Prisons and Courts Bill

Oliver Heald Excerpts

2nd reading: House of Commons
Monday 20th March 2017 Commons Chamber

[Elizabeth Truss]

We are doing a lot to improve broadband across the country. The online system is not mandatory; the paper process will be available. I have been looking recently at virtual hearings that are taking place across the country. In some areas, such as the south-west of England, there is very high take-up of these hearings, because being able to use broadband helps people in rural areas, who have long distances to travel to get to court.

[The Minister for Courts and Justice (Sir Oliver Heald)]

Particularly in the west country.

[Elizabeth Truss]

The west country is leading the way at the moment, and we are looking at how we can encourage courts across the country to do the same thing.

I am very pleased to say that civil justice is at the forefront of our reforms. I was proud to announce the new business and property courts last week with the Lord Chief Justice and the Chancellor of the High Court. These courts are the vanguard of our world-class civil justice system, making sure that global Britain leads the world in law. They will be based in London, Leeds, Bristol, Manchester and Cardiff, and they represent the fact that our courts and commercial courts serve not only the City of London, which is of course important, but significant regional centres across the country.

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[Sir Oliver Heald]

The hon. Gentleman fails to mention that the policy was designed in part to increase the number of cases that are conciliated. Now, instead of 23,000 cases a year going to ACAS, 92,000 do and half of them are resolved, and of course it is free.

[Richard Burgon]

The coalition Government’s objective in introducing employment tribunal fees was to strengthen the hand of employers, including unscrupulous ones, and to weaken the hand of individual employees. That is what the policy was about and that is why it has worked from the Government’s perspective. The ACAS conciliation now offered as compulsory conciliation is not the same as the role of ACAS in the past when people issued an employment tribunal case. No professional advice is given on the value of the case. Just because a claim has not been issued or a matter has been discontinued does not mean that it has been resolved satisfactorily with both parties on an equal footing. To make it clear, Labour would abolish employment tribunal fees because Labour believes in access to justice.

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[Richard Burgon]

More than implicit in the hon. Gentleman’s ill-considered comments is that allowing people to seek justice in the employment courts without paying money is a something-for-nothing practice. That is a disgraceful comment, which we look forward to publicising as widely as we can. The Government need to think again when it comes to employment tribunal fees.

[Sir Oliver Heald]

What is wrong with moving from a system where very many cases go to the employment tribunal to one where most cases are conciliated? It is a much easier way for people to get justice.

[Richard Burgon]

The problem is that the price that is being paid is that of access to justice, and that is unacceptable to the Labour party at least. Are the Government seriously contending that 70% of claims brought before 2013 were somehow fraudulent? If so, that is absolutely outrageous.

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[Mr Hanson]

I agree, but we both know that such problems are not easy to solve. Central to today’s debate is the question of what we can do in the context of the Bill. As I have said, I would add the question of family links to the list given by my right hon. and learned Friend the Member for Camberwell and Peckham. I was prisons Minister for two years and one month. It is a difficult job, and it is difficult to change policy, but we have opportunities to consider these matters. I hope that the Minister will reflect on them in Committee, and will think about how clause 1 can be strengthened in order to achieve its objectives.

The Justice Committee welcomes the fact that clause 2 puts Her Majesty’s inspectorate of prisons on a statutory footing, and we consider the statutory recognition of the inspectorate’s role in visiting places of detention to be a positive development. We are pleased that the chief inspector of prisons will be required to have regard to the new statutory purposes of prisons. I am particularly glad that the Government will have to respond to the chief inspector’s recommendations within 28 days if the matter is urgent, or within 90 days in the case of a general inspection, and that there will be scrutiny of inspection powers. Clauses 4 to 20 put the prisons and probation ombudsman on a statutory footing, and we welcome that as well.

The Government accepted the Committee’s recommendation that the HMIP protocol should be finalised, and said that they would produce a final version before Second Reading. The Committee was consulted on the draft protocol in January, but as far as I know no final protocol has been agreed or published. I think it important for it to be published as soon as possible so that we can develop it accordingly. It was more than a year ago that we recommended a protocol on the relationship between the inspectorate and the Ministry, and we need to know what that relationship is.

Whiplash poses a challenge for the Minister and the Government. The Committee heard evidence from the Association of British Insurers and from the association of legal professionals who deal with whiplash cases. Because we have not been convinced by the Government’s case to date, we have established a follow-up inquiry—as the Minister is doubtless aware, it was announced last Friday—to call for evidence on whiplash. The terms of reference for our fuller inquiry include the definition of whiplash and the prevalence of road traffic accident-related whiplash claims, considering whether fraudulent whiplash claims stack up and whether the provisions in part 5 introduce an effective tariff to regulate damages for RTA-related whiplash claims. In particular, they include consideration of the impact of raising the small claims limit to £5,000 for RTA-related whiplash claims, and—this is not in the Bill, but it is directly linked to it—raising the small claims limit to £2,000 for personal injury claims more generally. They also include consideration of the role of claims management companies, which have not been touched on to date.

The challenge for the Minister, in Committee and on Report—and I hope that the Justice Committee will influence those debates—is to convince us that his policies, established on a cross-party basis with the Committee, will meet our objectives. The claims that the Government have made about savings being passed on to motorists and about the level of fraud in the system have not yet been tested to my satisfaction or that of the Justice Committee, which, it should be remembered, has a Conservative majority.

The Government’s consultation paper sets out no rationale for including employment injuries in what is billed as a reform of whiplash claims. I wrote to the Lord Chancellor last week, and was told that the employment injury aspects would be dealt with by a statutory instrument following completion of the whiplash measures in the Bill.

[Sir Oliver Heald]

The aspect of whiplash that is in the Bill is the tariff, along with the judge’s ability to enhance it by 20%. However, there is an entirely separate secondary legislation route whereby the small claims limit can be raised. It could be reduced, of course, but that is not happening in this instance.

[Mr Hanson]

I appreciate that. I have said to the Minister that the other aspects are not in the Bill. However, I sense that they are linked in that the Government’s approach to whiplash will be linked with their approach to tariff levels.

[Sir Oliver Heald]

The point is that the small claims threshold is being raised to £5,000 for road traffic-whiplash related cases and to £2,000 for other cases.

[Mr Hanson]

I am fully aware of that. What the Minister needs to know is that the Justice Committee believes that there is still a tangential link between two matters, which is why it is considering the whiplash provisions in the Bill together with employment levels. We are very conscious that, as well as the potential examination of the Government’s case in regard to whiplash, there should be an examination of their case in regard to industrial and employment injuries. There are myriad cases—I have no time to list them now, but I shall do so on another occasion—in which industrial injury claims would be detrimentally impacted by the change in the limit, and while that is not directly in the Bill—

[Sir Oliver Heald]

It is £2,000.

[Mr Hanson]

The Minister does not work in the same spheres that I work in; people in my constituency depend on that level of employment injury support to ensure that they get justice at work. We will return to that at a later stage. The Minister is looking quizzical; he will have an opportunity to come and explain his proposals and those on whiplash to the Justice Committee in due course.

The Bill’s direction of travel can and should be supported. However, the beef of this Bill is what really matters. There are measures that the Government can take to improve it, and to reduce the poor indicators that have been growing in disparity over the last few years, and not just in staffing. They should also consider issues such as those raised by my right hon. and learned Friend the Member for Camberwell and Peckham and those that the Justice Committee asks the Government to look at again.

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[Mr David Nuttall (Bury North) (Con)]

It is a privilege, as always, to follow my hon. Friend the Member for Shipley (Philip Davies), and I very much look forward to supporting some of the amendments he foreshadowed in his speech.

At the outset, I must draw the House’s attention to my entry in the Register of Members’ Financial Interests, as I am on the roll of solicitors. I am a non-practising solicitor now, but earlier in my career I was involved in many personal injury matters, and it is to part 5 of the Bill, which deals with whiplash, that I want to restrict my remarks.

There are things to commend and welcome in the Bill, but the one area where I do have concerns is over the proposals relating to whiplash. It is completely understandable that the Government would want to root out fraudulent whiplash claims, and I am sure everybody would agree with that, but I am not convinced that the proposals in part 5 will assist in achieving that aim. I welcome the fact that the Government have abandoned some of the more extreme proposals in the consultation paper, but we have nevertheless finished up with a set of proposals that I doubt will have the desired effect.

There is no doubt that if fraudulent claims are submitted and not spotted, the damages that are paid out will increase premiums. However, I am not convinced that the way to reduce premiums is to restrict artificially the level of damages payable by someone found liable for the tort of negligence. The Government’s proposal has nothing to do with controlling public expenditure; we are told that it is all about rooting out false, fraudulent claims and trying, as a consequence, to reduce insurance premiums. If the Government are really keen to do that, one way would be to reduce insurance premium tax. It seems rather perverse that we should tax those who seek to do the right thing. I can understand the argument—I might not always agree with it—for taxing goods or behaviours that are perceived to be bad, but it is less easy to understand the rationale for taxing those who seek to do the right thing by taking out insurance to protect themselves and take care of their future.

There are already procedures in place to reduce the potential for fraudulent claims to be successful. I am all in favour of taking the strongest possible action to root out those who try to con the system, but perhaps we should have given the existing measures—it is not many years since they were introduced—more time to work, and there is already evidence that they are working. The number of whiplash claims, as reported to the compensation recovery unit at the Department for Work and Pensions, fell from 511,111 in 2010-11 to 335,365 in 2015-16.

[Sir Oliver Heald]

The expression we use is whiplash-related road traffic injuries. Some of them are described as upper torso strain caused by shunt by a vehicle; that is a whiplash-related claim, and it would not count as a whiplash claim, but we think they are the same thing, and we reckon that the figures show a 50% increase over the last 10 years, at a time when the number of road traffic accidents generally has been falling.

[Mr Nuttall]

Clearly, there are issues around the definition of what constitutes a whiplash injury. The fact remains that, under the definition of whiplash used by the CRU, there was a 34% fall between 2010-11 and 2015-16.

Regardless of the number of claims, if they are valid, appropriate damages should be paid. The introduction of tariffs will have a number of effects, particularly when combined with the proposed increase in the small claims limit, which I accept is not in the Bill but is foreshadowed in the Government’s proposals. First, the level of damages will hardly ever be correct, as the Government recognise in their proposed uplift provisions. This is a rather clumsy way to try to finesse the basic scheme, recognising that the damages will not be at the appropriate level. There will inevitably be an increase in the number of litigants in person, and that raises questions as to how the courts will cope. For example, is the portal proposed as the mechanism by which the system is accessed intended for use by litigants in person?

Claims management companies will have a field day as they look to expand their operations in the light of these proposals. I fear that there will inevitably be an increase in the number of nuisance telephone calls. The Government may feel that insurance premiums are a problem, but that is as nothing compared with the problem of nuisance telephone calls. I am sure that I am not alone among MPs in being able to say that I hardly ever get a complaint about insurance premiums in my postbag or email inbox, whereas I get many, many complaints about the number of nuisance telephone calls.

Another problem resulting from the introduction of tariffs is that the same injury will attract a different level of compensation dependent on whether the injury was suffered as a result of a road traffic accident or in the workplace. I am not sure how that could be justified to the injured person, but I look forward to hearing the explanation of how it could be justified. There will inevitably be a transfer of cases from qualified legal practitioners to unqualified claims companies—McKenzie friends and so forth—and thousands of high street practices will face closure or, at the very least, job losses. There will also be unintended consequences. For example, the Access to Justice Action Group has pointed out that an injured party would be entitled to £3,725 for a neck injury lasting 24 months under the small claims track, but £6,750 for a neck injury lasting just one month longer outside the small claims track. That will be an incentive for the small minority who try to play the system to exaggerate their claims.

In summary, why should the vast majority of innocent, law-abiding citizens be penalised for the actions of the dishonest few?

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[The Minister for Courts and Justice (Sir Oliver Heald)]

We have had an excellent debate this evening. I congratulate this very esteemed and experienced group of speakers: the Chair of the Select Committee, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill); former Justice Minister, my hon. Friend the Member for Huntingdon (Mr Djanogly); my hon. Friend the Member for North West Cambridgeshire (Mr Vara), another successful colleague who actually had my job; my right hon. and learned Friend the Member for Harborough (Sir Edward Garnier), who did this as a shadow Minister; my hon. Friend the Member for North West Norfolk (Sir Henry Bellingham), who has been a Minister in the Department; and former prisons Minister, my hon. Friend the Member for South West Bedfordshire (Andrew Selous). I also congratulate my hon. Friends the Members for Banbury (Victoria Prentis), for Derby North (Amanda Solloway), for North West Hampshire (Kit Malthouse) and for Mid Dorset and North Poole (Michael Tomlinson), who all made excellent contributions. I will comment on some of the other speeches, which were generally very thoughtful. It is obvious that there is a good deal of support for the Bill.

As the Secretary of State outlined at the beginning of the debate, these are vital provisions if we are to make the justice system fit for the 21st century. We are talking about a major reform of prisons, and an important set of changes to the law on the courts that will underpin the transformation programme that is going on at the moment and has the support of the senior judiciary. I pay tribute to those who work in our prisons, courts and the wider justice system. Their commitment to public service and care of the most vulnerable in society is inspiring, and I know that many of them will be following the Bill, which means a lot for their work.

Before addressing some specific matters, I want to clarify how the Bill does some important things and does not do some things that might have been suggested. The provisions in the Bill mean better access to justice and the simpler resolution of cases for people. It is important to reiterate that the Bill has been prepared with extensive user testing and consultation with those affected by the measures. Access to justice will not be compromised by the Bill. Sacred principles of open justice and the rule of law will be protected in a modern system that reflects how people access public services in the 21st century.

A good deal was said in support of the idea of having the statutory purpose of prisons in the Bill—for the first time, it is about not just housing the prisoner, but having to keep the person and the public safe, carrying out reform and rehabilitation, and preparing people for a life outside prison. That new framework is there, and everything follows from it: governors’ contracts, the information that is spread about best practice, and training. As the right hon. and learned Member for Camberwell and Peckham (Ms Harman) said in her very thoughtful speech, it is also important to prepare the prisoner for release. Other Members, including the hon. Member for Bridgend (Mrs Moon), referred to the importance of the family and accommodation. Those things are there in the purpose in the Bill, so when we talk about the reform and rehabilitation of offenders, we are talking about tackling their mental health needs. When we talk about preparing prisoners for life outside prison, we are talking about housing, accommodation and good contacts with their family. Those things are all in the Bill, but the right hon. and learned Lady—

[Neil Carmichael (Stroud) (Con)]

Will my right hon. and learned Friend give way?

[Sir Oliver Heald]

I have not got much time, I am afraid.

I think the right hon. and learned Lady made the point that we might want to see whether there was a solution in secondary legislation, as well as in primary legislation, that might address some of the important points she raised. Of course, the prison rules are secondary legislation, and they already contain a lot of detail about the way in which prisoners should be treated. So it is possible to look at those issues, and I will certainly do that.

The hon. Member for Stretford and Urmston (Kate Green) mentioned the Prison Reform Trust and its suggestion that we should add fairness and decency to the statutory purpose. It is right that those are important considerations in running prisons, but we need to remember that there is already an interlacing of legal obligations that apply in prisons. The right hon. and learned Member for Camberwell and Peckham, with her background in the Joint Committee on Human Rights, mentioned that there are basic human rights—articles 2, 3 and 8—that apply to the way in which prisoners are treated. There is health and safety legislation. There is the duty of care that comes through the law of tort. So it would be wrong to think that there is not protection already, but this is certainly something we can examine further in Committee. I would like to pay tribute to my hon. Friend the Member for Derby North, who has done so much as the rapporteur for the JCHR on the issue of deaths in prison.

My right hon. and learned Friend the Member for Harborough and others asked what happens if a prison does not meet the purpose set out in law. The purpose of prisons is in the Bill, and it is underpinned by the inspectorate’s duty to inspect against the purpose and the aims. It is also protected by the Secretary of State having to respond. I would not say that it is impossible that a case could be mounted for judicial review—to even say that is to press the case too far—but I think it would only be in a case where an individual prison totally ignored or disregarded the purpose, or something of that sort, that it would be grounded. Possibly, these things could also be considered as a factor in another case, where other aspects were being raised.

The right hon. Member for Delyn (Mr Hanson) asked about the update on HMIP’s protocol with the MOJ, and I pay tribute to his experience in this area. Earlier this year, a draft protocol was shared with the Justice Committee and other bodies. The final protocol will be available very shortly, and I can promise that it will be there before the Committee stage. [Interruption.] Very shortly—imminently.

I could say a lot about family engagement, and the Farmer review looks very much at it. It is well understood that maintaining family relationships is a key element in trying to set prisoners on the straight and narrow and that it is very important in rehabilitation.

The hon. Member for Leeds East (Richard Burgon) asked about the time limits for responding to inspection reports. Action will be taken from day one of an urgent notification by the chief inspector, so immediate energy will be brought to bear. Twenty-eight days is the appropriate period in a really urgent case of that sort. On the Law Society’s concerns about safeguards for online conviction, defenders must opt in to the new procedure, and proper warnings will be available making it clear that if a defendant wants to challenge the case in any way—for example, if they want to argue that time to pay is needed for a financial penalty or that the penalty should be lower because of means or circumstances—then all these things will be made clear. The Bill also provides that in the event of a mistake made, for whatever reason, it will be possible to set aside the conviction or the sentence in order to have the matter dealt with in the traditional way. I am sure that we will discuss this more in Committee, but certainly the idea is to have those protections in place.

My hon. Friend the Member for Huntingdon asked about successful prosecutions of fraud cases in relation to whiplash. The insurance industry data show that in 2015 there were 70,000 cases of insurance fraud worth £800 million. The City of London police insurance fraud enforcement department has secured over 200 prosecutions in the past four years, resulting in over 100 years’ worth of jail time for insurance fraudsters. A lot of action is being taken on this.

On whiplash more generally, the Government note that over a 10-year period when we have seen the number of road traffic accidents falling and car safety improving, we have had a more than 50% increase in the number of whiplash-related cases. These cases are obviously exaggerated to some extent, and perhaps fraudulent. No Government could ignore these sorts of statistics and not take action. We have not taken extreme options but gone for moderate options such as a tariff of damages for the very minor cases. The tariff does not apply in a serious case of whiplash where the damages would be substantial—it is for cases where the pain and suffering lasts less than two years and is of a minor nature. Against that background, such a tariff is surely a reasonable approach. If there is any element of exceptionality in these cases, then there is a provision to uplift. We say that this approach is proportionate to the scale of the problem.

My hon. Friend the Member for Shipley (Philip Davies) talked about violence against prison officers. I do not totally agree with him about this. I think that if there genuinely is violence against a hard-working and dedicated prison officer—he has been assaulted and it is an offence—we should go further than my hon. Friend suggests. I think that the perpetrator should be prosecuted in court for that violent offence, that he should face swift justice, and that the court should give the full penalty that is right for the offence. I would not say that it is a question of him serving his full time for the original offence, but that he should serve the full time for a serious offence of attacking a prison officer. I take a slightly different view from my hon. Friend on that.

[Philip Davies]

Can the Minister explain why, with all the assaults on prison officers at the moment, the average amount of extra time that prisoners spend in prison for assaulting a prison officer is 16 days, which is, quite frankly, pathetic and insulting?

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[Sir Oliver Heald]

To be honest, my hon. Friend is looking at something different—adjudications within the prison for an offence of some sort. I am saying that where somebody has been assaulted, the perpetrator should go to court. It should not be an internal adjudication if it is a serious matter. The person responsible should be taken to court and face the full penalty of the law. That is the approach that I would take. I will be interested to discuss the matter further in Committee, and I have no doubt that we will do so.

As a result of the Bill, prisons will be safer. They will be places of reform. Our courts will provide straightforward access for all users. There will be stronger confidence in the justice system. We will enhance our global reputation for the excellence of our legal system. This is a bold, reforming ambition for justice, and I commend it to the House.

Question put and agreed to.

Bill accordingly read a Second time.

Prisons and Courts Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Prisons and Courts Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 27 April 2017.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Proceedings on Consideration and up to and including Third Reading

(4) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.

Other proceedings

(7) Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.—(Guy Opperman.)

Question agreed to.

Prisons and Courts Bill (Money)

Queen’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Prisons and Courts Bill, it is expedient to authorise:

(1) the payment out of money provided by Parliament of:

(a) any expenditure incurred under or by virtue of the Act by the Secretary of State or Lord Chancellor; and

(b) any increase attributable to the Act in the sums payable under any other Act out of money so provided; and

(2) any increase attributable to the Act in the sums charged on and payable out of the Consolidated Fund under any other Act.—(Guy Opperman.)

Question agreed to.

Prisons and Courts Bill (Carry-over)

Motion made, and Question put forthwith (Standing Order No. 80A(1)(a)),

That if, at the conclusion of this session of Parliament, proceedings on the Prisons and Courts Bill have not been completed, they shall be resumed in the next session.—(Guy Opperman.)

Question agreed to.