Mesothelioma Bill [HL]

Lord Wigley Excerpts

Monday 20th May 2013 Lords Chamber

[Lord Wigley]

My Lords, I welcome this Bill as a major step in the right direction but one that needs some aspects clarified and perhaps strengthened at later stages. I join the number of noble colleagues who have paid tribute to the Minister for his genuine commitment in these matters. I think that is recognised by everyone. I also want to put on record a tribute to the trade unions for the work that they have undertaken in this area. Very often, that is overlooked. The trade unions have played a major role over the years in trying to improve standards and safeguard people from such diseases.

Noble Lords may be aware from the debates last year of my interest in these issues. I had some involvement as an MP for a slate quarrying area in the 1979 Act, which is relevant to some mesothelioma sufferers. I represented an area that had a Turner & Newall/Ferodo factory that used asbestos.

As a number of noble Lords have stated, it can take decades for symptoms of this horrendous disease to surface, and it almost always develops as a result of exposure to asbestos. Those who contract mesothelioma are overly represented in construction and certain industrial sectors, although people can contract the disease, as has been stated by a number of noble Lords, by undertaking renovation work on buildings or even washing the clothes of those who work with asbestos. It has been stated that even teachers and pupils may have had an exposure from the decaying fabric of school buildings where asbestos was in the middle of walls and had become exposed.

The disease is notoriously difficult to diagnose, so it is often in its advanced stages by the time a diagnosis can be made. After diagnosis, however, the progress of the disease is usually rapid and the average life expectancy after this point is only two years, as has been said. Since the symptoms can take decades to develop, frequently employers have gone out of business by the time the sufferers are in a position to seek compensation and insurers’ records often have been destroyed, making it difficult to trace which insurer the employer was registered with.

Since the Employers’ Liability (Compulsory Insurance) Act 1969 came into effect, most employers have been required to obtain insurance to cover their liability for any bodily injury or disease acquired by their employees as a result of their employment. However, that did not solve all the problems by any means. The Pearson commission on civil liability and personal injury considered these matters, particularly that of no-fault liability. It is a shame, as the noble Baroness, Lady Taylor, suggested, that greater progress was not made during that time.

Eventually, the 1979 pneumoconiosis Act provided rough justice for a number of industrial lung diseases, including mesothelioma, that were not otherwise covered by the compensation provision. I would be interested to know how the Minister sees the compensation tariff levels provided by this new Bill compared with those provided under the 1979 Act. Can we perhaps have, for Committee, the draft scheme rules and an outline of draft orders indicating the levels of age-related compensation which the Government have in mind?

I am sure noble Lords on all sides of the House will be glad that progress is being made. However, the Mesothelioma Bill is narrower in its scope that some of us would ideally like to see. It offers recourse to those suffering from diffuse mesothelioma only—and eligible dependants, of course—and it is available only to those diagnosed on or after 25 July 2012. The Bill makes provision for a scheme that will make payments to these persons provided that they have brought no action against an employer or that employer’s liability insurer because they were unable to do so. Surely that date, as has already been suggested, should be three years earlier, in line with the three-year limitation period in law. That is an objective basis on which to make a change. I hope that we will have an opportunity to return to that point in Committee.

I draw to the Minister’s attention the fact that conditions excluded from this Bill’s provisions, presumably because of the difficulty of proving causation, have already been included in an administrative scheme that pays compensation to all asbestos victims at Turner & Newall asbestos factories. If they can do it, why cannot the Government do it?

Alongside this, the Ministry of Justice is, I understand, planning to consult on changes to the legal process for mesothelioma claims, including the introduction of a compulsory online gateway and other somewhat controversial measures. No doubt we will have an opportunity to return to this in Committee, as we shall to the implications of Schedule 2, where I fear the wording may inadvertently exclude persons who should still be included in the purview of the 1979 Act.

The proposed mesothelioma support scheme is the central plank of this new provision. Although it is of course welcome that the Government are making progress for many sufferers of this debilitating disease, a number of concerns have been raised by organisations with expertise in the field. The scheme has been criticised for having been drafted without consulting claimants, support groups and relevant trade unions. The fact that support will be limited to those suffering from diffuse mesothelioma has also been highlighted, in contrast to the Employers’ Liability Insurance Bureau proposal by the previous Labour Government in 2010. Thompsons Solicitors have also pointed out that hundreds of people have unnecessarily lost out on compensation due to the delay of more than two years between the 2010 consultation closing and the present scheme being announced in July 2012.

Most controversially, I think, and as the Association of British Insurers has recognised, the scheme will pay only approximately 70% of the average value of claims.

That is surely an injustice. If the suffering justifies the 100% figure, on what possible basis can a lower figure be offered in settlement of the liability? The insurance industry’s rationale for allowing this injustice to occur is apparently that it will maintain an incentive for people to attempt to trace insurers so that claims will be brought to this scheme only once all other avenues have been exhausted. I suggest that paying only 70% shows a flagrant disregard for the highly distressing and incapacitating symptoms that sufferers experience at a time when they are likely to be seeking compensation, as well as the very short life expectancy of these people. Expecting sufferers to exhaust all other avenues before bringing a claim to the scheme makes it quite likely that the person in question will have died before compensation is gained, and will put increased pressure on terminally ill people. I urge the Government and the industry to reconsider this aspect of the proposed scheme.

I would be grateful to hear the Minister’s thoughts, if not now then at a later stage, on comments that have been made by representatives of the insurance industry that the Recovery of Medical Costs for Asbestos Diseases (Wales) Bill currently under consideration in the National Assembly for Wales may undermine the provisions included in the Mesothelioma Bill. The Assembly Member under whose charge the asbestos Bill was presented has written to me stating that his Bill would have no adverse relationship with the legislation now under consideration. I would welcome the Minister’s comments on this matter and would like to know whether any discussion has taken place with Welsh government Ministers in Cardiff on the most worrying aspects of the interrelationship of the two Bills. Having said that, I welcome the step being taken.