Part 2 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012
Shailesh Vara Excerpts(9 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
My noble friend the Minister of State for Civil Justice and Legal Policy (Lord Faulks QC) has made the following written ministerial statement:
“The Government have made a priority of addressing the high costs of civil litigation in England and Wales. To that end, Part 2 of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012 reforms the operation of no win no fee conditional fee agreements. Those reforms came into effect generally in April 2013, but were delayed until April 2015 in respect of insolvency proceedings (Official Report, 24 May 2012: column 94 WS). This delay was to give insolvency practitioners and other interested parties time to prepare for and adapt to the changes. However, the Government now agrees that more time is needed.
The Government will therefore delay commencing sections 44 and 46 of the LASPO Act 2012 for insolvency proceedings for the time being. Accordingly, no win no fee agreements in insolvency proceedings will continue for the time being to operate on a pre-LASPO Act basis with any conditional fee agreement success fees and after the event insurance premiums remaining recoverable from the losing party.
We will consider the appropriate way forward for insolvency proceedings and will set out further details later in the year.”
[HCWS303]
Enhanced Court Fees
Shailesh Vara Excerpts(9 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
I am today publishing the Government response to part two of the consultation “Court Fees: proposals for reform.”
We are rightly proud of our system of justice. We have some of the best lawyers, and finest judges, in the world. That is why so many people and organisations choose to bring their disputes to this country.
The courts play a critical role in our society, providing access to justice for those who need it. It is vital that the principle of access to justice is preserved. I believe that the best way to do so is to ensure that the courts are properly funded.
We cannot have properly funded public services without a strong economy. This Government have therefore made economic recovery its top priority. Public spending must be brought under control, and the courts and justice system must bear their fair share.
I have already announced that we will be investing £375 million in the courts over the next five years to modernise services so that we can realise long-term financial savings worth over £100 million per annum by 2019/20. There is, however, only so much that can be achieved through cost efficiency measures alone. If we are to reduce the costs of the courts to the taxpayer, and protect access to justice, I am convinced that there is no alternative but to look to those who use the courts to contribute more, where they can afford to do so.
I have therefore decided to proceed with most of the proposals relating to enhanced fee charging set out in the consultation. Specifically, I have decided to introduce a fee to commence proceedings for the recovery of money of 5% of the value of the claim on claims for more than £10,000, subject to a maximum fee capped at £10,000. Setting the value of claims subject to fees at this level means that 90% of cases will not be affected by the introduction of this fee. A 10% discount will continue to be available for those issuing claims electronically. These measures will deliver an estimated £120 million in additional income, with every pound retained by the courts to invest in delivering a better service for those who use them.
Some respondents were concerned that this would affect legal services in this country, and impact on London’s position in the face of international competition. I do not accept these concerns, given that the increase in court fees proposed would have only a negligible impact on the overall cost of litigation. However, I have decided at this stage not to proceed with either of the options on which I sought views to charge higher fees for commercial proceedings.
Most respondents were particularly concerned about the proposal to raise the fee for a divorce, and having listened to those concerns, I have decided not to proceed with this proposal for the time being.
However, while I have decided not to proceed with a number of the consultation proposals, this has not changed the financial imperative to increase income to the Courts from fees. Therefore, the Government response also seek views on proposals for raising fee income from possession claims and general applications in civil proceedings. The deadline for responses to the consultation is 27 February 2015.
Increasing court fees will never be welcome. I believe, however, it is right that those who use the services should make a greater contribution towards their running costs, where they can afford to do so. I am also sure that those who choose to litigate in our courts will continue to recognise the outstanding qualities our legal services offer, and the excellent value for money they provide.
[HCWS200]
Property Boundary Disputes
Shailesh Vara Excerpts(9 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
My noble friend the Minister of State for Civil Justice and Legal Policy (Lord Faulks QC) has made the following written ministerial statement.
The Government are today publishing an initial scoping study on property boundary disputes. This fulfils a commitment given by the Ministry of Justice in response to a written parliamentary question from Charlie Elphicke MP on 14 February 2013 (Commons Hansard, 14 February 2013, Column 874W).
The scoping study was undertaken because of concern that such disputes are all too often disproportionately bitter, protracted and expensive. The study took the form of interviews with a small number of key stakeholders and the distribution of a questionnaire to 30 organisations with an interest in land law issues including boundary disputes. Input was also received during the period of the study from a number of individuals involved in boundary disputes.
The study reflects the views expressed in the responses received on the nature, frequency and causes of boundary disputes, the effectiveness of current resolution methods, and the problems that currently arise and what could be done to address them. It discusses a number of options for legal or procedural change, and concludes that the Ministry of Justice should carry out further work to assess the feasibility of improvements in a number of areas, including in particular the use of mediation and expert determination, the spreading of best practice and the provision of better information with a view to reaching more definite conclusions in 2015, but that more radical reform is not currently justified.
Copies of the scoping study are being placed in the Libraries of both Houses.
It is also available online at: http://www.parliament.uk/writtenstatements.
[HCWS193]
Criminal Justice and Courts Bill: Carry-over Extension
Shailesh Vara Excerpts(9 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
I beg to move,
That the period on the expiry of which proceedings on the Criminal Justice and Courts Bill shall lapse in pursuance of paragraph (13) of Standing Order No. 80A shall be extended by 54 days until 30 March 2015.
As we have just concluded a debate on the Criminal Justice and Courts Bill, I shall keep my remarks brief. This carry-over Bill was introduced on 5 February 2014, and as set out in Standing Order No. 80A, proceedings on such a Bill will lapse 12 months from the date of its First Reading. That date is fast approaching, and although I am confident that the sensible package of amendments that the Government have offered and the House has today accepted will meet the reservations of the other place, now seems to be a sensible juncture to extend the time that we have available, as a precaution.
As hon. Members are aware, the Bill makes wide-ranging reforms to the justice system and contains targeted provisions designed to protect the public better and to reduce reoffending. The Bill has at its heart a vision of a more robust and fair justice system. With proper progress in both Houses, I am confident that we can reach Royal Assent in the coming weeks, not least by 30 March, so that the important provisions in the Bill make it on to the statute book.
Oral Answers to Questions
Shailesh Vara Excerpts(9 years, 4 months ago)
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Sir Oliver Heald (North East Hertfordshire) (Con)
1. What steps Her Majesty’s Courts and Tribunals Service is taking to ensure that urgent cases to remove trespassers from land are dealt with as quickly as possible.
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
HMCTS treats such applications with the utmost urgency. Hearing notices are served by hand and hearings before a judge are listed urgently, normally immediately after the two days’ notice period. Warrants are enforced by bailiffs as a matter of priority.
Sir Oliver Heald
I thank my hon. Friend for helping me to resolve an urgent constituency case involving a mass trespass in Letchworth, and for doing so speedily. Is it his Department’s policy, and are the courts aware, that it is vital that these cases are dealt with speedily in order to avoid the risk of nuisance to local residents, as happened in Letchworth?
Mr Vara
I thank my hon. and learned Friend for his kind comments. It was a pleasure to be able to help out in his constituency matter. He is right: there are existing processes that enable such cases to be dealt with and I am keen that they are dealt with speedily. I will certainly make sure that Her Majesty’s Courts and Tribunals Service is made well aware of that principle.
Maria Miller (Basingstoke) (Con)
I would like to applaud the swift work of Basingstoke and Deane borough council in stopping unauthorised activity this year at Dixon road in my constituency, with the Crown Prosecution Service successfully prosecuting last week those who felled up to 800 trees on that site. Does the Minister agree that tougher fines might also help to deter this sort of criminal activity?
Mr Andrew Turner (Isle of Wight) (Con)
2. What proportion of immigration and asylum appeals were made on the grounds of alleged breaches of the Human Rights Act 1998 in the last five years.
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
In 2009-10, 10% of recorded appeals, lodged from inside the UK, raised human rights grounds; in 2010-11 the proportion was 28%; in the last three years the proportion has been 34%. Information is not available for appeals lodged from outside of the UK.
Mr Vara
My hon. Friend’s comments are timely given that next year we will commemorate the 800th anniversary of the sealing of Magna Carta. The House will be aware that the Government agreed in the coalition agreement that no major changes would be made to the human rights framework in this Parliament, but as he rightly says, the Conservatives believe that we need major reform to the way in which human rights operate in this country. We believe that we need to curtail the ability of the European Court of Human Rights to tell our courts what to do. We have an excellent record in this area, of which we should be proud, but Conservatives believe that a new British Bill of Rights and responsibilities would remain faithful to those basic principles of human rights while restoring much-needed common sense to their application. This is a debate that we will have over the next few months and I look forward to debating it with the Opposition, when they are prepared to listen, as well as with the Lib Dems and the British public.
Mr Speaker
I think that the Minister’s initial essay, quite a lengthy one, has been completed.
Jeremy Corbyn (Islington North) (Lab)
It is obvious that Magna Carta in the 13th century was a great step forward and I am glad the Minister recognises that. Will he also recognise that the European convention on human rights and the universal declaration of human rights were massive steps forward, not just for this country but for humankind? Does he not recognise that the narrative of trying to leave the European convention on human rights and the Court diminishes our human rights, the human rights of everyone in this country and the human rights of people across the continent? Will he please rethink this narrative and be slightly more sensible about the universal need for human rights?
Mr Vara
The hon. Gentleman talks about being sensible. He will be aware that it was only very recently that the convention was amended by the Brighton declaration, which was welcomed by all the countries concerned and made sure that nation states had a greater say in their own cases. That has to be good because it means that Strasbourg can deal with the urgent cases that should be dealt with there rather than having a backlog—there is a huge queue—because nation states cannot deal with a lot of the cases that should be dealt with domestically.
Charlie Elphicke (Dover) (Con)
May I tell the Minister that my constituents in Dover and Deal feel that the level of immigration and asylum appeals that are being made undermines our border security? They want to see human rights reform to ensure that our borders are safer and more secure.
Ms Margaret Ritchie (South Down) (SDLP)
In relation to general human rights issues, does the Minister agree with the opinion of his right hon. and learned Friend the Member for Beaconsfield (Mr Grieve) that non-compliance with the European convention on human rights calls into question the devolution settlements for Wales, Scotland and Northern Ireland?
Karl MᶜCartney (Lincoln) (Con)
3. What recent steps he has taken to prevent fraudulent whiplash claims.
Michael Fabricant (Lichfield) (Con)
9. What recent steps he has taken to prevent fraudulent whiplash claims; and if he will make a statement.
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
The Government are taking forward a whiplash reform programme that will deter unnecessary, exaggerated or speculative claims. Reforms to control the costs of claims were implemented on 1 October, and on 2 December we announced further plans to have independence and quality safeguards in the system for obtaining expert evidence.
Karl MᶜCartney
What evidence does the Minister have to demonstrate that his measures have been effective in cracking down on fraudulent whiplash claims, as it would seem that, as a nation, we are happy to allow both the profits of insurance companies and our reputation for having the weakest necks in the world to go unchallenged?
Mr Vara
This Government have made and continue to make major changes to deter fraudsters and reduce the number and cost of whiplash claims. We have already seen an impact from these reforms and industry data show that they have contributed to a 14% reduction in premiums since February 2012.
Michael Fabricant
Some years ago, I was shunted up my rear end—by a car on the M1, Mr Speaker—and I was then contacted by a number of companies that all said, “Surely you are suffering from whiplash. You should be making a claim.” Does the Minister agree that such actions are reprehensible?
Mr Vara
I very much hope that there are no long-lasting effects from the experience my hon. Friend had. The Government take insurance fraud very seriously and have recently set up a taskforce to tackle this important issue and drive down premiums. The taskforce will consider insurance fraud across the board, and will aim to publish an interim report by March 2015 with a final report issued by the end of 2015.
Andy McDonald (Middlesbrough) (Lab)
Fraudulent whiplash claims are criminal activity, plain and simple, and everybody in the House would condemn them. Will the Minister also condemn those insurance companies that created third-party capture, massively contributing to the number of these claims in the first instance? While he is at it, does he have any evidence to suggest that medical practitioners are failing their obligations under civil procedure rules—CPR—35?
Mr Vara
For too long, honest drivers have been bearing the cost and, with that, higher insurance premiums because of the whole issue of whiplash. Government reforms have been robust. We have set up a system whereby we hope to deter unnecessary or speculative claims and ensure that those who are genuinely injured can claim. We have clamped down hard on the insurance companies. We have been working with them, along with the medical profession and the lawyers, to try to make the system a lot better. Medical reports from now on will cost £180 and lawyers will carry out previous claims checks on potential claimants in order to combat fraudulent claims. That will, of course, impact on the insurance companies.
Richard Graham (Gloucester) (Con)
4. What progress he has made on the disposal of former prisons; and if he will make a statement.
Mr David Ward (Bradford East) (LD)
11. What steps his Department is taking to improve the regulation of claims management companies.
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
A number of reforms have been made or are being made, including a new set of toughened rules to crack down on abuses, a new power to impose financial penalties on CMCs from later this month and extending the legal ombudsman’s remit to consumer complaints against CMCs from January 2015.
Mr Ward
Among other things, the bad behaviour of CMCs has contributed to car insurance premiums that are not only unacceptable, but unaffordable, particularly for many young people. Many have argued that the regulatory oversight of CMCs is simply too light. Does the Minister agree that, as the British Insurance Brokers Association has suggested, there is a strong argument that if the regulation were overseen by the Financial Conduct Authority, CMCs would have to abide by the FCA’s 11 principles of business, which would provide a more effective way of bringing down car insurance premiums?
Mr Vara
It is important that the hon. Gentleman bears it in mind that since 2007, when regulation began, licences of over 1,200 CMCs have been removed across sectors, and others have left the industry after the commencement of enforcement action. We have introduced tough measures. From later this month the regulator will reinforce its enforcement tools with a new power to impose financial penalties of up to 20% of a CMC’s turnover. Next month, from 28 January, we will extend the legal ombudsman’s jurisdiction to deal with complaints from clients dissatisfied with the service provided to them by authorised CMC’s. The legal ombudsman will provide a new avenue of redress for clients of CMC’s and will assist the claims management regulator in driving up poor standards and practices in the market.
Mr Speaker
Perhaps the material can be placed in the Library of the House, where it can be devoured by colleagues at their leisure in the long winter evenings that lie ahead.
Diana Johnson (Kingston upon Hull North) (Lab)
T9. Since the Government introduced employment tribunal fees, there has been a drop of 84% in the number of women who have been able to bring discrimination claims. Does the Minister accept that, because of the up-front fees of £1,200, many women are being denied justice under his Government?
The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
The situation is a lot more complex than the hon. Lady makes out. First and foremost, anyone who does not meet the financial criteria has a waiver and can go to court. Secondly, there have been a lot of pre-determinations by ACAS. Employment is going up and there are fewer applications. There are a lot of factors and she does herself no credit by simplifying matters.
Rehman Chishti (Gillingham and Rainham) (Con)
T5. Following the introduction of my private Member’s Bill, which calls for a tougher stance on repeat driving offences, will the Minister confirm that those matters are being reviewed fully, and will he clarify when the Government will respond to the review?
Philip Davies (Shipley) (Con)
T8. The Minister is aware of my request that the former Keighley magistrates court in Bingley be sold off as soon as possible. The failure to do so is wasting taxpayers’ money and preventing an important town centre building in Bingley from being regenerated and brought into use. There seems to have been a lot of faffing about between the Ministry of Justice and West Yorkshire police. I urge the Minister to get on with it and get the building up for sale to allow this regeneration to take place in Bingley and to save the taxpayer some money.
Mr Speaker
I think that the hon. Member for Shipley (Philip Davies) regards “faffing around” to be a technical expression.
Courts and Tribunal Service Trust
Shailesh Vara Excerpts(9 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
Her Majesty’s Courts and Tribunals Service (HMCTS) has prepared a trust statement providing an account of the collection of revenues which are due to be paid to HM Treasury. The statement includes the value of fines and confiscation orders imposed by the judiciary; fixed penalties imposed by the police; the value of collections; the balances paid over to third parties including victims of crime, the Home Office and HM Treasury; and the balance of outstanding impositions.
I am delighted that, for the first time, the Comptroller and Auditor General has been able to provide an unqualified audit opinion on the trust statement which recognises the quality and thoroughness of the work we have completed to address financial reporting issues previously identified by the National Audit Office (NAO).
The trust statement demonstrates that we have continued to maintain strong collection performance levels with more than £518 million in financial impositions collected from offenders during 2013-14. Victim surcharge receipts have increased by £28 million from 2012-13 to 2013-14—to around £38.5 million in 2013-14—providing additional funds to help support the victims of rape, domestic violence and families bereaved by murder and fatal road traffic crimes. To aid in the provision of these vital services a proportion of the additional victim surcharge receipts has been allocated to police and crime commissioners for innovative local projects to support victims.
HMCTS recognises the importance of the recommendations made by the NAO value for money study on confiscation orders and we are working with our partner enforcement agencies to address those recommendations and ensure that criminals continue to be deprived of the proceeds of crime. The agencies involved in the enforcement of confiscation orders, which includes the Home Office, the Serious Fraud Office and the Crown Prosecution Service, take every action available to them to tackle outstanding debt including the addition of interest and imprisonment for those who do not pay.
The robust application of sanctions in relation to outstanding fine debt has resulted in a 13% reduction in gross debt relating to fine impositions since April 2012. The amount collected has increased in both 2013-14 and 2012-13 compared to 2011-12. Legislation introduced in December 2013 allows HMCTS to obtain data from HM Revenue and Customs and Department for Work and Pensions for the purposes of enforcing outstanding fines in a more efficient and effective way.
To build on improvements made in recent years in the collection of criminal financial penalties, HMCTS is in the final stages of a procurement exercise to determine whether an external partner can bring the innovation and investment in technology that HMCTS needs to further improve performance and efficiency. The continuing improvement the agencies are making, combined with our future plans, will ensure that more criminals pay and that taxpayers get better value for money.
Civil Legal Advice
Shailesh Vara Excerpts(9 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
During the passage of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 the Ministry of Justice committed to report to Parliament on the operation of the Civil Legal Advice (CLA) mandatory gateway within two years of its implementation.
This review is being published today and consists of four research reports and, separately, the Government’s response. The research is in four parts:
Civil Legal Advice mandatory gateway: Overarching research summary,
Findings from interviews with users,
Findings from interviews with service providers,
Analysis of management information.
These reports, and the separate Government response, when taken together constitute the review of the Civil Legal Advice mandatory gateway. I have placed copies of these reports in the Library of the House. They are also available online at, http://www.parliament.uk/ writtenstatements
Mesothelioma Claims
Shailesh Vara Excerpts(9 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
My noble friend the Minister of State for Civil Justice and Legal Policy, (Lord Faulks QC) has made the following written ministerial statement:
The Government have made a priority of addressing the high costs of civil litigation in England and Wales. To that end, part two of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Act 2012 reforms the operation of no win, no fee conditional fee agreements (CFAs). Those reforms came into effect generally in April 2013, but were deferred for mesothelioma cases pending a review under section 48 of the Act. The Government undertook a review in 2013 with the issuing of the “Reforming Mesothelioma Claims” consultation paper on 24 July 2013. The Government announced their decision following that consultation on 4 December 2013 (column 56WS). In particular, it announced that, following the review, the Government have decided to implement the no win, no fee reforms for mesothelioma cases. Full reasons for that decision were given in the response paper published on 6 March 2014. However, that decision was challenged by judicial review and on 2 October the High Court quashed it. CFAs in mesothelioma cases therefore continue to operate on a pre-LASPO Act basis for the time being. The decision was also investigated by the Justice Committee which published its report on 1 August. The Government’s response to that report will be published shortly.
The Government intend to undertake a review under section 48 in due course; further details on the format and timing of that review will be set out at a later date. The Court’s judgment and the committee’s report will be considered as part of that process.
Mesothelioma is a terrible disease and the Government are determined to do what it can to help sufferers and their families. Changes in the law over recent years, including the Mesothelioma Act 2014, have made it easier for victims to obtain compensation. The Ministry of Justice is working closely with a wide range of stakeholders to take forward reforms where we can improve the mesothelioma claims process further:
Provisions in the Deregulation Bill, currently before Parliament, will enable HM Revenue and Customs to restore its practice of disclosing the work records of deceased victims to their personal representatives or dependants for the purposes of claiming compensation without the need for a court order; and
We are working with the National Cancer Registration Service and others to secure resources for the implementation of expedited receipt of pathology records and imaging reports.”
Convicted Prisoners Voting Bill
Shailesh Vara Excerpts(9 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
I thank the hon. Member for Hammersmith (Mr Slaughter) for allowing me 30-odd seconds in which to speak.
I have heard my hon. Friend the Member for Christchurch (Mr Chope) speak on many occasions, and I have to say that today’s was perhaps the shortest speech that he has ever delivered. This is an important issue. The Government recognise that, and it is good that there is an opportunity to debate it once more. Of course legislation barring prisoners from voting can be traced back to the Forfeiture Act 1870—
Fenton Town Hall
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The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)
I congratulate the hon. Member for Stoke-on-Trent South (Robert Flello) on securing this debate, and I put on record his diligence and conscientiousness in championing this worthwhile cause on behalf of his constituents. We have corresponded with oral and written questions, by letter, and we had a meeting earlier today with some of his constituents. I also pay tribute to the 498 brave people who paid the ultimate price so that the hon. Gentleman and I, and the rest of us, could have the privilege and pleasure of being able to discuss matters in the democracy that we enjoy.
As the hon. Gentleman is aware, the closure of Stoke-on Trent magistrates court was announced in December 2010 as part of the court estate reform programme. Any decision to close a court is not taken lightly and is never easy, but the hon. Gentleman will recall the consultation that preceded the closure, which found that the court offered poor facilities and was non-compliant with the Disability Discrimination Act 2005. It had inadequate facilities for victims and witnesses, and there were also security issues. As he knows, the court subsequently closed in December 2012.
The court site incorporates the former town hall which, as the hon. Gentleman said, was built and funded in the late 1880s by William Meath Baker, a benefactor. According to English Heritage, Mr William Meath Baker sold the town hall to the local health board, which was superseded by Fenton urban district council in 1897. It has been in the hands of the public sector ever since. More recently, the freehold of the building was transferred under the Courts Act 2003 to the local magistrates court committee, and then to the Government in 2005. Those are legal provisions, and I like to think that all such transfers have been done according to the law—I say that with reference to the comments made by the hon. Gentleman about legality of ownership.
I note the hon. Gentleman’s view that the Government have never paid any sums of money to Stoke-on-Trent to buy or rent the building but, as he rightly said, we should remember that for more than 100 years maintenance, upkeep and so on has been paid for by the taxpayer. That is not an inconsiderable sum over the years.
The building is operationally surplus to requirements. We have to work within the rules concerning the disposal of surplus property assets. Guidance to Departments is clear: surplus property assets need to be disposed of as expeditiously as possible, within six months of being declared surplus for housing and within three years for all other properties, while achieving overall value for money for the taxpayer. It is certainly the case that overall value for money for the taxpayer does not necessarily equate to the highest offer. However, I trust that the hon. Gentleman will appreciate that I cannot simply gift a building that has considerable value.
It is not just the capital receipt that we need to consider. There are temporary costs associated with ensuring unused courts are kept secure and protecting the fabric of each building. By disposing of surplus property assets speedily, we remove the ongoing liability of holding costs. In the case of this particular building, bearing in mind that the level of security, utilities and maintenance has been reduced to a level that is appropriate for a site that has been closed, the holding costs do not come cheaply—more than £108,000 in the past financial year alone. Put simply: we cannot hold on to it indefinitely.
The hon. Gentleman is of course correct to raise the future of the four memorials inside the building. Memorials to those who made the ultimate sacrifice are hugely important and must be protected. We have received advice that a Minton great war memorial cannot be moved without risk of damage. Therefore, the Minton world war one memorial will remain in situ and be preserved in perpetuity with an appropriate legally binding restrictive covenant in the sale contract that states that the memorial is to be preserved.
The hon. Gentleman wanted a bit more clarification about a covenant. A covenant is a contractual promise incorporated in a property contract. It provides for an obligation—in this instance that the memorial will be preserved and looked after not only by whoever ends up owning the property, but by the successors in title as well. A covenant also has consequences for what happens when there is a breach. There can be damages paid or there can be specific performance that can be ordered by a court. It is also important how the property is held: whether it is held freehold or leasehold. In the case of leasehold, it may be possible that forfeiture will follow. That effectively means that the property reverts back to the freeholder. This is a legally binding set of words in a contract.
Robert Flello
That will not reassure the community. If a developer damages the building or gets sued and it reverts back to the Ministry of Justice, the memorial will still be gone.
Mr Vara
The hon. Gentleman makes a very valid point, but he will accept that this is property law. It is the way that thousands of property transactions are conducted on a daily basis for a whole variety of properties, whether they be commercial, residential, industrial or whatever. This is the process of the law of the land under which we operate. We would very much hope that, in parting company with the premises, we would have carried out our due diligence to make sure that any obligations in the contract will be honoured and that we will not get a rogue developer or rogue occupier who would do the damage that the hon. Gentleman fears may happen. I hope he will take on board the point that we will do our utmost to make sure the owner is credible, whether it is a person, corporation or charity.
The three other memorials, depending on who we sell the building to, be they in the public or private sector, will either be removed to the local church or remain in situ. That is something we can look into. If they are removed to a neighbouring church, the work will be carried out at the expense of the Ministry of Justice.
The sale of former court buildings is affected by several factors, including the state of the market, potential future use of the property, including its development potential, and the location. As of 29 October 2014, some 66 former court buildings had been closed under the court estate reform programme and sold, attracting disposable receipts of just under £43 million. Those funds have been used for further investment in the justice system. Stoke-on-Trent magistrates court has been on the market since 2013, and local campaigners have persuaded the council to list it as an asset community value, giving campaigners six months from August last year to raise funds and bid for the building at market value. Further time was set aside to allow the local community association to formulate its bid, culminating in the proposal being put forward for consideration, alongside several commercial bids.
The Department has received several commercial bids for the building, and the hon. Gentleman will appreciate that I cannot say their size for reasons of commercial confidentiality. The bidders view the building as having development potential, but we have also received a bid from Urban Vision on behalf of Fenton community association for a community asset transfer. We are also mindful of the resolution passed by Stoke-on-Trent city council requesting the return of the building. We held discussions with the council, and in early October the council was invited to come up with a viable proposal for returning the building to community use, but none was received.
We cannot afford to continue to leave the building as it is, eating away more than £9,000 every month, including almost £4,500 in rates. As is usual when disposing of surplus property assets with historic significance, there is also a qualitative element in the consideration of bids. We consider not only the purchase offer, but its potential reuse, the financial status of bidders, their ability to maintain the building in the face of significant holding cost and the extent of the estimated continued liability to the taxpayer of the Department holding the property.
In recognition of the hon. Gentleman’s advocacy for the future of the former court building and the views made so eloquently clear to me in our earlier meeting and with an eye to ensuring that we do not close down options too early, I have asked my officials to continue engagement with his constituents. I hope that that engagement, having started at today’s meeting, will continue from tomorrow onwards, but he will be aware that any possible disposal that is novel and contentious will require Treasury approval. Whatever happens, however, let me assure him that the world war one memorial will be preserved, although the future use of the building will be a matter for the preferred purchaser and the council, as the local planning authority.
Robert Flello
On the dialogue with the MOJ, which the Minister says will continue tomorrow, I must stress the point about providing a little protected time—ideally, three or four months—to give the community the opportunity to work up a bid to the satisfaction of the Department.
Mr Vara
I understand where the hon. Gentleman is coming from, but I hope he will appreciate that, in the spirit of openness and transparency, we have to ensure that other bidders are not penalised by our being seen to give preferential treatment to one of them. Much time has been spent on this. There has been a dialogue. We have asked for bids. A business case was requested. It is also possible for community groups to seek assistance from local authorities and other voluntary bodies that help these groups when they approach the Government for such measures. There is a limit to how much assistance we can provide and we are constrained by the law in terms of time limits. We are also mindful of the time that has passed, which we must also take into account. There are also other bidders whom we must take into account so we are not accused of preferential treatment.
Robert Flello
Part of the problem is that letters between the community and the Ministry of Justice were not answered and there was a breakdown in communications. I take on board what the Minister says about getting on with things and about not giving an advantage to anyone, but the community group has been disadvantaged because of the lack of communication.
Mr Vara
The hon. Gentleman and his constituents raised that with me at the meeting. I have not been able to make intensive research into the issue but I have found out that there were telephone conversations in the period where it was said there was no communication. I hope he will appreciate that at the time of the bidding there was limited information that we could impart to the other parties because that would be seen as being unfair to everyone else. This has been going on for two years and we are not talking about a bidding process covering only the last few months. There is a limit to what the Government can do.
I congratulate the hon. Gentleman on securing the debate and my officials will be in conversation with his constituents from tomorrow. I pay tribute to the 498 people who paid the ultimate price so that we could engage in this free debate.
Question put and agreed to.