Mesothelioma Bill [Lords]

Jim Sheridan Excerpts

Monday 2nd December 2013 Commons Chamber

[Jim Sheridan (Paisley and Renfrewshire North) (Lab)]

The one constant I find from people who suffer from mesothelioma is that it covers all disciplines. Although my hon. Friend the Member for Jarrow (Mr Hepburn) is right that the disease is mainly concentrated in the industrial towns and cities, we now see incidents of mesothelioma in other disciplines, such as in teaching.

Before we go into the pros and cons of the Mesothelioma Bill, it might be appropriate to look at the effects of mesothelioma on people. The best description of the disease comes from one of my constituents, who said that it was like having a tree growing inside him. He said the branches spread and eventually choke the sufferer to death. There are people out there who, when they cough, are anxious that they could be suffering from mesothelioma. When that person catches a heavy cold, their families are worried that they have mesothelioma or pleural plaques, which is the start of the disease.

When I worked in the shipyards in Glasgow, we used to make fun of the asbestos workers, or pipe coverers as we called them. They then became known as laggers and were then upgraded to insulating engineers. We used to mock them and make fun of them, not knowing that we were swallowing the same particles of asbestos that covered everyone who worked in that industry. I warmly welcome the work of asbestos support groups, and none more so than Clydeside Action on Asbestos, which does a tremendous job in helping people cope with that difficult disease.

There has been much criticism of the insurance companies during this debate, and I am sure that much of it is right, but perhaps I can take colleagues back to some years ago in Scotland. When a person died in Scotland their claim for asbestosis or mesothelioma died with them. The insurance companies used to invite the sufferer to court, because the thought was that if a person was diagnosed with mesothelioma, they did not have long to live. These people decided to cut to the chase and try to get as much money as they could from the insurance companies before they died, so they went to court to get a judgment.

During the court case, the insurance people had doctors sitting beside them, trying to ascertain how long that person had to live. Then they would find some technical reason to postpone the case, hoping that in the intervening period the person would die and they would not have to pay out. I know that the trade unions came in for a lot of criticism, but the Transport and General Workers Union campaigned hard and successfully to get rid of that heinous legislation. It is important that we understand those events. Even today, producers export asbestos to some of the most vulnerable countries in the world. There is no protection whatever on offer. These people are now being subjected to what we were subjected to some 10, 20 or 30 years ago.

As chair of the all-party group on occupational health and safety, I welcome the Bill. As the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning) knows, the process began under the previous Labour Government, with the consultation in February 2010, and I am pleased that the coalition has at least in part kept the sentiment of those original proposals. Sadly, the Bill does not go anywhere near far enough and the Government are well and truly siding with the insurers, who have profited from the collection of premiums over many decades and who will now continue to be subsidised by people suffering from diseases other than mesothelioma.

It would be remiss of us not to recognise the excellent work that was done by Michael Clapham, the former Member for Barnsley West and Penistone, who worked extremely hard not just on mesothelioma cases but on all industrial cases. He fought hard to get the compensation that people deserved. That responsibility has now been taken up by my hon. Friend the Member for Wansbeck (Ian Lavery), who is secretary of the all-party group and who does equally important work on these issues.

In our all-party group, we recognised that there was a real need to address the issue of asbestos-related illnesses as a consequence of working in certain environments. For that reason, we set up the asbestos sub-committee. It is devastating that, even though we have known of the dangers of this chemical, workers have continued to be exposed to it and are only now, decades later, discovering the consequences of their employers’ negligence.

Almost every week, there are plumbers, trade workers, electricians and joiners who die from this hidden killer. Their work has been the bedrock of our society. They have built the infrastructure that we rely on, and so it is only right that they are compensated for the sacrifices that they have made.

The hon. Member for Totnes (Dr Wollaston), who is no longer in her place, talked about teachers suffering from mesothelioma. The all-party group produced an excellent booklet, highlighting both the problems and solutions of the disease. She was right that we should deal with the old schools first and then build up the effort to try to get rid of the diseases. We are talking about not just teachers but administrative staff, janitors and even children. I do not want to frighten people, but this is an issue that must be addressed. Unfortunately, the Education Department has chosen to ignore the information that we have provided.

About one in eight sufferers cannot trace their employer or insurer to lodge a complaint. That is completely unjust, and it is luck of the draw whether a person’s records have been lost due to the widespread misplacement of them by the insurance industry. Indeed, in bringing forward the Bill, the Government have acknowledged that. It seems strange that they accept the unfairness, to an extent, but will not allow these people to claim the same amount as those who can trace their employer or insurer. Those people who are suffering from mesothelioma and other industrial diseases through no fault of their own, and who cannot get access to their records, again through no fault of their own, are being penalised by losing 25% of their damages. Not only that, but through this decision, asbestos victims will absorb 25% of the ongoing cost because insurers lost or destroyed their policy records. That is simply not fair: not only is that money necessary to these people, but it is only right that they should receive it.

Obviously, we would welcome higher compensation and would raise it to 90%. That is not the full 100%, but I am convinced that the Government would be more than happy to accept that rise as it is still affordable according to their own figures. It still falls within the 3% levy on gross written premiums, which not only the Government but the industry are happy with. The figure would also work as there is a precedent for it in the Financial Services Compensation Scheme, which covers the liabilities of insolvent insurers in circumstances where compulsory insurance is involved. That compensation level is legal, established and much fairer than the one proposed by the Government.

Mesothelioma is a dreadful disease, but it is not the only asbestos-related disease and the Government’s choice to focus only on it is another injustice of the Bill. Lord Freud said in the other place that other asbestos-related diseases need to be considered and I, as well as my colleagues, would like to hear the Minister affirm that comment and explain the steps that will be taken to look into those diseases, too. It is frankly offensive that the Bill has neglected all but one group of people who have been exposed to asbestos. That limitation excludes 50% of asbestos victims and adding them would represent just 20% of the cost. I ask the Government what are those suffering from asbestos-related lung cancer, asbestosis and pleural thickening supposed to do?

The Government say that proving causation is simpler for mesothelioma as asbestos is the only known cause, but I would point the Minister towards a successful precedent: the T&N UK asbestos trust and the payment of claims not just for mesothelioma but for other asbestos diseases.

As the Minister will be aware, Opposition Members feel that the cut-off date for the proposed scheme is another unfairness. The consultation was issued in 2010 and its objective was very clear, as it stated:

“The Employers’ Liability Insurance Bureau…would be a compensation fund of last resort and would ensure that some individuals who are unable to trace…insurance records would receive compensation”.

That is clear to me and I have no doubt that the insurance companies panicked at that point and began to prepare immediately. They spent thousands of pounds on public affairs officials, which might explain why the Government seem to be on the side of the insurance industry in this case, and those officials will be calculating and planning how to react to each and every policy proposal. They will not have missed this and the companies are well and truly ready.

The companies argue that if the legislation was based as far back as 2010, that would amount to

“unlawful interference with insurers’ property rights”,

but they are happy to put their rights ahead of the far more important right to life and loss of property rights of the victims we are speaking about today. Surely the Government cannot accept that; surely even they can see the complete injustice. The date of 25 July 2012 is arbitrary and it would make far more sense to choose February 2010 as a start date for the scheme.

In yet another example of the Government favouring the industry over our constituents, it is becoming clear that the scheme will be administered by the insurance industry in one way or another. We have seen time and again that industry regulation does not work and it is important that an independent body is established to take charge. A scheme administered and run by the industry would have a clear conflict of interest between assessing the eligibility of applicants and keeping the levy on insurers low. How could we be sure that a fair number of applicants was being considered if the industry was in charge? Lord Freud commented that the Government would explore the options for an independent oversight committee and I would be keen to hear the same assurances today.

We are concerned that the scheme awards claimants only 75% of civil compensation rates while clawing back 100% of previously awarded benefits and lump-sum payments. It is unclear why the Government will claw back a greater percentage than is being paid, which will mean that the applicant will receive a net sum that is substantially less than 75% of the net sum he would have received in the courts if the insurer could have been traced. It is somewhat immoral that the state is being given a greater right of financial recovery than the victim and it is grossly unjust that victims are being penalised twice. I hope that the Minister will outline exactly how he will think about changing that.

Finally, let me say a word on research. I do not want to spend too much time on that, as the Bill already needs a lot of work to make it a fair and just solution to a disgraceful situation, but until recently very little was spent on research into mesothelioma in the UK. In the other place, we were promised a joint strategy with the Department of Health on how to encourage proposals for high-quality research into mesothelioma and it is clear that more money should be spent on finding a cure for the disease. I hope that the Government have not forgotten those issues.

As I said earlier, I welcome the Bill. We have worked long and hard to secure it, but it has flaws. I hope that the Government will see that it should be fair and just. Insurance companies can afford the risk, but asbestos victims have already paid with their health. Do not make them pay financially as well.