Legal Systems: Rule of Law

Lord Faulks Excerpts
Thursday 10th July 2014

(11 years, 5 months ago)

Lords Chamber
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Lord Faulks Portrait The Minister of State, Ministry of Justice (Lord Faulks) (Con)
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My Lords, I thank the noble and learned Lord, Lord Woolf, for affording the House the opportunity to discuss the United Kingdom’s legal systems. As many noble Lords have said, his contribution to the justice system has been highly significant. The noble Baroness, Lady Flather, chose her dining companions well in those days. I will not repeat the many tributes, but they were all justly described. However, I also say that the Government welcome not only the contributions today from distinguished lawyers and judges but also those from non-lawyers, because of course the law does not belong to lawyers or judges, but to all of us.

This has been a rich debate, full of legal history and the history of legal maxims, the development of Magna Carta and the protection of rights since. Material for many debates has indeed been provided by the contributions of noble Lords. However, I am sure that one thing on which the whole House can agree is that our legal institutions and services are a vital part of the constitution. As a result of their deserved reputation for integrity and excellence, the influence of our legal institutions and services reaches across the world. They not only shape other jurisdictions but also provide the conditions for commerce to flourish.

I first address the question of the rule of law and our constitution. It is crucial to recognise that the rule of law is at the heart of the British constitution, underpinning a fair and just society in which citizens, businesses and civil society can help our nation prosper. As many noble Lords reminded us, next year sees the 800th anniversary of Magna Carta, a document of great symbolic importance. It established the principle, among others, that executive power is not above the law.

The 800th anniversary of the sealing of the charter affords us an opportunity to reflect on and celebrate its values. The Government are working with the Magna Carta 800th Committee to organise commemorative events, which I am sure that many noble Lords are greatly anticipating. Magna Carta began to chart the boundaries of the relationship between the state and the individual, a dialogue that persists to this day. Much of what we do here in Parliament concerns the defining of the limits of state power when it represents a potential threat to individual liberty.

Today the rule of law ensures that all, including the Executive, are subject to a clear, certain and accessible body of law, determined by Parliament and interpreted and applied by an independent and impartial judiciary in a timely manner. The Lord Chancellor is under an oath to respect the rule of law, providing Britain with a system that protects the rights of citizens with respect to the state in areas of public law, and to provide for the fair and reliable resolution of private disputes. We have a judiciary with statutory safeguards through the Constitutional Reform Act 2005. Its members are independent of the Executive and of each other, and this allows for the law to be interpreted and applied impartially. It is to the great pride of our country that our judiciary is held in the highest regard, not merely here but throughout the world. The quality of our judiciary and its incorruptibility is something that we should never take for granted.

Furthermore, the Lord Chancellor has the duty to provide an efficient and effective system to support the business of the courts and tribunals. There has been considerable criticism not only of the Lord Chancellor and the role that he now performs as Secretary of State but of the holder of that office. Indeed, the Lords Constitution Committee is to conduct an inquiry into the office of Lord Chancellor. The Ministry of Justice will provide evidence to the committee in due course on that issue.

It is our shared understanding of, and respect for, the constitutional principles that I have outlined that enables the judiciary and Executive to work in partnership in the delivery of justice so that it can continue to be administered efficiently and effectively.

The noble Lord, Lord Marks, criticised the lack of diversity in our judiciary. It is true that, in the High Court, 21 women out of 108 is not a happy percentage—in the circuit Bench, one in six is a woman from a total number of judges of 654—but I am glad to tell the House that there has been a considerable increase in the number of appointments of women to the Bench recently.

A number of noble Lords raised the subject of judicial review and changes that the Government wish to bring about by the Bill that is currently before your Lordships’ House. I have been well and truly put on notice that there are a number of aspects of Part 4 of that Bill about which there is concern. I hope that noble Lords will forgive me if I do not give a full response to all the potential criticism at this stage, but that would be only a dress rehearsal for what may follow. I well understand the depth of concern about judicial review. I hope, however, that when we come to debate that issue, all noble Lords, whether with a legal or other background, will bear in mind that there are perceived by some people, rightly or wrongly, to be areas of judicial review where it has made incursions beyond those which those who developed the doctrine originally anticipated. However, I should make it clear that the Government, and certainly any Government of which I am a part, do not wish to abolish judicial review, contrary to what is occasionally written in the press, but value it as an essential part of the constitution.

A number of noble Lords raised the question of human rights, not least my noble friend Lord Lester, of whom I was a colleague on the Human Rights Commission. Rightly, attention was drawn to the terms of the European Convention and those who drafted it. I know that very few politicians or lawyers on any political wing would quarrel with the convention itself. What, however, is more open to debate is the relationship between the Strasbourg court and our courts. It is a legitimate reason for debate and a matter on which a number of people on all sides of the political divide have expressed a view: whether the Supreme Court should be the ultimate arbiter of these things and whether Section 2 has either been wrongly interpreted or should be amended. However, I should make it clear that this coalition Government have no intention to repeal or amend the Human Rights Act.

There was also considerable criticism of the cuts in legal aid. The noble and learned Lord, Lord Woolf, I fear, was right when he anticipated that I would mention austerity, which indeed I do. The Government attempted to identify those areas where legal aid was most needed and those areas where it should be possible—if not sometimes difficult, as we accept—for those needing on the face of it some legal assistance to manage by other means.

The full effect of the legal aid cuts will take some little time to assess. The Government are committed to reviewing this within five years—but it might be better to specify a period of three to five years from the implementation of the reforms in April 2013. The difficulty with making any assessment is that there was a considerable spike in the number of claims started just before that date, so it is almost impossible to form a clear view of the effect.

Of course I share with all noble Lords the concern that access to justice should not be denied. Indeed, I, with the noble Lord, Lord Pannick, was part of a group of Peers who were behind an amendment to the LASPO Bill to say that when economic circumstances changed, the Lord Chancellor should consider enlarging the scope of legal aid. I hope that that is indeed the position.

I could discuss the rule of law in more detail. It was elegantly discussed by the noble Lord, Lord Plant, and there has been repeated reference, quite rightly, to Lord Bingham’s great work The Rule of Law, which I am sure will be read for many years to come.

There are few better illustrations of the strength of our legal services than their overseas influence. The rule of law provides the best environment for the nourishment of commerce and economic growth. In turn, this assists the growth of business and wealth around the world. As the noble and learned Lord, Lord Woolf, will be well aware from his own experience, the expertise of our practitioners, coupled with the enduring strength of our legal institutions, is sought by many clients across the world. We should also remember the influence of many legal professionals who, having qualified in the United Kingdom, return to their home countries and bring their education and expertise back to enrich their own jurisdiction. Our legal practitioners, and those who train here, benefit not only the United Kingdom but all the jurisdictions in which they work.

The noble and learned Lord, Lord Judge, rightly commended the work of the Judicial College and its increasing reputation abroad. He was too modest to mention his own significant role in training judges. I must declare an interest as a nervous assistant recorder who was inspired by him to set about the difficult task of sitting as a judge, and who listened to his stirring speech about the dissenting judgment of Lord Atkin in Liversidge v Anderson. The noble and learned Lord, Lord Walker, rightly reminded us of the importance of advocacy training, and how this is a skill that we are spreading beyond our shores.

English contract law has long enjoyed an excellent reputation. Its combination of consistency and flexibility, backed by courts that are independent, impartial and able to enforce their judgments, ensures that it is favoured by many businesses around the world. The noble and learned Lord, Lord Phillips, told your Lordships about the positive explosion of commercial law since he began in practice.

As a fellow of the Chartered Institute of Arbitrators, I am pleased to say that a particular strength of our legal services is arbitration. In a 2010 survey, London was voted the preferred seat of arbitration by an international audience, and we will strive to ensure that international lawyers and business continue to take advantage of our expertise and state of the art facilities when resolving disputes.

Noble Lords will need little further elucidation of the strength of London, with its diverse range of practitioners, close links to the City and fine modern facilities such as the Rolls Building. But as this debate is on UK legal services, I should add that there are high-quality providers in centres such as Edinburgh, Glasgow, Belfast, Leeds, Sheffield, Birmingham, Manchester and Liverpool, offering choice and value to a variety of clients in a wide variety of sectors. It is important to point out that some legal activity—in fact, quite a lot of legal activity—is carried out on a pro bono basis, as the professions generously provide their expertise to those who could not otherwise afford to use their services.

The noble Lord, Lord Clement-Jones, stated the ambition that we should become lawyers and advisers to the world. He was right to remind us of the level of exports accounted for by legal services. They were estimated to generate £20.4 billion for the UK economy in 2012, of which just under £4 billion were exports. I am not sure how much of that was contributed by the one-man export drive that is the noble Lord, Lord Pannick. Of course, the influence goes further in terms of soft power—referred to by the noble Lord, Lord Ramsbotham and my noble friend Lord Hodgson—together with the export of judges, referred to by the noble and learned Lord, Lord Phillips.

I am delighted to draw your Lordships’ attention to two exciting events that will be taking place in the United Kingdom in 2015. In April 2015, Glasgow will host the Commonwealth Law Conference. The conference has the overarching themes of resources, responsibilities and the rule of law. It is organised by the Commonwealth Lawyers Association and the Law Society of Scotland, and I am certain that it will draw a strong attendance from across the Commonwealth, with whom we share so much legal heritage. As the noble Baroness, Lady Prashar, reminded us, in February 2015, London will host the Global Law Summit. This one-off conference will examine how the principles of Magna Carta offer innovative solutions to achieve commercial, political and social goals. It will also provide outstanding opportunities for business and collaborative working. The venture has wide support among my government colleagues, the legal professions in this country and business. Indeed, we are expecting more than 2,000 delegates, comprising political, business and legal leaders from across the world.

Before concluding, I should pick up one or two points made by other noble Lords in the debate. My noble friend Lord Marks referred to the importance of televising court proceedings. That is a difficult area about which I think that opinions can reasonably differ. I am not sure that everyone watching the Pistorius trial would necessarily have been persuaded that televising trials was always in the public interest.

We were rightly told by the noble and learned Baroness, Lady Butler-Sloss, of the challenges that judges—in particular, those in the Family Division—face in dealing with litigants in person, when disputes are so often acrimonious. She reminded the House that there is still legal aid for mediation. Mediation has a good story to tell, although I accept that it is not always the answer. Much needs to be done to improve the lot of litigants in person who, I accept, must inevitably be a greater feature of the legal landscape. I pay tribute to the judiciary as being most helpful, together with court officials, in developing systems. In the High Court of Justice and other courts, increasing help is to be had for litigants. There is improvement of access via computer and signposting to assist those who need help. The Government are expecting reports from two High Court judges on the problems confronted by the courts in dealing with litigants in person. That is a matter that should certainly be kept under review.

We also heard from the noble Lord, Lord Ramsbotham, and the noble and learned Lord, Lord Morris, about the contribution of the rule of law to international law and conflict. It was reassuring and encouraging to hear that the rule of law as we understand it is making a great contribution even in the complex scenarios that international conflict continues to throw up.

Our system has much in it to be admired but, as the noble Lord, Lord Taverne, told us, it is expensive. The expense of litigating can mean—as he rightly said, it has often meant in the past—that it is only the very rich or those on legal aid who can afford to litigate at all.

The noble and learned Lord, Lord Woolf, made a great contribution to improving the legal system by the Civil Procedure Rules, but I am sure that he would be the first to admit that it is not beyond further improvement. Various initiatives such as cost capping are helping. The reforms in Part 2 of LASPO, which implemented the Jackson report, are beginning to have their effect. The use of qualified one-way cost shifting and the reduction of the recoverability of ATE premiums in conditional fees have made it a little more economical to litigate. This area is a matter of great concern to any Government. It is a matter, one hopes, of co-operation between government, the judiciary and lawyers to ensure that we have a system that maintains accessibility to all.

The global summit, to which I referred, marks an apt point at which to conclude my remarks. It reflects the enduring relevance of our constitutional heritage while providing an opportunity for the UK legal service to continue to demonstrate its prowess across the globe. Our system has many admirers. To continue the quote from the John of Gaunt speech started by the noble Lord, Lord Pannick, it is indeed a,

“precious stone set in a silver sea”,

as indeed is the noble and learned Lord, Lord Woolf, to whom I pay great tribute for initiating this debate.

Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Amendment of Schedule 1: injunctions to prevent gang-related violence) Order 2014

Lord Faulks Excerpts
Wednesday 9th July 2014

(11 years, 5 months ago)

Lords Chamber
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Moved by
Lord Faulks Portrait Lord Faulks
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That the draft order laid before the House on 9 June be approved.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments. Considered in Grand Committee on 7 July.

Motion agreed.

Legal Aid: Social Welfare Law

Lord Faulks Excerpts
Monday 7th July 2014

(11 years, 5 months ago)

Lords Chamber
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Lord Bach Portrait Lord Bach
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To ask Her Majesty’s Government, 15 months after the coming into force of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, what is their assessment of the effect of the Act on the legal advice system in relation to social welfare law in England and Wales.

Lord Faulks Portrait The Minister of State, Ministry of Justice (Lord Faulks) (Con)
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My Lords, we have made hard choices in reforming legal aid. However, we have retained it for the highest priority social welfare cases and we continue to spend an estimated £50 million per year on this area. Although the Act is relatively new, the reduction in legal aid for social welfare matters is broadly in line with expectations. We are monitoring the impact of legal aid reform and will conduct a post-implementation review within five years of implementation.

Lord Bach Portrait Lord Bach (Lab)
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My Lords, I thank the noble Lord for his Answer but he and the Government know that the effect on social welfare law advice has been devastating. In the year 2013-14 alone—this is from the Government’s own figures—there was an 80% fall in the number of social welfare law cases, including a figure of 45% in housing cases. These cuts affect the poorest and most vulnerable, including many disabled people, in our society. Are the Government to some extent ashamed of the removal of access to justice from hundreds of thousands of our fellow citizens, all caused by deliberate coalition government policy?

Lord Faulks Portrait Lord Faulks
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The noble Lord mentioned housing. In fact, legal aid remains available for eviction and possession cases, housing disrepairs, where there is a serious risk to health or safety, homelessness assistance and all debt matters which may represent a threat to somebody’s home. As to the cuts in legal aid, they are concentrated on matters where the Government, after careful consideration, have decided that having a lawyer is not always the answer.

Lord Marks of Henley-on-Thames Portrait Lord Marks of Henley-on-Thames (LD)
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My Lords, I refer the House to my registered interest as a practising barrister. My noble friend’s department has in the past largely dismissed fears for the future availability of publicly-funded barristers, given the cuts in the scope of legal aid and in remuneration rates. Does my noble friend share my concern at the 38% drop in available tenancies in chambers over the year to 2011-12 and the long-term decline in the availability of pupilages, particularly in chambers doing legally-aided work? How can we reverse this trend?

Lord Faulks Portrait Lord Faulks
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My Lords, that is a little way from social welfare law. Of course we need lawyers to represent those in every section of society in all sorts of fields. The fact remains that there is less for lawyers to do and inevitably there will be fewer lawyers to do it. It is important that the profession maintains high standards but I do not think that I can comment on numbers in particular chambers.

Lord Low of Dalston Portrait Lord Low of Dalston (CB)
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My Lords, getting back to social welfare law, the Minister will be aware of the report of the commission, which I had the honour to chair, on the future of advice and legal support on social welfare law. One of the chief recommendations of that report was that the Government should develop a national strategy for advice and legal support in England and that there should be a Minister for advice and legal support within the MoJ with a cross-departmental brief to lead the development of such a strategy. Will the Government give serious consideration to the early implementation of that recommendation?

Lord Faulks Portrait Lord Faulks
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I am indeed aware of the noble Lord’s commission and its report on the future of advice and legal support on social welfare law. Indeed, I answered a debate on the subject on 25 February this year. As I told the House, we keep the position under review and are keen that there should be effective mechanisms to help individuals. However, it was made clear in the Cabinet Office review of the not-for-profit social welfare advice sector that while the Government accept the role they have in supporting the sector there is a need for the sector to adapt to the new funding realities. Indeed, that was very much acknowledged in the noble Lord’s report and during the course of contributions made in that debate.

Lord Archbishop of York Portrait The Lord Bishop of Chelmsford
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My Lords, I, too, should like to make reference to the Low commission. The church, faith communities and charities are all too keenly aware of the impacts of some of the cuts in legal aid on the poorest communities in our country. Sometimes a professional lawyer is needed. Would the Minister still regard the proposals of the Low commission for a nationally resourced strategy to provide support and legal advice as an important priority?

Lord Faulks Portrait Lord Faulks
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My Lords, as I said in response to the debate, it was a valuable contribution. The LASPO reforms were implemented only in April 2013; it is relatively early days. We are considering carefully the effects of these reforms. We have not ruled out the possibility of further changes but, at the moment, the various steps we are taking are helping to ensure that those who need representation are receiving it.

Baroness Hollis of Heigham Portrait Baroness Hollis of Heigham (Lab)
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My Lords, with regard to DLA, is the Minister aware that if an appellant submits a paper hearing there is something like a 20% success rate, if the disabled person attends there is something like a 40% success rate at tribunal, but if they have legal advice, there is something like a 60% success rate? Does this not mean, in all fairness, that legal advice denied is justice denied?

Lord Faulks Portrait Lord Faulks
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My Lords, I obviously cannot comment on individual cases. It may be that cases with lawyers proceed only if lawyers have advised that there are reasonable prospects of success. As to those cases which fail, I do not accept that the tribunals are not able to do justice in the absence of lawyers. Most of the tribunal members are extremely well trained. They are capable of eliciting the facts. Simply to say that there cannot be justice without lawyers is, with respect, simplistic.

Lord Deben Portrait Lord Deben (Con)
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Will my noble friend accept that those of us who supported these changes because of the large sums spent on legal aid in this country as compared with other countries would still be concerned to ensure that what we thought was going to happen is happening? Is he aware that many of us feel that rather than waiting five years before we have the kind of assessment which is surely necessary, as we are dealing with the poorest and most vulnerable people in our society, we really ought to look at this rather earlier?

Lord Faulks Portrait Lord Faulks
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My Lords, I share my noble friend’s concern, as do the Government. My answer was “within five years”, and I take note of what he says: that five years might be regarded as too long. Nevertheless, I am sure he would agree with me that we need time to assess these matters, particularly in view of the fact that before April 2013 there was a spike in the number of applications so as to take advantage of the old regime. It will take a little time to assess the true effects of the reform.

Criminal Justice and Courts Bill

Lord Faulks Excerpts
Monday 7th July 2014

(11 years, 5 months ago)

Lords Chamber
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Moved by
Lord Faulks Portrait Lord Faulks
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That it be an instruction to the Committee of the Whole House to which the Criminal Justice and Courts Bill has been committed that they consider the Bill in the following order:

Clauses 1 to 5, Schedule 1, Clause 6, Schedule 2, Clauses 7 to 17, Schedule 3, Clauses 18 to 26, Schedule 4, Clauses 27 to 29, Schedule 5, Clause 30, Schedule 6, Clauses 31 to 40, Schedule 7, Clauses 41 and 42, Schedule 8, Clauses 43 to 60, Schedule 9, Clause 61, Schedule 10, Clauses 62 to 71, Schedule 11, Clauses 72 to 78.

Motion agreed.

Legal Services Act 2007 (Approved Regulator) Order 2014

Lord Faulks Excerpts
Monday 7th July 2014

(11 years, 5 months ago)

Lords Chamber
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Moved by
Lord Faulks Portrait Lord Faulks
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That the draft orders laid before the House on 9 and 16 June be approved.

Relevant documents: 2nd and 3rd Reports from the Joint Committee on Statutory Instruments. Considered in Grand Committee on 1 July.

Motions agreed.

Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Amendment of Schedule 1: injunctions to prevent gang-related violence) Order 2014

Lord Faulks Excerpts
Monday 7th July 2014

(11 years, 5 months ago)

Grand Committee
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Moved by
Lord Faulks Portrait Lord Faulks
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That the Grand Committee do consider the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Amendment of Schedule 1: injunctions to prevent gang-related violence) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments

Lord Faulks Portrait The Minister of State, Ministry of Justice (Lord Faulks) (Con)
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My Lords, the order before us today amends Schedule 1 to the Legal Aid, Sentencing and Punishment of Offenders Act to allow for advocacy in a youth court to be funded by civil legal aid for under-18s in respect of injunctions to prevent gang-related violence. The purpose of this draft order is to maintain the existing availability of civil legal aid for under-18s in respect of advocacy related to injunctions to prevent gang-related violence. An amendment to the Legal Aid, Sentencing and Punishment of Offenders Act 2012 is necessary to reflect the change of venue for such injunctions made by the Crime and Courts Act 2013 from the county court to the youth court, which is a specialist type of magistrates’ court.

Before setting out further details about the order and why the Government are taking this action, I will briefly explain some background. Civil legal aid is currently available for injunctions to prevent gang-related violence under Part 4 of the Policing and Crime Act 2009 by virtue of paragraph 38 of Part 1 of Schedule 1 to LASPO. These proceedings are currently heard in a High Court or county court, and Part 3 of Schedule 1 to LASPO, which sets out when advocacy may or may not be funded by civil legal aid, allows for this, subject to a means and merits test. Section 18 of the Crime and Courts Act 2013 amends Part 4 of the Police and Crime Act 2009 to provide that, where a respondent is aged under 18, a youth court will have jurisdiction to grant gang-related injunctions. This reflects the Government’s view that a youth court is a more suitable venue for such proceedings involving a child. The youth court is a type of magistrates’ court, designed in a child and youth-sensitive way. However, legal aid for advocacy for proceedings before a magistrates’ court is generally excluded from the scope of the civil legal aid scheme by virtue of Part 3 of Schedule 1 to LASPO.

With that background in mind, I will turn to the reason for the order before us today. The Government recognise that restrictions may be placed upon a person’s liberty as the result of an injunction to prevent gang-related violence. Breach of an injunction can lead to contempt of court proceedings which, for 14 to 17 year-olds, can result in a supervision order or a detention order being made under the Crime and Security Act 2010. The Government therefore consider that legal aid should remain available for advocacy in proceedings in respect of injunctions to prevent gang-related violence for under-18s, notwithstanding the change of venue for these proceedings as a result of the Crime and Courts Act 2013. To maintain the existing availability of civil legal aid, it is necessary to make an order specifying that advocacy for such proceedings is in scope of the civil legal aid scheme set out in LASPO. That is achieved by the order before this Committee today.

I hope that noble Lords will welcome the order. It makes a relatively minor but important change to the civil legal aid scheme which complements the wider changes made by the Crime and Courts Act 2013. I therefore commend the draft order to the Committee and I beg to move.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab)
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My Lords, as the noble Lord, Lord Faulks, has outlined, Schedule 1 to the LASPO Act sets out the scope of the civil legal aid scheme. It is well documented that the Labour Party, along with many other organisations, opposed what the Government did in respect of civil legal aid when they brought this Act into law. Having said that, from the autumn of this year, proceedings related to gang-related injunctions concerning people under the age of 18 will move to the youth court from the county court. We in the Opposition think that is a sensible move and support the transfer, along with the provision for civil legal aid to be available when the proceedings move, which is what this order seeks to do.

I note from the papers that, as this is regarded as a relatively minor change, no specific consultation was undertaken and no guidance is provided. This is not a policy change and the impact is regarded as minimal, with no major impact on regulating small businesses. However, it is said that the operation and expenditure on legal aid is continually monitored by the department, so perhaps the noble Lord could shed some light on what has happened to date, for the benefit of the Grand Committee. Would he also agree that the effect of these injunctions was extremely important and serious for individuals, both those who are the subject of them and those whom they seek to protect? Does he have information on how effective the injunctions have been to date? If he is not able to provide that information today, will he write to me with further details including any case studies that can highlight the effect to date?

With that, I should say that I am very happy with the order.

Lord Faulks Portrait Lord Faulks
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I am grateful to the noble Lord for his comments. Although it is perfectly true that the party opposite has been opposed to legal aid changes, it does not oppose this order because it does not change the eligibility of legal aid but is concerned only with the venue of these hearings.

The description of the change as “minor” simply refers to the effect in terms of substance, rather than suggesting that the injunctions related to minor matters. They do not. They are a relatively new weapon in the hands of local authorities and the police to try to control gang activity, and particularly to discourage youths from joining gangs. That is sometimes to those particular youths’ benefit. Say older brothers or other members of the community put pressure on them to join a gang; an injunction preventing your doing so is a very good answer, so in a sense it protects individuals from themselves.

There has not as yet been an enormous take-up of the orders. However, they have been operational, particularly in London, the West Midlands, Birmingham, Merseyside and Manchester. As I said, it is very much those on the periphery of gangs whom we are talking about; those at the centre of the gangs tend to attract the attention of the police and may end up being prosecuted for specific offences. The injunctions are important, and although they are not yet widely used we hope that their use will increase, particularly in London, where gangs are so much of a problem, as your Lordships’ House will be well aware.

Although the noble Lord did not specifically ask, I should say that if an injunction is breached it can result in an order for contempt of court, which can conceivably result in a sentence of imprisonment of an individual. I reassure the House that there will then be legal aid in those circumstances, although that will be criminal legal aid rather than civil legal aid, which covers these circumstances.

The change of venue reflects the Government’s view that the youth court is a more suitable place for proceedings that involve a child to be conducted. We therefore believe that this is a reasonable and sensible amendment, which aims to ensure that civil legal aid remains available for advocacy for under-18s in respect of the injunctions to prevent gang-related violence. I hope that noble Lords agree that this is a proportionate and sensible measure.

Motion agreed.

Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Chartered Institute of Patent Attorneys and Institute of Trade Mark Attorneys) Order 2014

Lord Faulks Excerpts
Tuesday 1st July 2014

(11 years, 5 months ago)

Grand Committee
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Moved by
Lord Faulks Portrait Lord Faulks
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That the Grand Committee do consider the Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Chartered Institute of Patent Attorneys and Institute of Trade Mark Attorneys) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments.

Lord Faulks Portrait The Minister of State, Ministry of Justice (Lord Faulks) (Con)
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My Lords, first, on the designation order, the purpose of the order is to designate the Institute of Chartered Accountants in England and Wales—ICAEW—as an approved regulator under the Legal Services Act 2007 for the reserved legal activity of probate activities. I should also say that, if this is approved, a further order will be laid in the near future to designate the institute as a licensing authority for probate activities, which will mean that it will be able to license alternative business structures. This should help to promote increased competition and innovation in the legal services market.

The Legal Services Act 2007 established a new regulatory framework for legal services. Among the key aims of the Act was to deliver a more effective and competitive market. The Act contains eight regulatory objectives which include protecting and promoting the public interest; protecting and promoting the interests of consumers; and improving access to justice. The Institute of Chartered Accountants in England and Wales is a regulator and professional membership body for the accountancy profession in England and Wales. It provides leadership and practical support to its UK and international members and professional standards are maintained through working closely with Governments, regulators and the industry. It also undertakes education and training to support students studying to become chartered accountants.

The institute applied to the Legal Services Board in December 2012 to be designated as an approved regulator for probate activities. It also applied simultaneously to be designated as a licensing authority for probate activities. During 2013, the Legal Services Board very carefully and rigorously tested the institute’s proposals against the criteria in the 2007 Act. The Legal Services Board has also taken care to assess that the institute has both the capacity and the capability to undertake a regulatory role in the legal services sector. The board took advice from the mandatory consultees, as required by the 2007 Act. These are the Lord Chief Justice, the Legal Services Consumer Panel and the Office of Fair Trading—now the Competition and Markets Authority. The board additionally consulted the Financial Reporting Council and the Insolvency Service.

The Legal Services Board took care to ensure that the governance arrangements proposed by the institute are suitably robust in ensuring that its regulatory arrangements are independent from its representative functions, which is a key element of the 2007 Act. This is an important point, on which concerns were raised during the consultation, but the board has tested this issue and is fully satisfied that the arrangements that the institute has set out for its new probate committee will allow it to exercise the regulatory functions in a way that is not prejudiced by the institute’s representative functions. The Legal Services Board is fully satisfied that the institute has in place the safeguards required to regulate authorised bodies and protect the providers and users of such bodies. The Government accept that assessment.

The Government recognise the importance of the legal services market and want to encourage its growth. We believe that designating a new regulator, which has the appropriate safeguards for consumer protection, will help to achieve this. As for consultation, some issues were raised when the proposals were consulted on. The then Lord Chief Justice had long-standing general concerns that regulatory competition would have a detrimental effect on standards. The Legal Services Board was aware of these concerns and addressed them by setting out how the 2007 Act aims to achieve a more effective and competitive market, thereby improving standards. The Legal Services Consumer Panel strongly welcomed the application by the institute but was concerned that the institute was initially not proposing to have a majority of lay members on the probate committee or disciplinary committee. In response to the panel, the institute redrafted its regulations so that the probate committee was made up of a majority of lay members. The Office of Fair Trading had no objections. The Law Society wrote to the Legal Services Board to express concerns, in particular, as I have already noted, about the governance arrangements being proposed by the institute. The Legal Services Board copied this letter to the institute, which responded in detail to all the concerns that the Law Society had raised. The LSB was content with the response and the governance arrangements.

As I have also already mentioned, the Legal Services Board consulted the Financial Reporting Council and the Insolvency Service. Both the Financial Reporting Council and the Insolvency Service noted that the institute takes its regulatory responsibilities very seriously and supported the applications.

I appreciate that some might argue that the Government should not be pressing ahead with this and that an accountancy regulator should not be permitted to regulate legal services. Some may even suggest that there will be a lowering of standards, or a diminution of consumer protection. We do not accept these arguments. The Legal Services Board is satisfied that there will be no lowering of standards or lessening of consumer protection, and the Government agree. I am satisfied that the Institute of Chartered Accountants in England and Wales will be a highly capable and effective regulator in the legal services market. Its entry to this field will help contribute to the growth of the legal services market and bring further innovations, leading to benefits to consumers of legal services.

I turn now to the appeals orders. Noble Lords may be aware that the licensing regime for alternative business structures, as contained in the 2007 Act, became operational on 6 October 2011. In brief, alternative business structures are bodies that carry on reserved legal activities and are partly or wholly owned or controlled by non-lawyers.

In relation to that regime, as I have said previously, the ICAEW has applied to the Legal Services Board to be designated as a licensing authority. The Chartered Institute of Patent Attorneys—CIPA—and the Institute of Trade Mark Attorneys—ITMA—also made a joint application to the Legal Services Board to be designated as licensing authorities. Members of the Committee may be aware that the Legal Services Board made recommendations on 6 December, and earlier this year the Minister responsible for legal services agreed to make the following orders designating the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys and the Institute of Chartered Accountants in England and Wales as licensing authorities under the Legal Services Act 2007.

In accordance with that Act, before CIPA, ITMA and ICAEW can be designated as licensing authorities by order of the Lord Chancellor, it is necessary for there to be an appellate body with the power to hear appeals against its decisions made in relation to alternative business structures.

The purpose of these orders is to make provision for the First-tier Tribunal to act as the appellate body for the purpose of appeals from those three bodies in their capacity as licensing authorities. As required by the 2007 Act, these orders are made on the recommendation of the Legal Services Board, following public consultation.

In summary, the two appeals orders make provision: for the First-tier Tribunal to have the power to hear appeals from the decisions of ICAEW under Part 5 of the 2007 Act and its licensing rules and to hear appeals from the decisions of CIPA and ITMA, acting jointly or separately, under Part 5 of the 2007 Act and their licensing rules; for the orders that the First-tier Tribunal may make on appeals from decisions made by those bodies under their licensing rules; and for modifying the Legal Services Act 2007 so that these appeals fit into the existing structure of onward appeals from the First-tier Tribunal to the Upper Tribunal.

These orders have been brought before the House at the earliest opportunity, following recommendations from the Legal Services Board on 2 May. If approved, the orders will provide individuals and businesses that are subject to licensing decisions of the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys and the ICAEW with an opportunity to appeal those decisions through an independent and impartial appellate body. I beg to move.

Lord Beecham Portrait Lord Beecham (Lab)
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My Lords, having safely navigated the rather stormy waters of the Second Reading of the Criminal Justice and Courts Bill yesterday, it is a pleasure to renew acquaintance with the Minister over these crucially important statutory instruments. One or two questions occur to me about them.

The first is that we are talking effectively about alternative business structures, which are clearly well regulated. I do not know whether this is possible, but supposing that within a single alternative business structure you had both lawyers and accountants, what would be the appropriate framework? Would the professional body of which an individual within such a structure might be a member have a jurisdiction? Or is there an overarching mechanism for the structure as a whole as opposed to the individuals who work within it?

Secondly, grants of probate are issued to executors. My understanding is that if the executors chose to employ someone who is not part of a regulated profession, of course none of these safeguards would apply. Is it the intention of either the Government or the relevant bodies—I presume it would certainly be that of the latter, but it would also be sensible for the Government—to promote the use of properly regulated structures for these purposes? Having said that, I mentioned to the Minister before we began this Committee that I know of a solicitor who many years ago charged something like £90,000 in fees on an estate that was valued at just over £100,000. The regulatory body disposed of him in due course, but he was nevertheless guilty of an offence and seriously defrauding his client. The existence of a regulatory body itself does not necessarily mean that everything will be well.

There is one other matter, which may be slightly tangential. I am assuming that other accountancy bodies may be in a position to apply to be recognised for the same purposes as the chartered institute. In that connection, I have some involvement with an organisation called the Association of International Accountants. It is a non-commercial relationship; I just happen to know some of the people involved and I was recently asked to host a dinner in this House in lieu of my noble friend Lord Sawyer, which I did. The organisation is having some difficulties, not in this particular context, but in the more general context of being recognised for certain other purposes. It may not be possible for him to give me one at the moment, but I would like an assurance from the Minister that, if such a body were to apply to be recognised for the same purposes as the chartered institute, the same process that the chartered institute has successfully undergone would be available to it.

There is a feeling on the part of the Association of International Accountants that the two main accountancy bodies in this country—the chartered institute and whatever the appropriate body is for certified accountants—are, in one particular area, effectively operating a duopoly from which this association is excluded. I asked a Written Question about this some time ago, to which I received a not terribly helpful reply from the point of view of the association. An assurance that they would be treated on an equal footing in terms of passing whatever tests are necessary to be included in this would perhaps be of some comfort to them. Having said that, I cannot see anything to object to in these orders and we are perfectly content to see them go through.

Lord Faulks Portrait Lord Faulks
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My Lords, I am grateful for the questions that I have been asked by the noble Lord, Lord Beecham, who rightly says that regulation and discipline are no absolute guarantee against unprofessional, to put it mildly, practice on the part of a professional in whatever their particular role is. The Legal Services Board has been given by Parliament the task of approving as a regulator these various bodies. As your Lordships will be aware, the scope of their activities is limited. In terms of protection of the consumer, it was important that the effective arrangements were in place to ensure that members co-operated with the legal ombudsman. The Government also had to be satisfied that appropriate client protection arrangements were in place for any body designated as an approved regulator. The Legal Services Board undertook a detailed analysis and was satisfied with the arrangements of the probate compensation scheme, and the requirement for all authorised firms and accredited probate firms to hold professional indemnity insurance. That should protect someone in whatever particular professional role they perform within an alternative business structure.

In terms of these now multidisciplinary practices, there may well be lawyers working with what one used to regard as an accountancy firm. As I understand it, their work within the accountancy firm would be regulated in the way of the accountancy firm licensed to perform these particular activities, but if they were solicitors, for example, their activities would also be regulated by the Solicitors Regulation Authority as the disciplinary body. In so far as there can be protection for the individual, that will be ensured by these new arrangements.

Lord Beecham Portrait Lord Beecham
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In view of what the Minister has said, it is right that there should be professional indemnity insurance but that is basically for professional negligence. Certainly, the Law Society—as I know from the experience of having to contribute to these things—has occasionally to step in, not just in cases of professional negligence but also in cases of dishonesty, to compensate the clients of solicitors. Is it a condition of these bodies being recognised as regulatory bodies that they should assume responsibilities in that context of compensating those who have been defrauded of their entitlement as opposed to in claims for professional negligence? Again, it may not be possible to answer that question now but it would be interesting to find out.

Lord Faulks Portrait Lord Faulks
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I think that it would. I would be happy to write further with details about the arrangements. As I understand it, the Legal Services Board needed to be satisfied of the capacity for individuals to be compensated if mistakes were made in non-contentious probate. For historical reasons, probate is a reserved activity; hence the need for this whole process. The Legal Services Board was satisfied about professional indemnity insurance.

If I sound somewhat hesitant, the noble Lord will appreciate that Parliament has designated the Legal Services Board as the regulator. This is not directly the Government’s approval; it is the Legal Services Board’s approval. They have created this body, and the body has gone through the process. The Government have to be satisfied that the Legal Services Board has gone through the necessary process of consultation and satisfied itself of the adequacy of protection, for example, for consumers, and all the other aspects to which I referred in opening, but they do not have a separate governmental role. We do not think that there has been any inadequacy in the process of this approval. Essentially, the Legal Services Board, having been given that task, has satisfied itself. If an individual chooses a regulated person to undertake their probate, they naturally have protection and redress. As the noble Lord says, individuals have the choice of whether to undertake their own probate, in which case they do not, which is a matter of consumer choice. Further to what I said about lawyers and accountants within a single ABS, that will, of course, depend on which regulator licensed the alternative business structure. However, I understand that entity regulation applies over individual regulation, although, as I say, the individual may have some additional professional obligations of the sort that I described.

I do not think that I can answer from the Dispatch Box the other question that the noble Lord asked in relation to international firms. However, I will try to write him a more helpful letter than the one that apparently he received on a previous occasion.

Lord Beecham Portrait Lord Beecham
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I am grateful to the Minister for that. However, to be clear, the Association of International Accountants is not just a body of international accountants; it is a body with many UK members and some overseas members as well. It is therefore not operating solely in the international sphere. However, as I say, I am grateful to the noble Lord for his offer.

Lord Faulks Portrait Lord Faulks
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I hope that, subject to my providing further information by letter, I have satisfied the noble Lord. The debate has enabled me to put on record the importance of the alternative business structure and of the Government encouraging growth and innovation in the legal services market generally through these means. The order designated the ICAEW as a new approved regulator, which demonstrates our commitment to it. I hope that the debate has demonstrated the importance of the appeals order, which naturally needs to exist to support the effective operation of the ABS scheme. The appeals orders form a key component of the licensing arrangements. I commend these orders to the Committee.

Motion agreed.

Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Institute of Chartered Accountants in England and Wales) Order 2014

Lord Faulks Excerpts
Tuesday 1st July 2014

(11 years, 5 months ago)

Grand Committee
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Moved by
Lord Faulks Portrait Lord Faulks
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That the Grand Committee do consider the Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Institute of Chartered Accountants in England and Wales) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments

Motion agreed.

Legal Services Act 2007 (Approved Regulator) Order 2014

Lord Faulks Excerpts
Tuesday 1st July 2014

(11 years, 5 months ago)

Grand Committee
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Moved by
Lord Faulks Portrait Lord Faulks
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That the Grand Committee do consider the Legal Services Act 2007 (Approved Regulator) Order 2014.

Relevant document: 3rd Report from the Joint Committee on Statutory Instruments

Motion agreed.

Criminal Justice and Courts Bill

Lord Faulks Excerpts
Monday 30th June 2014

(11 years, 5 months ago)

Lords Chamber
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Moved by
Lord Faulks Portrait Lord Faulks
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That the Bill be read a second time.

Lord Faulks Portrait The Minister of State, Ministry of Justice (Lord Faulks) (Con)
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My Lords, this is a significant and far-reaching Bill that has at its heart a vision for a stronger and fairer justice system. It introduces steps to toughen our approach to the most serious and repeat offenders, ensuring that penalties reflect the seriousness of the crimes committed and providing greater certainty for victims. It seeks to modernise our court processes and rebalance the judicial review system to reduce the delays caused by inappropriate or unmeritorious claims.

Our system of justice is regarded with enormous respect throughout the world. The quality of our judiciary and our respect for the rule of law are significant factors in attracting foreign investment to our shores. The Government are not, however, complacent. We must constantly examine our criminal and civil justice systems, not simply to respond to the latest headline but to ensure that they are adapting to the modern world.

In the field of criminal justice there is a need to identify the most serious offences and to make sure that our judges have adequate powers to deal with offenders. Equally we are absolutely determined to make a real impact on reoffending by our reforms, which will transform rehabilitation. Your Lordships’ House has enabled, for the first time, offenders who have received short sentences to be properly prepared for release and properly supported when they are released. This way, they will be better able to cope with life on the outside and will be much less likely to offend.

Another major issue is in the provision of education for young offenders. The need to provide this lies at the very heart of our plans in the Bill to introduce secure colleges to give young offenders real educational opportunities, often for the first time in their lives.

Improvements in our civil law system are making a difference. In Part 2 of the LASPO Act 2012, we implemented recommendations suggested by Sir Rupert Jackson to rebalance the system and deal with the consequences of the introduction of conditional fee agreements, which benefitted no one but lawyers and the organisations that fed on the system. It will be a little time before we can assess the full effect of our reforms, but the signs are hopeful.

One of the least attractive aspects of our system was the growth of claims management companies. A claims management regulation unit, which I have visited, has been in place since 2007, providing really effective protection to consumers and closely reining in unacceptable practices. The unit has the power to suspend, vary or cancel licences. Furthermore, I announced last Friday that the unit will be able to impose substantial fines on companies that break the rules. I am glad to tell your Lordships that the number of these companies is reducing, and reducing quickly.

These are just some of the changes that we are making. This Bill is part of the narrative. Criminal justice provisions in Part 1 of the Bill will help to keep our communities safe and secure, and ensure that offenders face the consequences of their crimes. Provisions in this part of the Bill place restrictions on the use of simple cautions on a statutory footing to ensure that serious and repeat offenders are treated consistently and are punished appropriately.

Unless there are exceptional circumstances, offenders will no longer receive a caution for the most serious offences, such as rape and robbery. For other offences, we are limiting the repeated use of cautions for the same, or similar, offences committed within a two-year period. We are ensuring that for all dangerous offenders and those who commit offences of particular concern, the Parole Board will consider their risk before early release can be authorised. This will improve public protection and encourage offenders to take responsibility for their own rehabilitation.

We have also made provision to ensure that the courts have sufficient tools to deal with offences that can have an enormous impact on victims and our communities. That is why we have increased the penalty for causing death while driving while disqualified, and introduced a new offence of causing serious injury while driving while disqualified. It is why we are adding further terrorism offences to the enhanced dangerous offender sentencing scheme, as well as increasing maximum penalties to life for offences where that is not already the case.

It is right that we have the necessary tools to monitor offenders on licence and to deal with breaches of licence conditions. The Bill introduces an additional “recall and release” test for determinate sentence prisoners, requiring consideration of whether, if released, an offender would be highly likely to commit further breaches of their licence, including further offending. This seeks to end the continuous cycle of fixed-term recalls and automatic release for offenders who persistently and wilfully breach their licence conditions.

We are also taking powers to impose mandatory location monitoring of offenders released on licence. The use of innovative new technology will help to deter reoffending, allow better monitoring of whereabouts and compliance with other licence conditions, as well as assist with crime detection.

It is sometimes the case that issues of national concern highlight the need for our laws to evolve to tackle different types of behaviour. The horrifying events at Mid-Staffordshire NHS Foundation Trust, and the review into the safety of patients in England that followed, exposed a gap in legislation as regards ill treatment or wilful neglect of users of health and care services. It was rightly recommended that this should be rectified. The Bill closes that gap by creating new criminal offences to deal with these completely unacceptable behaviours.

High-profile failings in police conduct have dominated headlines in recent years, most notably following the revelations about the handling of the Stephen Lawrence investigation. The existing common-law offence of misconduct in public office dates back several hundred years and is not specific either to cases of corruption or to police officers. It is not always well suited to dealing with or deterring the pattern of corruption in today’s information age, so we are introducing the new police corruption offence, which will ensure that the small number of officers who are corrupt are properly punished and face the appropriate penalty for their crimes. However, we also recognise the special role that police and prison officers play in routinely coming into contact with dangerous offenders in difficult situations. That is why we are raising the starting point for sentencing a murderer of a police or prison officer in the course of their duty to a whole-life order.

Part 2 of the Bill deals with the critical matter of youth justice. Under this Government, crime and offending by young people is down, with fewer entering the criminal justice system and ending up in custody. At present we pay around £100,000 a year for a place in youth custody, yet almost 70% go on to reoffend within 12 months. No current youth custodial establishment—young offender institutions, secure training centres and secure children’s homes—is providing good enough outcomes. For young offenders where custody is necessary, we want to make the best use of the opportunity to help to turn their lives around. We need to be better at rehabilitating young offenders.

Secure colleges will have education at their heart, with all other services designed in support of raising educational attainment and tackling offending behaviour. Figures suggest that 86% of young men in young offender institutions have been excluded from school at some point, and more than half of 15 to 17 year-olds in YOIs have the literacy and numeracy level expected of a seven to 11 year-old.

Secure colleges will provide the support and skills that young offenders need to stop reoffending and to contribute positively to society in adult life. The Bill establishes the statutory framework for secure colleges, with further detail to be set out in the secure college rules. Operators of secure colleges will be invited to deliver a broad, intensive and engaging curriculum to support and motivate the full range of ages and abilities of young people accommodated in these establishments.

The Government recognise that there are likely to be some detained young people who will continue to require separate specialist accommodation, either on the grounds of their age, acute needs or vulnerability. We are therefore committed to continuing to provide separate specialist accommodation, such as secure children’s homes, for this group of young offenders.

On 9 June my right honourable friend the Lord Chancellor and Secretary of State for Justice informed both Houses that the Ministry of Justice had selected a preferred provider—Wates—to design and build the pathfinder secure college in the east Midlands. Subject to parliamentary approval, if this pathfinder proves effective it will be a model for a future network of secure colleges across England and Wales. I can assure your Lordships that construction will begin only if this Bill receives Royal Assent.

Before this Bill reaches Report, we will launch a public consultation on our plans for secure college rules, which will set out the core requirements to ensure that the establishments operate safely and securely. I will inform the House of the details of this consultation in due course. We also intend to hold a meeting prior to Committee, to which all Peers will be invited, to show in more detail what the plans are, in physical terms, for the pathfinder college.

I hope that all noble Lords will at the very least keep an open mind and not resort to describing these establishments as “fortresses” or “Titan” prisons. Such rhetoric hardly helps in our quest to help some of our most vulnerable young people and is surely not the approach that should be adopted in your Lordships’ House.

This part also makes sure that all 17 year-olds have access to an appropriate adult when they receive a caution, and we are changing the law regarding referral orders to provide greater flexibility and powers for the court when punishing a breach or dealing with further offending.

Part 3 is very much about increasing the efficiency and flexibility of the courts to keep pace with the modern world. At present, much court time is wasted in hearing cases in open court when the defendant fails to attend; the only people present are magistrates and prosecutors. We could make better use of this valuable time elsewhere. This Bill allows one magistrate to deal with low-level regulatory cases away from traditional magistrates’ courtrooms. The types of cases that we are concerned about are the likes of failing to register the new keeper of a vehicle or depositing litter. We are ensuring that the defendant’s right to request a hearing is preserved, as the procedure will apply only when a defendant has either expressly or impliedly waived that right. We are also enabling more cases to bypass the Court of Appeal and go straight to the Supreme Court, again saving valuable court time. I reassure noble and learned Lords from the Supreme Court that that will be only with the consent of the Supreme Court.

The use of the internet has had a profound impact on how we carry out our daily lives, so we are also modernising the law on juror misconduct to bring it into the 21st century. Some of your Lordships might have seen that the Attorney-General has today announced that the Government intend to table an amendment to omit the provisions to update the law of contempt of court as it relates to publications. The measures were intended to provide clarity, to allow the media time to take down material, and to provide a defence until that point. The media, however, raised strong objections. Since the existing law gives protection for the integrity of court proceedings, we have decided not to pursue these measures.

This part also introduces a charge, payable by adult offenders on conviction, to contribute towards to the costs of the criminal courts. We already recognise that those who bring cases in the family and civil courts should bear some of the court costs in those jurisdictions. These provisions make that a reality in the criminal sphere, so that those who give rise to the costs of the criminal courts share the burden of those costs, rather than it solely being the burden of the taxpayer. Repayments can be set at an affordable rate, and we are encouraging rehabilitation by allowing the charge to be remitted after a certain period without reoffending provided that the offender has also taken reasonable steps to pay off the charge. To ensure that we have maximum flexibility, we are also extending the powers of fines officers to vary repayment of financial impositions after default, as well as prior to default.

Finally, I turn to Part 4, on the matter of judicial review, which is one of the most important means by which government and other public bodies can be held legally accountable for their decisions and actions. However, judicial review has grown significantly over recent years, and while there are many important and valuable judicial review cases brought every year there are also too many that are not. We have taken a detailed look at judicial review and concluded that there is a case for some proportionate and common-sense reform.

Part 4 will provide a better balance, ensuring that judicial review continues as a check on the Executive while limiting the potential to abuse it for collateral purposes, such as delay. The clauses in Part 4 deliver two things. The first is a much needed rebalancing of the financial risk of bringing or driving a weak judicial review. We think it right that those who bring or choose to become involved in a judicial review should face their fair share of the financial risk that entails, rather than expecting a subsidy from the body they are challenging. This is the position in other civil litigation.

We will therefore ensure that the courts have the information they need to use their existing powers to reach through, say, a shell company when awarding costs against an unsuccessful party. That does not mean that everyone who donates to a campaign will be at risk, but it is right that there should be a proportionate liability for those who in reality control, guide and stand to benefit from a judicial review.

Lord Clinton-Davis Portrait Lord Clinton-Davis (Lab)
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Is it not evident that judicial review will be enormously affected by this and that it will be beyond the scope of people to pay? In other words, it will become the province of the rich and not of the poor.

Lord Faulks Portrait Lord Faulks
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My Lords, we do not think so. The argument over legal aid is a debate that we have already had in your Lordships’ House. It is the Government’s view that the changes in the legal aid provisions were an entirely proportionate and sensible approach to legal aid, given the scarce resources that are available. As to the availability generally of judicial review, the Government are concerned to ensure that it remains a realistic remedy, but nevertheless that appropriate modifications are made. We will scrutinise those modifications during the course of the debate.

We are affirming in statute the court’s ability to make orders protecting an unsuccessful claimant from a successful defendant’s costs. But it must be right that such protection, almost invariably at a cost to hard-pressed taxpayers, should be reserved for cases with merit and which concern matters of high public interest.

Those who intervene in a case to make arguments or adduce evidence can certainly add value to the proceedings, but we think it right that they should face the financial consequences of their decision to intervene. However, having listened to arguments in the other place we are persuaded that there may be a case for some modification of the provisions and we look forward to considering possible amendments.

Secondly, Part 4 limits the scope to use minor technicalities as a foundation for a judicial review designed to bring about delay by building on an existing approach taken by the courts. This will bite on claims based on a minor flaw in a process, where the outcome of that process for the applicant was highly unlikely to have been changed by the flaw. Our change will mean that, in those situations, the court should not grant permission to continue, or a remedy.

By taking that approach, other more meritorious judicial reviews, in which it is likely or probable that there would have been a difference, can proceed more quickly, given the freeing up of scarce judicial resources. Where there is any significant doubt in the court’s view over whether a procedural failing would have made a difference to the end result—perhaps the grant of a licence or the positioning of a pedestrian crossing—the clause would of course have no effect. Consequently, this clause will be very far from a “get out of jail free” card for poor administrators. I trust that, through the consideration of the Bill, I will be able to demonstrate these points to the House’s satisfaction. However, I cannot stress too strongly that we are not abolishing judicial review.

The shadow Lord Chancellor in the other place invoked the impending anniversary of Magna Carta and said that the Government were,

“depriving citizens and communities of their rights to challenge power”.—[Official Report, Commons, 17/6/14; col. 1073.]

I am confident that the noble Lord, Lord Beecham, has a rather more secure grasp of legal history—judicial review, as we know, started in the 1970s—and that he and others of your Lordships will accept that acknowledging the value of judicial review does not preclude Parliament carefully scrutinising the extent to which it should be used to frustrate the legitimate exercise of power by a democratically elected body. The Government consider that ours is a balanced package of measures which will ensure that judicial review will continue to operate effectively and appropriately.

The Bill contains a wide range of important proposals to ensure that we deliver a justice system that people can be proud of. It ensures that offenders and claimants take responsibility for their actions and that our laws reflect the 21st century. I feel confident that the great expertise that can be found in your Lordships’ House will be brought to bear on the Bill. I look forward to debating it and benefiting from that expertise. I hope that noble Lords will support the outcomes it seeks to achieve. I commend the Bill to the House. I beg to move.