limit costs, and came into force in March last year. Does he accept that it has reduced costs by half in 75% of personal injury cases? Does he agree that expanding the scheme to personal injury claims would save costs?

The Government have said that one aim of the reform is to reduce the costs that defendants have to pay. Many defendants are insurance companies. In light of that, can the Justice Secretary say what reductions he expects in insurance premiums? Can he confirm whether an impact assessment has been conducted on how the changes affect access to justice, cost to defendants and reductions to insurance premiums? Is he concerned that, although there will be limitations on a claimant’s ability to bring a case and the costs incurred by their solicitors, there will be no such controls on a defendant in defending a case, raising concerns about the inequality between the two sides?

Finally, a fundamental principle of our justice system is proper access to justice. I agree with the previous Government, who agreed with senior judges such as the Lord Chief Justice, Lord Judge, as well as Lord Justice Jackson and others, that the costs of civil litigation were sometimes excessive. We would all like the costs of litigation to be reduced and alternatives to it found wherever possible, but the effect of the proposals could be to restrict access to justice, particularly for those who do not have their own means of funding. It will be on this key issue that we will hold the Government’s actions to account.

[Mr Clarke]

I welcome the right hon. Gentleman’s agreement with me on the importance of tackling cost. He has focused principally on the conclusions that I have announced today of the Government’s consideration of the consultation on Rupert Jackson’s proposals, which I accept were initiated by my predecessor, the right hon. Member for Blackburn (Mr Straw), under the previous Government. We are trying to get the cost of litigation down.

The right hon. Gentleman talks about access to claims. We are going back to no win, no fee arrangements of the kind that existed when they were first set up by my noble Friend Lord Mackay in the mid-1990s. It was the changes made at the turn of the century that led to the cost escalating to such an extraordinary extent. Among other things, in many cases the legal fees paid by a losing defendant now far exceed the damages paid to the claimant. Indeed, it can be an extremely profitable area of practice if people have some successes. We will keep no win, no fee on the basis of the kind of arrangements we used to have—the kind that are familiar in most jurisdictions. The arrangements that we are proposing to sweep away are unparalleled in any other country and are making litigation too expensive for those faced with it.

The right hon. Gentleman then asked about the cost that can be borne by the plaintiff out of his damages. As he quite rightly said, the 10% enhancement to the level of damages that can be awarded is designed to help plaintiffs and claimants, but it will be confined to general damages, otherwise the figure could be astronomical in some cases. However, the costs that can be recovered—the success fee or bonus paid to a solicitor who has won a case—will be limited to 25%, so they will be kept in proportion.

The right hon. Gentleman mentioned the road traffic accident portal scheme, which has certainly speeded up and helped many personal injury cases. We are indeed proposing to extend the scheme to other personal injury cases, as he suggested.

The right hon. Gentleman asked me what would happen to insurance premiums. The answer, of course, is in the hands of the insurance industry and the competitive market in which it works. We all think, “Oh well, it doesn’t matter: it’s only the insurance company that is paying colossal legal fees”—on top of damages—“in no win, no fee cases,” but that could be one explanation for why car insurance costs have leapt to such an extraordinary extent in this country. I hope to see insurance premiums come down.

Impact assessments were produced at an earlier stage, after Sir Rupert had received wide representations from all sides. We have taken quite a long time getting to this point, and we are pretty clear on what the impact will be. On balance, I think it will be highly desirable. [Interruption.] I cannot read my notes on the last question that the right hon. Gentleman asked.

[Sadiq Khan]

It was about cherry-picking, and clinical negligence and housing cases.

[Mr Clarke]

Yes, the right hon. Gentleman raised an important point about clinical negligence cases, which can be very expensive to start. We are therefore making an exception in regard to the non-recoverability of insurance premiums. We will allow the recoverability of such premiums when they are used to cover the cost of expert evidence in clinical negligence cases. We are, however, working with the NHS Litigation Authority with a view to getting the NHS and other defendants to co-operate with claimants to produce joint medical reports. That should narrow the dispute and cut the costs for all parties, making justice more easily attained.

[Several hon. Members]

rose—

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

Given the Lord Chancellor’s characteristic willingness to take what in “Yes, Minister” would have been called “courageous decisions” about success fees, insurance fees, after-the-event insurance and the scope of the small claims courts, will he tell us what he thinks about referral fees and claims farming, which are probably major contributors to the compensation and litigation culture?

[Mr Clarke]

The Legal Services Board is looking into that whole area. My right hon. Friend Lord Young of Graffham has referred to this as well, and it is an important area that we should look at. We are all in favour of no win, no fee; it has been introduced and no one is ever going to get rid of it, but a rather extraordinary form of practice has now developed at the margins. Claims advisers advertise for people who have had an accident to bring a claim; we see their advertisements on the backs of buses. They pay people to give them their claim if it looks good, and they then sell the claim to a solicitor. Solicitors may then trade the claims between themselves, before bringing a no win, no fee action. If they are successful, they get very high costs and a kind of bonus, called a success fee, on top. That is what makes these actions so expensive. I understand why, in response to consultation, some people defended that system vigorously, but I believe that the whole thing needs examining from beginning to end. As Sir Rupert Jackson’s report made clear, this explains why the whole process has become so frighteningly expensive for so many litigants.

[Mr Jack Straw (Blackburn) (Lab)]

May I add to the broad welcome from my Front Bench for the decisions that the Secretary of State has announced today? I also add my thanks, as I am sure he does, for the extraordinary work of Sir Rupert Jackson, which underpins them. I should like to pick up on the point raised by the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith). Is the Secretary of State aware that, in my constituency and in many others across the north-west, car insurance premiums for decent, honest drivers with impeccable records have rocketed, despite the fact that the number of accidents and thefts from vehicles has gone down? That is because of the work of those parasitic claims management companies and because the insurance companies, who are complaining about the costs, are themselves guilty of selling on personal data, including the facts relating to a claim, to those companies, often without the agreement of the insured person. Does the Secretary of State agree that we need to close down those claims companies altogether? They are parasites milking the system. I apologise for coming late to this decision; I should have taken it when I was in his seat. Does he also agree that we should use data protection legislation to ban insurance companies from selling on personal data?

[Mr Clarke]

When I took over the right hon. Gentleman’s desk and chair about 11 months ago, one of the first things I picked up was the Jackson report, which he had commissioned. As he says, it was on his desk, but he had not had time to implement it. I was immediately attracted by its approach to cutting costs, so I am glad that he and I continue to agree on that. I am astonished to hear his description of insurance companies selling claims, although I have come across it. They do not all do it, but this just adds gloss to the strange way in which this has all developed. I am also struck by the huge cost of these practices for institutions such as the national health service, which, in a bad year, can spend about £400 million—little short of half a billion—on legal fees. In many areas of practice, the legal fees are the biggest bill for the defendant. They often exceed the amount of compensation paid to the claimant. The right hon. Gentleman was obviously anxious to reform the system, and I am anxious to do so as well. I am glad to have taken up the baton.

[Mr John Whittingdale (Maldon) (Con)]

Is my right hon. and learned Friend aware that the Culture, Media and Sport Select Committee received considerable evidence that the massive increase in the cost of libel actions that can result from the use of conditional fee arrangements is having a seriously chilling effect on investigative journalism? Does he accept that the measures he has announced this afternoon are in some ways even more important for sustaining investigative journalism and scientific debate than the measures contained in his draft Defamation Bill?

[Mr Clarke]

I think that is right. This will have a big impact on defamation cases where people threaten the publisher of something they do not like with enormous costs if they want to defend the action. This is having, to use the jargon phrase, “a chilling effect” not only on scientific and academic work, but on proper investigative journalism. When we put the draft Defamation Bill together with what we are proposing to do in the light of Rupert Jackson’s proposals, the way in which we are setting up no win, no fee generally and the announcements I have made about the jurisdiction of the courts, I think we will make a significant impact on lowering the costs of all this litigation to the advantage of plaintiffs who have a legitimate grievance and of defendants. We are going to stop the whole thing being a high roller’s gamble, which is what it is at the moment, as to whether the other side dare face the risks of the huge costs being piled up the moment a claim is brought.

[Tony Lloyd (Manchester Central) (Lab)]

Whilst welcoming anything that will reduce the unnecessary costs to lawyers and others, will the Justice Secretary give a reasonable guarantee to constituents like my own, who are generally among the poorest people in Britain, that they will still be able to find legal assistance? The obvious problem with the 25% rule is that it might drive people below the threshold at which lawyers would be prepared to take the cases on. Will anything in the proposals deter people from obtaining proper expert evidence when that is necessary for them to fight their claim?

[Mr Clarke]

I think that people will think twice, as it were. At the moment, they are lured into making a claim by an advertisement on the back of a bus or in some local office. There are many people with perfectly legitimate personal injuries claims and the method I would wish them to pursue is to go to a solicitor who will consider the reasonable prospects of success and take it on on a no win, no fee basis—on the sort of terms that were always envisaged when we introduced the system into this country in the 1990s. People will have to think more carefully; there will be fewer purely speculative actions; and there will be fewer actions brought in the hope that the size of the legal costs is so great that the other side might be bullied into making an offer of settlement, regardless of their chance of success. I hope, however, that legitimate claims will prosper under a no win, no fee system, which is much closer to the lower-cost systems that other jurisdictions operate.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

Thanks to the blame culture that developed under the last Government, one school in my constituency deemed it necessary to concrete over a very shallow paddling pool, in case a child had an accident and the school were sued. Another school considered cutting down all its trees in case children were to fall out of them, injuring themselves so that the school might be sued. I hope today’s statement will be the start of a fresh approach to this compensation culture.

[Mr Clarke]

I feel strongly, as does my hon. Friend, that we have an unacceptable compensation culture in this country. Like him, I notice it in my daily life. I think that doctors, teachers, policemen and most professional people are constantly concerned about the possible risk of litigation when they do perfectly ordinary things in the course of their daily lives. I dare say that the kind of submissions coming to Ministers are, in comparison with when I first received them, now so full of concerns about judicial review, the Human Rights Act and other legal constraints on what can be done that we are getting further and further away from common sense whereby people can exercise their judgment and, of course, be accountable to the law when they are at risk of breaking it—but only when they are at risk of breaking sensible law and might face litigation at reasonable cost.

[Keith Vaz (Leicester East) (Lab)]

I think that what the Lord Chancellor has said today has cross-party support. May I take him back to his comments about mediation? Is he suggesting that there should be mandatory mediation for very small claims? If he is, we have a problem with the number of qualified mediators. Will he look at this issue because it is all very well referring these cases, but we need the mediators to be able to deal with them?

[Mr Clarke]

We will make mediation an automatic part of the process if the result of the consultation supports such a move. Of course there will be cases that mediation will not resolve, and in those cases people will undoubtedly have the right to go to court. In the small claims courts we are already seeing a rapid extension of very successful mediation, often by means of telephone conference, which is resolving the smaller disputes.

As for the county court, following our extension of its jurisdiction, we will expect people to go along and be introduced to the prospect of mediation. We are consulting on the kind of people who will be required to conduct mediation sensibly, because, as the right hon. Gentleman says, a certain amount of skill and experience will be required for the process to produce the right results.

[Tom Brake (Carshalton and Wallington) (LD)]

Has the Secretary of State had time to consider the possible implications for the overall number of county courts of the proposal to rationalise the county court by, for instance, allowing back-office functions to be combined?

[Mr Clarke]

We have just completed a consultation on our estate, and we have announced the closure of a number of courts. We aim to reduce back-office costs and the unnecessary expense that flows from different jurisdictions. Obviously we keep the proper usage of our estate under continuous review, but I do not expect the proposal to have any significant effect on the future of the courts that survived the consultation that we carried out a few months ago.

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

I accept the need for rationalisation of the jurisdictions of the county courts and High Courts. I also accept that, ultimately, mediation will be a good thing. However, evidence from the Access To Justice Action Group provides numerous instances in which poor people will be excluded altogether following the change in the no win, no fee arrangements, and I am desperately worried about that. The evidence contains no special pleading. It is excellent evidence, and I ask the Ministry to re-examine it in due course. If something is not done, this will prove to be a benefit match for the insurance companies only.

[Mr Clarke]

We considered very carefully the large number of responses to the consultation document, many of which opposed changes based on Sir Rupert’s proposals. Most of them came from plaintiff solicitors, but I do not dismiss them on that ground, because I share with those solicitors an interest in proper access to justice. We considered whether modified no win, no fee arrangements could be justified in that context.

There are two questions to be asked: have we affected people’s access to justice, and have we affected the profitability of practices that engage in no win, no fee with a reasonable level of success? Most of the responses that we received dealt with much more complicated questions, but I believe that we have retained proper access to justice while lowering the costs—and therefore, unfortunately in some cases, the profit margins—to more reasonable levels.

[Tony Baldry (Banbury) (Con)]

Some of us spend a large part of our professional lives trying to persuade litigants to accept reasonable offers. It is often difficult to explain to them what is a realistic quantum of damages in personal injury cases. Surely, with all the technology of the 21st century, it must be possible to devise a public website that could be updated with whatever decisions the Court of Appeal, the Supreme Court, the High Court and other courts have made in personal injury cases. That would provide a much more accessible and transparent explanation of the quantum in such cases at any given time, enabling litigants to assess the probability of a successful claim and the level of damages that they were likely to receive.

[Mr Clarke]

If my hon. Friend looks at our proposals, he will see that we intend to provide greater incentives for the settlement of cases. We also intend to impose cost penalties—beyond those that already exist—on those who either refuse good offers or do not meet the reasonable first demands of their opponents, but settlement is always preferable when it is possible.

I think I shall have to discuss with the judiciary the question of whether wider circulation could be given to recent awards of damages. However, I agree that in this day and age it ought to be possible to move on a little from the old days when gossip among members of the Bar about what they considered to be the current tariff for a particular injury was the best way of spreading knowledge about the direction in which the figures were moving. I will discuss my hon. Friend’s proposal with the Lord Chief Justice and others.

[Geraint Davies (Swansea West) (Lab/Co-op)]

The Secretary of State will know the situation facing families with household savings of less than £15,000, and that families with savings of over £16,000 are ineligible for benefits. Does he not think that raising the bar for access to justice through the small courts from £5,000 to £15,000 may be seen as rough justice for the many poorer families who might want a proper hearing for their case? It will have a massive impact on their household budget, and a much greater one than a larger amount for a richer family.

[Mr Clarke]

This has sometimes been looked at, hence it has been possible to raise these levels by quite large amounts as they have not kept in line with inflation for the last 15 years. What we are doing in respect of the small claims courts should be of assistance to people of low means, because the small claims courts have been quite successful as a reasonably informal, very low-cost way of resolving simple disputes or collecting straightforward debts which people cannot recover from those who owe them. It is right to extend that jurisdiction so that people are not faced with the daunting prospect of appearing before a judge in a formal court setting, and possibly having a lawyer on the other side and so forth, which comes at the next stage up, at county court.

[Jake Berry (Rossendale and Darwen) (Con)]

On the small claims courts, it is interesting that we are increasing the limit from £5,000 to £15,000. Will personal injury cases now be included, and will the recovery of legal fees be precluded in all cases up to £15,000?

[Mr Clarke]

We are only consulting, so we are open to arguments about whether or not £15,000 is the right figure; we might put it up further, or we might be persuaded to take it down. I personally think that extending the small claims court jurisdiction is a very desirable thing to do, but it will not be extended to personal injury cases, because the small claims court is intended for quick and easy disposal of fairly straightforward cases. Too many personal injury cases would clog up the system which is meant to be quick and relatively informal and for straightforward disputes.

[Dr William McCrea (South Antrim) (DUP)]

Can the Justice Secretary assure the House that all the proposed changes will safeguard the innocent, protect the vulnerable and ensure that access to justice remains the cornerstone of our society?

[Mr Clarke]

Well, I hope I can answer yes to all those questions. We are talking about civil jurisdiction here; there is no criminal jurisdiction. I think civil justice should be quick, efficient and accessible to most members of society. As the hon. Gentleman will know, most ordinary people regard any question of being muddled up with litigation, or having to go to court, with mortal dread. Middle England—or middle Ireland—feels itself completely excluded from a civil justice system that exists for the very poor, the very rich or the big corporations. We are, I hope, moving in the direction of enabling the ordinary citizen to make some use of the civil justice system again, and without quite as much fear as most people have of it at the moment.

[Mr Robert Buckland (South Swindon) (Con)]

Although I think there will be a general welcome for the 10% uplift in general damages, which should help to cover the payment out of success fees by claimants, does my right hon. and learned Friend agree that in a small number of cases where special damages form the lion’s share of an award, there is still a live issue as to the potential erosion of the value of the damages awarded by the payment out of success fees to lawyers?

[Mr Clarke]

The cap of the success fee—which is a kind of bonus to a winning lawyer who has taken a no win, no fee case—will not be applied to special damages. As my hon. Friend rightly says, special damages can be enormous, such as in cases where the plaintiff has been disabled for life, and if the so-called success fee—the bonus—is taken as a percentage of that, it could be colossal, even though the size of the award might not reflect the complexity and difficulty of the case, but just the fact that the plaintiff was very severely injured. We are increasing damages by 10% of general damages, and we are capping the success fee that the plaintiff will have to meet at 25% of the general damages. Special damages will not be affected.

[Rehman Chishti (Gillingham and Rainham) (Con)]

Can the Secretary of State confirm that the online road traffic accident scheme will be expanded to cover employers’ liability, public liability and personal injury claims up to the value of £50,000?

[Mr Clarke]

Yes, I would like to see that, we are consulting on that and I would be interested to hear my hon. Friend’s views. It has worked very well in the road traffic accident cases and we are therefore seeking to extend it, in line with his question.

[Andrew Bingham (High Peak) (Con)]

The tentacles of the compensation culture have wrapped themselves around British life for far too long, and I congratulate the Secretary of State on his proposals. Local authorities and public bodies face paying out more and more, so does he see his proposals as the first step towards a semblance of normality in this area?

[Mr Clarke]

I hope so. Let me make it clear that I am in favour of people who have suffered injury because of the fault or negligence of somebody else receiving proper compensation. In all those cases, people should have access to the courts and the right to have their case argued in the normal way, but what has happened is that this has become a widely publicised, rather commercial activity, which is having a considerable effect on the way in which many people lead their ordinary day-to-day lives. Let us go back to a sensible system of civil justice which does proper justice to both the claimants and the defendants, and get away from this rather extraordinary way we live at the moment, whereby huge sums can be made, mainly in legal costs rather than in damages, by bringing speculative claims against defendants who cannot afford to defend them.

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

As those of us still practising can tell my right hon. and learned Friend, the costs associated with civil litigation are of just as much concern in higher value claims as they are in lower value claims, particularly to British businesses which need their rights adjudicated upon. In many jurisdictions, including some in the United States, mediation is compulsory in all civil cases. Will he consider ensuring that that is the position in England and Wales as well?

[Mr Clarke]

I will certainly consider that, and I am interested to hear about my hon. and learned Friend’s knowledge of the American experience. We are certainly seeking to extend mediation considerably, and we are consulting to see how far we can go in getting people to contemplate mediation before deciding which cases cannot be resolved that way and so have to go to ordinary litigation. I am glad that he welcomes that; we certainly wish to see a considerable extension of mediation and we will go as far as is sensible.

[Jessica Lee (Erewash) (Con)]

I declare my interest as a family lawyer.

Constituents involved in these proceedings are often frustrated about the length of the court process. They can be involved for a long time only for the case to be settled at the door of the court. Will my right hon. and learned Friend set out the steps being taken to case-manage matters at the earliest opportunity?

[Mr Clarke]

The new portal process should significantly speed up a very high proportion of cases. We will certainly continue to address the real point that my hon. Friend makes as we go on to consult. Quite apart from the dread of the cost, the main experience members of the public have of the courts, be they criminal or civil, is the astonishing amount of time they are likely to waste in abortive visits during a slow-moving process. They will often have to attend the court building needlessly on occasions when the court is adjourned before they can get to be a party, a witness, a juror and so on. I therefore appreciate the spirit of my hon. Friend’s question and we are certainly seeking to address it in this consultation process.

Prisoner Escort and Custody Services

Lord Clarke of Nottingham Excerpts

Wednesday 16th March 2011 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

I am today announcing that the Government have awarded four new contracts for the prisoner escort and custody services to Geo Amey PECS Ltd ( a joint venture between the Geo Group Ltd and Amey UK plc) and Serco Ltd.

This follows a competitive tender conducted in accordance with Public Sector Procurement Directive (2004/8/EC). Geo Amey PECS Ltd and Serco Ltd have offered the best overall bids in terms of quality of service and cost relative to the other bids received and will take over the service from 29 August 2011 for an initial period of seven years.

The award of contracts to Geo Amey PECS Ltd and Serco Ltd enable the MOJ to release significant cost savings, reducing current costs by 20% on current spend.

The scope of services being delivered by Geo Amey PECS Ltd and Serco Ltd include all inter-prison transfers, the movement of prisoners with mental health problems, extradition and cross-border moves. It excludes all category A movements. The final specification incorporates a number of business changes, including improvements to facilitate the operations of the courts.

Draft Defamation Bill

Lord Clarke of Nottingham Excerpts

Tuesday 15th March 2011 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

The Government have today laid before Parliament a draft Bill on defamation for public consultation and pre-legislative scrutiny. This reflects the coalition commitment to review the law of libel to protect free speech.

There are real concerns that the threat of libel proceedings is being used to frustrate robust scientific and academic debate, and to impede responsible investigative journalism and the valuable work undertaken by non-governmental organisations. These concerns relate not only to cases which actually come before the courts, but also in relation to the chilling effect on freedom of expression that is created more widely by the threat of costly and protracted legal proceedings against defendants who may often have limited resources.

The proposals in the draft Bill and consultation paper aim to ensure that the right balance in the law is achieved, so that people who have been defamed are able to take action to protect their reputation where appropriate, but so that free speech is not unjustifiably impeded. We also want to look at ways of speeding court cases up, so as to cut the costs involved in defamation proceedings.

The draft Bill contains provisions on the following issues:

A new requirement that a statement must have caused or be likely to cause substantial harm in order for it to be defamatory;

A new statutory defence of responsible publication on matters of public interest;

A statutory defence of truth (replacing the current common law defence of justification);

A statutory defence of honest opinion (replacing the current common law defence of fair/honest comment);

Provisions updating and extending the circumstances in which the defences of absolute and qualified privilege are available;

Introduction of a single publication rule to prevent an action being brought in relation to publication of the same material by the same publisher after a one-year limitation period has passed;

Action to address libel tourism by ensuring a court will not accept jurisdiction unless satisfied that England and Wales is clearly the most appropriate place to bring an action against someone who is not domiciled in the UK or an EU member state;

Removal of the presumption in favour of jury trial, so that the judge would have a discretion to order jury trial where it is in the interests of justice.

Issues which have not been included in the draft Bill at this stage, but on which the consultation paper seeks views are:

Responsibility for publication on the internet. The paper seeks views on whether the law should be changed to give greater protection to secondary publishers such as internet service providers, discussion forums and (in an offline context) booksellers, or alternatively how the existing law should be updated and clarified;

A new court procedure to resolve key preliminary issues at as early a stage as possible, so that the length and cost of defamation proceedings can be substantially reduced;

Whether the summary disposal procedure should be retained, and if so whether improvements can usefully be made to it;

Whether the power of the court under the summary procedure to order publication of a summary of its judgment should be made more widely available in defamation proceedings;

Whether further action is needed beyond the proposals in the draft Bill and the introduction of a new court procedure to address issues relating to an inequality of arms in defamation proceedings, including whether any specific restrictions should be placed on the ability of corporations to bring a defamation action;

Whether the current provisions in case law restricting the ability of public authorities and bodies exercising public functions to bring defamation actions should be placed in statute and whether these restrictions should be extended to other bodies exercising public functions.

We believe that publication of a draft Bill for full public consultation and pre-legislative scrutiny will help us to achieve fully considered legislative proposals which focus on core issues of concern where legislation can make a real difference. After the consultation process is completed, we intend to introduce substantive legislation as soon as parliamentary time allows.

Oral Answers to Questions

Lord Clarke of Nottingham Excerpts

Tuesday 15th February 2011 Commons Chamber

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

6. When he plans to implement the Bribery Act 2010; and if he will make a statement.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

I am at present working on the guidance to commercial organisations to make it practical and useful for legitimate business and trade. It will be published once I am confident that it addresses the legitimate concerns of all those who took part in the consultation process and who have made representations to me. The publication of the guidance will be followed by a three-month notice period before full implementation of the Act.

[Mr Binley]

Does my right hon. and learned Friend agree that the offences in the Act should not prevent businesses from using legitimate and proportionate promotional expenditure or corporate hospitality? I welcome the fact that he is going to prepare guidance, but will he do so on the basis that there is some fear and lack of knowledge out there, which needs to be dealt with?

[Mr Clarke]

I agree entirely with my hon. Friend, and I have had meetings with organisations such as the British Chambers of Commerce and the Federation of Small Businesses, whose members are particularly frightened about the prospects. Ordinary hospitality to meet and network with customers and to improve relationships is an ordinary part of business and should never be a criminal offence. I hope to put out very clear guidance for businesses of all sizes to make that clear and to save them from the fears that are sometimes aroused by the compliance industry—the consultants and lawyers who will, of course, try to persuade companies that millions of pounds must be spent on new systems that, in my opinion, no honest firm will require to comply with the Act.

[Joseph Johnson]

Many of our competitors overseas will not be so keen to rule out bribery as a means of competing. What steps will the Secretary of State take to ensure that British businesses are not put at a competitive disadvantage?

[Mr Clarke]

Along with the United States and others, we are one of the leading countries in pressing for a drive against corruption in the world, because corruption is bad for all business, including British business when it tries to export to other countries. Because of the debate that is taking place about the Act, I have had to reassure my American colleagues that we are not falling behind and that we will implement the Act. It is very important that we put ourselves where we should be—in the forefront of stamping out corruption not only in the developing world but in international trade generally.

[Paul Goggins]

May I encourage the Secretary of State to get on and implement the Act as soon as possible? Will he provide an assurance this afternoon that when the guidance is published, there will be no loophole for joint ventures or subsidiaries that would enable British companies to turn a blind eye to corruption?

[Mr Clarke]

I give that assurance, and I can assure the right hon. Gentleman that I am trying to get on with it. I believe it is possible to satisfy those who think we should give a lead in helping to stamp out corruption in international trade and other aspects of international relationships, and at the same time satisfy honest businesses that do not want unnecessary costs and burdens put upon them. They want the situation explained clearly to them so that, as my hon. Friend the Member for Northampton South (Mr Binley) said, ordinary hospitality cannot possibly be affected by the Act.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Although I welcome the Secretary of State’s announcement that the Act will eventually be implemented, his comments today sound like rather a watering-down of the proposals. Yet the Foreign Secretary said at the Dispatch Box just two weeks ago:

“Both parties in the coalition supported the Bribery Act when in opposition, we support it now, and it will be brought in rigorously, effectively and fairly.”—[Official Report, 1 February 2011; Vol. 522, c. 733.]

Can the Secretary of State reassure the House that that is how the Act will be applied?

[Mr Clarke]

First, there is no watering-down of the Act. All parties supported it when it went through the House, and we are going to implement it properly. It requires me to provide statutory guidance to businesses on what steps they should take to ensure that they are trying to prevent bribery, and that is what I am working on. I believe that it is possible to produce guidance and enforce the Act in a way that produces the rigour and fairness that the hon. Gentleman demands. There is no backing down from the principles of the Act at all.

--- Later in debate ---

[Pamela Nash (Airdrie and Shotts) (Lab)]

11. What work his Department is undertaking on the future of the Human Rights Act 1998.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

The Government are committed to establishing a commission in 2011 to investigate the creation of a British Bill of Rights. We will make a statement to Parliament on the precise terms of reference and the appointment of the commission in due course.

[Pamela Nash]

I thank the Secretary of State for that answer. The Prime Minister has made it clear that he wishes to replace the Human Rights Act with a Bill of Rights, while the Deputy Prime Minister seems determined to defend the Act. Will the Secretary of State make it clear today, once and for all, on which side of the fence his Department sits?

[Mr Clarke]

What my two right hon. colleagues agreed on in the coalition agreement was to establish a commission to investigate the case for a Bill of Rights. I am now discussing that with the Deputy Prime Minister and, as I have said, we will announce in due course the terms of reference for the commission that is to resolve the issue.

[Mr Peter Bone (Wellingborough) (Con)]

Yet again, the coalition Government are doing the right thing by looking at a Bill of Rights. The Secretary of State never wastes any time, so will he tell me when the commission is going to report and when we are going to get some action?

[Mr Clarke]

We have firmly and urgently committed ourselves to establishing the commission in the year 2011.

[Bob Russell (Colchester) (LD)]

12. What advice his Department provides to members of tribunals hearing appeals against decisions on the award of disability living allowance.

--- Later in debate ---

[John Howell (Henley) (Con)]

20. Which organisations he consulted in preparing guidance on the implementation of the Bribery Act 2010.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

I refer my hon. Friend to the answer that I gave in reply to Question 1.

[John Howell]

I thank my right hon. and learned Friend for his comments on statutory guidance. During the Committee stage of the Bribery Bill, there seemed to be little appreciation among Labour Members that there were such things as legitimate promotional activities for companies. Will he ensure that the guidance is both clear and practical?

[Mr Clarke]

I agree with my hon. Friend. My hon. Friend the Member for Huntingdon (Mr Djanogly), who is now Under-Secretary of State for Justice, led for the Opposition at that time, and I believe that it was Conservative Members—including my hon. Friend the Member for Henley (John Howell)—who raised the problems that could be posed for legitimate businesses. It is because of those problems that we need the guidance, and the guidance must make it absolutely clear that ordinary, legitimate promotion—hospitality and similar activities in which people engage in order to project the quality of their company and its products or services, and to establish personal relationships with clients and customers—is all part of international trade. The Bill can be used to tackle corruption without damaging British business at a time of, we hope, revival in our international trade.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

21. What plans he has for the future of the prison estate. Our current plans are to build the prisons to which we are contractually committed, and we recently announced the closure of three prisons. The Ministry of Justice recently published a Green Paper outlining proposals for reforms to sentencing and rehabilitation. We are considering our long-term strategy for prisons in the light of these policy developments.

--- Later in debate ---

[Andrew Stephenson (Pendle) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

May I begin by making a topical statement, Mr Speaker?

Hon. Members will know that I am determined to deliver much overdue reform to the way in which the criminal justice system operates. Every year, 1.8 million criminal hearings and trials take place. The police, judiciary and others far too often find that the bureaucratic, inefficient system works against their best efforts, rather than for them. It is immensely frustrating that, for example, the key people in the system—the police, prosecutors and probation staff—are often unable to e-mail each other the crucial information they need to bring a prosecution; it all has to be done in hard copy. The average straightforward case heard in the magistrates courts takes 19 weeks from the offence being committed to the case concluding, and only four out of every 10 trials in the magistrates courts go ahead on the planned day. We cannot afford to maintain this sort of system that wastes the time of the police, victims and witnesses.

I am therefore working on radical plans to modernise and reform the criminal justice system and reduce these bureaucratic failings with my right hon. Friend the Home Secretary, my right hon. and learned Friend the Attorney-General, the judiciary, the criminal justice agencies and my right hon. Friend the Minister for Policing and Criminal Justice, who will take the lead role in co-ordinating our efforts. I look forward to receiving any representations on the subject and will report back to the House in the summer.

[Mr Speaker]

Order. I would be grateful if the Secretary of State did not also lay out the plans in the course of his answer.

--- Later in debate ---

[Sadiq Khan (Tooting) (Lab)]

In this Saturday’s excellent Mary Riddell interview in The Daily Telegraph, the Lord Chancellor said:

“I slightly expect that some crimes will go up”.

I remind the House that in times of both growth and recession between 1997 and 2010 the level of crime consistently went down. I know that he is neither sloppy nor complacent, so can he tell the House what crimes he thinks will go up, why he thinks they will go up and what he is going to do about it?

[Mr Clarke]

During the period of the Labour Government, to which the right hon. Gentleman refers, acquisitive crimes against property fell particularly sharply. That was because of the growth of the economy and the boom, among other matters; these things are not too simple. The biggest fall in crime achieved when Labour was in office was on vehicle crimes, because the vehicle manufacturers greatly improved the security of the vehicles and made this more difficult. In this contentious and not simple area of what causes crime and what does not, I have always been inclined to believe that in times of recession the level of crime against property is likely to rise and in times of growth it tends to fall. That is why I have to be prepared to accommodate however many people are sent to us by the courts. What we are doing about it is making what I hope is a more effective system of preventing crime and of diverting people out of crime but punishing severely those who commit it.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T2. According to Ministry of Justice figures, only 44% of people convicted of burglary offences actually get immediate custodial sentences. Does the Secretary of State think that that figure is about right or does he intend to take legislative steps to increase it?

[Mr Clarke]

As the Under-Secretary of State, my hon. Friend the Member for Reigate (Mr Blunt), said in reply to a question a moment ago, sentencing is a matter for the Sentencing Guidelines Council and for the judges, who hear all the facts of the case; they can hear a victim’s statement and they can hear mitigation for the accused. We keep an eye on percentages, of course, but the sentence in each case has to be the appropriate sentence for the facts of and the offender in the case. Although burglary is a serious offence that normally attracts imprisonment, it covers a wide range of circumstances, from someone breaking in with a hood over his head in the middle of the night to someone walking through an open door grabbing a knick-knack and running out through the door again. So we have to leave it to the judges.

[Jeremy Corbyn (Islington North) (Lab)]

T6. Has the Secretary of State considered carefully the representations that he will have received concerning clause 151 of the Police Reform and Social Responsibility Bill on universal jurisdiction? He will be aware that restricting access to the British courts in respect of crimes against humanity committed anywhere in the world will send a very bad message to the rest of the world and will make this country a more pleasant place for war criminals and those who have committed crimes against humanity to try to come to.

[Mr Clarke]

I must make it absolutely clear that the Government are not reducing, in any way, the importance we attach to the proper enforcement of the law against those guilty of war crimes or crimes against humanity. We are making a slight change to the circumstances in which a citizen can obtain an arrest. The prior approval of the Director of Public Prosecutions will be needed, in order to make sure that there is a reasonable prospect of prosecution in the case; that is not where we are at the moment. I assure the hon. Gentleman that nobody on either side of the House wishes to see this country downgrade the importance we attach to enforcing crimes against humanity and war crimes.

[Andrew Bridgen (North West Leicestershire) (Con)]

T3. It is reported that about 70% of prison inmates are believed to have two or more mental health conditions and that about one in 10 prison inmates have a serious mental health problem. What steps are the Government taking better to identify and help prisoners with mental illness?

--- Later in debate ---

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

Does the Secretary of State agree that increasing the number of people in our prisons should not be an end of Government policy in itself, but rather that the prison population should reflect the number of indictable crimes committed?

[Mr Clarke]

I entirely agree with my hon. Friend, although determining how many prisoners we should have can become a completely false argument, as that is determined in any event by the courts reacting to the level of crime and proposing appropriate sentences. We are determined to use prisons so that not only do they punish the offender, but, where possible, we can increase the number of offenders who are persuaded to give up crime when released and cease to offend thereafter, which will reduce the number of victims. I think that the approach taken by the Under-Secretary of State, my hon. Friend the Member for Reigate (Mr Blunt), is the common-sense approach and in the public interest.

[Mr Tom Watson (West Bromwich East) (Lab)]

The Lord Chancellor should not allow himself to be pushed around by The Sun newspaper. Does he agree that the cause of public justice would be best served if News International spent less time traducing the characters of Ministers and more time revealing to the Metropolitan police the contents of the e-mails held in the data warehouse in central London?

[Mr Clarke]

I shall try to avoid following my right hon. Friend the Secretary of State for Business, Innovation and Skills in answering that question. Kelvin MacKenzie could confirm to the hon. Gentleman that I have not been pushed about by The Sun for as long as either he or I can remember.

I was amused to read the article by the leader of the Labour party in The Sun this morning, remembering his resounding promise not to try to out-right the Conservative party on the subject. I was reminded of an article by Tony Blair published just before the 1997 election and entitled “Why I Love the Pound”. When I read the Leader of the Opposition’s article this morning, I was relieved to see that he listed many things on which he agrees with me and did not indicate a specific area where he committed himself to doing anything different from what the present Government are doing.

[Henry Smith (Crawley) (Con)]

Crawley court house in my constituency deals with a large number of cases, including those emanating from Gatwick airport. Will the Minister agree to meet local magistrates, my local authority and me to see whether the court house could be part of a major town centre redevelopment that is shortly to get under way?

Departmental Expenditure Limit (2010-11)

Lord Clarke of Nottingham Excerpts

Monday 14th February 2011 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

Subject to parliamentary approval of any necessary supplementary estimate, the Ministry of Justice (MOJ) and The National Archives (TNA) and the UK Supreme Court (UKSC) total departmental expenditure Limit (DEL) will be increased as follows:

Total DEL for MOJ (request for resource 1, 2 and 3) is increased by £95,593,000 from £9,099,706,000 to £9,195,299,000 and the administration budget has increased by £61,577,000 from £416,230,000 to £477,807,000.

Total DEL for the TNA will be decreased by £155,000 from £39,272,000 to £39,117,000.

Total DEL for the UKSC will be increased by a token £1,000.

Within the total DEL change for MOJ (request for resource 1, 2 and 3), the impact on resource and capital are as set out in the following table: