Legal Aid Reform Debate

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Department: Ministry of Justice
Thursday 27th June 2013

(11 years, 5 months ago)

Commons Chamber
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Sarah Teather Portrait Sarah Teather (Brent Central) (LD)
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I beg to move,

That this House has considered legal aid reform.

I thank the Backbench Business Committee for allowing the House to debate this very important issue. I am hugely grateful to the many Members who have remained in the Chamber on a Thursday afternoon even though the debate is not on a dividable motion. I offer my apology for the fact that I did not ask for a full day’s debate—clearly, there is much more desire to debate this matter than I expected when I went before the Committee.

As many in the House will know, the background to the debate is that just after the Legal Aid, Sentencing and Punishment of Offenders Act 2012 came into force, the Government began a new consultation, “Transforming Legal Aid.” That consultation closed on 4 June, and the Government are due to respond after the summer recess. The proposals were incredibly wide ranging and arguably more significant in some ways than those in the LASPO Act, but it looked as if the House would not get an opportunity to debate that consultation document before the Government responded. As the Government are currently proposing secondary legislation for the matter, my concern is that we may not get an opportunity to have a debate before the legislation is introduced.

Because the proposals are so complex and wide-ranging, I think it important for us to get the details right, and I therefore hope that the Minister will view the contributions of Members in all parts of the House as part of the consultation process.

I am grateful to the 31 members of all parties who supported my application to the Backbench Business Committee. I particularly thank the right hon. Member for Tottenham (Mr Lammy), who is a former legal aid Minister, and the right hon. Member for Haltemprice and Howden (Mr Davis), who I know wants to speak later about some of the constitutional implications of the proposed changes.

The fact that so many organisations, including Mind and Shelter, have contacted Members of Parliament with briefings and queries demonstrates that it is not just lawyers who are worried about these proposals.

Karl Turner Portrait Karl Turner (Kingston upon Hull East) (Lab)
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Is it not very disappointing that that the Justice Secretary has not bothered to come to the House today? As the hon. Lady has pointed out, the debate is very oversubscribed. More than 96,000 people signed the e-petition, and I believe that 96 Members of Parliament signed early-day motion 36. The Justice Secretary should be here.

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Jonathan Djanogly Portrait Mr Djanogly
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Further cuts in the rate are the easy option. The market is out of sync with the legal profession and it needs reform.

My theory is that Labour’s contracting proposals failed because they not only succumbed to the reactionary wing of the legal profession but shied from the bottom line facts of criminal legal aid contracting, which are that in order to get efficiencies and savings, contracting will always involve fewer but larger practices operating over a larger area. If the market is to be sustainable, there must be fewer firms each receiving a larger slice of the remaining pie.

Although I support the Government’s consultation and the contracting proposals in general, my personal view is that we are missing an opportunity radically to restructure the market and bring it into line with modern practice norms. At the core of that lies the need to consider the type of organisation that can bid and how they are paid. The historic position in England and Wales is that the client instructs a solicitor and then, particularly for more complicated advocacy, the solicitor employs a barrister. That involves two fees and I would strongly advocate moving to a single fee.

Karl Turner Portrait Karl Turner
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I wonder whether the hon. Gentleman has read the consultation document. The proposals are very different from what the previous Government proposed under best value tender. There are major constitutional differences in these proposals that will ruin the entire criminal justice system.

Jonathan Djanogly Portrait Mr Djanogly
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The previous Government were considering contracting, as were Labour Front Benchers during this Parliament. We need to appreciate that the Legal Services Act 2007, brought in by the previous Government with Conservative support, has transformed the potential for legal service provision. To cut a long story short, there is now no reason why solicitors and barristers should not go into partnership together, or indeed, with non-legal organisations, via alternative business structures. There is no reason why barristers should not take instructions direct from the client nor any reason why barristers should not themselves bid for contracts and employ solicitors. In practice, there have been blockers to this kind of progress, not least a barrister regulator that seems unable to see the writing on the wall for its own profession.

If I seem radical, I am explaining a scenario that would seem more or less natural to most Commonwealth common law countries.

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Karl Turner Portrait Karl Turner (Kingston upon Hull East) (Lab)
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Prior to my election to this House, I worked as a criminal barrister from my local chambers in Hull, and before that, I was a criminal solicitor. I was never a fat-cat lawyer—in fact, my waistline has increased only since coming to this place.

Valerie Vaz Portrait Valerie Vaz (Walsall South) (Lab)
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I am pleased that my hon. Friend is not a fat cat, but could he say whether fat-cat lawyers actually attend police stations at 2 o’clock in the morning?

Karl Turner Portrait Karl Turner
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My hon. Friend makes a good point. As far as I know, it is very unusual for a partner in the firm to come out in the early hours of the morning. The important point is this: a solicitor who attends at a police station in the middle of the night is often dealing with extremely serious allegations—sometimes allegations of murder. I have been in that position on a number of occasions, representing clients who are alleged to have committed murder. The solicitor is there on his or her own, whereas the police have advice from the CPS and many officers to assist them. The solicitor is facing all that pressure and is not being paid properly, even under the current arrangements, for his or her expertise.

Of course we accept that in these straitened economic times, cuts have to be made to Departments across the board, but these plans are massively ill conceived. They will, in my respectful submission, irretrievably damage the criminal justice system. I will focus my remarks on price competitive tendering.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
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Can the hon. Gentleman help with this point, then? If irretrievable damage is done to the criminal justice system by any change to legal aid, why was it that the right hon. Member for Blackburn (Mr Straw), when Lord Chancellor, said:

“I hope that everyone…will accept that the growth of spending on legal aid seen in the early part of the decade and before is no longer sustainable”?

Karl Turner Portrait Karl Turner
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It is very disappointing, but I suspect the hon. Gentleman has not read the consultation document.

I shall go on to deal with price competitive tendering, but first let me try to bust a myth. There seems to be a suggestion that the Labour Government were particularly generous to criminal lawyers. We were not. Criminal lawyers have sustained cuts to fees from successive Governments. The current proposals are far reaching and, if they go through, they will be horrifically damaging to the criminal justice system. PCT will inevitably lead to the market being dominated by the big multinationals—the usual suspects—G4S, Serco, Capita, and probably the new entrants to the market who have absolutely no experience, Stobart.

The plans are also unconstitutional. They dismiss the notion that an accused might have the right to choose a solicitor. The cavalier ignorance of the Lord Chancellor was exposed when he remarked:

“I don’t believe that most people who find themselves in our criminal justice system are great connoisseurs of legal skills.”

Not only does he dismiss everyone requiring legal advice as a criminal before they have even been charged or had a trial, but he apparently has the naiveté to think that those who come face to face with the criminal justice system are not capable of judging the competence of their own lawyers. This is the “too thick to pick” point. The notion is completely contrary to attitudes applied to, say, health services in this country or education, where choice is deemed essential.

The proposals look to implement yet another changing fee structure. Fees would be cut by 17.5%, on top of the 2011 reduction of 10%. Firms that successfully bid for PCT will have demonstrated that they can provide the services at the cheapest possible rate. This means that advice will probably be provided by less qualified people supervised, perhaps, by a single lawyer. The “stack it high, sell it cheap” mentality will reduce the criminal justice system to a sausage factory where the quantity of cases trumps the quality of the service provided every time.

The proposals specify this in paragraph 23, suggesting that there is no need to be concerned about the quality of provision because work shall not be

“above the acceptable level specified by the LAA”—

the Legal Aid Agency. The plans also perversely propose the same fee to be paid, whether the case is resolved by way of a guilty plea or contested at trial. There is strong concern that this will inevitably lead to undue pressure being put on a defendant to plead guilty when in fact they have a defence.

The proposals will change the sort of people coming into the profession. This is not a plea for so-called fat-cat lawyers, but as the eminent barrister John Cooper QC put it to me yesterday,

“This is recognition, before it’s too late, that if the proposals go through we will be complicit in excluding many young people from less advantaged backgrounds from becoming part of what can only be described as the National Health Service of the Law”.

I have only one minute left. The Lord Chancellor showed his ignorance and lack of understanding of the profession. He showed ignorance today by not attending this important debate, yet the civil servants Box is full to the gunwales. The Lord Chancellor should sit down and meet for the first time the chairman of the Criminal Bar Association, Michael Turner QC, and Bill Waddington, the chairman of the Criminal Law Solicitors Association, and discuss alternatives to these undemocratic, unconstitutional and worrying plans.

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Simon Reevell Portrait Simon Reevell
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My hon. Friend makes the same point very well.

Secondly, as a Conservative, I do not like the removal of choice from the market. It does not really matter that the individual concerned happens to be a defendant in criminal proceedings; after all, at that stage he or she is presumed innocent until proven guilty—we do still have that. The removal of choice in the selection of representation concerns me. The idea that the state will prosecute, that it will contract those who defend, and that those contractors are likely, under these proposals, to employ the defence advocate, is worrying. I have dealt with cases that have involved issues of security and of taking on the Government, for example in relation to what the previous Government did in Iraq. I wonder whether someone working for an organisation that had a contract with the Government would feel as able as I did to take on those issues and seek to expose them in the course of a trial, regardless of consequences, as a member of the independent Bar.

There are smaller difficulties. The hon. Member for Redcar (Ian Swales) referred to the proposed fee structure. In fact, that already exists elsewhere. Some military cases in Germany are paid for on that principle, but with an escape clause, as it were, that recognises that it is not suitable for the more serious cases. That suggests that it is therefore not suitable to be rolled out across the Crown court system for the vast majority of criminal cases.

The expression of support for an independent Bar in the consultation document is inconsistent with the model that is proposed, under which advocacy would be kept in-house to offset the reductions necessary to take part in the tendering process. That has implications not only for members of the independent Bar but for judicial recruitment and for the availability of experienced prosecutors. The Ministry of Justice might want to think about what it is doing not only in relation to those who defend in the Crown court but to where it will get those to whom it looks to prosecute serious cases—the murders, the rapes, the woundings, and matters of that sort.

Having criticised the consultation document, it does contain something that has not been offered to any other group of people. I used to be a soldier. Soldiers were not told, “These are the proposals—if you’ve got some of your own we’ll look at them”; they were simply told, “These are the proposals.” It is the same for teachers, firemen and everybody else. Lawyers are being told, “These are the proposals—if you’ve got alternatives and they achieve the same result, then the Department will go with them.” Anybody who works in the criminal justice system knows that savings can be made.

Karl Turner Portrait Karl Turner
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Does the hon. Gentleman agree that if the consultation document is really about considering alternatives, the Justice Secretary should meet the chairman of the Criminal Bar Association? He has made himself available on numerous occasions, and the Justice Secretary has refused to see him. Would it not be sensible for the Justice Secretary to agree immediately to that meeting?

Simon Reevell Portrait Simon Reevell
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The hon. Gentleman knows full well why that discussion has not taken place and that the prelude to it did not involve a method that was taught at the Bar school course that he did. I hope that those difficulties can be resolved.

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Karl Turner Portrait Karl Turner
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rose

Simon Reevell Portrait Simon Reevell
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No, the hon. Gentleman has had one go and that is quite enough.

The consultation has a blunt instrument to deal with the expense of long trials which impacts on the majority of Crown court work, but there is a simpler solution—the abolition of very high-cost cases. Nobody needs them, nobody wants them, and they can be got rid of. That would save money at a stroke.

Allowing choice but banning the practice of client poaching is another effective way of saving money. There are simple measures such as making prisons provide video links so that solicitors can have video conferences and therefore not have to be paid to travel to prisons. The majority of prisons will not allow solicitors to have such facilities. Other options would be controlling who within defence teams is paid to read and use material, thinking about whether those with frozen assets can be asked to pay for their own defence, and looking at how those who are convicted can be asked to contribute towards the cost of their representation. There are all sorts of ways of doing this.

If those making these proposals and those opposing them on the grounds of the consultation document, while recognising in principle that savings have to be made, were opposing litigants, a sensible judge would tell them to go outside and settle the case. The flaws in the consultation document are apparent, and the alternatives are there for consideration. I agree with the hon. Member for Kingston upon Hull East (Karl Turner) that we are getting to the time when this needs to be sorted out and resolved, because that can obviously be done with the acceptance of all.

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Robert Neill Portrait Robert Neill
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I have given way twice, so my time is running out. I am sure that my hon. Friend will forgive me.

There might be different means by which the same objective can be achieved. It might be possible to have some form of panel system. It might be possible to have a different approach to police station work, where there is a strong argument for saying that firms need a guaranteed volume of work to make the business case sustainable, as opposed to the preparation of litigation and the ongoing court work in both the magistrates court and the Crown court. It is not unreasonable to say that choice has to be provided in the context of affordability. We must not be afraid to say that.

We must recognise that the number of people seeking work at the Bar and in the solicitors’ profession has grown greatly, frankly to an unsustainable level. The profession has to recognise that too many people are chasing a diminishing work load. The number of cases that go to court has reduced by broadly a third since I came to the Bar, whereas the independent Bar and the solicitors’ profession have become about three times as large. Something has to give. Let us sit down sensibly and find ways in which that can be achieved.

Karl Turner Portrait Karl Turner
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rose

Robert Neill Portrait Robert Neill
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I have given way twice and am afraid that I cannot give way any more. I am sure that the hon. Gentleman will find another opportunity to make his point.

We should not be sniffy about the development of alternative business models that might deliver the service properly. I recognise the points that have been made about accessibility in rural areas and about the particular types of expertise that may be needed. We could do more within the existing mechanisms to assist people with such issues.

I have come across such a situation in my constituency. Bromley council has set up an online platform in negotiation with reputable and well-established solicitors firms in the area that puts potential clients in contact with a solicitor, who provides the initial advice without any charge. There was difficulty in setting that up because, despite the willingness of the established solicitors firms to take part, the Solicitors Regulation Authority would not provide the necessary regulatory clearance. That is a needless bureaucratic obstacle to a practical solution to a genuine problem. That could sensibly be looked at and I hope the Minister will consider what might be done.

There are other ways in which we can make savings in criminal matters. My hon. Friend the Member for North West Norfolk (Mr Bellingham) has suggested using the independent Bar more within the Crown Prosecution Service. We should look at whether more efficiencies can be made in that body more generally. Perhaps we should look at the operation of the new centralised magistrates courts service. Again, there might be scope for savings.

We spend markedly more on legal aid than any comparable common law jurisdiction. We spend about £39 per head in the UK, compared with about £20 per head in the Republic of Ireland, about £10 per head in Canada and about £13 per head in New Zealand. Those are jurisdictions with the same system and trial processes as we have, but they do it markedly cheaper. I do not believe that a reduction of 10%, which is not out of line with other reductions, is unacceptable.

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Karl Turner Portrait Karl Turner
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It ought to be on the record that it is the chairman of the Criminal Bar Association, Michael Turner QC, whom the Lord Chancellor is refusing to meet, not the chairman of the Bar Council.

Valerie Vaz Portrait Valerie Vaz
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Absolutely. I am sure hon. Members received the e-mail from Michael Turner QC stating that the Lord Chancellor refused to meet him.

It is not clear what the Lord Chancellor is trying to achieve, other than to undermine the legal system. The Lord Chancellor does not appear to understand that if people are given access to legal services, they do not need to go to court—if that is where he wants to make the savings. Perhaps he wants to make the savings in court time. However, as a result of these proposals, court time will be filled by people who can afford going to court. In certain circumstances, companies can offset their legal costs against tax and even get the VAT back. An ordinary citizen cannot do that.

Judicial review is an important branch of law. Of course, the Executive do not like it because it holds the Executive to account—it looks at how public bodies come to a decision. Given the legislation enacted since 2010, it is no wonder that the Government want a neutered judicial review. No one can predict the outcome of a case, so having to make a judgment that there is a 50% chance of winning to receive legal aid, is absurd. Evidence has to be heard from both sides and a decision is made based on arguments that are made before an impartial judiciary. Lawyers are obliged to advise a client whether a case has merits before they proceed. What about the figures for judicial review? They are not increasing exponentially. A written answer to me revealed that in 2009 there were 2,145 cases in judicial review, with that figure going up to only 2,304 in 2011. In criminal judicial review, it was 316 for 2011. Those are just the figures for cases lodged; they are not even the figures for cases that have gone to completion.