Arbitration Bill [HL]

Lord Bellamy Excerpts

Committee stage
Wednesday 11th September 2024 Lords Chamber

[Lord Bellamy (Con)]

My Lords, in relation to the intervention of the noble and learned Lord, Lord Thomas, your Lordships will recall that on 27 March this year, when I was then the Minister in charge of the Bill, I said that I had written to the Chartered Institute of Arbitrators, the ICC, the LCIA, the London Maritime Arbitrators Association, GAFTA, the Law Society and the Bar Council to ask them

“what measures they have in place to mitigate the risk of corruption in arbitration, whether more should be done in the sector to mitigate corruption in arbitration”,

and any suggestions they had as to

“the best way to proceed and how the Ministry … could support the sector’s efforts”.—[Official Report, 27/3/24; col. 12.]

Before I had a chance to review or indeed see any of those replies, Parliament was dissolved, so I still do not know what the replies were. I understand from the Minister in a call this morning that there is some glitch in relation to the convention about what documents an incoming Government could see if those documents arose under the previous Government. I would have thought that this was an area where continuity between the Governments, transparency and a common approach were essential and necessary. I very much hope that in the meantime, any technical glitch about the change of Government should not interfere with the tackling of this problem.

As has been pointed out, the Minister in his letter of 15 August summarised the responses in some detail, but the question remains, as has been raised by two noble Lords—the noble and learned Lord, Lord Thomas, and the noble Lord, Lord Beith—as to whether those responses should be made public, with the co-operation, of course, of the institutions concerned, from the point of view of establishing and reinforcing the reputation of the City of London and, in particular, reassuring those who wish to arbitrate in this country that the question of corruption is being addressed.

It is true that the ICC is conducting an international review of the approach to arbitration in this sector, but that review is not due to report until the end of 2025. It seems to me that there is an argument for the present Government—the Minister—to go back to the persons to whom I wrote and ask them whether they would be prepared to make public their responses, with a view to reassuring and continuing to protect the reputation of the City of London.

That said, although I think we are all with the noble Lord, Lord Hacking, in spirit, amendment to the Bill is probably not the best way to proceed at this stage. As I indicated when I was myself the Minister, I would not support an amendment to the Bill to deal with this particular matter, but I invite the Minister to give us an assurance that the Government will continue to monitor the issue, to keep in touch with the relevant arbitral institutions in London, and take such steps as the Government think fit to ensure that the arbitration scene in London is as free from corruption as can conceivably be achieved. Nothing less will do. At the same time, I also invite him to perhaps revisit the question of publishing the responses, as the noble Lord, Lord Beith, and the noble and learned Lord, Lord Thomas, have just invited him to do.

[Lord Sentamu (CB)]

My Lords, I associate myself with the wonderful words of the three noble and learned Lords and I share the concern of the noble Lord, Lord Hacking, but when I was reading theology, my then—wonderful—professor of theology said that the only way you know whether you have resolved a theological conundrum is to try to find some practical solution to your particular difficulty.

My greatest concern with the amendment is this. It talks about safeguarding the arbitration proceedings against fraud and corruption. Probably Queen Elizabeth I would have said to such a suggestion what she said to the troops at Tilbury:

“I have no desire to make windows into men’s souls”.


How do you safeguard proceedings against corruption? Corruption is in the hearts and minds of people. How do you do it? I cannot find a real, practical solution. Therefore, on those grounds, although the amendment is well intentioned, I think the burden it would put on the proceedings of arbitration is far too great, so please may we not have a desire to make windows in people’s hearts.