Social Action, Responsibility and Heroism Bill

Lord Garnier Excerpts

Monday 21st July 2014 Commons Chamber

[Chris Grayling]

That is very much my aim. I pay tribute to my hon. Friend’s constituents, and indeed to her. I know that she spent time helping her constituents at the weekend. I saw the television pictures of what happened in her constituency, and I am sure that we all send our good wishes to the residents of Canvey Island who have experienced such a sudden and unexpected turn of events. Considerable damage and great disruption were caused to the island, and I pay tribute to everyone who has been involved in trying to sort things out. Of course, such people should always feel confident that if they do the right thing by, for instance, trying to unblock a sewer, yet something goes wrong, it is not their fault but a result of their trying to do the right thing for the community. The balance of probability should be that the law is on their side, and that is what the Bill will achieve.

[Sir Edward Garnier (Harborough) (Con)]

Everything that we have heard so far is entirely worthy, and no one would wish to gainsay or criticise the constituents of my hon. Friend the Member for Castle Point (Rebecca Harris), but I am a little puzzled, because I cannot find, in my head or my heart, a practical difference that the Bill will make to the current law. I wonder whether my right hon. Friend could give me a few examples.

[Chris Grayling]

The key thing that the Bill does, in legal terms, is lay down a set of principles for the courts. As my hon. and learned Friend knows, there have been a number of examples over the years in which Parliament has set out principles and allowed the jurisprudence to evolve from them. However, this is not just about what happens in the courts; it is also about what happens outside the courts. It is about the decisions to sue that may or may not be made. It is about the small business that gives way to a spurious claim, believing that there is a risk in defending it. The Bill is designed to send a powerful message, inside but particularly outside the courts, that if someone is going to take legal action, there is clear visibility of the law, and the law will clearly not be on the side of a person who is trying it on. That is what we are trying to achieve.

Many of the claims that are represented by the 30% increase are doubtless valid, but at least part of that rise must be attributed to an increasingly litigious climate, spurred on, as I have said, by personal injury firms that are quick to cash in by advertising their services on television and radio, through unsolicited and often deeply irritating and upsetting telephone calls, through posters on buses, and through other marketing techniques. We have focused firmly on ensuring that in future it will be much more difficult for spurious, speculative and opportunistic claims to succeed.

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[Chris Grayling]

The hon. Gentleman will have to let me finish my speech and decide in the round, but I can assure him that small businesses share the concerns I have been setting out. They believe the law needs to be more clearly on their side, but I will come back to the heroism piece and the social responsibility piece because these are important parts of the Bill as well.

We have focused on trying to ensure that we clamp down on the no win, no fee environment. In 2010 Lord Young published the “Common Sense, Common Safety” report, drawing attention to the fact that businesses were operating their health and safety policies in a climate of fear, and that the no win, no fee system introduced by the Labour party had given rise to the perception that there was no risk in starting litigation and it encouraged speculative claims. A whole industry had grown up around that.

Since that report was published, we have introduced a wide range of measures to tackle these damaging effects. We have transformed no win, no fee deals, so lawyers can no longer double their fees if they win at the expense of defendants or their insurers. We have banned referral fees paid between lawyers, insurance claims firms and others for profitable claims. We have reduced by more than half the fees lawyers can charge insurers for processing low-level personal injury claims. We have banned claims management companies from offering cash incentives or gifts to people who bring them claims. We have changed the law to enable companies that breach claims management regulation unit rules to be fined. We have also helped remove the fear of being sued for breaches of strict liability health and safety duties by introducing changes last year through the Enterprise and Regulatory Reform Act 2013 to prevent claims for damages from being brought under health and safety regulations. In addition to these measures, we are currently taking action through amendments to the Criminal Justice and Courts Bill to extend the ban on offering inducements to include things such as iPads. I do not think they should be offered as a reward by those who drum up business in order to pursue personal injury claims. Together with other provisions in the Criminal Justice and Courts Bill requiring the courts to dismiss fundamentally dishonest claims, this will root out the insidious and damaging bad practice and unacceptable behaviour on the part of some claimants and their lawyers that has tainted personal injury claims in recent years.

[Sir Edward Garnier]

I am probably being very obtuse, but everything my right hon. Friend has said over the last two or three minutes is undoubtedly true, yet what I do not understand is how clauses 1, 2, 3 and 4 change what is already in place.

[Chris Grayling]

They do two things. They consolidate the law, which exists in fragmented places around past legislation, so it is very clear what the law says, and they provide additional protection, particularly for volunteers, but, above all, they send a signal from Parliament to the courts, in the way that past legislation also has, and set out a series of principles off the back of which the courts will evolve a jurisprudence. They also send a powerful message to those who never get near the courts and who may give in to claims and currently do not feel the law is on their side—I can assure the House that they do not feel the law is on their side—that actually they can stand up and defend a claim in the knowledge that Parliament has very clearly said that the balance in the courts should be in their favour. So this is as much about sending a message outside the courts as inside the courts.

Although this Bill focuses on three issues, as I have said I do think that clause 3—the responsibility piece—has a particular importance in ensuring we provide proper protection for small businesses. I have talked to countless business groups and employers who tell me how the compensation culture is tying their business in knots. Employers might do the right thing and put in place sensible procedures, but then someone does something daft and the employer still finds themselves facing a damages claim. Of course sometimes that claim will have a genuine basis, and of course sometimes it needs to be recompensed in the courts, but if we are to achieve our goal of supporting business and enterprise and ensuring we continue our success in creating new jobs, we have to make sure the law is properly balanced.

I recognise that worries about liability can arise in other circumstances, too, particularly in the voluntary sector, and let me now turn to the other clauses that address those concerns. In a survey carried out by the NatCen Social Research and the Institute for Volunteering Research, worries about risk and liability was an issue cited by 47% of those questioned who were not currently volunteering. That study was carried out over the course of 2006-07, but the more recent insightful reports by Lord Young and Lord Hodgson concluded that this remains a real issue for would-be volunteers. Indeed, in the Queen’s Speech debate we heard from a number of hon. Members who reinforced that message from volunteering groups in their constituencies. It has been confirmed by Justin Davis Smith, the executive director of volunteering and development at the National Council for Voluntary Organisations, who said when we announced our plans that there is

“a great concern about risk…anything that can be done to break down barriers to people getting involved in their communities is very welcome.”

I say to my hon. and learned Friend the Member for Harborough (Sir Edward Garnier) that it is precisely for those people that we are sending one of the signposts in this Bill.

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[Sir Edward Garnier (Harborough) (Con)]

I confess that I am no enthusiast for this Bill, but if I was ever to be persuaded to change my mind, the speech of the right hon. Member for Tooting (Sadiq Khan) would go a long way to doing so. It was a rather snide and unnecessarily cheap speech, if I may say so, but it pains me to say that I largely agree with its thrust.

[Sadiq Khan]

On a point of order, Mr Deputy Speaker. Particularly bearing in mind where I think the former Solicitor-General is going in his speech, is it not the practice for someone who has made a speech to stay for at least the next two speeches to hear other people’s contributions?

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[Mr Deputy Speaker]

Order. Sir Greg, come on. Not only can you do better than that, but we are certainly not going to waste our time discussing it.

[Sir Edward Garnier]

That was very interesting. I have absolutely no doubt that my right hon. Friend the Secretary of State wanted to hear every word I am about to say, but he has other pressing public duties to attend to. No doubt, he will read the whole of this afternoon’s debate in the Official Report in due course.

One good reason for speaking in this debate is to give me an opportunity to thank my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) for his work as a Cabinet Office Minister, particularly on the voluntary sector. He worked extremely hard, with precious little thanks, and was content to do so, despite the fact that all he did achieved, sadly, very little public profile. At least on this occasion, we can thank him very much for all he did. I trust that it will not be long before he is back in government again.

As I said at the outset, I am not hugely enthusiastic about this particular piece of legislation. I am concerned that what the Secretary of State said does not reflect the long title, which states that it is a Bill:

“To make provision as to matters to which a court must have regard in determining a claim in negligence or breach of statutory duty.”

Most of what he said had to do with sending out messages. We all need to send out messages from time to time—sometimes to ask for help, and sometimes to ask people to pay attention to what we are trying to do. In so far as it went, his speech was no doubt well intended, but it did not, if I may say so, condescend to deal with the Bill as a potential piece of law. If we are to pass or make laws, they must be coherent. Although I entirely agree with all the sentiments that he uttered this afternoon about reducing the so-called health and safety culture, reducing the easy acceptance of the only answer to a problem being to sue and dissuading ambulance-chasing solicitors from doing this, that or the other, I regret to say that I do not agree that this particular Bill will achieve that.

I do not know how many people who are intent on bringing an action, if they are not lawyers themselves, think about pieces of legislation. Let us hope that I am wrong and my right hon. Friend is right, and that when the Bill is enacted, copies of it will be plastered all over doctors’ waiting rooms and other public places, so that no citizen will be tempted to bring a spurious claim.

I would be interested to hear how many High Court or county court actions would have been decided differently had the Bill been in force. It is perfectly true to say that the Compensation Act 2006 covers many of the areas of conjecture that are covered by the Bill. I am not persuaded that the Bill covers any new territory.

[Sadiq Khan]

The hon. and learned Gentleman is being very generous. I hope that my comments will be helpful. The impact assessment that accompanies the Bill states in paragraph 17:

“Both the possible reduction in case volumes and the size of any compensation payments are unknown, but are likely to be small.”

[Sir Edward Garnier]

That is, no doubt, what the impact assessment says. Whether that justifies the bringing into law of the Bill, I rather doubt.

I spoke about the Bill before having read it on the Thursday of the Queen’s Speech debate. I teased the Secretary of State for Communities and Local Government rather rudely by inviting him to provide a definition of “heroic negligence”. He heroically tried to provide me with such a definition, but he did not do so. That is not surprising, because I am not entirely sure that there is such a thing.

I was interested in what my noble Friend Lord Faulks, the Minister of State at the Ministry of Justice, said on 9 June in the debate on the Queen’s Speech in the other place. He said that the Bill will not change the existing overarching legal framework or leave victims without protection, but that it will provide reassurance and send a strong signal to the courts. To quote directly, he said:

“They will still need to look at whether a defendant met the appropriate standard of care in all the circumstances of the case.”—

I say, in parenthesis, that that is what they do already—

“Nor will it introduce blanket exemptions to civil liability. There is an important balance to be struck between encouraging participation in civil society and being mindful of the impact that careless or risky actions could have on the very people that the defendant was trying to help. The Bill is not about removing protection and leaving victims without proper recourse in those circumstances. However, it will give valuable and needed reassurance to a wide range of people and send a powerful signal that the courts will take full account of the context of a person’s actions when determining a negligence claim.”—[Official Report, House of Lords, 9 June 2014; Vol. 754, c. 132.]

I do not think that anybody in either House knows more about the law of negligence than my noble Friend Lord Faulks, who has 40 years’ experience at the Bar dealing predominantly with cases involving negligence and public authorities, such as fire authorities. Reading between the lines of what he said—he will contradict me if I have got this wrong—he does not have a huge amount of enthusiasm for the Bill. However, I may have misread what he said.

The Bill is more like an early-day motion than a proper statute. I say that because, as the Secretary of State admitted, it is predominantly there to send out a message—a strong signal. As I have had many opportunities to say in my 22, 23 or 24 years in this House, we should legislate not to send out signals or messages, but to make good black-letter law, so that the courts know what the law is and can apply it, and so that the legal professions know what it is and can advise the public on it.

My concern is that the contents of the Bill have been within the common law and the ambit of the court’s appreciation for years and years. In 1954, in the case of Watt v. Hertfordshire County Council, Lord Justice Denning, as he then was, spoke about the balancing act performed by the court when people intervene to help in an emergency, which relates to clause 4. He said:

“It is well settled that in measuring due care one must balance the risk against the measures necessary to eliminate the risk. To that proposition there ought to be added this. One must balance the risk against the end to be achieved. If this accident had occurred in a commercial enterprise without any emergency there could be no doubt that the servant would succeed. But the commercial end to make profit is very different from the human end to save life or limb. The saving of life or limb justifies taking considerable risk, and I am glad to say there have never been wanting in this country men of courage ready to take those risks, notably in the Fire Service.”

What Lord Justice Denning said is as true now as it was in 1954, as I know from the emergency services in my own county of Leicestershire, be it the police, the ambulance service or the fire service. There are plenty of brave people who will risk their own life and limb to save others.

I rather agree what my hon. Friend the Member for Bury North (Mr Nuttall) said about the last words of clause 4, which refer to an action taken

“without regard to the person’s own safety or other interests.”

I suggest, and I think he agrees, that it is much more heroic to do something having had regard to one’s own safety or other interests, and to go on and do the brave thing—rescuing someone from a frozen lake, pulling them out of a burning building or whatever it might be—despite having thought about those interests. For goodness’ sake, if the Bill is to become law, the least we can do is to remove those last few words of clause 4. Even if it were difficult to work out in law what heroic negligence actually was, we would at least have made that clause a little better.

Nobody will be thanked, least of all a Government Back Bencher, for making a rude speech about a Government Bill, but from time to time, even on a hot day when I would rather be somewhere else, I find it necessary for this House to introduce a degree of common sense into a Bill before the other place gives it a thorough grilling. Far too often, the laws that we pass are the laws of the unintended consequence, and I have a horrible suspicion that if the Bill becomes an Act as it is currently drafted, it will be the subject of derision and confusion, or that even if that does not happen, it will fall into disuse.

I urge my hon. Friend the Minister to take my remarks in the spirit in which they are intended. I really do share with him and my right hon. Friend the Secretary of State the aims that the latter set out quite a few times— to prevent the abuse of the health and safety culture, to reduce spurious litigation and claims and so on. If I may say so, though, passing a Bill that has a hideous resemblance to an early-day motion rather than a proper Act of Parliament is not the way to do it.

I hope that the Bill will not be the subject of a Division this evening, because I cannot support it. If the Opposition seek a Division I will not join them in the lobby, because I found the manner in which the right hon. Member for Tooting made his speech unattractive, but that is a matter for him. We need to take the Bill away and give it a thorough scrubbing over the summer holidays.