Legal Aid Payments

David Lammy Excerpts

Thursday 17th June 2010 Commons Chamber

[Mr Clarke]

I am sure that my hon. Friend the Under-Secretary and I will be only too happy to meet the Members of Parliament particularly affected by the issue. We will have to take advice on whether we will be subject to any kind of legal review if we do that in the middle of the bidding process but, subject to that, we would welcome advice from Members who have particularly large numbers of such cases to deal with, because we will have to look at the whole provision of legal aid in this and other areas.

[Mr David Lammy (Tottenham) (Lab)]

The right hon. and learned Gentleman has made much of the fact that this is the only voluntary body that has found itself in such difficulties. Does he recognise the volume of immigration and asylum work that has been done and that has to be done? He suggests that other comparable bodies have not found themselves in such a situation; can he name some of those that particularly relate to immigration and asylum?

[Mr Clarke]

The trust that folded had a 7% market share. It was, of course, part of the old advisory service, which was split up some time ago. The other half of the old advisory service is to get a much bigger market share—over 20%. We are talking about a policy of the last Government, and one with which I do not disagree. The graduated fee scheme was introduced in order to get better value for money out of the legal aid scheme, and everybody had to adjust to it. So far as I am aware, the body is the only one that is in great financial difficulties. In a way, it would have been very awkward for us if it folded after we had awarded the contracts. We would have been in a mess if we had discovered that we had awarded a contract to a financially insecure organisation that went down once we were relying on it to do the work. As far as I am aware, everyone else who is bidding is, I hope, in a sound financial state.