Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Bridget Phillipson and Jonathan Djanogly

Wednesday 29th June 2011 Commons Chamber

[Mr Djanogly]

We must make tough choices and target scarce legal aid on those who need it most. I am sorry to tell the hon. Members for Sunderland Central (Julie Elliott) and for Wansbeck (Ian Lavery) and the right hon. Member for Manchester Gorton (Sir Gerald Kaufman) that legal aid has never been available for all cases and that we simply need to prioritise our spending. The hon. Member for Sunderland Central said that everyone deserves their day in court. That might be so, but mediation can sometimes be more appropriate.

The Bill’s reforms are not limited to public funding but extend to provisions to implement a fundamental reform of privately funded no win, no fee conditional fee agreements. The changes we propose will rebalance the CFA regime.

The right hon. Member for Tooting, incredibly, refused to say whether he supports our attack on the compensation culture. Under current arrangements, claimants can bring cases without any financial risk. Risk-free litigation encourages unnecessary or avoidable claims to be pursued and puts businesses and other defendants under pressure of excessive legal costs. Under our changes, claimants using CFAs will have to think carefully about whether it is necessary to pursue their claim. I confirm to the hon. Member for Wigan (Lisa Nandy) that CFAs will still be available for group actions against multinational companies.

My right hon. Friend the Member for Berwick-upon-Tweed rightly mentioned fixed costs and referral fees, which we need to look at. My hon. Friend the Member for Cardiff North (Jonathan Evans) mentioned the disgraceful episode involving referral fees in relation to miners’ compensation. The right hon. Member for Blackburn (Mr Straw) felt strongly about referral fees and made a number of valid suggestions that are outwith the direct scope of the Bill but do, I agree, need to be looked at.

We are aware of the strong concern that the payment of referral fees in personal injury cases adds to the costs of civil litigation. We are considering the issue and will announce the way forward in due course. I point out, however, that in 1999 claimant costs represented 50% of damages but that by 2010 the figure had risen to 150%. The previous Government lost control of the situation. Under the relevant provisions in the Bill, the legal costs of all defendants facing CFA-funded claims will reduce. That said, we recognise that there are complex and difficult cases, such as clinical negligence cases, which the Chairman of the Justice Committee, my hon. Friends the Members for Dewsbury and for Mid Bedfordshire and the hon. Member for North West Durham (Pat Glass) raised. Our Jackson and legal aid reforms will address such cases. CFAs are a viable alternative to legal aid for these cases and the Bill will, exceptionally, enable the recovery of after-the-event insurance premiums for expert reports in clinical negligence cases, in recognition of the fact that they are important.

[Bridget Phillipson]

Will the Minister answer the question I asked the Lord Chancellor earlier about whether the Government will rethink their proposals to scrap legal aid for women applying for indefinite leave to remain under the domestic violence rule? It is a very small number of women.

[Mr Djanogly]

It is a small number but it is a complicated point, so I shall write to the hon. Lady.

Taken together, this is a balanced and sensible package of reforms of the kind that the Government were determined to achieve when we published our proposals. The overall effect will be to achieve significant savings while protecting fundamental rights of access to justice.

Question put, That the Bill be now read a Second time.