Legal Aid, Sentencing and Punishment of Offenders Bill

Lord Clarke of Nottingham Excerpts

Wednesday 2nd November 2011 Commons Chamber

[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—

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

Will the hon. Gentleman give way?

[Mr Slaughter]

I would love to give way to the Secretary of State, but I have very little time—[Interruption.] If I have time at the end I will do so.

A number of areas of law will be badly affected by this legislation, and I should like briefly to touch on a few of them—[Hon. Members: Give way!]

[Mr Clarke]

I am sorry that the hon. Gentleman had to be bullied to give way to me, but there we are. I do not want him to exaggerate his case. No win, no fee was introduced by the Major Government and worked perfectly satisfactorily until the previous Government amended it. We are talking about how much winning lawyers are paid. The principles of access to justice and of no win, no fee are agreed on a bipartisan basis. They are not threatened at all by the Bill.

[Mr Slaughter]

I began my speech by informing the house how contingency fee agreements came about. Because the Secretary of State has merely repeated that, I will penalise the Minister by taking a minute off his time.

The Secretary of State believes that there are faults in the current system whereby lawyers are unjustly enriched—he may be right, and my right hon. Friend the Member for Blackburn (Mr Straw) and I, and many other hon. Members, would probably agree with him—but let us cure those faults. Let us not throw the baby out with the bathwater.

--- Later in debate ---

[Mr Kenneth Clarke]

I beg to move, That the Bill be now read the Third time.

At the conclusion of many hours of copious debate on the Floor of the House and in Committee, I pay tribute to members of the Bill team from my Department, who have been working throughout on this marathon Bill, and to my two colleagues, the Under-Secretary of State for Justice, my hon. Friend the Member for Huntingdon (Mr Djanogly) and the Under-Secretary of State for Justice, my hon. Friend the Member for Reigate (Mr Blunt) who, I am glad to say, carried the burden of the day in Committee and most of it on Report as well. I am grateful to them all.

It is an enormous Bill representing a major reform of the criminal justice system and the justice system generally. It is overdue and the Government have made a good start on sorting out some of the problems facing the justice system. I shall mention briefly the legal aid reforms, which have been debated again today. They are extremely important. They make substantial savings and I acknowledge that we have had to make some difficult choices.

I am a lawyer and I have many friends who are practising lawyers. When I was given this post, I wondered whether I would retain any friends in the legal profession by the time we got to Christmas. I am glad to say that I have, but some difficult decisions have been taken at the expense of some members of the profession, who have already suffered reductions in their fees as a result of the previous Government’s changes, and have probably had a bigger reduction in their fee income, I concede, than almost any other group in the country. So let us acknowledge that there are people facing consequences as a result of what we have done, but it was much overdue.

We have, as we keep saying, the most expensive legal aid system in the world. It has gone far beyond what could be afforded. The previous Government made repeated attempts to reform it and kept consulting on reforms and making changes. Even then they found, by the end of their period of office, that real-terms spending on legal aid had gone up quite substantially, compared with when they took office.

What we have done is not just a cheese-paring exercise across the whole field of legal aid. We have gone back to first principles and asked what it is essential that the taxpayer pays for to assure access to justice on truly important matters for that section of society that must have access to justice in the public interest, so that we can all be assured that people get the protections that they are entitled to under our constitution. That is what we have debated, one by one.

I believe that the package that we have come up with will make substantial savings. As I was saying to the hon. Member for Hammersmith (Mr Slaughter) a few moments ago, the idea that we are launching some assault on access to justice and depriving people of access to justice is nonsense. We are not affecting the right. There is no change in the Bill to any particular course of action. Legal aid is available, but it is available to the poorest people for those really essential matters that affect their life, liberty, home and so on, and we have got it back under control.

[Amber Rudd (Hastings and Rye) (Con)]

I know that the Secretary of State is aware of my concerns regarding the advice agencies that provide such vital support to the vulnerable, and I know that additional money has been provided for those agencies. May I press him to give us more detail about this so that we can be reassured that those advice agencies, such as my own in Hastings, will be able to continue their good work?

[Mr Clarke]

Those who can remember Second Reading will know that the Under-Secretary of State for Justice, my hon. Friend the Member for Huntingdon and I kept stressing that we accept the need to maintain the funding for many voluntary agencies, particularly citizens advice bureaux, which give not only legal advice, but general advice to people suffering from problems of debt, housing and so on, which we all know are bound to get worse in these rather difficult times. A total of £20 million has been allocated to these bodies this year and we are looking ahead at how to continue that support.

I should point out that our legal aid changes will not take effect for a couple of years, so none of those bodies has lost any legal aid funding at the moment. What we are doing is finding money to make up for reductions in grant to those bodies that are largely from local authorities. The Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) is about to announce how we will distribute the £20 million. I know that he is in touch with my hon. Friend the Member for Hastings and Rye (Amber Rudd) and expects to be able to make the announcement imminently so that we can get on with that.

I have left the debates on legal aid to the Under-Secretary of State for Justice, my hon. Friend the Member for Huntingdon because, as everyone has seen, he is a walking expert on the subject. There seemed to be no point in my taking part in debates on amendments and having to turn to him if a particularly difficult question was asked. However, I have been present throughout the debates and listening to how Labour Members have tackled the matter. They seem to have lost all touch with common sense. When in government they were reducing expenditure on legal aid, or trying to and failing. In their manifesto they committed to reducing spending on legal aid, stating:

“we will find greater savings in legal aid.”

As recently as January this year the leader of the Labour party said, in relation to reductions in legal aid:

“Labour has shown it is ready to make difficult cuts that we believe are necessary for the long term health of our economy.”

As far as we can work out, the various amendments tabled by the Labour party in the course of our debates on the Bill would add £245 million to the legal aid bill, compared with the Government’s proposals.

[Helen Goodman (Bishop Auckland) (Lab)]

Evidently, some of the amendments we tabled were not reported to the Secretary of State, because we also tabled amendments intended to speed up the collection of fines, on which the Ministry does not have a good record.

[Mr Clarke]

We are tackling the collection of fines vigorously, but I am afraid that the idea that the Labour party’s amendments on the collection of fines would make any significant contribution to the monstrous hypothetical bill it was running up is ludicrous.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

Will the Secretary of State give way?

[Mr Clarke]

I apologise to the right hon. Gentleman, but I must press on. Other Members wish to speak and I do not want to take up all the time.

I will turn to the sentencing provisions. We have gone through major reforms in sentencing that contain many common-sense measures, which have not been debated much but which are intended to simplify the system and give greater professional discretion in many cases. The biggest controversy has concerned the repeal of indeterminate sentences, which was accepted very readily by most Members yesterday. That is a much overdue reform. The introduction of indeterminate sentences never worked as people intended. It was a major mistake and a major blot on our justice system that would not have survived challenge in either the British courts or in Strasbourg if it had carried on much longer. We have put in place a system of long determinate sentences for the most serious criminals, which I think gives protection.

We have not debated the other difficult area, knife crime, over which there was some controversy. The Government are determined to get the message clearly across to the public that knife crime will not be tolerated. We wish to stop people believing that knife crime will not be punished properly in the criminal justice system. For that reason, we tabled proposals introducing a mandatory sentence of six months for adults who are guilty of threatening with a knife in circumstances where it might cause physical injury, which is a new offence we have created. That is in line with the six months already specified in the sentencing guidelines for that kind of offence, but it makes it clear that that sentence should normally be expected automatically for that offence, unless it would otherwise be unjust to do so.

Amendments were tabled by my hon. Friend the Member for Enfield North (Nick de Bois) and by the Opposition seeking to extend that proposal to juveniles. I am glad to say that, following discussions with my hon. Friends the Members for Enfield North and for Enfield, Southgate (Mr Burrowes)—the latter is a Parliamentary Private Secretary and so cannot table amendments—we finally agreed, that as 30-odd Back Benchers supported the amendments, to introduce a mandatory offence for 16 and 17-year-olds. Again, that sounds rather formidable, because I am not very keen on mandatory sentences for juveniles, but the offence is very serious, and it is only for 16 and 17-year-olds and—

[Mr Geoffrey Cox (Torridge and West Devon) (Con)]

Will my right hon. and learned Friend give way?

[Mr Clarke]

I will in just a second.

The offence also confirms that the court, at the same time, will have to have regard to the duties under the Children Acts, which mean—

[Mr Tom Clarke]

On a point of order, Mr Speaker.

--- Later in debate ---

[Mr Speaker]

No. It is uncharacteristic of the right hon. Gentleman to be suffering from a persecution complex, and I hope that it will not be repeated. He is just unlucky today.

[Mr Kenneth Clarke]

I was about to give way to my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox), but I have the highest regard for the right hon. Member for Coatbridge, Chryston and Bellshill (Mr Clarke), whom I have known for years, and this is the first time that I have rebuffed him, so I will give way, as he insists. He is obviously getting worried about this.

[Mr Tom Clarke]

rose—

[Mr Clarke]

Does the right hon. Gentleman remember what he wished to intervene on?

[Mr Tom Clarke]

I recall the right hon. and learned Gentleman’s reference to the junior Minister, the Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly), and his walking intelligence and so on. All I have tried to do through my interventions is to secure what non-governmental organisations and aid agencies want to hear regarding amendments 150 and 151, and to find out the Government’s attitude to British and international firms that are involved in abuses overseas.

[Mr Clarke]

My hon. Friend the Minister referred to the Trafigura case a moment ago, but we do not believe that our changes to the no win, no fee system will prevent access to justice. Only a few moments ago we heard my hon. Friend point out that, even in the Trafigura case, the millions of pounds paid to the lawyers far exceeded the millions of pounds paid to the claimants. The average citizen of the Ivory Coast got £1,000 out of the action that was brought. We are not stopping the actions; we are getting the costs in proportion to the claim. All those disputes about legal aid and no win, no fee are not about access to justice; they are about the profitability of the actions for lawyers.

I am a lawyer, and I have the highest respect for lawyers and no intention of offending the legal profession, but in the lobbying of this House and the upper House we have had an army of lawyers advancing behind a front of women and children—vulnerable claimants who they say would not be represented if they are not paid as much as they are now. I am afraid I do not believe that.

The fact is that we introduced no win, no fee. These actions were brought because my right hon. and noble Friend Lord Mackay insisted on introducing no win, no fee to this country, and the system worked from the time of the Major Government perfectly well. The previous Government were persuaded to make it more profitable by making the changes that they made, but the costs have got out of all proportion to the claim.

Let me turn to knife crime. There is a serious problem in Enfield, and I had discussions with my hon. Friends the Members for Enfield North and for Enfield, Southgate because of that serious problem with knife crime. It exists throughout the country, but it is localised and can be very bad.

[Nick de Bois (Enfield North) (Con)]

rose—

[Mr Clarke]

My hon. Friend seeks to intervene. We reached agreement on the amendments that have now been made to the Bill at his instigation and that of my hon. Friend the Member for Enfield, Southgate.

[Nick de Bois]

I am grateful to the Secretary of State for allowing this intervention. Does he agree that the important thing about the introduction of the measure to the Bill is that for the first time in youth sentencing services it is clear that, if a 16 or 17-year-old carries a knife and uses it in a threatening and endangering fashion, they will go to jail? Indeed, it sends a very strong message to the courts, so my constituents will rest a little easier when it is passed into law.

[Mr Clarke]

That is entirely true, and I congratulate my hon. Friend on his advocacy, but we should both point out that we are talking about the minimum sentence. When we look at the nature of the offence we have created, we find that it is a serious knife offence, and many people—adults and juveniles—will be sent away for longer than the minimum that we specify in the Bill. The minimum catches people who might not otherwise have got a custodial sentence. In really serious cases, juveniles should get more than a four-month detention and training order and adults should get more than a six-month sentence, but there will be a spread of seriousness among individual cases. What we have put forward is a mandatory minimum; in the case of juveniles, my hon. Friend and I agree that it is right that the special way in which the courts treat offenders who are under 18 should be applied. That is where we are.

[Several hon. Members]

rose—

[Mr Clarke]

I am sorry but I shall not give way because other people want to speak.

Let me conclude by going back to the Labour party. Obviously, I am familiar with our own proposals but I have been listening to what the Labour party has been putting forward, which tells us a lot about whether that party is ready for government. I have been facing the Labour movement for a very long time now—particularly the right hon. Member for Coatbridge, Chryston and Bellshill, with whom I am familiar. I do not know what he thinks is happening to his party because the Opposition’s position on this has been pitched at a section of the tabloid press that I have never heard the Labour party aim at so far as they have been doing. I did not expect that from the shadow Justice Secretary. Let me quote from the BBC’s Politics Show on 31 October 2010—a year ago—when he said that he was “not going to say” that I am being

“soft on crime…because he is asking the right questions about rehabilitation rates”.

More recently, when he gave the Howard League lecture on 17 October 2011, he said:

“Reforming prisons to reduce re-offending ultimately means safer communities up and down the country”.

The Shadow Justice Secretary has made extraordinary proposals in relation to the Bill, the most preposterous of which were about knife crime. He tabled a new clause advocating mandatory sentences for 10, 11, 12, 13, 14 and 15-year-olds. I never expected to see even the most reactionary of Labour Members—even the right hon. Members for Blackburn (Mr Straw) and for Sheffield, Brightside and Hillsborough (Mr Blunkett)—putting forward such a proposition. We cannot estimate how many schoolchildren would have been caught by such measures, but our best estimate is that about 350 would have had to be sent away. We would have had to build secure children’s homes to hold them and all the special provisions under the Children Acts would have been set aside. That was not a serious contribution to the debate, and serious contributions are what we should make.

I think the Bill is balanced. As I have said, it has been attacked from the right and the left, and it will be scrutinised carefully in another place. I think we have started to redress some of the problems that the previous Government left behind. It is the inheritance of Tony Blair, a man whom I admire in many ways. By the time he had finished in office he was getting very keen on reforming public services such as health and education. In my modest opinion, he was very good on health and education by the time he finished, but he had no real interest in law and order and the criminal justice system.

Tony Blair shadowed me when I was Home Secretary and he produced a good soundbite but no policy. He produced the phrase,

“Tough on crime, tough on the causes of crime,”

but he did not know what he meant. He had no real interest in the subject and all he did was encourage the right hon. Members for Blackburn and for Sheffield, Brightside and Hillsborough to produce populist stuff that filled the statute book with quite useless criminal justice legislation. This is serious reform to what was caused by that Government, and the right hon. Member for Tooting (Sadiq Khan) who shadows me should look at his party’s record. He should not make things worse by going on proposing preposterous things, as he has done in this debate. I advise him to go away and reflect on the many hours he has spent here, to reflect on the wisdom of my hon. Friends the two Under-Secretaries and to do better next time.

--- Later in debate ---

[Sadiq Khan]

I have been in correspondence with the Justice Secretary and, to be fair, he responded to my letter. I am happy to allow him to intervene to put on the record the assurance that he gave me.

[Mr Kenneth Clarke]

I was not here during the incident to which the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) referred, but I am sure that he was not swatted away. There was probably anxiety to finish the debate.

I am happy to repeat the undertaking that the Under-Secretary of State for Justice, my hon. Friend the Member for Huntingdon (Mr Djanogly) gave then and in Committee. We accept that in principle there is a good case for saying that there should be appeals against the allowing of bail in the Crown court. We are working on the details of that, and we propose to table amendments in the House of Lords to meet that point. There is no difference in this case, and I have already written to say what we are striving to do. We intend to table an amendment to meet the wishes of the right hon. Members for Dwyfor Meirionnydd and for Tooting, and some hon. Members on the Government Benches.