Crime and Courts Bill [Lords] Debate

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Department: Ministry of Justice
Monday 18th March 2013

(11 years, 2 months ago)

Commons Chamber
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Maria Miller Portrait The Secretary of State for Culture, Media and Sport (Maria Miller)
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I beg to move, That the clause be read a Second time.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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With this it will be convenient to discuss the following:

Government new clause 22—Relevant considerations.

Government new clause 23—Amount of exemplary damages.

Government new clause 24—Multiple claimants.

Government new clause 25—Multiple defendants.

Government new clause 26—Awards of aggravated damages.

Government new clause 27A—Awards of costs.

Government new clause 29—Meaning of “relevant publisher”.

Government new clause 30—Other interpretative provisions.

Government new schedule 5—‘Exclusions from definition of “relevant publisher”.

Government amendments 121A and 122.

Maria Miller Portrait Maria Miller
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The Leveson inquiry shone a spotlight on the worst excesses of the press. As a result of the revelations involving the hacking of Milly Dowler’s phone and all that went before it, we have seen the closure of a national newspaper and a range of ongoing criminal investigations.

Lord Justice Leveson heard evidence for more than a year. I should like to pause for a second to pay tribute—[Interruption.]

Nigel Evans Portrait Mr Deputy Speaker
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Order. Please will Members leaving the Chamber do so quietly? I am finding it very difficult to hear what the Minister is saying.

Maria Miller Portrait Maria Miller
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Thank you, Mr Deputy Speaker.

I should like to pay tribute to those who gave evidence that involved them revisiting those harrowing experiences. I hope it will be clear today that that ordeal has not been in vain.

Today marks a turning point. We can move on from simply talking about Lord Justice Leveson’s report to starting to act on it, with a new package that is agreed by all three party leaders. The package includes a new royal charter, as announced by the Prime Minister earlier; a new costs and damages package that seeks to maximise incentives for relevant publishers to be part of the new press self-regulator; and one short clause reinforcing the point that politicians cannot tamper with the new press royal charter, which is the subject of debate in the other place.

Before I discuss the Bill, I should like to make clear what we are not talking about. The Prime Minister said to the House on the day the report was published that he had serious misgivings about statutory press regulation. He—I agreed with him—was determined to find a better way of establishing the recognition body that would oversee the tough self-regulatory body that Lord Justice Leveson envisaged. That is what our royal charter does.

Our proposals will provide the toughest system of regulation that this country has ever seen. The system will protect the public and ensure that the freedom of the press is not undermined. Alongside our proposals, we will include a three-line clause that reinforces the language within the charter and says that it cannot be changed without a two-thirds majority in both Houses. The clause ensures that, for generations to come, Ministers cannot interfere with the new system without explicit and extensive support from both Houses.

We have achieved all of that without needing to set out a system of press regulation in legislation—hence, our proposals are not statutory underpinning. The three-line clause applies to all royal charters of a particular nature from this point onwards. It is simply a safeguard.

We are in the House to debate amendments that will put in place a new, tough set of incentives for publishers. There are two such incentives—the first relates to the award of exemplary damages, and the second relates to the award of costs in litigation involving relevant publishers. The package forms a crucial part of the new regulatory regime, providing strong new incentives to relevant press publishers to join the press regulator. When they choose to join the press regulator, they will receive a series of benefits on costs and damages. However, those that choose not to join the regulator will be exposed to the tough new regime, which includes payment, in most cases, of the costs of people who bring claims in the courts against publishers on civil media laws, regardless of whether those people win or lose; and exposure to a new exemplary damages regime—we are introducing a new punitive damages regime for breaches of those media laws for those who do not sign up to the regulator.

Victims of press mistreatment will, for the first time, have access to a new toughened complaints mechanism with prominent apologies, tough £1 million fines, and access to a new arbitration system.

Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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The Secretary of State gives us the welcome news that this is the toughest regulatory system in the UK, but will the system impose on newspapers the duty of political balance that is imposed by the royal charter on the BBC and ITV?

Maria Miller Portrait Maria Miller
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The hon. Gentleman knows that we are trying exactly to protect freedom of speech, so that newspapers have the ability to comment on proceedings in this place and more widely. We are protecting that important ability and maintaining and promoting freedom of speech.

Jacob Rees-Mogg Portrait Jacob Rees-Mogg (North East Somerset) (Con)
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I want to clarify schedule 4 of the royal charter, which states that a “relevant publisher” is

“a newspaper or magazine containing news-related material”.

Does that include, for example, newspapers published by local Conservative associations? Might we therefore have to register?

Maria Miller Portrait Maria Miller
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My hon. Friend is slightly jumping the gun—we will come to that in more detail later—but I can give him a sneak preview of the answer, which is no. Clear tests included in new clause 29 make it clear that such publications will not be covered.

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Bob Russell Portrait Sir Bob Russell (Colchester) (LD)
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Will the right hon. Lady confirm that the legislation has been driven by the behaviour of certain national newspapers, and that our local newspapers and provincial press have not been responsible, but will have to pay for the sins of Fleet street?

Maria Miller Portrait Maria Miller
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I understand the sentiment behind my hon. Friend’s question. I can reassure him that we have been working directly with representatives of the local press to ensure that the new system does not, as he suggests, burden them unnecessarily. Perhaps the right hon. and learned Member for Camberwell and Peckham (Ms Harman) will remark on that further; I will do so in my comments later.

Exemplary damages will be awarded only in the most serious cases, in line with both the Leveson report and the report of the 1997 Law Commission. The test for the award will be: where the defendant’s conduct has shown a deliberate or reckless disregard of an outrageous nature for the claimant’s rights; where conduct is such that the court should punish the defendant for it; and where other remedies would not be adequate to punish that conduct. The supplementary new clauses ensure that the new exemplary damages system works in practice.

New clause 22 sets out factors that the court must take into account in deciding whether an award of exemplary damages is appropriate, and whether membership of an improved regulator was available to the defendant at the time of the events giving rise to the claims. If so, what reasons the defendant had for not being a member are factors that can be considered. The court must also have regard, so far as it is relevant, to whether the defendant has internal compliance procedures of a satisfactory nature in place and how they are adhered to.

Lord Garnier Portrait Sir Edward Garnier (Harborough) (Con)
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I wonder whether my right hon. Friend could provide me with some clarification. She says that the exemplary damages regime will apply as per the new clauses and so on. One of the exclusions from the definition of a “relevant publisher”, which she will find in new schedule 5, is:

“A person who publishes a title that relates to a particular pastime, hobby, trade, business, industry or profession”.

Maybe the “hobby” relates to the point made by my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg). What is the position of an irrelevant publisher, if I can describe him as that, who publishes a magazine or some other publication about a pastime, hobby or trade, but who none the less behaves within the terms of Rookes v. Barnard? Would the court still be able to award exemplary damages in that circumstance?

Maria Miller Portrait Maria Miller
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My hon. and learned Friend raises an issue in which he is well versed. If I do not provide a complete answer, then I will get back to him with all the details. Clearly, if somebody is not a relevant publisher then they are not drawn into the self-regulatory scheme. They would not be subject to exemplary damages or be eligible for the scheme. Therefore, they would not be caught within this remit. We have so drawn the definition of “relevant publishers” to ensure that the scheme does not catch people we do not need to catch, and that is why we have been careful to set out the three tests in new clause 29—to ensure that we are clear about who is covered. Some individual organisations might well fall close to the line, but then it would be for the courts to decide.

New clause 23 sets out matters to which the court must have regard in deciding the amount of exemplary damages appropriate, and the key principles governing the court’s consideration are that the amount should be no more

“than the minimum needed to punish the defendant for the conduct complained of”

and that it should be “proportionate”. New clauses 24 and 25 ensure that those provisions will operate effectively in cases involving more than one claimant or defendant.

For completeness, I shall also mention new clause 26 and amendment 121A. New clause 26 implements recommendation 71 in Lord Justice Leveson’s report and confirms that, in cases under the new system, aggravated damages should be awarded only to compensate for mental distress and should have no punitive element. Amendment 121A provides that the provisions on exemplary damages come into force one year after the date on which the body is established by royal charter. That will be a powerful incentive to the press to establish the new regulator on a timely basis. For all their rarity, the availability of exemplary damages should send a powerful signal to publishers.

I turn to the provisions relating to costs in new clause 27A. The proposals are designed to give further real and powerful incentives and give effect to Lord Justice Leveson’s recommendation that the award of costs should be another tool to encourage publishers to join the regulator. The new clause would provide a clear presumption that where a claimant took a publisher inside the regulator to court, even if the claimant was successful, the normal rule that their costs would be met by a losing publisher would not apply. In other words, a defendant publisher that had joined the regulator should pay a claimant’s costs only in limited circumstances—if the issue could have been resolved at arbitration, had the defendant agreed to its being referred, or if it was just and equitable for the defendant to pay the claimant’s costs.

Guy Opperman Portrait Guy Opperman (Hexham) (Con)
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The fundamental problem is not necessarily the costs paid at the end of the case, but the costs of a litigant’s bringing an action against a publisher. I and my hon. and learned Friend the Member for Harborough (Sir Edward Garnier) have represented many individuals who would have struggled to bring such actions without protections. Will the Secretary of State advise the House of what protections are in place, and may I highly recommend the protective costs order regime that provides protection to an impoverished, but justified, litigant as against a very wealthy publisher?

Maria Miller Portrait Maria Miller
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My hon. Friend pre-empts something that I will cover in more detail later. I will not only deal with the cost regime, but explain that to comply with Leveson the new self-regulatory regime will include free arbitration, so giving those individuals the access to justice that he rightly says they should have.

New clause 27A establishes a second presumption—that a relevant publisher that chooses to stay outside the regulator would generally have costs awarded against it in proceedings for media tort, whether or not the claim is successful. In other words, a defendant publisher that does not join the regulator should always pay the claimant’s costs, unless the issue could not have been resolved at arbitration if the publisher had been a member of a regulator, or unless it were just and equitable for the defendant publisher not to pay those costs. These provisions deal with defendants and the costs they should or should not pay to claimants. The issue of claimants and the costs they might have to pay to defendants is also important and is addressed in subsection (5).

Lord Justice Leveson endorsed Lord Justice Jackson’s recommendation that qualified one-way cost shifting should be introduced for defamation and privacy cases. QOCS is a form of cost protection. The Government accepted that recommendation, and we have asked the Civil Justice Council, chaired by the Master of the Rolls, to make recommendations by the end of this month on appropriate cost protection measures to be introduced for defamation and privacy cases. The Government then expect to introduce a cost protection regime through the civil procedure rules.

Let us be clear: the new provisions on the awarding of costs, coupled with the provisions I have set out on exemplary damages, provide a powerful incentive to join the regulator and for disputes to be resolved through arbitration that meets the standards set out in the royal charter. Those defined as a “relevant publisher” for the purposes of the new legislation will, if they choose to sit outside the regulator, be exposed to the full force of the new exemplary damages and costs provisions. We want to ensure that the new provisions act as a powerful incentive—as I am sure you can hear me say, Mr Deputy Speaker—but we do not want to draw in too broad a range of publishers.

Mark Reckless Portrait Mark Reckless (Rochester and Strood) (Con)
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Is it not the case that the incentives are so powerful—with the exemplary damages and the requirement to pay the other side’s costs, even if their claim may be very poor —that, in essence, we are almost forcing the press into joining the new regulator and being subject to the regulation framework determined by Ministers through the Privy Council?

Maria Miller Portrait Maria Miller
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I gently remind my hon. Friend that the criteria used in reaching judgments will not be determined by Ministers, as he will know from the earlier debate. The reason we are establishing a royal charter is exactly so that all this is put very much at arm’s length from Ministers. I suggest to him that every publisher has a choice it can weigh up. Publishers can come inside the self-regulatory process and get the support of the regime for exemplary damages and costs, or they can choose to stay outside. That was absolutely the essence of Lord Justice Leveson’s recommendation not to have compulsion, and that is why the Prime Minister and I were so against taking a statutory approach—because we did not feel the press would want to take part in such a regime, which would be a fundamental weakness in the system.

Mark Reckless Portrait Mark Reckless
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But is it not the case that Ministers, albeit with senior members of the Opposition, have agreed the royal charter on Privy Council terms—in some ways that is worse than statutory regulation, because MPs have had no opportunity to debate it on behalf of our constituents—and that in many cases the only choice the media face will be whether to join or be bankrupted?

Maria Miller Portrait Maria Miller
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I would say to my hon. Friend that when I have heard people talk about the approach they want the Government to take, they say that they want regulation of the press to be very much at arm’s length from politicians. What we are talking about is a self-regulatory body for the press, set up by the press. The royal charter is a verification panel that will ensure that the press is doing what it should do. It will not be under the eyes of Ministers; it will be independent. However, I urge him to look at the detail of the charter so that he does not take just my word for it, but sees it written down in black and white.

Guy Opperman Portrait Guy Opperman
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Will my right hon. Friend give way?

Maria Miller Portrait Maria Miller
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There are lots of people who want to take part in the debate on these amendments, so if my hon. Friend lets me make a little progress, perhaps he can intervene on me a little later.

In new clause 29 we set out a definition of “relevant publisher” that captures national newspapers and their online editions, local and regional newspapers and their online editions, and online-only edited press-like content providers, as well as gossip and lifestyle magazines. Exemplary damages and costs are designed to catch larger news publishers—those at the centre of the circumstances giving rise to Leveson. As highlighted by my hon. Friend the Member for Colchester (Sir Bob Russell), who is no longer in his place, many of those are not necessarily the smaller publications.

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Jacob Rees-Mogg Portrait Jacob Rees-Mogg
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We in this corner of the Chamber have been discussing definitions and wondering which magazines would count as hobby magazines. How, for example, would my right hon. Friend define Hello! magazine? It is surely not a newspaper, given that it indulges in the publication of gossip and celebrity pictures. Would it be covered, or would it be exempt, and who will decide where the line is to be drawn?

Maria Miller Portrait Maria Miller
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My hon. Friend tempts me to repeat what I have just said, but perhaps he should read Hansard or the Bill instead.

New clause 29 describes in great detail who will be caught by the definition of “relevant publisher”. The publisher would have to meet the three tests of whether the publication is publishing news-related material in the course of a business, whether their material is written by a range of authors—this would exclude a one-man band or a single blogger—and whether that material is subject to editorial control. This is specifically designed to protect small-scale bloggers. Lone bloggers clearly do not meet those criteria. I hope that that clarifies that point.

Richard Bacon Portrait Mr Richard Bacon (South Norfolk) (Con)
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One could easily envisage a railway enthusiasts’ magazine which had a range of authors whose material was subject to editorial control but which many people would nevertheless consider to be a hobby magazine. It would fall outside the regime because it was aimed solely at enthusiasts. What would happen, however, if such a magazine were to get hold of some information, perhaps confidential information, about High Speed 2? Would it then be caught by the regime? Does my right hon. Friend not see the path that she is going down?

Maria Miller Portrait Maria Miller
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We have clearly set out the direction that we are going in, and it is there in the information for my hon. Friend to read. Ultimately, the court will decide whether any particular issues fall near the line. If a publication is concerned about whether it would be caught by the new regime, it can of course seek legal advice, but we have done a great deal to make this clear to individual publications. I am sorry—I did not make it clear to my hon. Friend the Member for North East Somerset whether Hello! magazine would be caught by the provisions. Yes, it will be. People tell me that it is a gossip magazine. I am not a regular purchaser of it.

Mark Durkan Portrait Mark Durkan (Foyle) (SDLP)
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The Minister mentioned publications that would not fall into the category of “relevant publisher”. If a publication posing as a constituency newsletter—perhaps with a title like Target Marginal South—were to make a serious allegation against someone in another party, what would happen if a relevant publisher were to pick up the story and publish it? Where would they stand if they published a controversial story that had originally been published by a non-relevant publisher?

Maria Miller Portrait Maria Miller
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I am sure that the hon. Gentleman knows that such instances already arise and that they are covered by the normal laws of libel. That would continue to be the case because those organisations would not be deemed to be relevant publishers. The normal laws would therefore be in play. Hopefully, that provides him with some clarification.

In conclusion, getting the balance of incentives right is clearly important, as it was really important in the Leveson report. We are, I believe, striking a balance through these amendments that will present a tough new system of press regulation, but equally one that does not compromise the freedom of the press or investigative journalism. We are all clear that investigative journalism and freedom of the press should be given paramount importance in the process. Throughout cross-party talks, we agreed a set of proposals that will create a tough new system of self-regulation.

I believe the package put in front of us all today provides real incentives with real effect. It embodies a crucial part of Lord Justice Leveson’s proposals and part of the tough new regime for press regulation. These amendments have been put forward with cross-party support, so I commend them to the House.

Harriet Harman Portrait Ms Harriet Harman (Camberwell and Peckham) (Lab)
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I rise to support the Government new clauses in the group and the manuscript new clauses standing in the name of the Prime Minister, the Secretary of State, the Deputy Prime Minister and the Leader of the Opposition. The manuscript new clauses arise out of the cross-party talks, into which I thank the Secretary of State for inviting us. That explains why hon. Members have not, I am afraid, had much time to look at them. We all want to be sure that hon. Members have the opportunity to scrutinise provisions in advance, but because we worked late into the night in attempting to agree them, they have been brought before the House with inadequate notice. I offer my apologies for that.

I hope to add to the points made by the Secretary of State, with which I greatly agree. Also, because hon. Members have not had much chance to look at the manuscript amendments and consider what they mean, I shall try to explain my understanding of how they sit with the new framework set out in the royal charter.

As the Secretary of State has said, the choice Leveson made was not to impose direct regulation on newspapers as a complaints system, but to invite them instead to set up their own regulation system and to encourage subscribers to it, not only because it is a good idea as the framework is fair and reasonable, but because incentives and disincentives have been provided. That, of course, leaves the choice to them—the point of incentives and disincentives is that they incentivise and disincentivise—but encourages them to go into the new regime.

It is also crucial—this is a major change—that a new arbitration system is being set up. Over the years, people have wrung their hands about how inaccessible the courts are to people who have been defamed, while newspapers have wrung their hands about being tied up for ages with the enormous costs that can arise if some oligarch takes a newspaper to court. Importantly, therefore, arising from the Leveson report is not just a new complaints system but a new arbitration system. Media torts, defamation and privacy claims that would otherwise have gone to court will instead go into the arbitration system. The manuscript new clauses on cost will incentivise not only newspapers but individual complainants to go into an arbitration system and not straight to court. There is an incentive for a complainant who wants to bring an action against a newspaper that is a member of a regulatory body to agree to arbitration, which will be available to members of the body and which will be run inexpensively. A complainant who does not want to go to arbitration, who says “I will take my chances in court” and who then wins the case will not win the costs, and costs may be awarded against that complainant. Arbitration will involve no cost to complainants, and they will benefit from a top-rate, legally kosher procedure without having to go to court.

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We are dealing with part of the problem. This is a relatively modest proposal, and it is probably the best that we can have in the circumstances. However, we hope that the press will learn the lesson that the more hysterical and the more partial they become, fewer people will trust them. The trust of the country goes to the organs of the press that are governed by a strict royal charter and which must have a balance politically, and those are the broadcasters.
Maria Miller Portrait Maria Miller
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The right hon. and learned Member for Camberwell and Peckham (Ms Harman) spoke of the importance of working together. One group of people to whom we have not yet paid tribute is the amazing team of officials at the Ministry of Justice, the Department for Culture, Media and Sport, and the Cabinet Office. Those people have gone above and beyond the call of duty in all that they have done, and I salute them.

I entirely understand why my hon. Friend the Member for Colchester (Sir Bob Russell) raised the issue of the local press twice today. Leveson recognised that the local press were not the main cause of the problem, and the system that we propose allows them different and appropriate terms of membership so that they will not pay more than they do at present.

My hon. and learned Friend the Member for Harborough (Sir Edward Garnier) spoke of the importance of arbitration, but pointed out that it should not be expected to fix everything. Of course he is absolutely right. The provisions that we have drawn up will comply with the Arbitration Act 1996, and the arbitrators will be appropriately qualified expert lawyers, as recommended by Leveson.

The hon. Member for Linlithgow and East Falkirk (Michael Connarty) rightly raised the issue of Scotland. The charter is capable of applying to newspapers in Scotland that wish to be recognised under the system, and I have had discussions about that with Scottish Ministers. Lord McCluskey has now reported, and we wait to hear how his proposals will be dealt with. Like the hon. Gentleman, I hope that attention will be paid to the views that have been expressed in the debate.

The hon. Member for Hayes and Harlington (John McDonnell) raised the issue of a conscience clause, as he has done previously. I think it important for newspapers and the journalists who work for them to abide by the standards code of the industry self-regulator. I know that the hon. Gentleman has a long-standing interest in that. I can tell him that Leveson said that it was an issue for the industry itself to consider, and not something that the recognition body should require. As my right hon. Friend the Prime Minister himself said to the hon. Gentleman in November, the press do not have to wait for any further discussions or for the charter, but can start putting the system in place immediately.

A number of thoughtful contributions were made by learned colleagues, and of course we will pay great heed to the advice and thought contained in those. Although the discussion of these provisions on the Floor of the House may be somewhat brief, it clearly cannot be said that these issues have not been given long consideration, because they have been. More than a year of evidence was given to Lord Justice Leveson as part of his inquiries and since his report was presented to the House last November it has had some three months of consideration, on a cross-party basis and involving other groups, including those representing people affected by the problems of the press.

We have before us an important set of real incentives that have real effect to make sure that we can move forward, with today as a turning point where we stop talking about the theory of Leveson and start putting the practice of Leveson out for everybody to benefit from it. The provisions are a crucial part of this new tough regulatory regime and I commend them whole- heartedly to the House.