Defamation Bill

Sadiq Khan Excerpts

Tuesday 16th April 2013 Commons Chamber

[Mrs Grant]

I hear what the hon. Gentleman says, but the early resolution procedure will not fix the problem of the chilling effect and equality of arms that he is obviously concerned about. It is one of many measures and although I fully accept that the chilling effect is an issue, we also have to recognise that companies must have the right to protect their reputation. One therefore has to consider not just our request for an early resolution procedure, but the serious harm test and our proposals on cost protection and exemplary damages and costs. Altogether, all those things will, I hope, ensure that defamation proceedings are not manipulated by the party with considerably more financial needs against the party with less financials means.

[Sadiq Khan (Tooting) (Lab)]

I am grateful to the Minister for giving way—I know she wants to get into the flow of her speech—but she misunderstands what clause 1 will do. A trial judge will be able to decide whether serious harm has been caused only at the final trial, after costs have been expended, as indicated by her hon. Friend the Member for Worthing West (Sir Peter Bottomley). The purpose of the clause introduced in the Lords is to allow the issue to be resolved at an early stage, before the defendant has faced too much cost and stress. What has she got against that?

[Mrs Grant]

I have just explained that we have requested that an early resolution procedure should be looked into, and if we have an early resolution procedure, we do not need a permission stage. As I have explained, having a permission stage and an early resolution procedure would create far too much delay and cost, which is not what anyone wants. I would have thought that the shadow Minister, having been a solicitor, would know the effect that can have on claimants.

--- Later in debate ---

I believe that the Government amendments made during the Bill’s passage through the other place assist in achieving the Government’s aim of striking the correct balance between freedom of expression and protection of reputation. To conclude, I urge the House to support amendments 3 to 14 and to disagree with amendments 1, 2, 15 and 16.

[Sadiq Khan]

At the last general election, all three main parties were committed to reform our defamation laws. The Bill before us is a step forward in modernising our outdated defamation legislation. I shall shortly explain that it is not perfect—I believe that the House must decide on a number of crucial issues today—but it will lead to a much-needed updating of the law.

I begin by thanking colleagues in the other place, including Lord Browne of Ladyton and Baroness Hayter of Kentish Town, for championing improvements to the Bill, many of which are before us today, and Lord McNally for his handling of the Bill in the other place. A number of the points addressed in the amendments were raised by Labour in the House of Commons and in Committee in the Lords. We welcome the fact that the Government have taken them on board. I hope the House will endorse the improvements made to the provisions on public interest defence, the operators of websites and the electronic publication of peer-reviewed academic and science journals. All those will contribute to improving our defamation legislation.

[Paul Farrelly]

rose—

[Sadiq Khan]

I will give way once and then move on.

[Paul Farrelly]

I thank my right hon. Friend, who referred to the efforts of Baroness Hayter, particularly in respect of amendment 2 on non-natural persons or corporates. Will he also pay tribute to Lord Lester of Herne Hill of the Liberal Democrats and Lord Mawhinney of the Conservative party, as this truly was an amendment with cross-party support in the Lords?

[Sadiq Khan]

My hon. Friend will be pleased to know that I was going to thank them later in my speech, but I will do it now. I thank Lord Lester for beginning the process of his private Member’s Bill, which followed the working party; and I thank Lord Mawhinney who chaired the excellent Joint Committee. I thank, too, the Select Committee on Culture, Media and Sport, ably chaired by another Conservative, the hon. Member for Maldon (Mr Whittingdale).

On the rules on a corporation’s ability to pursue defamation against an individual, however, the broad consensus breaks down. We were led to believe that this afternoon the Government would make concessions that would buy off the Liberal Democrats and us, but that did not happen. What the Minister has said is inadequate, and gives the lie to the word “concession”.

The Government, and the hon. and learned Member for Harborough (Sir Edward Garnier), seek the House’s support for the overturning of Lords amendment 2. The amendment would bring equality to an area of law that is currently characterised by a large degree of inequality and that has had a chilling effect. Corporations have used their financial and legal might to intimidate their critics, which in many cases has led to their silence.

Let me quote from the excellent report of the Joint Committee.

“It is unacceptable that corporations are able to silence critical reporting by threatening or starting libel claims which they know the publisher cannot afford to defend and where there is no realistic prospect of serious financial loss. However, we do not believe that corporations should lose the right to sue for defamation altogether ...we favour the approach which limits libel claims to situations where the corporation can prove the likelihood of ‘substantial financial loss’.”

Opposition Members support that statement.

If the Government are successful today, they will undo a key improvement that was made in the other place, and this House will send the message that it is acceptable for corporations and institutions to silence their critics by using the threat of defamation in a battle that is inherently unequal. The Bill, as amended, will not prevent corporations from pursuing defamation actions against individuals; it merely introduces an initial hurdle before that stage is reached. A court must be satisfied that the likelihood of substantial financial harm has been proved before the action can proceed. That last point is important, as it relates to the size of the company and thus takes into account the particular challenges facing smaller businesses.

The hon. Member for Worthing West (Sir Peter Bottomley) mentioned Dr Simon Singh, the science writer who led the libel reform campaign—a campaign for reform of our defamation law—after being sued for criticising the “bogus treatments” offered by some alternative medicine providers. He pointed out that if the Government were successful today, people such as him who made similar statements would still be given no protection. As Members may know, he was sued by the British Chiropractic Association, which is registered as a company.

Dr Simon Singh said today:

“My own case is not atypical. Lots of cases which people think are unfair and unreasonable have involved large companies suing individuals and corporations. The only clause in the Bill that would have helped me would have been if the British Chiropractic Association had had to demonstrate financial loss, because that would have been impossible for them. Corporations have huge influence on society and that’s why we need to tip the balance in favour of free speech.”

[Simon Hughes]

As the right hon. Gentleman knows, I am very sympathetic to the point he is making, and I certainly agree that the case of Dr Singh exemplifies the wrong that we seek to redress. It is simply a matter of the tactics that we use to achieve the result that we want. The Minister has expressed her willingness to consider tabling another amendment, and it seems to me that, in procedural terms, the only way in which we can do that is by ensuring that the Commons disagrees with the Lords so that negotiation can take place in the other place over the next few days.

[Sadiq Khan]

I am terribly sorry, but the Minister did not say that. She alluded to the civil procedure rules and to the Civil Justice Council, but she did not say that she would go away and table an amendment in lieu of the previously amended clause 2. If she had agreed to table, next week, a new amendment containing subsections (1), (2), (3), but not (4)—for the reasons that she articulated—that would be an argument in the right hon. Gentleman’s favour.

This is the tactic. The right hon. Gentleman can vote with us. Members of his party, plus ours, defeat the Government, and we succeed in ensuring that the amended clause 2 is in the Bill.

[Dr Huppert]

Will the right hon. Gentleman give way?

[Sadiq Khan]

I will in a moment, but I want to make some progress first. We have only an hour in which to debate the amendments because of the way in which the Government programmed the debate.

Sadly, publishers are routinely threatened with libel proceedings by corporations who do not want negative coverage. The Lords amendment would make that more difficult.

--- Later in debate ---

[Sadiq Khan]

I will give two examples, and then I will give way to the hon. and learned Gentleman, as I know he has an interest in this matter.

Let us look at some of the consequences for the Ministry of Justice, the Minister’s Department. The Government amendment means that anyone, including a whistleblower, who wants to criticise the way a private company runs a prison using taxpayer money could face the threat of an action for damages, whereas he or she would not for criticising a public sector prison. This should be about protecting the reputation of the justice system, rather than big corporations. It would also mean that someone wanting to raise concerns about a danger to public safety caused by a private company managing, for example, medium risk offenders, once the Government’s plans for privatising our probation service have been implemented, would face the threat of defamation.

Do the Government really want this unlevel playing field—which the Liberal Democrats will support in about 20 minutes? I remind the House that these are private companies undertaking public functions at taxpayer expense. At a time when the Government are handing over more and more of our public services to private and voluntary groups in education, health care and crime and justice, less and less of taxpayer spend will be subject to the uninhibited public criticism Lord Keith identified as so fundamental.

[Sir Edward Garnier]

First, may I make it perfectly clear to the ignorant person who tweeted about me this afternoon that I have, in fact, declared my interest in relation to this matter on the amendment paper?

Is the right hon. Gentleman aware that in the Derbyshire county council case, while Lord Keith held that the council should not be able to sue, he confirmed that corporations should be able to sue to protect their trading reputation? The heart of the right hon. Gentleman’s argument is that this is about inequality of arms. He thinks rich, very large and hugely well-resourced companies are bullying less resourced individuals, but the same criticism could be made of immensely rich private individuals who bring claims. Robert Maxwell used his millions—perhaps they were other people’s millions—

[Mr Speaker]

Order. I am sure the hon. and learned Gentleman will have an opportunity to catch my eye and make his own speech in due course, but we do not have all that long for this debate and we have got the gist of his point.

[Sadiq Khan]

Thank you for rescuing me from that speech, Mr Speaker.

First, we are not saying corporations cannot sue at all. We are saying, “If you’ve suffered serious financial loss relative to the size of your company, you can sue.” Also, directors can sue, which is especially relevant to a small company suffering harm.

All in all, we believe that the provisions in Lords amendment 2 are measured and sensible, and modernise our existing defamation laws in a proportionate manner. They enjoy wide support, too. They are supported by the Libel Reform Campaign, the House of Commons Culture, Media and Sport Committee and the Joint Committee on the draft Bill, chaired, as we have been reminded, by former Conservative Cabinet Minister, Lord Mawhinney.

[Paul Farrelly]

The right hon. Member for Bermondsey and Old Southwark (Simon Hughes) suggested in his intervention that the Government might make some changes in the Lords and gave the Minister the opportunity to intervene. Will my right hon. Friend invite the Minister to intervene, to make clear what might happen in the Lords if this measure is not pressed to a vote now?

[Sadiq Khan]

My hon. Friend will be pleased to know that I think it is good manners and courtesy to take an intervention when someone on the Front Bench tries to make one, so if the Minister seeks to intervene I shall allow her to do so.

[Sir Peter Bottomley]

rose—

[Sadiq Khan]

I shall give way to the hon. Gentleman in a moment.

I was talking about the huge amount of support for Lords amendment 2. It should also be supported by the Liberal Democrats, whose manifesto stated that they sought defamation reform that would require

“corporations to show damage and prove malice or recklessness”.

That is a far higher threshold than that in Lords amendment 2. If the Liberal Democrats stick to their manifesto and their principles and vote with us this evening, we can defeat this attempt to stifle free speech. I urge them and others to vote with us to support the retention of this crucial clause in the Bill.

I like to keep my promises, so I shall now give way to the hon. Member for Worthing West (Sir Peter Bottomley).

[Sir Peter Bottomley]

The right hon. Gentleman might get as far as I did by doing that.

Atos does disability checks for the Government and a number of disability claimants had a forum where they made their comments about that. Atos, I understand, sent a legal letter that closed it down because the threat was sufficient. The Government could not have done that and Atos should not, so the public function issue matters. There are plenty of other ways in which large corporations can defend their reputation, but using money and legal threats is not one of them.

[Sadiq Khan]

The hon. Gentleman might have been in the House in 1993, when Lord Keith made his judgment, but the numbers of private companies undertaking public functions in ’93 were far fewer than they are in 2013. The hon. Gentleman knows that I have huge respect for him, but if his party has its way, with the support of the Liberal Democrats, even more public services will be tendered and will be run by private companies.

Large elements of the Bill show how Parliament should legislate. Political consensus on the overarching need to reform followed by detailed, expert debate on the substance in both Houses, all informed by a dedicated set of campaigners and non-governmental organisations, has helped to turn the original substandard Bill into a better set of proposals. I hope that today the House will agree with us one more time on the importance of retaining the key changes made to the Bill in the Lords. Do you know what? Defamation Bills do not come around very often—this is only the third since 1853. We must grasp the opportunity and deliver the modern, updated defamation laws warranted by our tradition of open and free speech.

[Sir Edward Garnier]

There have been three defamation Bills in my lifetime; I do not know whether that helps the right hon. Member for Tooting (Sadiq Khan)—

[Sadiq Khan]

It shows how old you are.

[Sir Edward Garnier]

It does, and perhaps the right hon. Gentleman will allow me to—