Oral Answers to Questions

Jack Straw Excerpts

Tuesday 13th September 2011 Commons Chamber

[Mr Djanogly]

The hon. Gentleman makes an important point. We recognise that reducing the time from diagnosis of the disease to settlement of the claim without the need for litigation would be preferable. Proposals to introduce a scheme that will incorporate a fixed time scale and cost each stage of the claim so that only the most complex cases reach litigation are being considered.

[Mr Jack Straw (Blackburn) (Lab)]

8. What decisions he has reached on implementing the recommendation of the review by Lord Justice Jackson to abolish referral fees.

[The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)]

As the House was informed on Friday 9 September in a written ministerial statement, the Government have decided to ban referral fees in personal injury cases as recommended by Lord Justice Jackson. The ban complements our wider reforms to no win, no fee arrangements, which are being taken forward in the Legal Aid, Sentencing and Punishment of Offenders Bill.

[Mr Straw]

May I first express an unequivocal welcome for the announcement that the right hon. and learned Gentleman and the Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly), made on Friday not only in respect of motor insurance but more widely about implementing this central plank of Lord Justice Jackson’s recommendations? Since the Justice Secretary used the word “ban”, which I think is the correct word, may I ask him whether he accepts that, given the level of malpractice we see across the legal and paralegal industry, the ban will have to be backed by the criminal law?

[Mr Clarke]

First, may I say that I am glad that my old friend the right hon. Member for Blackburn (Mr Straw) and I are in complete agreement on this subject? It is not the first time. He got in first, really, because I waited for the opinion of the Legal Services Board, which I have not followed but which I had to consider, and he rightly prompted a decision. People who agree with us include not only Lord Justice Jackson but my noble Friend Lord Young in his report, “Common Sense, Common Safety”, the Law Society, the Bar Council and the Association of British Insurers. The main beneficiaries will be claimants who are genuinely referred to the best expert to act for them and the justice system in general. We are now considering the way in which to put this into practice, but it is likely to be in the form recommended.