Legal Aid Reform

Ian Swales Excerpts

Thursday 27th June 2013 Commons Chamber

[Ian Swales (Redcar) (LD)]

I rise to speak as a member of the Public Accounts Committee who is concerned about the effectiveness of the proposed measures, and as a constituency MP who is concerned about access to justice for my constituents.

We are told we have the most expensive system in the world, but only last year the National Audit Office found that the cost of our system was average, after accounting for variances in the role of the civil service and the judiciary, and the costs have been reduced since that finding. As a previous speaker said, 48% of our criminal legal aid costs are for 1% of cases, so why does the Ministry of Justice not look specifically at those cases in order to save money?

[Mr David Davis (Haltemprice and Howden) (Con)]

One of the misunderstandings in the mind of the public is that legal aid is a principal cost. In fact, our legal system costs half that of the Swiss and three quarters of the system in the other major European countries, and it delivers better results. Surely we should be proud of that?

[Ian Swales]

I am proud of that, and I am surprised by some of the comments from Front Benchers that seem to contradict what the right hon. Gentleman just said.

We also have a system in which tariffs vary widely across the country, sometimes paying twice as much for the same activity. Why does the Ministry of Justice not look into that? We often criticise the Ministry for not piloting its ideas, but they have tested this one by setting up five public defender services. They are proving to be three to four times as expensive as present local arrangements, and the one near me in Middlesbrough has already closed down. What has the Ministry learned and why is it planning to protect those offices from competitive tendering?

[Mr Bellingham]

The Crown Prosecution Service now has a lot of in-house lawyers, who are expensive and who have pensions, significant overheads and so on. Does the hon. Gentleman agree that going back to instructing the independent Bar, as used to happen, would result in savings and that the MOJ should look at that quite urgently?

[Ian Swales]

The hon. Gentleman has made his point fluently. I am not a lawyer and am unable to comment on those details, but I am sure that Ministers heard his point.

Looking at the effect on justice first, the evidence from the USA, where the MOJ’s planned approach is already in place, will give the public little comfort. Even people who are charged with the most serious crimes, including murder, are given low-cost lawyers and scant attention. Among the most serious duties a Government can have are to prevent people from dying in hospital and to prevent them from being wrongfully imprisoned. Why do we believe so strongly in choice in the first case while seeking to eliminate it in the second? Only through choice can standards be maintained and competitive pressures take effect. Yesterday, the Chancellor said:

“Our philosophy is simple: trust people to make their own decisions and they will usually make better decisions.”—[Official Report, 26 June 2013; Vol. 565, c. 306.]

I urge the Minister to follow that approach.

I also urge the Minister to look carefully at the financial incentives in the proposed contracts. As we on the Public Accounts Committee know, there is touching faith in most Departments that their private sector partners will “do the right thing”. They will—but it will be the right thing to maximise their profits. It beggars belief that firms might get the same fee for a quick guilty plea as they get for a trial lasting days or even weeks. I know that the Secretary of State is a great believer in payment by results, but is he really looking for justice through short trials with few witnesses, or for innocent, vulnerable people to be locked up through a quick guilty plea? That is what his system will encourage.

[Greg Mulholland (Leeds North West) (LD)]

Does my hon. Friend acknowledge the serious concern that there will be an incentive for legal representatives to encourage clients to plead guilty, because the fee will be the same? That is deeply worrying.

[Ian Swales]

I agree with my hon. Friend. I repeat: private companies will seek to maximise their profits. I advise anyone who doubts that to check the financial incentives in the GP out-of-hours contracts and then look at what has happened to the number of people attending hospital accident and emergency centres.

I will now deal with contracting. This time last week, I was in Westminster Hall discussing the court translation services debacle—a true horror story. The response from the Under-Secretary of State for Justice, the hon. Member for Maidstone and The Weald (Mrs Grant), showed breathtaking complacency about the overall effect on and cost to the courts system. She even seemed to be content with a present failure rate that is five times greater than the one contracted for. In addition, as has been noted, early results coming in on the new civil legal aid arrangements show more court cases, not fewer, and many cases doubling in length owing to inadequate representation. Again, I ask whether the Ministry is counting the full costs.

The most lucrative business in this country now seems to be winning Government bidding rounds, then—ideally—selling the contract for a quick profit, as we saw with the court translation service, or taking fat fees and getting other people to do the work, as we see in the Work programme.

[Mr Raab]

Will the hon. Gentleman give way?

[Ian Swales]

I am running out of time.

The Ministry has touching faith that many groups of lawyers will come together to bid; in fact, it will be largely the same magic circle of outsourcers, who hover like vultures around the award of almost every public contract—with the rumoured addition this time of a supermarket and a haulage company. One company likely to win work, of course, is G4S, with which the Secretary of State will be familiar from his previous job. G4S’s success in winning work in this sector raises the spectre that a person could be arrested, then have G4S legally representing them at the police station; providing the civilian staff processing them there; transporting them to court; representing them there; owning the court in which that person is tried; tagging them if they are on bail; and, if they are found guilty, transporting them to a G4S prison—oh, and it is quite possible that when they are released, G4S will be in charge of their rehabilitation. The potential perverse incentives in that chain are mind-boggling. I urge the Ministry of Justice to ensure that its contract packages meet its stated aims. The Ministry’s record on contracting is appalling. How will it be different this time?

I end with two questions for the Minister. First, if he or a member of his family were arrested, would he be happy with the new arrangements? Secondly, has he heard the right hon. Member for Sutton Coldfield (Mr Mitchell) express delight that he has just found the cheapest lawyer to fight his case against the Metropolitan police? I doubt it. Equal access to justice is a cornerstone of our society. The Minister has a lot to do to convince this House that that remains an objective of his Department and that it is competent to deliver it.