Legal Services Act 2007 (Approved Regulator) (No. 2) Order 2014

Debate between Lord Clement-Jones and Lord Phillips of Sudbury

Thursday 23rd October 2014 Grand Committee

[Lord Phillips of Sudbury (LD)]

My Lords, I declare an interest as an honorary vice-president of CILEx and as someone who started working with what used to be called managing clerks as long ago as 1957. I think I learnt most of my law from managing clerks of the old variety, who learnt on the job and did not have a CILEx qualification because there were not any then. I am strongly in favour of this statutory instrument for all the reasons that the Minister has set out.

I have a slight divergence of view from CILEx—although I suspect one could sort it out if it was here—over the idea that competition in these matters is always in the public interest. It certainly is not. Some of us are fearful that the changes in the legal services market in the past decade will prove to deliver some disastrous consequences in the next. I have no hesitation on that score relating to this statutory instrument, though, because the Legal Services Board is a proper, well staffed body that has made a thorough investigation of the fitness of CILEx and its subsidiary company to undertake the task allowed them by this change in the law. For those reasons, I am entirely in favour of the order. The Lord Chief Justice was absolutely right to raise the impact on standards of the competition that will be unleashed by this change in the law but, as I say, a very proper investigation has been undertaken. I strongly hope that it will be in the public interest.

I will mention a point that has not yet been mentioned. Reserved instrument activities, which form the subject of paragraph 2(a) of the order, are defined in paragraph 5 of Schedule 2 to the 2007 Act as:

“preparing any instrument of transfer or charge for the purposes of the Land Registration Act 2002”.

There is then some detail relating to that. This is not a massive breach in the status quo but still a very important one, for the reasons just mentioned. I have no doubt that many frustrated buyers and sellers of property in this land will be greatly helped by what is happening today, because I have no doubt that legal executives will set up their own firms to do just this sort of work. They will do it well, swiftly and at a very fair price, and they will be overseen by CILEx, which is an excellent body with high standards. It is driven not by the profit motive but by public interest concerns. That is all I wish to say.

[Lord Clement-Jones (LD)]

My Lords, both my noble friends have been extremely eloquent in their support for the order. I will be extremely brief because I agree with every word that they have said, with some qualification regarding my noble friend Lord Phillips’ comments. I declare an interest as a member of the Law Society and as a partner in a major law firm. I have never been an advocate or supporter of a closed solicitors’ shop. I very much favour diversity and competition, particularly in the case of chartered legal executives. I welcome their ability to carry out a wider degree of work, as envisaged by the order. This is very consistent with the continued opening up of the legal market that I have generally supported. I did not hear the words “alternative business structures” in what my noble friend had to say at the outset, but I assume that this is consistent with the alternative business structures, which, again, I have always supported since their introduction because I believe that they are for the benefit of both business and consumers. I think, and my noble friend Lady Buscombe made this point extremely well, that in terms of both probate and conveyancing this will make a major difference to the competitiveness of that market.

Cultural and Community Distribution Deregulation Bill [HL]

Debate between Lord Clement-Jones and Lord Phillips of Sudbury

Friday 5th July 2013 Lords Chamber

[Lord Clement-Jones]

My Lords, up and down the country, local authorities, using powers granted by the Clean Neighbourhoods and Environment Act 2005, which amended the Environmental Protection Act 1990, have been restricting leafleting for cultural events, including performances at comedy clubs, theatres, music venues, art galleries and even village halls. Under powers introduced by the 2005 Act, local authorities can designate areas within which people must buy a licence if they want to hand out leaflets. The Act gives local authorities powers to designate land on which people require a licence to distribute free printed matter, makes it an offence to distribute leaflets on this land without obtaining the consent of the local authority, and permits the local authority to refuse consent or to give or limit consent, for example with reference to the time and place of distribution or the material distributed. It requires a person distributing leaflets to produce, on demand, written evidence of the local authority’s consent, and permits authorities to charge a fee for the issuing of licences.

A survey by the Manifesto Club, the organisation that first identified the issue, found that 27% of local authorities restrict leafleting, including Nottingham, Leicester, Brighton, Swindon, Wolverhampton, Oxford, Bournemouth, Newcastle, Middlesbrough, Manchester, Leeds, Derby, Doncaster, East Hertfordshire, Colchester, Basildon, North West Leicestershire, Sheffield, Rushmoor, Oldham, Kirklees, Birmingham and seven London councils. This means that leafleting restrictions cover the country’s key metropolitan centres and many smaller towns.

Licence fees are prohibitively expensive for small groups. In Basildon, a licence costs £150 for one day, £350 for a Saturday or Sunday and £800 for one week. Oldham charges £50 and Brent £55 per day. Wolverhampton charges £262 per distributor. Some boroughs, such as Hammersmith and Fulham, and Kensington and Chelsea, have a number of separate leafleting zones, each of which requires a separate licence. Hammersmith and Fulham charges £250 for each of its eight zones, so it costs £2,000 to leaflet freely throughout the borough. The Manifesto Club’s research found that these leafleting restrictions fall most heavily on grass-roots art and community events, including comedy clubs, theatres, music performances and art exhibitions. Larger-scale events have the option of more commercial advertising channels, and can afford leafleting licences if they so choose.

However, there is a paradox here. The Local Government Association, as recently as March, extolled the benefits of the contribution of the arts to local communities. Its press release stated:

“Arts investment can bring in £4 for every £1 spent ... From international festivals and museums that attract hundreds of thousands of visitors, to street entertainment revitalising high streets and theatres supporting young people to gain new skills, thriving arts create great destinations, vibrant places to live and have many valuable economic spin-offs. A theatre, museum or festival draws visitors who do not simply spend money on their ticket or entrance fee, but also buy meals in local restaurants, go to local shops, or perhaps stay in hotels as part of their visit. These people might never have visited that location without the pull of its cultural attractions. Businesses also choose to invest in places with a vibrant arts scene because they offer their employees a high quality of life”.

Quite contrary to this enlightened statement, leafleting licence rules have been catastrophic to grass-roots arts organisations, local theatres, jazz nights, comedy nights and arts shows in venues such as theatres, village halls, comedy clubs and small nightclubs, which rely on leafleting to build an audience but cannot afford the high licence fees. In Leicester, a one-off licence application fee is £103, on top of which an organisation must pay £26 per distributor per day. The Leicester Comedy Festival has 200 small comedy acts. It would cost an unaffordable £5,200 per day to allow them all to leaflet. These rules in effect mean that only the most commercial operations are able to freely leaflet in Leicester.

Oxford student societies were asked to pay £100 per month to hand out leaflets, as was the Oxford Jazz Festival. A flyer ban in Leicester Square, London, caused the collapse of several comedy nights and the reduction of many audiences from 75 to 25. A Newcastle jazz club owner said that leafleting restrictions reduced his audiences by 50%. The Sawbridgeworth Evening Women’s Institute was threatened with a fine for handing out leaflets about its annual art exhibition. It no longer leaflets for the event.

Leafleting licence schemes have had a widely recognised adverse effect on the music and arts scene in key British cities, reducing the grass-roots scene and limiting opportunities for emerging artists to win themselves an audience. Leafleting restrictions have had a severe effect on the music and experimental arts scenes in cities such as Leeds, Manchester, Nottingham and Brighton, and on the fringe comedy scene in Brighton and Leicester.

One unintended consequence of leafleting licence schemes has been the commercialisation of the leafleting of the arts scene. In Brighton, for example, the leafleting licence led to the decline of smaller, experimental music nights, and the growth of bigger mainstream club nights. Several comedy festivals, including those in Brighton and Leicester, now have a diminished number of fringe acts, because only those who can afford to take out brochure adverts or pay the leafleting fee are able to reach an audience. Perversely, the more commercial operations, which employ full-time leafleters, tend to leaflet more indiscriminately and create most litter.

[Lord Phillips of Sudbury]

I am sorry to interrupt my noble friend’s flow. If a number of small acts get together and put out a single leaflet, will they be charged separate licence fees or a single licence fee?

[Lord Clement-Jones]

If it is a single leaflet, the fee will be for a single licence, but these acts are small organisations with very different timings for their events during a festival, and they all have different audiences, so they want to put out their own material and find the target audience most appropriate to them.

As I said, commercial operations that employ full-time leafleters tend to leaflet more indiscriminately and create the most litter. Small groups leafleting on their own behalf will leaflet more selectively and responsibly and create very little litter. The leafleting licence scheme punishes the small events and organisations that leaflet most responsibly and cause minimal litter. McDonald’s can leaflet freely, but the local arts centre cannot.

The importance of flyering for grass-roots arts was summed up by David Mulholland, a comedian and promoter for the Soho Comedy Club. He said:

“Flyering is a life and death issue for small clubs that are just starting up. The birthplace of alternative comedy in the UK, the Comedy Store, started above a strip club in 1979 and relied heavily on flyerers to attract audiences until 1993. If flyering had been prohibited in 1979 there would be no alternative comedy scene in the UK”.

Supporters of the Bill have received testimonies from a variety of organisations, stating that leafleting is the primary way in which they can reach a local audience. They include folk music societies, theatre groups, chamber music and early music groups, church choirs, amateur orchestras, amateur dramatics societies, village halls, experimental DJs, unsigned bands who play in pubs, and small comedy clubs.

The Cultural and Community Distribution Deregulation Bill 2013 would exempt small-scale cultural and neighbourhood events from leafleting restrictions. It would reform the Environmental Protection Act 1990 to allow a greater exemption from leafleting restrictions for grass-roots arts and community events. Currently, leafleting for religious, political or charitable purposes is exempt from legislation. The Clean Neighbourhoods and Environment Act 2005 states:

“Nothing in this paragraph applies to the distribution of printed matter … by or on behalf of a charity within the meaning of the Charities Act 1993, where the printed matter relates to or is intended for the benefit of the charity”,

or,

“where the distribution is for political purposes or for the purposes of a religion or belief”.

This means that religious, charitable and political groups do not have to buy a leafleting licence. A wide exemption would avoid the unnecessary penalisation of the informal events that are so valuable to community life.

The Bill would introduce a further exemption that would exclude leafleting restrictions,

“where the distribution is for the purposes of an event which consists wholly or mainly of live entertainment and takes place in the presence of an audience of no more than 600 persons”.

Live entertainment is defined as arts and music events and other cultural, social or recreational events of a similar nature, so the exemption would cover arts, music and theatrical events, as well as local events, such as talks, shows, fetes or coffee mornings. This reform would be compatible with the current regulation on street advertising, which exempts events of this nature from regulations. The Town and Country Planning (Control of Advertisements) (England) Regulations 2007 state that posters will have deemed consent and exemption from planning laws if they announce a local event of religious, educational, cultural, political, social or recreational character.

This reform of leafleting restrictions would recognise the value of local events and free up the arts and music scenes in key British cities from this unnecessary restraint. The strength of British comedy, music and the arts ultimately depends on the health of the grass roots, which allows new talent to emerge and win an audience. This reform would also recognise the importance of free speech in public places, a liberty that has existed for several hundred years in this country, embodied in our strong tradition of pamphleteers. Leafleting is a key civic freedom, with a long tradition in this country going back at least to the late 17th century, when the requirement for printers to be licensed was lifted, and should not be restricted without very good reason.

Problems with litter should be dealt with through the provision of litter bins and other common-sense measures, not by placing restrictions on our civil rights. Leaflets advertising cultural events, an important expression of our community activity, should not be treated in the same way as a burger wrapper or a crisp packet.

The campaign to change the law is supported by a great range of artists across the spectrum, comedians such as Al Murray and Simon Evans, the directors of the Oxford Jazz Festival, the Leicester Comedy Festival, Rick Wakeman and Radiohead’s manager, all of whom recognise the importance of the grass-roots scene to producing new talent. A whole host of organisations are in support, including Equity. The Musicians’ Union says that it has supported the campaign against leafleting bans from its inception and that it is vital to musicians that events where they perform can be advertised and promoted through unhindered and responsible leafleting.

UK Music, the organisation that represents the music industry in the UK, supports the Bill, as do the Association of Independent Festivals, the Association of British Orchestras and the Association of Festival Organisers, which says that this Bill is too modest. It says that the amendment to get free leafleting for up to 600 people works fantastically well for clubs and societies, small concerts and even fund-raising events, but does not do much for a festival that is trying to attract 2,000 people. If I thought that I would get support for going further than I have, I would have done.

The Concert Promoters Association supports the Bill, as does the Agents’ Association. The English Folk Dance and Song Society says that it fully supports the Bill and that a large majority of folk events are presented by amateur and community groups, as well as small folk clubs and local festivals, which are not in a position to pay their local authorities for permission to distribute leaflets about their activities. Their activities should be encouraged, as they bring people together and encourage community cohesion, and they should not be hampered or discouraged in their efforts. The International Association for the Study of Popular Music supports the Bill, as do the Stand Comedy Club and Jazz Services.

In conclusion, I have a few quotes from individuals, which I think are telling. Alison Honour, the head of the School of Arts at Oxford Brookes University says:

“I am writing in support of the campaign against leafleting bans. Arts organisations and artists of all disciplines rely on self-promotion in order to publicise their practice, whether it be exhibitions, performances or events. These activities contribute to communities’ coherence, well-being and positive engagement, and bring a cultural landscape often reaching out to the most remote places and spaces”.

Liam Gardiner Webber, a band and youth theatre member in Nottingham says:

“I’m a member of a small, unsigned band. If we were able to leaflet for our gigs, it would make a huge difference to the numbers who would come and see us. The lack of ability for small venues to leaflet has meant that, as a member of a band and youth orchestra, being able to expand the audience of either beyond family and friends is very difficult. Leafleting would allow for much greater presence for such activities and would in turn boost the culture side of the city”.

An independent promoter said:

“It has been difficult to promote small events, as it seems only the larger companies can afford such licences and therefore get more business, which does affect independent promoters”.

All this is powerful testimony and very powerful support for the Bill. There is no doubt that this legislative change would boost the arts and local economy at no significant cost to national or local government. Political, religious and charitable events are exempt from the need to buy a leafleting licence, which means that small cultural events are being unfairly penalised. It is unjust that the Church of England and political parties can leaflet for free but the village fete or local theatre group must pay. The grass-roots arts are fundamental to community life and the local economy as well as producing talent of international renown. The deregulation of entertainment licensing was, of course, of great benefit, but groups need to be able to promote themselves. Unless we act quickly, irreparable damage will be done to the grass roots across the UK.

I very much hope that the Government will heed these calls for reform and back the Bill. I beg to move.