Third Parties (Rights against Insurers) Regulations 2016

Debate between Lord Hope of Craighead and Lord Bach

Tuesday 22nd March 2016 Grand Committee

[Lord Hope of Craighead (CB)]

I am grateful to the Minister for his explanation and also for bringing this set of regulations forward for our consideration and for the House’s approval in due course. It is an extremely important area which I think anybody practising in the common-law field values very much. I have only one question and that is to ask for reassurance in relation to part of Regulation 3, which deals with the relevant bodies in insolvency or administration under sectoral legislation. This is an extremely sophisticated area of law and I join in the Minister’s congratulations to all those who have played a part in putting all this together.

A feature of the list of enactments set out in Schedule A1 is that all except the last deal with areas of regulation which are common to the United Kingdom, with the special provisions made in the case of Northern Ireland which are set out in the schedule. Aviation, energy, financial services, postal services and railways apply equally to Scotland as they do to England and Wales. But the question of water and sewerage has occurred to me, because Scotland, I believe, has its own legislation relating to sewers and water: there is the Water (Scotland) Act, the date of which escapes me, and I believe that there is a sewerage Act for Scotland as well.

I fear that without detailed research, which is beyond my resources at the moment, I am not sure whether the Scottish legislation provides for administration under a legislative scheme. I am fairly confident that the Water Industry Act 1991, referred to here, does not extend to Scotland. It may well be that those who have been looking at this in detail have reassured themselves that there is no need for a mention of the Scottish legislation, perhaps because it does not actually provide for this kind of administration. If that is right, of course I understand why there is no mention of those statutes, but it might be as well to be absolutely sure that there is not a gap here that ought to be plugged before the regulations are brought into force.

That aside, I regard this as a very fine piece of fine-tuning which I am sure will be greatly welcomed in order to avoid any further gaps in the valuable legislation.

[Lord Bach (Lab)]

My Lords, I, too, thank the Minister for his explanation of this statutory instrument. I confirm that it is not controversial in the slightest. We are happy to support it, as we supported, of course, the 2010 Bill as it went through Parliament. Indeed, I hope I may be forgiven for reminding the Grand Committee—it was some time ago now—that I was the Minister who took that Law Commission Bill through this House, using the special procedure. I was assisted then by an excellent team from the Ministry of Justice and I suspect—indeed, I am sure—that the Minister has been so assisted today.

The Minister will know that we on this side have many criticisms of much that the Ministry of Justice does these days, but in this area of complex but important law-making and law revision, we have nothing but praise. I have a couple of questions and comments for the Minister’s consideration, but they are brief.

The first point is about paragraph 8 of the Explanatory Memorandum, which deals with the consultation outcome. It says that the APIL and the ABI—the Association of Personal Injury Lawyers and the Association of British Insurers—have been consulted and are broadly content. The memorandum states:

“Both organisations expressed general approval of the Regulations”.

Is there a particular meaning to the word “general” in that particular context? I am pretty reassured that there is not, because I have a letter here from APIL itself, which suggests that it is happy with the regulations, but I wonder what the expression means in that context—probably nothing.