Bribery Act 2010: Post-legislative Scrutiny (Select Committee Report)

Lord Woolf Excerpts

Wednesday 3rd February 2021 Grand Committee

[Lord Woolf (CB) [V]]

My Lords, it is a pleasure to speak on this matter. I do so from a different perspective to the earlier speakers from whom we have heard so far. I say first that, in my view, the Act was undoubtedly the most constructive and sorely needed legislation of which I am aware. It has played an important role in promoting higher standards of ethical conduct in global companies internationally and has helped to make the concept of the “responsible capitalist” a reality.

Having said that, I should disclose that I make those remarks as a result of experience I had before the Act that we are considering came into force. In 2008, I became the chairman of a committee that delivered a report on business ethics in global companies and, in particular, the defence industry, based on the conduct of one company, BAE Systems, one of the world’s largest global defence contractors. In addition, I was for 10 years chairman of the judges of FIRST magazine’s competition to identify the responsible capitalist of the year—a task now performed by my noble and learned friend Lord Judge.

I mention my impressions on the basis of ancient experience because it is important that we should realise that great progress has been made. In our comments today, we must recognise that the criminal justice system in this country is facing probably the biggest challenge that it has faced since the last war. The number of cases outstanding is horrific. Any changes that we would like to promote before the Minister must take place against the reality of that background. A terrible danger exists now of injustice being caused by delay. The remarks from the noble Lord, Lord Hodgson, about SMEs having a sword of Damocles hanging over them should certainly be taken into account.

The reality is that the capacity of the system to expedite more cases that could take a long time to investigate is limited at the present time. Certainly, what has been suggested about further reports in the future should be paid attention. With great diffidence, I suggest that the help that has been given now could be of double value if it were to be given once the present situation of arrears in dealing with criminal cases is not as pressing as I have suggested it is.

In 2008, it was thought that legislation of the sort that was concluded in the 2010 Act would tie the hands of British companies internationally. I am very pleased to know that, in fact, that has not been the consequence. We thought that being a responsible company was becoming more and more important and, therefore, it was vital to make clear that there was some sanction.

I note that there has been no comment so far this afternoon about consent being required. I thought that that might be a matter that would cause concern—though I was not sure why it would cause concern, because the consent that is required now is from the very people who would be responsible for prosecutions if they take place. They presumably will be the best watchdogs over this situation. Of course, they must have—as had been pointed out already—the resources to go into matters of this sort in so far as can be practical, which is very limited at present.

There has been talk also of deferred prosecutions. DPAs are making very slow entry into our criminal justice system. Our Act overtook the law in the United States, but, in the United States, much greater use is made of facilities of that nature. It is obviously the sensible way to deal with acts of corruption. Nothing will influence the directors of companies—no matter what their size—more than if the punishment is on the company’s finances. For that reason, it is important that it takes place.