Arbitration Bill [Lords]

Debate between Nicholas Dakin and Richard Fuller

2nd reading
Wednesday 29th January 2025 Commons Chamber

[Sir Nicholas Dakin]

I thank all Members for their contributions. I thank the Conservative spokesperson for recognising, as we do, the work of Lord Bellamy, Lord Hacking and other peers in the other place, as well as everybody who has contributed to where we are today. I also very much welcome what the Liberal Democrats spokesman said on the tackling of issues through the process—that is, giving greater confidence about tackling corruption risk and the issues around the right of appeal. I am grateful for the constructive way in which this debate has been pursued.

The Bill mirrors that of the last Government’s, save for two changes, which I will note here for completeness. The first, as I mentioned in my opening speech, was the amendment to clause 13 to better reflect the case law on appeals. The drafting error it fixed was in section 18 of the Senior Courts Act 1981 and in section 35 of its Northern Ireland equivalent, the Judicature (Northern Ireland) Act 1978. That suggested that appeals to the court of appeal under part 1 of the Arbitration Act 1996 would only be permitted if expressly permitted in the 1996 Act. However, case law established that the intended regime for appeals under the 1996 Act was to permit appeals to the Court of Appeal, unless there is provision in the 1996 Act that adds an explicit restriction on those appeals. I hope that deals with that issue.

Clause 13 therefore corrects the drafting error identified in the House of Lords’ judgment in Inco Europe v. First Choice Distribution and makes it clear that appeals from High Court decisions under part 1 of the Arbitration Act 1996 may, subject to provision in that part, be made to the Court of Appeal. A slight amendment to the long title was also required to reflect that change.

The second change was to clause 1, which we made prior to the Bill’s introduction to Parliament. That was to address concerns about the effect on arbitrations between investors and states, in particular those that follow from an open invitation to arbitrate made in a trade agreement or in domestic legislation. The current position is that those arbitrations are governed by international law and foreign domestic law. Sector feedback made clear that that is what should continue. Our change therefore provides that new section 6A(1) of the Arbitration Act 1996 does not apply to arbitration agreements derived from standing offers to arbitrate contained in treaties or non-UK legislation. [Interruption.] Does the hon. Member for North Bedfordshire (Richard Fuller) wish to interject?

[Richard Fuller (North Bedfordshire) (Con)]

indicated dissent.

[Sir Nicholas Dakin]

I just a pause for a little reflection while I gather my thoughts on the other issues to do with arbitral corruption. I am sure the hon. Member for North Bedfordshire, for whom I have the highest regard, would not want me to skimp on dealing with arbitral corruption, which has been raised by both the speakers in the debate so far.

[Richard Fuller]

indicated assent.

[Sir Nicholas Dakin]

I am encouraged by his nodding.

We take corruption very seriously. However, we have concluded that arbitral corruption is not caused by any issue with our domestic arbitral framework. The Arbitration Act 1996 and common law already provide remedies to deal with corrupt conduct. The courts are empowered to set aside arbitral awards where there are serious irregularities, as they have done recently in the well-known case of Nigeria v. P&ID. Furthermore, arbitrators are under a statutory duty to be impartial and to reach a fair resolution of the dispute. They can issue an award that prevents the corrupt party from benefiting. Although arbitration procedures are often private, corruption can be exposed. Common law allows an exception to confidentiality when disclosure is in the public interest.

However, there is a need for arbitral practitioners and institutions across the world to ensure that their practices are continually developing to weed out attempts to exploit them. We shall support and keep track of initiatives that are under way, such as that of the International Chamber of Commerce’s anti-corruption taskforce. We will engage with the sector to adopt the very best practices as they are developed. I hope that that assures the shadow Minister and the hon. Member for Didcot and Wantage (Olly Glover).

I give my sincere thanks to right hon. and hon. Members who have contributed to the debate. It has been a measured and helpful debate, which underscores the broad support for this legislative programme. I am happy to have heard so much support for this Bill, particularly those contributions that emphasise its importance to economic growth. Our legal services are a vital element of our economy both for creating favourable domestic business conditions and for attracting investment in the UK. And this Government will continue to support them.

I re-emphasise that these reforms are very much appreciated. Many businesses will be deciding whether to designate London as their seat of arbitration versus competitors such as Singapore, Hong Kong, Sweden or Dubai, which have updated their arbitral frameworks in recent times. This decision is not just to settle disputes via arbitration now. Arbitration agreements are often pre-emptive, so these businesses will be making a decision as to where and how disputes may be settled many years in the future.

For the past quarter of a century, our Arbitration Act and our law have been a key draw, making our shores the natural choice for arbitration. In 1996, we created a truly world-leading legislative framework, which contributed to London becoming the preferred forum for arbitration proceedings across the globe. We must maintain our leading position and continue to attract businesses to ensure economic growth. It was therefore important that these measures sought only to improve the arbitral process and promote trust in arbitration. It would have been no good had these reforms created red tape—we would not want to see that.

Arbitration must remain a quicker and a more flexible means by which to resolve a legal dispute versus going to court. But also it is key to promote trust in arbitration to ensure that proceedings on our shores remain robust and respected internationally. The Law Commission needs to be commended for doing such a brilliant job—a superb job—reviewing our framework line by line and seeing where improvements can be made. This Bill contains, as I have said, the expertise and wisdom of myriad practitioners, experts, firms, judges and others.

I will, if I may, indulge in sharing some of the supportive quotes from the sector about the Law Commission’s work.

Qualified Teachers

Debate between Nicholas Dakin and Richard Fuller

Wednesday 30th October 2013 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

Having been a college principal only three years ago, I bring the perspective of the head teacher to the debate. In the college I led, the sixth-formers would have expected debaters to refer to the motion. I think that they would have found that much of the Secretary of State’s 30-minute speech related not to the motion, but to peripheral issues concerning free schools and the question of regulation. Those are valid areas of debate, but if he had taken the trouble to read the motion, which I think would have been helpful—it is what I would have advised my sixth-formers to do—he would have seen that it states:

“That this House endorses the view that in state funded schools teachers should be qualified or working towards qualified teacher status while they are teaching.”

Having listened to the contributions from Government Members so far, one might be forgiven for forgetting the important phrase

“working towards qualified teacher status”.

When I appointed teachers, as I did frequently in my 28-year career in education, they either would have teaching qualifications or would be put in a framework in which they could gain them. That was for their benefit and that of their students, and there is a lot of evidence to demonstrate that. I think that any Member who intends to go through the Lobbies tonight ought to look carefully at the motion. If they vote against it, they need to understand what they are doing.

[Richard Fuller (Bedford) (Con)]

I am grateful to the hon. Gentleman for drawing us back to the motion. If it became Government policy, will he explain what would happen to those teachers currently employed who did not work towards qualified teacher status? Would he want them to be sacked?

[Nic Dakin]

As a practical person and a head teacher, I would give the people employed in my college a framework in which they could get those qualifications, and we could have accreditation of prior learning, assessments and so on. Those people who have not done the job I did will have theoretical views on this, but I know how it is done, because I have done it day in, day out. The people out there know how they are running their schools and colleges, and the people who work in them know what they are doing as well. We trust them, but they need to be in a framework that delivers. We also need to listen to what parents are saying. In a recent YouGov poll, 78% of parents said that they want the teachers teaching their kids to be qualified.

I have just left a symposium in Portcullis House on the Finnish teaching system. I was reminded that not only do Finnish teachers need a master’s degree in their subject knowledge, but the degree has to deal with pedagogy. That is what teachers need: the knowledge and the pedagogy. That is what I needed when I had teachers standing in front of the kids in my college who I had a responsibility to deliver for. I am sure that is what people up and down the land want.