Oral Answers to Questions

Debate between Rory Stewart and Kevin Hollinrake

Tuesday 23rd April 2019 Commons Chamber

[Rory Stewart]

I am delighted that Labour Members are working with us to try to get a good Brexit deal in place, and if we can get such a deal, we will be able to continue through the transition period. In a no-deal situation, however, it will become significantly more difficult because we will have to fall back on older and more cumbersome ways of moving prisoners. That would not be good for us or for Europe.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Despite the wilful destruction of thousands of small businesses by their own bank, no senior executive has ever been held to account. Will the Minister update the House on the Government’s proposals to bring forward legislation to make failure to prevent fraud a corporate criminal offence?

Civil Liability Bill [Lords]

Debate between Rory Stewart and Kevin Hollinrake

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 23rd October 2018 Commons Chamber

[Kevin Hollinrake]

My hon. Friend makes a very good point about the personal injury lawyers. One of the provisions in the Bill—I think it is clause 8—states that claims management companies will be regulated by the FCA. We already regulate the insurance industry, so how do we make sure there is no conflict of interest in the regulation of both those parties, which often have competing interests?

[Rory Stewart]

This is a very interesting point, and I am very happy to follow up on it in more detail. The nature of the regulation in each case is quite distinct. In relation to the insurance industry, the regulation proposed is to ensure that we have the financial information to prove that the savings the insurance industry has derived from these reforms are passed on to customers. In the case of the claims management companies, the regulation is to ensure that they comply with the law, particularly the legal changes introduced by previous legislation. In accordance with the suggestions from the Justice Committee, we are also looking at the advice forthcoming from the judiciary to ensure that we can deal with other issues involving claims management companies.

If I may, I will come back to the core of the Bill. We are dealing with a perfect storm of three things. First, at the minor end of whiplash injuries—the three-to-six-month end—this is a condition that, in effect, is unverifiable and difficult to disprove. The polite way of expressing this is to say that there is an asymmetry of information. Somebody suffering a whiplash injury will experience genuine and sincere pain, but that pain cannot be detected at the minor end through any medical instruments. That is the first challenge involved in this type of injury.

The second challenge is of course the level of payments offered to individuals suffering these injuries. The third is the level of recoverable costs which meant, in effect, that a no win, no fee process was operating in which people could apply to a lawyer to represent them and be confident that the legal costs would be recoverable from the defendant. When that is connected to the fact that for all the reasons I have given—particularly the first, asymmetry of information—the insurance companies are not contesting claims, we end up with a discrepancy rapidly emerging between the number of motor vehicle accidents and the number of claims, and between the number of claims made in the United Kingdom and the number made in other jurisdictions.

Lord Brown of Eaton-under-Heywood, a former justice of the Supreme Court, stated that he was

“reluctantly persuaded that this provision is justified: it is surely intolerable that we are known as the whiplash capital of the world, so I have concluded that it is open to government, as a matter of policy, to seek to deter dishonest claims in this way.”—[Official Report, House of Lords, 12 June 2018; Vol. 791, c. 1603.]

Oral Answers to Questions

Debate between Rory Stewart and Kevin Hollinrake

Tuesday 9th January 2018 Commons Chamber

[Rory Stewart]

Absolutely; religious freedom is critical, and particularly critical in a world in which religious and sectarian violence appears to be increasingly dominant. We must advocate religious freedom, and we do so also through Department for International Development support to civil society organisations.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

We provide aid to many countries where appalling human rights abuses take place, whether the persecution of minorities or the construction of illegal settlements. Does my hon. Friend agree that we should make aid and direct support for Governments conditional, unless they use best endeavours to tackle such abuses?

[Rory Stewart]

That is a very important question. Our belief is that we need to do these things simultaneously. We need to use our political relationships actively, to drive human rights improvement and change, but at the same time we have an obligation to very vulnerable, marginalised people in those countries, and we need to continue to provide development assistance to them.