Legal Aid, Sentencing and Punishment of Offenders Bill

Lindsay Hoyle Excerpts

Wednesday 2nd November 2011 Commons Chamber

[The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Government new clause 9—Northern Ireland: information about financial resources.

New clause 17—Extension of scope of legal aid in complex cases—

‘(1) Civil legal services other than services described in Part 1 of Schedule 1 are to be available to an individual under this Part if subsection (2) is satisfied.

(2) This subsection is satisfied where the Director—

(a) has made a complex case determination in relation to the individual and the services, and

(b) has determined that the individual qualifies for the services in accordance with this Part,

(and has not withdrawn either determination).

(3) For the purposes of subsection (2), a complex case determination is a determination—

(a) that the individual has complex, interconnected needs in relation to which the individual requires comprehensive civil legal services, and

(b) not all of those civil legal services would otherwise be available to the individual because they do not all fall within the scope of Schedule 1.’.

New clause 43—Funding for civil legal advice—

‘(1) The Lord Chancellor may make funding available for the promotion of civil legal advice on matters not included in Schedule 1, Part 1 where it appears to the Lord Chancellor that the provision of such services would be consistent with the purpose of the civil legal services provided for under that schedule.

(2) The Lord Chancellor may make arrangements by—

(a) entering into funding arrangements with other Government departments and public bodies to facilitate the provision of services,

(b) making arrangements to support the delivery of civil legal advice through the provision of grant in aid to providers of legal services, including any consortia or partnership arrangements into which providers of legal services may choose to enter, and

(c) any additional arrangements which the Lord Chancellor considers appropriate to ensure the provision of services as set out in subsection (1).

(3) In making any such arrangements the Lord Chancellor shall ensure that value for money is achieved.

(4) Welsh Ministers shall be consulted upon the funding and provision of civil legal advice in Wales.

(5) “Civil legal advice” means the types of services given in section 7(1) and includes advice and assistance which is usually given by any representative in the steps preliminary or incidental to proceedings and as to any appeal, mediation and other forms of dispute resolution, but does not include representation for the purposes of proceedings.’.

Government new schedule 3—‘Northern Ireland: information about financial resources.

Amendment 162, in clause 1, page 2, line 7, at end insert—

‘(c) funding for the promotion of civil legal services, not including representation, on matters not included in Schedule 1, Part 1 where it appears to the Lord Chancellor that the provision of such services would be consistent with the purpose of the civil legal services provided for under that schedule.’.

Amendment 123, in clause 4, page 3, line 25, leave out subsection (4) and insert—

‘(4A) The Director must, except to the extent that section (4B) applies, act under the direction of the Lord Chancellor.

(4B) The Director must act independently when performing any functions or duties under this Part.’.

Amendment 116, page 8, line 29, leave out clause 12.

Amendment 104, in clause 12, page 8, line 31, leave out from ‘station’ to end of line 20 on page 9.

Amendment 125, page 8, line 35, leave out subsections (2) to (7).

Amendment 90, page 9, line 27, leave out subsection (9) and insert—

‘(9) Sections 20 and 26(2) do not apply in relation to this section’.

Amendment 148, page 21, line 7, leave out clause 26.

Government amendments 1, 2 and 25 to 27.

Amendment 69, in schedule 4, page 130, line 36, at end insert—

‘(3A) A transfer scheme shall make pension provision and compensation provision for and in respect of persons who become employed in the civil service of the State under paragraph 1 which is at least as favourable as the pension provision and compensation provision applicable to them immediately before they ceased to be employees of the Legal Services Commission.’.

Government amendment 64.

Amendment 71, page 131, line 9, at end insert—

‘“compensation provision” means the provision of compensation under a compensation scheme;’.

Amendment 70, page 131, line 14, at end insert—

‘“pension provision” means the provision of pension and other benefits under an occupational pension scheme;’.

Government amendments 65, 137, 66 to 68, 138, 19 and 54.

[Mr Djanogly]

We now move on, or perhaps I should say back to, legal aid. When we discussed legal aid on our first day on Report, we had two very constructive, albeit lengthy, debates in which I took more than three dozen interventions. That was partly the reason, along with the many valuable contributions that were made, why we were unable to cover all the groupings—[Interruption.] I know that that disappointed a number of hon. Members in all parts of the House.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Let us not start where we left off the other day. Let us see if we can make progress. We do not want to run out of time, and I am sure that those on both Front Benches want to make good time.

[Mr Djanogly]

I want to try to avoid delay today, so I shall speak to Government amendments now and respond to the points made in debate later, rather than pre-empting in my opening remarks what hon. Members may have to say about their amendments.

Government new clause 4, which is a technical amendment, has two purposes. First, it seeks to provide clarity about the role of the director of legal aid casework, by ensuring that the exercise of the functions of the office is on behalf of the Crown, and that service as the director is service in the civil service of the state. The second purpose of new clause 4 is to ensure that the Lord Chancellor is treated as a corporation sole for the purposes of part 1 of the Bill.

The new clause is necessary in order to clarify the position in relation to the Lord Chancellor’s ability to hold an interest in land for those purposes, and so applies to charges that transfer from the Legal Services Commission to the Lord Chancellor at the point when the LSC is abolished, and for future charges to be taken over property under clause 24. The statutory charge is the charge that arises under clause 24 on any property recovered or preserved, including costs, by a legally aided person in respect of the amounts spent by the Lord Chancellor in securing their legal aid services and any other amounts payable by them under clauses 22 and 23. The amendment is essential, as the current value of charges held by the LSC is £212 million.

Government new clause 9 and new schedule 3 make provision on information sharing in relation to checking a person’s financial eligibility for legal aid in Northern Ireland. They replicate for Northern Ireland the information gateway for England and Wales created by clause 21 and further provided for in clause 32. Government amendments 26 and 27 are technical amendments that make it clear that regulations made under new schedule 3 will be prescribed not by the Lord Chancellor but by the Northern Ireland Assembly. Government amendment 54 is also a technical amendment that makes it clear that the Bill extends to Northern Ireland for the purposes of new clause 9 and new schedule 3, which create the information gateway, and for the purposes of clauses 38 to 40. I should point out that under paragraph 2(4) of new schedule 3, it will be a criminal offence to use or disclose information contrary to the provisions of paragraph 2.

Government amendments 25 and 64 to 68 relate to the transfer of LSC employees to the civil service when the LSC is abolished. The powers currently set out in the Bill include a power, in schedule 4, for the Lord Chancellor to make transfer schemes to transfer to the Lord Chancellor or the Secretary of State the LSC’s rights, powers, duties and liabilities under or in connection with an LSC occupational pension scheme, of which there are currently two, or compensation scheme. The occupational pension and compensation scheme arrangements for LSC employees are different from those for existing civil servants. When the employees transfer to the civil service and become civil servants, they will join the principal civil service pension scheme.

Amendment 64 confers new powers upon the Lord Chancellor that can be exercised as part of any transfer scheme. Proposed new sub-paragraph (6A), set out in amendment 64, allows for the Lord Chancellor to apply legislation with modifications as far as it is necessary to give effect to any transfer scheme. That is appropriate when transfer schemes are of an administrative nature relating to the specific issues in question. For example, it will allow the Lord Chancellor to provide that an aspect of pensions legislation applies in a particular way to that particular scheme. It will assist, as appropriate, in enabling the continuation of the LSC pension scheme or schemes after the abolition of the LSC so that they can continue for the benefit of their pensioner and preserved members. Those are members who have contributed to the schemes before leaving LSC employment and either draw a pension from the scheme or will be entitled to do so in future.

For compensation scheme arrangements, as well as allowing the modification of legislation, proposed new sub-paragraph (6B), set out in amendment 64, provides that the transfer scheme may amend or otherwise modify the existing LSC compensation scheme. That will allow compensation arrangements for LSC employees transferring to the civil service to be brought into line with those of other civil servants over a transitional period.

Amendment 65 reflects the fact that when LSC employees transfer to the civil service there will no longer be any active members of the two current LSC occupational pension schemes, known as the No. 3 and No. 4 pension schemes. The amendment provides the Lord Chancellor with the power to make a scheme to merge the two residual pension schemes. It is explicit that a scheme exercising this power must not result in members of the pension schemes, or other beneficiaries under the schemes, being deprived of any rights accrued prior to the merger.

The LSC’s No. 3 pension scheme has fewer than 100 pensioner and preserved members, and no current LSC staff members. The No. 4 scheme is for current staff and also has a number of pensioner and preserved members. At present there is much duplication in the administration of the No. 3 and No. 4 schemes, such as producing two sets of accounts and actuarial valuations. Merging the schemes would allow us to cut significantly the administration costs of running two trust-based schemes. The amendment will also give the power to wind up an LSC occupational pension scheme.

Amendment 25 corrects a slip in clause 38(7)(j). The intention was not to make regulations that contain free-standing provision that modifies an Act either directly or indirectly, subject to the affirmative procedure. Amendments 66 to 68 clarify the fact that the regulation-making power provided to the Lord Chancellor under paragraph 10 of schedule 4 can be used in connection not only with transfers affected by schedule 4, but with schemes under schedule 4, meaning schemes dealing with something other than a transfer.

Government amendments 137 and 138 concern schedule 4 to the Bill, which governs transfers of employees and assets following the abolition of the LSC. They are purely technical amendments that simplify existing provisions. Paragraph 10(1) of schedule 4 currently allows the Lord Chancellor to make consequential supplementary, incidental or transitional provision by regulation, and paragraph 10(2)(b) specifies separately that such regulations may include transitory or savings provision. Rather than continue to separate these related provisions, for the purposes of simplification amendment 137 brings them together in a revised paragraph 10(1) and amendment 138 amends paragraph 10(2) to reflect that simplification. That mirrors an identical amendment to clause 115.

Finally, Government amendments 1, 2 and 19 are minor and technical amendments to clause 32 and schedule 5, consequential on the removal in Committee of what was then clause 71.

--- Later in debate ---

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

That is not a point of order, but the hon. Gentleman has certainly got it on the record.

Question put and agreed to.

New clause 4 accordingly read a Second time, and added to the Bill.

New Clause 9

Northern Ireland: information about financial resources

‘Schedule [Northern Ireland: information about financial resources] (Northern Ireland: information about financial resources) has effect.’.—(Mr Djanogly.)

Brought up, read the First and Second time, and added to the Bill.

New Clause 17

Extension of scope of legal aid in complex cases

‘(1) Civil legal services other than services described in Part 1 of Schedule 1 are to be available to an individual under this Part if subsection (2) is satisfied.

(2) This subsection is satisfied where the Director—

(a) has made a complex case determination in relation to the individual and the services, and

(b) has determined that the individual qualifies for the services in accordance with this Part,

(and has not withdrawn either determination).

(3) For the purposes of subsection (2), a complex case determination is a determination—

(a) that the individual has complex, interconnected needs in relation to which the individual requires comprehensive civil legal services, and

(b) not all of those civil legal services would otherwise be available to the individual because they do not all fall within the scope of Schedule 1.’.—(Yvonne Fovargue.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Mr Slaughter]

I beg to move amendment 21, page 29, line 6, leave out Clause 41.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Amendment 150, page 29, line 36, at end insert—

‘(4A) The amendments made by subsections (2) and (4) do not apply in relation to proceedings which include a claim for damages for loss or bodily injury resulting from exposure to a harmful substance or process where the claim is made against a person who—

(a) carries on business in more than one country, or

(b) owns (wholly or partly) one or more businesses carried on in more than one country or in different countries.’.

Amendment 164, page 29, line 36, at end insert—

‘(4A) The amendments made by subsections (2) and (4) do not apply in relation to a success fee payable under a conditional fee agreement made in relation to—

(a) any proceedings in relation to a claim for—

(i) libel,

(ii) slander,

(iii) misuse of private information;

(b) any proceedings arising out of the same cause of action as any proceedings to which sub-paragraph (a) refers.’.

Amendment 163, page 29, line 41, at end insert—

‘(7) The amendments made by subsections (2) and (4) do not apply in relation to a success fee payable under a conditional fee agreement made in relation to—

(a) any proceedings based on a claim of defamation; or

(b) any proceedings based on a claim of privacy under Article 8 of the European Convention on Human Rights; or

(c) any proceedings arising out of the same cause of action as any proceedings to which paragraphs (a) or (b) refer.’.

Amendment 22, page 31, line 1, leave out clause 43.

Amendment 151, in clause 43, page 31, line 45, at end insert—

‘(6) This section does not apply in relation to a costs order made in favour of a party to proceedings which include a claim for damages for loss or bodily injury resulting from exposure to a harmful substance or process where the claim is made against a person who—

(a) carries on business in more than one country, or

(b) owns (wholly or partly) one or more businesses carried on in more than one country or in different countries.’.

Amendment 165, in clause 43, page 32, line 4, at end insert—

‘(4) The amendments made by this section do not apply in relation to a costs order made in favour of a party to proceedings in a cause of action in relation to a claim for—

(a) libel,

(b) slander,

(c) misuse of private information.’.

Amendment 72, page 32, line 5, leave out clause 44.

New clause 39—Road traffic accident pre-action protocol—

‘(1) The Table in Rule 45.29 of the Civil Procedure Rules 1998 (SI 1998/3132) (Amount of fixed costs under the Pre-Action Protocol for Low Value Personal Injury Claims in Road Traffic Accidents) is amended as follows.

(2) The figure for Stage 1 shall be £200.

(3) The figure for Stage 2 shall be £400.

(4) The figure for Stage 3 for Type A fixed costs shall be £125.

(5) The figure for Stage 3 for Type B fixed costs shall be £125.

(6) Any further amendment to the Table shall not be made by the Civil Procedure Rule Committee but may be made by the Lord Chancellor by rules made by statutory instrument and may not be made until a draft of the rules has been laid before and approved by resolution of both Houses of Parliament.’.

[Mr Slaughter]

This is an important group of amendments to part 2 of the Bill, which deals with a complex and vital area of access to justice. Because there are only 20 minutes left to debate this group, and I want to be fair to the Minister and give him 10 minutes to reply, I shall speak quickly in the hope of getting through the main part of my argument. I should make it clear at the outset that I wish to press to a vote amendment 21, which would undo the destruction of conditional fee agreements that the Government are pushing through in the Bill. I also ask, with the leave of my hon. Friend the Member for Rhondda (Chris Bryant), the lead signatory to amendment 163, that we press that amendment to a vote.

Conditional fee agreements, also known as no win, no fee agreements, were brought in by a Conservative Government to preserve access to justice for those on moderate means at a time when vast areas were being removed from the scope of legal aid and eligibility criteria were being removed. The provisions were amended, with a remarkable lack of contention from the Conservative Opposition, in the Access to Justice Act 1999, to create their modern form.

The idea of contingency fee agreements was to create a viable market in legal services by introducing success fees paid by losing defendants—wrongdoers, in other words—to compensate lawyers for the cases that they lost, for which, of course, they received no fees. For lawyers, that form of payment by results meant not that they would take on spurious cases, but that they were allowed to take on cases that might be 75:25 or 50:50. That has created a system that works, for the main part, very well. It has created a viable market in legal services and permitted access to justice for millions since it was introduced.

What sort of people have availed themselves of contingency fee agreements? More than half of those who have used them have had an income below £25,000 a year and only 18% have had an income of more than £40,000 a year. Government Members carp on about footballers and models using them, but the average claimant is the average constituent.

How do the Government’s proposals work? First, winning claimants will lose. Victims will have to pay the costs of their insurance and their lawyer’s success fees from their damages—up to 25% of damages, aside from damages for future care, can be taken by the lawyer, and the insurance premium will take up even more of those damages, perhaps wiping them out altogether. To make up for part of those losses, the Government plan a 10% increase in damages for pain, suffering and loss of amenity. Simple maths should be sufficient to show that that will not make up for all losses.

Losing claimants, including those bringing speculative and nuisance claims, will gain. They will benefit because it is unlikely that they will have to pay the costs of the winning defendant—that is part of the perverse, qualified one-way cost-shifting scheme that the Government intend to introduce when the Bill passes.

Losing defendants—wrongdoers, in other words—and their insurers will gain. Wrongdoers will benefit, because they do not have to pay the cost of after-the-event insurance or the victim’s lawyer’s success fees, thus limiting their liabilities and those of their insurers. Winning defendants will lose out. A winning defendant will no longer be able to reclaim the cost of their defence, thanks to qualified one-way cost shifting. To summarise, winners lose and losers win. That is simply wrong.

There was a time when the Conservative party worried about access to justice, but now it appears to be nothing more than the parliamentary wing of the insurance lobby, which according to an investigation by The Guardian has donated £4.9 million to the Tories since the Prime Minister became leader.

I have spent the past few months speaking to victims who have used contingency fee agreements to get justice. I have heard them tell me how our justice system helped them, and their fears that others who suffer in future will not get the help they need. A number of areas of law will be badly—

--- Later in debate ---

[Mr Wallace]

PPSs are allowed to make points of order. Throughout the proceedings on the Bill Opposition Front Benchers, particularly the hon. Member for Hammersmith (Mr Slaughter), have made points about the perceived failure of Government Front Benchers to declare their interests. However, the hon. Gentleman has failed to point out that on 119 separate occasions the Labour party has received donations from lawyers who make their money from success fees.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. That is not a point of order and the matter was dealt with earlier in the week. Let us have no more of that.

[Mr Slaughter]

Let me just say that if the Government start talking about conflicts of interest on this Bill, they will open a Pandora’s box.

[Mr Deputy Speaker]

Order. We are not going to open Pandora’s box. We are going to deal with the amendments before us.

[Mr Slaughter]

I was not talking about the Minister; I was talking about the Bill. I am not surprised that the Minister’s PPS is embarrassed by the Bill, after sitting through our proceedings in Committee.

The common link between parts 1 and 2 of the Bill is the destruction of access to justice in a way that we have not seen since the introduction of legal aid by a Labour Government after the second world war. The insurance industry is being given one of the biggest pay-offs in history which, as we know from experience, will go into the pockets of their directors and shareholders. While other aspects of this Bill display the startling incompetence of this Government, none shows their intent more truly than the provisions in part 2, which would give the whip hand to large public and private corporations, while taking rights away from ordinary people. What is the point in having rights if they cannot be enforced?

I ask the Liberal Democrats to look at amendment 21, which would deal with cases such as Trafigura and pleural plaques, and amendment 163, which would deal with cases such as that of Milly Dowler, and join us in the Lobby tonight.