Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 8th March 2016 Commons Chamber

[Mr Vara]

My hon. Friend makes his point as robustly as he always does. I simply say that the Government position is that we would be better off in the European Union; he might wish to reflect on the 3 million-odd jobs that we have secured that are linked to our being in the European Union.

[Andy Slaughter (Hammersmith) (Lab)]

It must have been tricky choosing who should answer this question. According to The Spectator, the Secretary of State has three Ministers for in, three Ministers for out—a perfect miniature of the Conservative party. Given that the Minister for Policing, Fire, Criminal Justice and Victims is away, perhaps we should take the departmental vote today because there would be a majority for in.

We were promised a British human rights Bill last year, a consultation on the repeal of the Human Rights Act in the new year and then a sovereignty Bill last week. Are we going to get anything before the Secretary of State moves on or by the end of June, whichever comes sooner?

[Mr Vara]

The hon. Gentleman is a seasoned politician, so he will know that Governments operate and timetables are dealt with in the usual way through the usual channels.

Criminal Legal Aid

Debate between Shailesh Vara and Andy Slaughter

Friday 29th January 2016 Commons Chamber

[Andy Slaughter (Hammersmith) (Lab)]

(Urgent Question): To ask the Under-Secretary of State for Justice if he will make a statement on the provision of legal aid services.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

As the Lord Chancellor and Secretary of State for Justice announced yesterday, the Ministry of Justice has had to play its part in reducing the budget deficit, and economies have had to be made in every area of expenditure. In the last Parliament, spending on legal aid was reduced from £2.4 billion to £1.6 billion. Further changes in the legal aid system were due to be implemented in the current Parliament, with a second reduction in litigation fees in July 2015.

At the time when the fee reduction was proposed, the market was made up of about 1,600 legal aid firms. After careful negotiation, the then Justice Secretary decided to adopt a system of “dual contracting” to drive greater efficiency and consolidation in the market. Over time, however, opposition to that model has increased. Solicitors’ firms feared that it would lead to a less competitive market, and barristers feared that choice and quality would diminish. Besides, a process of natural consolidation was already taking place in the market.

Although we understood those arguments, we also needed to deliver reductions in expenditure, but since July 2015 there have been two significant developments. Her Majesty’s Treasury has given us a settlement that allows greater flexibility in the allocation of funds for legal aid, and it has become clear that there are real problems with pressing ahead. We currently face 99 legal challenges and a judicial review of the entire process. Litigation will be time consuming and costly for all. We have therefore decided not to go ahead with the introduction of the dual contracting. We have also decided to suspend for 12 months the second fee cut. The Legal Aid Agency will extend current contracts to ensure that the service continues until replacement contracts come into force later this year.

We will review progress on joint work with the profession to improve efficiency and quality before returning to any decisions on the second fee reduction and market consolidation.

[Andy Slaughter]

This is a happy day. A serious threat to the integrity of the justice system and the livelihoods of thousands of hard-working professional people—the mainly small and local solicitors’ firms that are the bedrock of local justice—has been lifted, and we welcome that.

Nothing is more important to securing access to justice than the ability of citizens to obtain competent and timely legal advice when accused of criminal conduct, but that basic human and civil right was put at risk by the Government’s ill-conceived plans. What on earth was the Department playing at in the first place? This is the latest in a series of U-turns, and once again a written statement was issued at 3 pm on a Thursday. We are only here today thanks to you, Mr Speaker, because you granted the urgent question.

Everyone who cares about the criminal justice system in our country has been saying that the Government’s proposals for new criminal contracts were a disaster from the day on which they were proposed, in June 2013. That was not only my view or that of the Law Society, the Criminal Law Solicitors’ Association, the London Criminal Courts Solicitors’ Association and the Justice Alliance; it was the view of everyone in the justice system, and I pay tribute to them all for the magnificent campaign they have fought. It was also the view of the Government’s own experts, but the former Lord Chancellor still failed to register the chaos over which he was presiding. I credit the current Lord Chancellor with having the common sense to bring this farce to an end, but I wish the Government had listened to my right hon. Friend the Member for Tooting (Sadiq Khan) when he proposed the scrapping of the scheme exactly a year ago.

What we cannot do is draw a line and forget what has happened. Questions remain to be answered, and I ask the Minister to answer the most urgent of them today. How much public money and civil service time have been spent on the abortive tendering processes, the court cases and the consultations in the past three years? Will the Minister refer his own Department to the National Audit Office, so that it can be independently investigated? Will he apologise to the firms that have closed, laid off staff or cut salaries when faced with losing contracts, and also to those who have spent thousands of pounds on bidding and winning contracts and, in many instances, taking on extra staff whom they will not now need? Will he go further, and establish what assistance can be given to those firms? Will he remove the remaining uncertainty over the second fee cut? Given that he imposed it and has now decided to remove it for at least a year, what timescale and criteria will he apply to future fee levels?

Finally for today, given the NAO’s and the Public Accounts Committee’s scathing criticisms of the civil legal aid cuts—incidentally, I learned just before entering the Chamber that the NAO has also reported a £1.1 million loss by the aborted Just Solutions International, the commercial arm of the Ministry of Justice—will the Minister bring forward the review of the Legal Aid, Sentencing and Punishment of Offenders Act 2012?

This has been an appalling use of taxpayers’ money. It has posed an existential threat to a fundamental part of our legal system, and it has caused uncertainty, failure and distress to thousands of hard-working small businesses throughout the country.

[Mr Vara]

I welcomed the comments made by the hon. Member for Hammersmith (Andy Slaughter), although they were very brief. I must add, however, that his attempt to criticise what has been described as the Lord Chancellor’s sensible decision was opportunism, pure and simple. He obviously has a selective memory. I remind him that in 2009, when Jack Straw was Justice Secretary, he abandoned the criminal legal aid best value tendering scheme at a very late stage, just before the 2010 general election. I do not recall the hon. Gentleman’s grumbling to his boss at the time, and Jack Straw certainly does not recall hearing his voice. This needs to be put into proportion.

Let me now deal with the hon. Gentleman’s questions. When we embarked on the dual contract process, we had the support of the Law Society; the hon. Gentleman may wish to reflect on that. We have said that we will suspend the second fee cut for a year. We will then work with the professions, and will form a definite view in due course. As for the Legal Aid, Sentencing and Punishment of Offenders Act, the hon. Gentleman knows only too well—because I have said it many times at the Dispatch Box—that a review will take place within three to five years. [Interruption.] The hon. Gentleman is chuntering away, as he is wont to do on a regular basis. He says, “How much money?” He knows full well that all shades of Government, both Conservative and Labour, if they listen to people and feel that a decision needs to be changed, will make that change. Just as the Labour Government made decisions to change policies, we have made such a decision. I do not recall previous Governments wasting time and effort in trying to make calculations when they have made a change of direction.

Our decision has been welcomed by the profession, and we are pleased about that. We now want to look forward and move ahead.

Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 8th September 2015 Commons Chamber

[Mr Vara]

I am grateful to the hon. Lady for echoing the support for what we are trying to achieve. We are not setting any limitations at the moment; we are in listening mode. Where there is an under-utilised court, I envisage facilities being used for a couple of days in a town hall, for example. Perhaps the chamber or another available room may be rented. It does not have to be a public or civic building, but such buildings come to mind instantly. Currently, people can go to nearby facilities and give evidence via video conferencing so that they do not have to go to court, which is particularly helpful for vulnerable witnesses and victims.

[Andy Slaughter (Hammersmith) (Lab)]

The Minister should listen to Members from all parts of the House on this issue. Although he says that this is a consultation, he is already assuming that an hour by car is a reasonable distance. Of course, many people, particularly in rural areas, do not have access to a car. Cases in magistrates courts are taking a week longer than they did four years ago and dozens of magistrates are resigning over the unworkable courts charge. Is not the Government destroying local justice?

[Mr Vara]

The hon. Gentleman speaks about listening. Perhaps he might take his own advice and do some listening as well. The Government are proposing to undertake a once-in-a-generation reform of the courts system and estate. It would be helpful if he co-operated and supported us in achieving what will be of ultimate benefit to the consumer and the public. They will benefit by getting faster and better justice, and Britain will remain world renowned for legal services.

Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 17th March 2015 Commons Chamber

[Mr Vara]

May I thank the right hon. Gentleman for his question? As far as exceptional funding is concerned, the giveaway is in the title. The fund is meant to be exceptional, but some people have seen it as a discretionary fund. Not surprisingly, therefore, the numbers involved in it have been few.

I understand that the right hon. Gentleman is retiring at the end of this Parliament. Let me say what a pleasure it has been to work with him. I may not always have agreed with him, but working with him has always been a pleasure, and I wish him well for the future.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Perhaps the Minister should listen to the Chair of the Justice Committee and read his report that found that the Government had failed in three of their four objectives for legal aid: they have not discouraged unnecessary litigation; they have not targeted legal aid to those who need it the most; and they have not delivered better value for money for the taxpayer. That is what the report says. Does the Minister agree that that abject failure is a fitting epitaph for the least competent Lord Chancellor since the Reformation?

[Mr Vara]

It is always helpful if shadow Ministers do their homework. The proposals to which the hon. Gentleman refers were achieved by the previous Lord Chancellor. As far as his comment on the Justice Committee’s report is concerned, I do not hear him or his boss saying that they will be reversing any of the cuts that we have made. If they want to do that, the shadow Chancellor will have plenty of opportunity so to do in due course.

Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 11th November 2014 Commons Chamber

[Mr Vara]

Clearly, the hon. Lady did not listen to what I said either. Let me be clear: we are talking about people who are suffering from a very horrific and tragic disease, and this Government are committed to ensuring that victims and sufferers have the best possible way of going through the process, particularly in getting compensation.

As far as insurance companies are concerned, the hon. Lady will be aware that when we had a consultation in July, the submissions by victims and groups such as the one she mentioned stated that they did not like the proposals that were angled towards insurance companies. We listened to those people and did not go ahead with the proposals that the insurance companies would have preferred. My right hon. Friend the Minister for Policing, Criminal Justice and Victims took through the Mesothelioma Bill earlier this year, which is of benefit to all the sufferers.

[Mr Andy Slaughter (Hammersmith) (Lab)]

It is not that Opposition Members are not listening, but that the Minister is not answering this question. Most civilised people would not have to be told that it is wrong to cut compensation for people suffering in great pain from a terrible disease that will kill them in a matter of months. Parliament told him not to do it, victims told him not to do it, the Justice Committee told him not to do it, and so did the High Court, but this Minister is trying to do just that to protect the profits of the insurance industry. Why do the Government always take the side of the strong against the weak?

[Mr Vara]

Again, I am disappointed that the hon. Gentleman did not listen to what I said earlier. [Interruption.] I am answering the question; it would help if the hon. Gentleman listened to the answer. As I said, we had a consultation in July, and we put forward proposals. We listened to people who made submissions —we listened hard—and we did not go ahead with proposals that would have been of benefit to the insurers. Which bit of that does he have a problem with?

Social Action, Responsibility and Heroism Bill

Debate between Shailesh Vara and Andy Slaughter

Monday 20th October 2014 Commons Chamber

[Mr Slaughter]

Indeed. In responding to this amendment in Committee, in flat contradiction to what I have just quoted, the Minister said:

“Nothing in the Bill suggests that it gives immunity from civil liability. It also does not change the standard of care that is generally applicable… The Bill simply requires the court to have regard to certain factors in deciding what steps should have been taken to meet that standard of care in a particular case.” —[Official Report, Social Action, Responsibility and Heroism Public Bill Committee, 9 September 2014; c. 63.]

As was pointed out ad nauseam to the Minister, the doctrine of negligence in common law has been developed not over years but over centuries. Furthermore, there is already guidance in legislation—the Compensation Act 2006 being the obvious example—insofar as it is needed, but generally the courts do not need guidance in considering all the relevant factors. As I said, however, when we come to clause 3, we will perhaps see what the Government’s ulterior motive is.

I do not wish to labour the point; I simply wish to have an answer from the Minister. Will the Bill—clause 3 or any other part—make any difference to how the law of negligence works in the courts? If so, will he indicate how and explain the motivation? If it does not, what is the purpose of the Bill? I await his response.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

The introductory comments by the hon. Member for Hammersmith (Mr Slaughter) are typical of his form. When he was talking about my interviews yesterday in the media about abuse, I thought for a moment that he might be referring to some abuse that he had hurled at me during a debate, but he did not go that far.

I appreciate that the purpose of amendment 1 is to clarify that the Bill does not confer immunity from civil liability on any individual or change the standard of care that is relevant in claims involving negligence or breach of statutory duty. I explained to the hon. Gentleman and his colleagues in Committee why I thought such an amendment was not needed, but I am happy to explain our position on this again. As for whether the law has been changed, I will deal with that substantially when we debate clause 3, which is in the second group of amendments for this debate on Report.

--- Later in debate ---

[Mr Vara]

I am grateful to the hon. Gentleman, but I shall do as guided by Mr Speaker, as self-defence is not an issue I am dealing with in connection with this amendment.

The Bill does not change the relevant standard of care that applies when a court is considering whether somebody has been negligent or has breached a relevant statutory duty. The court will continue to look at what an ordinary and reasonable person should have done in all the circumstances of the case. The Bill simply requires the court to have regard to the factors in the Bill before reaching a decision on liability. It does not tell the court what conclusions to draw or prevent a person from being found negligent if the facts of the case warrant it.

As I said in Committee, if in a finely balanced case the court considers the factors in the Bill and decides that this should tip the balance in favour of a defendant who had been acting for the benefit of society, demonstrating a generally responsible approach towards the safety of others during an activity or intervening to help someone in an emergency, we would welcome that outcome. It will be for the courts to decide how much weight to give these factors on a case-by-case basis, but we do not consider that there is any risk of the clause being misinterpreted by the courts as somehow granting individuals immunity from civil liability or changing the standard of care that is generally applicable. In that light, the amendment is unnecessary, and I hope that the hon. Member for Hammersmith will withdraw it.

[Mr Slaughter]

I shall not press the amendment to the vote; we can continue our discussion in connection with the second group of amendments. Let me tell the Minister, however, that his explanation has continued to go around in ever-decreasing circles. The two points at the heart of the Bill, raised in a number of interventions, are these. First, is the Minister attempting to change the law or not; and, secondly, is he attempting to fetter the discretion of the judiciary? What he said in respect of the distinction he wishes to make between the Compensation Act 2006 and this Bill suggests that he does wish to do that. Section 1 of that Act says “may”, while this Bill says “must”. If the Minister wants to make that distinction, the only explanation must be that he wants to fetter the hands of the judiciary in dealing with these matters, giving rise to the suspicion that it is entirely inappropriate. However, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 3

Responsibility

--- Later in debate ---

[Mr Slaughter]

I assure the hon. Gentleman that I listen carefully to everything he says and give it exactly the due weight it should be given. I am very tempted by the thought that we might push our numbers up by one, but I hope that the Minister may give way on this measure and by the time it emerges from the other place the Bill will be improved at least to that extent.

Clause 3 is quite a dangerous provision. We have not voted against the Bill as a whole, because the Bill on the whole does nothing. Clause 3 will be ineffective if it is passed, but its intention is malevolent. It is harmful to good industrial relations and harmful to health and safety in the workplace, and it is a piece of prejudice that this Government and this Minister should know better than to pursue.

[Mr Vara]

As the hon. Member for Hammersmith (Mr Slaughter) said, the issues were debated at length in Committee; indeed, notwithstanding our very thorough debate on the Bill, three sittings were left spare. Given the track record of the Labour Government, the Opposition’s claim that the Bill is unnecessary is extraordinary.

The hon. Members for Hammersmith and for Barnsley Central (Dan Jarvis) have tabled several amendments in relation to clauses 3 and 4. Let me respond first in relation to amendment 5, which would remove clause 3 from the Bill, and explain why it is important for the clause as a whole to be retained. I will then deal with the other amendments.

Clause 3 provides that a court, when considering a claim for negligence or breach of a relevant statutory duty, must have regard to whether the defendant, in carrying out the activity in which the alleged negligence or breach occurred, demonstrated a generally responsible approach towards protecting the safety or other interests of others.

The core aim of the clause is to provide reassurance to ordinary hard-working people who have adopted a generally responsible approach towards the safety or other interests of others during the course of an activity that the courts will always take that into account in the event of something going wrong and their being sued. We also hope that, by showing them that the law is on their side, the clause will give them greater confidence in standing up to opportunistic and speculative claims.

The need for that measure is amply illustrated by the evidence provided to the Committee by, for example, voluntary organisations and the emergency services. The damaging effects of the fear of litigation on people’s willingness to volunteer, and the propensity of some involved in accidents to bring opportunistic and spurious claims, were emphasised.

I am sure that the House will be surprised and indeed appalled by the example given by the Cheshire fire and rescue service, which has been sued by passers-by who have tripped over hoses being unwound by firemen to extinguish a fire. Those rescue workers were clearly acting in an emergency and their priority was to reach anybody who might be inside a burning building—[Interruption.] Opposition Members may smile and laugh, but that case is absolutely true.

The Government believe that it must be right in such cases to require the courts to take into account the general approach of the defendant towards safety during the course of the activity in question.

--- Later in debate ---

[Mr Vara]

It is not for me or this place to dictate to the courts the decisions that they should come to. It is for us to make the law, and for the courts to take account of all the facts that may apply to that case and come to their decision. That is how the constitution of this country has operated for centuries, and will continue to, as far as we are concerned. The clause says that if a person carries out an activity in a way that demonstrates

“a generally responsible approach towards protecting the safety…of others”,

and, despite their best efforts, something goes wrong and somebody is injured, the court should take full account of the circumstances. That represents a change, in that case law does not currently oblige a court to consider whether a person took a generally responsible approach to safety during the activity in question. I believe that it is a desirable and beneficial change that is both fair and proportionate.

Amendment 3 seeks to limit the effect of the clause to people who have been taking a generally responsible approach to the safety of “employees or bystanders”. The hon. Member for Hammersmith indicated that that was intended to prevent the provision from being interpreted as extending to entirely non-safety-related matters, such as protecting shareholders’ profits.

[Mr Slaughter]

On a point of clarification, if the Minister is saying that there is a change of law in clause 3 because the “generally responsible approach” is not in case law or statute, is he saying that the provisions in clauses 2 and 4 relating to acting for the benefit of society and acting heroically are in case law or statute?

[Mr Vara]

As I said in Committee, where we debated this at length, clause 3 does make a change, for the reasons that I just gave. The purpose of the Bill is twofold. First and foremost, it directs the court to take into account certain factors that, at present, it has discretion to take into account under the Compensation Act 2006. Secondly, it sends the powerful message to members of the public who otherwise may not act in certain circumstances that the law is on their side.

On Second Reading, the hon. Member for Plymouth, Moor View (Alison Seabeck) gave the example of a time when she stepped off a bus and saw someone lying on the ground, and was told by people who were standing by that they were worried that they might be sued, and so did not want to do anything, or words to that effect. My hon. Friend the Member for Brigg and Goole (Andrew Percy) also gave an example: when he, as a first responder, went to places to give people medical attention, others were standing by, saying that they were afraid of legal consequences and were therefore not taking any risks. The legislation sends out a powerful message to the public that the law will be on their side.

We have deliberately drafted the clause broadly so that it focuses on whether the defendant demonstrated a generally responsible approach towards protecting the safety or other interests of others. This ensures that it will be relevant in a wide range of situations and will enable the courts to take account of all relevant circumstances and apply the provisions as flexibly as possible to achieve a just outcome. The clause is not restricted to personal injury claims and could in principle be applicable in relation to other instances of negligence, such as damage to property or economic loss, where issues of safety may not necessarily be relevant. That is why a broad definition has been used.

Narrowing the clause, as the amendment would, would mean that many bodies such as voluntary organisations, religious groups or social clubs which demonstrate a generally responsible approach towards protecting the safety or other interests of their clients or members would not be able to benefit from its provisions. That cannot be right.

Amendment 6 would remove part of the wording in clause 4 which clarifies what is meant by “acting heroically”. Specifically, it would remove the final words of the clause, which refer to acting

“without regard to the person’s own safety or other interests.”

I am grateful to hon. Members for tabling the amendment, as we have been considering the issue carefully in the light of similar representations made by St John Ambulance and the Fire Brigades Union during the Committee stage. St John Ambulance indicated that the wording conflicted with first aid practice that discourages first aiders from putting themselves at risk, and the Fire Brigades Union warned that the clause more generally might conflict with advice to the public not to intervene.

After giving this matter further thought, we remain of the view that the courts will interpret the words

“without regard to the person’s own safety”

in accordance with our intended meaning—that a person acts heroically by intervening to assist someone in danger, regardless of the fact that doing so might risk his or her own safety. The example I used in Committee was of a person who sees somebody struggling to stay afloat in a fast-moving current. That person might jump in to help on the spur of the moment, without first deliberating whether he might be putting his own life at risk.

Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 9th September 2014 Commons Chamber

[Mr Vara]

There has been a consultation of which the local MP is aware, and he, like anyone else, is entitled to give his view in that. We are constantly reviewing the courts estate to ensure that it meets operational needs. If any decisions are to be taken on the hon. Gentleman’s particular court, I hope that he will have been active in making his views heard.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Yesterday, leading counsel told the High Court that the Lord Chancellor was causing

“very serious harm to the…criminal justice system”

and described his modus operandi as

“a caricature of fairness: empty abuses, bluff and bully, divide and rule”.

Beyond the closure of hundreds of courts and law firms and the destruction of legal aid, what else does the Lord Chancellor have in mind to undermine the rule of law, which his oath of office requires him to uphold?

Social Action, Responsibility and Heroism Bill

Debate between Shailesh Vara and Andy Slaughter

Monday 21st July 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

I thank all hon. Members who have contributed to this debate, whether with speeches or interventions.

As my right hon. Friend the Secretary of State for Justice indicated in his opening speech, the core aim of the Bill is to ensure that people, especially employers, who generally take a responsible approach towards the safety of others during an activity, feel confident that the courts will take full account of this in the event that they are sued. Employers should not be prevented from growing their businesses by irresponsible employees who seek to harm them financially by bringing unfounded negligence claims. The fear of litigation can force businesses to go further than they need to when planning and managing for health and safety risks, which in turn can have a damaging effect on growth. The Bill should reassure employers who adopt a generally responsible approach towards the safety of others during the course of an activity that the courts will always take full account of the circumstances prior to making a decision on liability.

The social action clause is part of a wider package to fulfil a coalition agreement commitment. Figures published last year showed that the proportion of people volunteering at least once a year increased from 65% in 2010 to 73% in 2013. This is due partly to the initiatives that we have been backing to support people getting involved in their local communities. For example, the National Citizen Service programme for 16 and 17-year-olds saw 40,000 young people give more than 1 million hours in 2013 to socially useful activities. The Step Up to Serve initiative, launched last November by His Royal Highness the Prince of Wales, aims to double the number of young people aged between 10 and 20 participating in social action by 2020. Earlier this year, in April, the Prime Minister launched a new volunteering award called “Points of Light”, which recognises outstanding individual volunteers who are making changes in their community and inspiring others.

Those are only a few of the initiatives that are happening on a local basis all around the country. The commitment that people show to volunteering is something that they and we can be proud of, but we also know that volunteering rates could be increased further if barriers that deter people from getting involved are removed. That is where the Bill has another important role to play. We want people to feel confident about participating in activities that benefit others without worrying about what might happen if something goes wrong and they find themselves defending a negligence claim in the civil court.

The same goes for good Samaritans who might be deterred from intervening to help somebody in an emergency in case they are sued for making the position worse. The perception of legal risk can be a bar to positive action. As the Secretary of State said in his opening remarks, the Bill should provide a valuable reassurance to people who are acting for the benefit of society or intervening in emergencies: that the court will take the context of the person’s actions into account when reaching a decision on liability.

As I have said, I am grateful to those who have contributed to this debate, although I must say that I am somewhat disappointed, but not surprised, by the tone adopted by the Front-Bench spokesmen for Her Majesty’s official Opposition. They ask for examples; I suggest that they need only refer to Hansard to see an example given by their colleague, the hon. Member for Plymouth, Moor View (Alison Seabeck), who said in a debate:

“I once stepped off a bus and found a lady lying on the pavement in front of me. There was a group of people around her, but none of them had done anything. Some of them said, ‘I don’t want to be sued.’”—[Official Report, 10 June 2014; Vol. 582, c. 489.]

That is an example from one of their own colleagues, and of course—[Interruption.] The hon. Member for Hammersmith (Mr Slaughter) chunters away from a sedentary position, as always. He says that that is the only example, but if he had taken the trouble to read Hansard, he would know that my hon. Friend the Member for Brigg and Goole (Andrew Percy) also gave an example from his experience as a first responder.

[Mr Slaughter]

rose—

[Mr Vara]

The hon. Gentleman seeks to come back, having been put in his place. I am happy to give way.

--- Later in debate ---

[Mr Slaughter]

There were two such hon. Members—who have now been mentioned three times—but there were a couple today who took the opposite view, including my hon. Friend the Member for Huddersfield (Mr Sheerman), the former Chairman of the Select Committee on Education. I believe there were 50 Members of the other place who spoke in the debate and not one of them mentioned that issue. This is a turkey of a Bill; the hon. Gentleman ought to admit it.

[Mr Vara]

The hon. Gentleman says I have given two examples. That is two more than the number of times he has repeated the same question, over and over again. I am sorry that he does not like the answer, but he will have to live with it.

My hon. and learned Friend the Member for Harborough (Sir Edward Garnier) was quite candid in his comments. I have to say that while I respect his distinguished career in the law and his legal brain power, on this issue I will respectfully disagree with him. What we are trying to do is consolidate the measures elsewhere in the statute book in one Bill. Also, as my right hon. Friend the Justice Secretary made clear, we are seeking to send out a powerful message to public: that when they do the right thing, the law will take them into account.

I am grateful to the hon. Member for Strangford (Jim Shannon), who spoke in support of the Bill. As he rightly put it, we should judge the Bill by its content, not by the number of clauses. He asked whether it would be extended to Northern Ireland. That is a matter for the Northern Ireland Executive and Assembly, as it is a devolved matter, but I will certainly be following with interest to see what progress is made by the Northern Ireland Assembly. It is comforting that he has put on the record his support for the measure.

We need to be clear that there is nothing in the Bill to stop an employee bringing a negligence claim against an employer. [Interruption.] Clearly the paymasters of the Labour party, the trade unions, have been lobbying it hard, as was abundantly clear from the way Labour Members spoke about their friends in the trade unions. The Bill is not designed to reduce standards of health and safety in the workplace or to leave workers without a remedy where they have been injured by the negligent actions of an irresponsible employer. It will, however, provide valuable reassurance to employers who have taken a responsible approach to safety, but end up in court when, for example, an employee suffers an injury that simply could not have been foreseen by any reasonable person. The Bill will send the powerful message that the courts will always consider the employer’s general approach to safety in the course of the activity in question before reaching a decision on liability.

The courts will, of course, need to consider in every case whether someone was acting for the benefit of society or adopting a generally responsible approach to the safety of others in the course of a particular activity. [Interruption.] The right hon. Member for Tooting (Sadiq Khan) chunters away from a sedentary position. All I will say to him is “Where are your Back Benchers?”

Criminal Justice and Courts Bill

Debate between Shailesh Vara and Andy Slaughter

Tuesday 17th June 2014 Commons Chamber

[Mr Slaughter]

I hope that the Minister will not read a prepared speech but address a subject that was raised in the debate, which the hon. Member for Halesowen and Rowley Regis (James Morris) rather gave away, namely that the clauses remove the existing balance in the system and weight it in favour of the stronger party. Rather than talking to the chief executive of the local authority, why does the Minister not talk to the care home resident, the small business that is being pulled down because of planning regulations or the homeless person who is not being taken in? Those are the people who are disadvantaged. They are not meritless cases, but people who do not have the necessary resources.

[Mr Vara]

I am addressing the issues concerned. I am sorry that the hon. Gentleman does not like them, but that does not mean that I will not address them. As for making proper speeches, given the personal attacks that he made when he spoke, perhaps he should have better regard for the etiquette of the House. I will not take any lectures from him.

Amendments 29 and 30 probe the scope of clause 55. In practice, the clause will bite on minor procedural defects, because more significant defects will not be highly unlikely to have made a difference to the outcome for the applicant. There is no accepted definition of “procedural defects”, and it would be virtually impossible to arrive at a definition that would stand the test of time because judicial review evolves with each new decision.

Clauses 56 to 61 will rebalance the financial aspects of judicial review. Those involved in bringing judicial reviews should not be able to hide behind a claimant of limited means or an off-the-shelf company to avoid appropriate liability at the taxpayer’s expense. I do not accept that clauses 56 and 57 will prevent meritorious judicial reviews from being brought. As now, non-party funders will be liable only where they also seek to drive or control the litigation in some way.

Clause 58 establishes two presumptions concerning persons who voluntarily intervene in a judicial review: first, that the court must order an intervener in judicial review proceedings to pay their own costs; and, secondly, that the court must order the intervener to pay the reasonable costs that their intervention has caused a party to incur. Where there are exceptional circumstances, the court need not make an order. Amendment 35 would remove the clause in its entirety, and amendments 36 and 37 would remove the second presumption. Amendment 51, which draws from the Supreme Court rules, would allow the court to award costs against an intervener only in exceptional circumstances.

The first presumption—that an intervener will pay their own costs—represents the current position. Interveners already almost invariably cover their own costs. On the second presumption—that an intervener will pay costs they cause a party to incur—it is right that all interventions should be carried out appropriately and reasonably. The Government share the view that interveners add value to proceedings, and clause 58 is not intended to prevent interventions. However, those who intervene should properly consider the cost implications of doing so.

I know that the clause has caused some disquiet and I agreed in Committee to consider further the second presumption, having listened carefully to the points made, particularly those by my hon. Friend the Member for Cambridge (Dr Huppert). I wish to record my gratitude to him for his assistance, and I believe his proposed amendment reflects, in part, what we want to achieve. Although we are not in a position to accept the amendments, we are looking seriously at how to ensure that interveners consider carefully the cost implications of intervening, without deterring those who intervene in appropriate cases and add value. I am happy to commit to continuing discussions to consider further whether the clause needs to be redrafted to target the specific behaviours that we want to address.

Clauses 59 to 61 establish a codified costs capping regime in judicial review proceedings, building on the regime that has been developed by the courts through case law. The usual costs position should be circumvented only in exceptional, meritorious cases involving serious issues of the highest public interest that otherwise would not be taken forward. We are concerned that costs capping orders can currently be made at any stage of a case. If an order is made at an early stage and a judge later decides that the case has no merit and does not grant permission for it to go any further, the claimant will be protected from having to pay the defendant’s costs of defending that unmeritorious claim.

A number of points have been raised by colleagues. I simply say that with judicial review, we are trying to ensure that meritorious claims go ahead. It is unmeritorious claims that we are trying to deal with, such as those where people hide behind a shelf company, or where people front an application for other individuals who are actually behind it and driving it. We want to maintain judicial reviews for meritorious cases, but we want to ensure that unmeritorious claims are dealt with appropriately. We also want to ensure proportionality by making those who wish to intervene take account of the costs, particularly when some of those costs are to be borne by others.

Question put and agreed to.

New clause 52 accordingly read a Second time, and added to the Bill.



New Clause 13

Periods of time for certain legal challenges

‘(1) In section 61N of the Town and Country Planning Act 1990 (legal challenges relating to neighbourhood development orders)—

(a) in subsections (1)(b) and (2)(b), after “beginning with” insert “the day after”;

(b) in subsection (3)(b)—

(i) for “during” substitute “before the end of”;

(ii) after “beginning with” insert “the day after”.

(2) In section 106C of that Act (legal challenges relating to development consent obligations)—

(a) in subsection (1)(b)—

(i) for “during” substitute” “before the end of”;

(ii) after “beginning with” insert “the day after”;

(b) in subsection (1A), after “begins with” insert “the day after”;

(c) in subsections (2)(b) and (3)(b)—

(i) for “during” substitute” “before the end of”;

(ii) after “beginning with” insert “the day after”.

(3) In section 13 of the Planning Act 2008 (legal challenges relating to national policy statements), in subsections (1)(b), (2)(b), (3)(b), (4)(b), (5)(b) and (6)(b)—

(a) for “during” substitute “before the end of”;

(b) after “beginning with” insert “the day after”.

(4) In section 118 of that Act (legal challenges relating to applications for orders granting development consent)—

(a) in subsections (1)(b), (2)(b) and (3)(b)—

(i) for “during” substitute “before the end of”;

(ii) after “beginning with” insert “the day after”;

(b) in subsections (4)(b), (5)(b) and (6)(b)—

(i) for “during” substitute “before the end of”;

(ii) after “day”, wherever occurring, insert “after the day”;

(c) in subsection (7)(b)—

(i) for “during” substitute “before the end of”;

(ii) after “beginning with” insert “the day after”.” —(Mr Vara.)

The provisions amended by the clause allow for legal challenges to certain planning-related decisions and other actions. They stipulate that a challenge may be made during a period of six weeks beginning with the day on which the decision or action challenged occurs. The amendments secure that the six-week period does not start to run until the following day

Brought up, read the First and Second time, and added to the Bill.

Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 18th March 2014 Commons Chamber

[Mr Vara]

My hon. Friend raises an important point, and I will happily look into the matter.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Does the Minister agree with his colleague the Minister of State, Ministry of Justice, the right hon. Member for Bermondsey and Old Southwark (Simon Hughes), that the Government’s cuts to legal aid are “unarguably harsh”? Will the Minister correct his own overestimate of the earnings of legal aid lawyers, which the UK Statistics Authority yesterday called “potentially misleading”? Is it not time that the Ministry of Justice ministerial team put themselves in order?

[Mr Vara]

It is rather rich of the hon. Gentleman to speak about legal aid. The Opposition’s manifesto made it abundantly clear that they would cut legal aid. He and his colleagues lack any credibility unless they put on the record what cuts they would make and, more importantly, whether they would reverse the cuts that we are making.

Oral Answers to Questions

Debate between Shailesh Vara and Andy Slaughter

Tuesday 12th November 2013 Commons Chamber

[Mr Vara]

I am aware of certain figures showing that some areas have a higher propensity for claims than others. We are in the process of consulting a broad spectrum of stakeholders. If there are any we have missed, I am more than happy for the right hon. Gentleman to contact me so that we can include them.

[Mr Andy Slaughter (Hammersmith) (Lab)]

Did the Minister read the e-mail sent to us both yesterday by the victim of a whiplash sting? His insurer, without consulting him or any medical evidence, paid out £2,700, £1,600 of which went to a claims management company, and then more than doubled his premium. Rather than blaming genuine victims for the cost of motor insurance, why has the Minister not tackled the claims management companies and insurers whose actions encourage fraud? Is it because of the millions they give the Tory party every year?

[Mr Vara]

The hon. Gentleman is clearly out of date. If he did his research properly, he would be aware that since January this year 800 CMCs have closed. This is an issue where we are trying to do good and where all stakeholders are working together for the greater good of the public. It is regrettable that he is resorting to type and cannot recognise that he should be working to do good rather than being his usual destructive self.

Motor Insurance (Whiplash)

Debate between Shailesh Vara and Andy Slaughter

Thursday 7th November 2013 Westminster Hall

[Mr Slaughter]

It is difficult. There is a lot of rhetoric out there, and I have said what I want to say: that we should be concerned about fraud per se, and, in the context of personal injury actions, about soft tissue injuries, because it is easier to make fraudulent claims on them. The issue is how we deal with that.

I am delighted that the Committee’s report highlighted two issues. One of those is third-party capture, which is an open invitation to fraud. We know why insurance companies use it. They think they can settle a claim quickly and cheaply by offering a sum of money that is probably a fraction of what a genuine injury is worth. Usually because the victim does not know what it is worth, or needs money in a hurry, or perhaps because they do not want to have the case tested in court, they will settle for the sum—perhaps a few hundred pounds or £1,000—offered in an unsolicited phone call from the insurers. That must be wrong. Lawyers and medical experts have been saying that for a long time.

I am glad that the issue has been highlighted, and even more pleased that the Government appear to have accepted it. I hope that the Minister will say a bit more about what action will be taken. I have tabled parliamentary questions, and the Minister has answered some of them, but I do not think that he dealt with that issue, and it would be useful if he would.

The other issue that I was pleased to see highlighted in the report was how often fraud is pleaded by insurers defending claims. The answer is rarely. I cannot give a percentage, but from talking to practitioners—I do not think that this is denied—I understand it is rare to raise the issue of fraud in defence. If that is not being done, it is difficult for insurers to claim that they are aware of fraud.

Fraudulent claims can and should be challenged, and not only for the sake of the individual cases; if that happened more commonly it would, one might think, discourage fraud. What the insurance industry has been looking for, which the Government were going along with until recently, is a quick and dirty solution, which might deal with the problem but would throw out the baby with the bathwater. It would also prevent victims from getting fair compensation and encourage bad practice. It would encourage third-party capture and would also be likely to encourage the intervention of claims management companies.

Right hon. and hon. Members present will probably all be clear about the noxious effect that the claims management industry has had in its expansion in many areas of public life in the past few years. Having been restricted in some areas, it is looking for others to expand into, and it has its eye on the one that we are considering. If the small claims limit had been raised, with the result that claimants could no longer get representation, they would have been easy prey for claims management firms, who would say, “Let us handle it for you. We will take 30% or 50%,” and would purport to negotiate with the insurers on the claimant’s behalf. I hope that resisting the temptation to raise the limit will deal with that.

I have no particular problem with independent medical panels, if they work. However, I do not think that they will make a dramatic difference, and I am not sure that they are the simplest or right solution. Neither am I sure what evidence the Government have about fraudulent and dishonest practice by medical practitioners at the moment. The Minister might want to explain that.

When the panels have been used in other countries—Australia is the obvious example—they have rather become the captives of the insurance industry. I hope that that will not happen here and that they will be genuinely independent. Also, they seem like a bit of a sledgehammer to crack a nut. They will be a great new piece of bureaucracy and I am not sure that we could not have achieved the same objective of being sure we were getting reliable, robust and testing medical reports simply through registers of medical practitioners who were accredited as independent. That would have been cheaper, probably as effective or more effective, and more independent. We shall see where the approach leads.

There has been a progressive erosion of claimants’ rights in personal injury. I do not believe that personal injury claims, on the whole, can be brought by litigants in person. If 90% of claimants had been unable to get representation, it is likely that their claims would have been settled disadvantageously to them.

That is not just my opinion—that was the Government’s opinion last year, three months, I think, after they decided not to proceed with any change to the small claims limit for personal injury claims. They started a new consultation in April. I think it was in February that the previous report found against going ahead. The Government decided to go ahead and raise the limit to £10,000 for non-personal-injury cases, and that is probably right. We can argue about the exact figure, but it was somewhat overdue.

I do not think that, if the Government had decided, to allow for inflation, to raise the personal injury limit to £1,500 or £2,000, anyone would have had much of a quarrel. It is somewhat perverse that, having wanted to raise the limit to £5,000, they have now decided not to increase it at all; after they dismissed the matter in February there cannot really be any explanation for their proposing consultation in April, other than that they wanted to go ahead and have now been dissuaded.

However, it was not just that report: every report in the past 15 years, under the Labour Government as well as the present Government, that has considered small claims limits, as well as independent judicial reviews of the matter, found that it would not be sensible to increase the limit as the Government proposed. I think that, having got everything it wanted through the insurance summit at Downing street and so forth, the insurance industry decided it was on a roll. Having got the Jackson concessions and similar things, it was looking for an opportunity to go further. This was the prize that insurers really wanted, because they thought that it would almost entirely destroy the personal injury lawyers, save for catastrophic and major injuries.

If one looks at other countries to learn lessons, with Australia being the obvious example, one can see that such changes lead to wholesale restrictions on the rights of claimants. In Australia, there is something called whole-person impairment that has quite a high threshold below which no personal claims can be made. In other words, a person has to be substantially injured before they can bring a claim. There is also no-fault compensation, under which the onus is effectively passed to the state rather than being on insurers.

There is a proposal in Australia, not due to come in for another five or six years, simply to ban the common law right to sue for personal injury. I find it perverse that a Conservative Government might start to walk down that track. The losers would be not only the victims, but the state, which will end up picking up the tab through the increased costs of the NHS and benefits, and in other ways. The proposal would effectively nationalise the liability for personal injury.

The winners here are clearly the insurers, whose shareholders and profits are the major driving force. Are motorists winners? So far, there is no evidence that they are. Although the Minister’s predecessors said—it will be interesting to hear whether he repeats this—that insurance premiums will come down as a consequence of the measures, the insurance industry never says that. It says that it hopes that insurance premiums will come down. They have come down, I think, by 12%.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

I respectfully suggest that the hon. Gentleman look at what the AA has said—that average insurance premiums for comprehensive cover have gone down.

[Mr Slaughter]

I think that there is a misunderstanding. No one denies that insurance premiums have been going down. They have been going down for some time, and were doing so before any of the Government’s changes were implemented in April. I refer the Minister to an answer he gave. I asked,

“with reference to his…announcement of 23 October 2013, how much of the 12 per cent reduction in motor insurance premiums over the last year is attributable to the reforms to civil litigation funding and costs brought in April 2013.”

I am afraid that the answer was that it is

“too early to assess the full impact of the reforms”,

but that AA Insurance has ascribed the reduction

“to anticipated savings to the Government’s reforms.”—[Official Report, 6 November 2013; Vol. 570, c. 255W-256W.]

But we are asking for evidence, which was my starting point.

[Mr Vara]

With respect, the shadow Minister has slightly moved the argument. The first comment to which I replied was simply that insurance companies do not say that insurance premiums have gone down, and I gave him a simple response—that the AA has specifically said that insurance premiums have gone down by an average of about £80 for comprehensive cover. That was all I was addressing, but he has moved on to a slightly different point.

--- Later in debate ---

[Mr Slaughter]

With respect to the Minister, my point was whether insurance companies say, whenever changes are implemented, that insurance premiums will go down. If he has evidence of an insurance company saying, “We expect insurance premiums to fall by 10% in the next year as a consequence of proposals introduced by the Government in response to the whiplash consultation”, I will be sceptical, but impressed, and I will monitor that to see whether it is true.

I asked the Minister a series of questions about where the Government were going on the announcement, specifically in relation to medical panels and fraudulent claims. I am grateful to him for today’s answers, but I am not sure that they take us much further. I asked when he proposes to implement the new independent medical panel scheme for whiplash claimants, and he replied that there was “no set time frame”.

I asked the Minister whether the scheme would apply to all personal injury claims, to which his reply was that it

“will apply to similar road traffic accident soft tissue injury claims”.—[Official Report, 6 November 2013; Vol. 570, c. 259W.]

With respect, that is a bit vague. I take from that that it will not apply to all personal injury claims, but to those for whiplash and similar claims. The Government need to be more precise and to define exactly what the medical panel will deal with. It would be helpful if the Minister did that today, but if not, I am sure that he will write to me about the issue.

I asked what steps the Minister was taking to ensure that insurers did not make offers to settle whiplash claims without medical evidence. I made that point earlier, and he may have misunderstood me, but I do not think that he has replied to it, specifically in relation to third-party capture and how that can be prevented. There could simply be a ban—for example, on unsolicited approaches by insurers, without the benefit of medical evidence. That issue was not covered in the answers I received today, so I would be grateful for that reply.

I asked the Minister how the new independent medical panel scheme for whiplash claimants will be funded. I am afraid that his answer was:

“We are keen to talk to stakeholders about funding opportunities which would meet the costs of setting up and running the new system”.—[Official Report, 6 November 2013; Vol. 570, c. 259W.]

I take that as, “I don’t know at the moment,” but if I am wrong, will he let me know?

[Mr Vara]

I hear what the hon. Gentleman is saying, but I hope that he agrees that it is very important to get this measure right and, in doing so, to consult all the relevant stakeholders. That is what we propose to do, rather than shoot from the hip. I gave a frank and honest reply, in the expectation that we will come up with the right answer for the public, for whom this is an important matter.

[Mr Slaughter]

This early in the Minister’s tenure, I am perfectly happy to accept his answer as it stands. However, we need to know at least the timetable for where this is going. To me, the response has the smell of a climbdown. I am sure that the Minister is absolutely sincere in wanting to tackle fraud in this area, but having gone along with how it was presented by the Secretary of State, we now need to know, factually, where we are going. The issue is important not just to victims—and to motorists and insurers—but to how the system works. Many hard-working practitioners are now scratching their heads about how things will change.

I asked the Minister what further proposals he was considering to reduce fraudulent or exaggerated whiplash claims, which was alluded to in the announcement. The answer was that the

“primary focus is on…implementation of the measures outlined in the 23 October announcement”.—[Official Report, 6 November 2013; Vol. 570, c. 259W.]

I think that that means there are none at the moment.

I also asked the Minister what steps he was taking to ensure that insurers shared more of their data on suspected fraudulent or exaggerated whiplash claims. Again, I take it that the answer is that he is looking at the matter and will come back with further proposals. Finally, I asked him for how long he has deferred any increase in the small claims threshold for personal injury claims. I take from his other answers that there are no plans to do that, at least until there has been a full review of the Jackson proposals, to which he has linked the issue, and that will some three to five years hence.

I do not want to put the Minister completely on the spot, because I appreciate that such things are not an exact science, but some certainty is needed. As I said, there has been a huge amount of rhetoric in this area, with puff stories in the Sunday papers for many years—the Government are entitled to do that—but the serious business of litigating and settling injury claims must be dealt with.

If the Government say, as they clearly now are saying, that they will not increase the limit, but might do so in future, they should state at least a minimum time that will have to pass before that can happen. I take it from the answers that until there has been a full review of the current changes—Jackson, the portal and so on—we will not return to that subject again. The fact that the Minister answered those questions has shortened my contribution, but I would be grateful for any further clarification.

In conclusion, the Government need to be more even-handed in relation to this matter. If they are, they will get a better response from all sides. The insurers feel that they have been on a roll so far. We must have no more summits with the Prime Minister or anybody else to which only one side is invited. I think we can all agree that that was a serious error of judgment; only listening to one side is never a good idea if we are to make sensible policy. The Conservative party needs to place less reliance financially on the insurance industry, which is a very substantial donor, because that is not a helpful way to go.

All of us want motor insurance premiums to continue to decline. I think the figure of £90 in the average premium is given in relation to whiplash and soft tissue injuries. That is a substantial sum, but it is far smaller than the amount spent on repair costs, car hire costs and many other areas that are open to abuse. I hope the Government will turn their attention to that matter and not be put off by the fact that the insurers are often complicit in those areas. Credit hire and inflated repair costs are a scandal. They cost far more than personal injury costs in relation to insurance premiums, and that is something that should be tackled.

One reason why there are a lot of soft tissue claims is that car safety has improved immeasurably over the past 20 or 30 years. I am talking about the structure of vehicles, the compulsory use of seat belts and other matters of that kind. People are suffering moderate soft tissue injuries where previously they would have suffered catastrophic injuries. That improvement is to be welcomed, so let us not throw the baby out with the bathwater. Let us bear down on fraud, whether it is in the area of whiplash or credit hire, and on excessive profit taking, whether that is done by claims management companies, insurers or lawyers.

We must also ensure that victims’ voices are heard. I am sure that the Minister, in many other areas of his brief, would be the first to say that that should be the case. We must not prevent the victims of road traffic accidents or of other personal injuries from being able to mount a claim and get representation, proper redress and fair compensation. The Government have been singing from one side of the hymn sheet, and it is about time they took into account both sides.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

It is a pleasure, Mr Robertson, to speak in a debate that is chaired by your good self. I congratulate the hon. Member for Liverpool, Riverside (Mrs Ellman) on securing this timely debate. Indeed, this is my second debate as a Justice Minister and the second debate that I am replying to that has been secured by the hon. Lady.

On 29 October, the hon. Lady asked a number of questions in a letter to my right hon. Friend the Secretary of State for Justice. I will try to address some of those issues in my remarks today. If there is any shortfall, I will expect her to have a reply very soon.

I was a little disappointed that the hon. Member for Hammersmith (Mr Slaughter) was so critical of everything that the Government seek to do, particularly as this is something that will actually benefit the public. He asked me who the winner will be. Let me assure him that, at the end of the day, it will be the public. I hope that when I have finished my comments, he will be slightly persuaded that this is actually a good news story, rather than a negative one.

There have been some real challenges for the Government in seeking to put right some of the imbalances in the criminal justice system. Such imbalances have led to a disproportionate growth in personal injury claims, especially whiplash claims, and in the considerable costs of dealing with them. Too many claims are being brought inappropriately. We know that reported road traffic accidents have fallen from 190,000 in 2006, to 150,000 in 2012—a reduction of more than 20%. Yet at the same time, the number of personal injury claims resulting from road traffic accidents has risen from 520,000 to 820,000—an increase of almost 60%. That is a clear indication that there is a problem.

[Mr Slaughter]

I will not interrupt the Minister every five minutes, but does he accept that whiplash claims fell by about 60,000 in the last year that figures were available, which is, I think, 2012-13? They are now down to the sort of levels of 2008-09.

[Mr Vara]

If the hon. Gentleman would give me the opportunity to speak, he will find that I address a little bit later the disparity of numbers and what is a genuine whiplash claim now compared with what it was before.

It is worth noting that the proportion of road traffic accident claims that relate to whiplash has dropped to 58% recently. However, further study of Department for Work and Pensions statistics suggests that that is misleading and that a change in claims labelling may be responsible. Many claims are now labelled as soft tissue neck injuries when notified to the DWP. When those claims are considered with those labelled “whiplash”, the figure increases to around 87% of claims. Even though the number of accidents is falling, there has been a large increase in the number of personal injury claims, which is real evidence of a system crying out for reform.

[Mr Vara]

I am grateful to my right hon. Friend for his comments. The Government did indeed consider that recommendation, but we do not intend to take any action on it. The limitation period is of long standing and applies to wider personal injuries than just those in road accidents. It is important to bear that in mind. This debate is specific to whiplash claims.

The Government accept that many claims may be genuine, but many speculative, exaggerated or even outright fraudulent claims are clearly being made. It is not right that people who cheat the system should get away with it and force up the price of insurance for honest, hard-working motorists. I make no apology for targeting the exaggerated claims of whiplash fraudsters to drive down premiums.

People seemingly now claim for whiplash injuries sustained in the most minor of incidents, and Government data show that more than 1,900 claims a day are made. According to the Association of British Insurers, the cost to the industry from whiplash claims is £2 billion, resulting in £90 being added to the average motor insurance premium. That is why the Government were committed to reducing the number and cost of whiplash claims at the Prime Minister’s insurance summit last year. We need to take action to tackle speculative, fraudulent and exaggerated whiplash claims, but we must not lose sight of the needs and legitimate expectations of those who have suffered a genuine injury. A reduction in the number of such claims will lower the costs for insurers, which will in turn allow them to continue to reduce motor premiums for consumers.

Motor insurance premiums are beginning to fall. Figures published by the AA’s British insurance premium index in October, as I said earlier, show that quotes for annual comprehensive car insurance have fallen by 12% over the past year. Incidentally, regarding some remarks made earlier by the hon. Member for Hammersmith, I refer him to what the Association of British Insurers said in oral evidence to the Transport Committee. The ABI said that it expects savings from the Government reforms that have been implemented to result in a decrease in insurance premiums.

That is a good start, but the Government fully expect insurers to continue to meet their commitment to pass on the savings from the Government reforms that are driving down the costs of civil litigation. In December last year, the Ministry of Justice launched a consultation seeking stakeholder views on the creation of independent medical panels to support better diagnosis of whiplash and options for increasing the small claims threshold for personal injury claims to £5,000.

The consultation closed on 8 March. I thank all the individuals and organisations who took the time and trouble to contribute. A healthy 292 responses were received from a wide range of stakeholders, providing the Government with a strong evidence base to inform our decisions for reform.

The Government published our response to the consultation and to the Transport Committee report, “Cost of motor insurance: whiplash”, on 23 October. Our response detailed the Government’s direction of travel on whiplash reform and announced a number of reforms to the medical evidence and reporting system for whiplash claims. Exaggerated and speculative compensation claims have helped force up insurance premiums, and such unnecessary and costly claims will be targeted by the Government’s new and robust medical evidence scheme.

The new system will ensure that only evidence from fully accredited medical professionals qualified to carry out thorough medical examinations can be considered when pursuing a claim, so people who aim to cheat the system will be deterred, while victims with genuine injuries can still get the help that they need. Improvements to the system to support medical experts will include an approved accreditation scheme, new best practice guidance, better accident information and access to medical records, where appropriate, and an improved medical report form to speed up settlements.

The Government are particularly pleased that representatives from the insurance, legal and medical sectors have put aside their differences and submitted a consensus approach to improving medical evidence and reports. Such a consensus can only be positive for all involved and provides the Government with a clear mandate for our reforms. We look forward to working closely with stakeholders to build an effective and rigorous new system on that solid base of agreement. Ministers plan to meet representatives from key stakeholder groups to outline the way forward and identify experts to work with officials on the detail of the new system. It is both important and sensible to involve industry experts when designing the detailed changes. Such input will be invaluable as we work up an appropriate and effective accreditation process, methods to control the use of pre-medical offers, robust examination techniques and best practice guidance and an improved medical reporting process and report form.

Details of the most appropriate funding method for the new scheme are still to be developed, but the Government believe that there are areas of common ground with the industry. We will talk to stakeholders about funding opportunities for meeting the costs of setting up and running the new system and for ensuring that the Government achieve our intention that such costs should not fall on the taxpayer. We aim to work at pace with stakeholders on those and other issues, and we intend to start implementing improvements to the system next year. I assure the hon. Member for Hammersmith that we are actively considering a timetable for implementation.

In addition to the work on the new medical reporting scheme, the Government will also work with stakeholders to improve the provision of data relating to whiplash. As the Committee indicated in its report, accurate data and statistics are needed to have a baseline to work from. Ministry of Justice officials will be working with colleagues in other Departments and with representatives from the insurance and legal sectors, including Claims Portal Ltd, to identify and compile baseline data. That will ensure that future work in this area can be underpinned by a robust evidence base.

[Mr Slaughter]

I appreciate all that, but in considering the cost of insurance premiums, will the Minister also consider insurance company profits? Admiral has just said that it is delivering £80 per policyholder to its shareholders—a sum equivalent to whiplash costs—and Direct Line has just announced that its overall operating profit has risen 73% in the past nine months.

[Mr Vara]

I assure the hon. Gentleman that we want to get this right, and we are speaking actively with all stakeholders: insurance companies, lawyers, claimants, defendants and the judiciary where applicable. I hope that there will be consensus, and that we will get it right. If he wishes to have any input other than this debate, I will certainly welcome it. He is welcome to write to me, as indeed he has done with all the questions that I have helpfully answered in this debate.

The Government are also keen for the insurance sector to work with the claimant lawyer groups to share available data on fraudulent claims. Doing so would enable many such claims to be stopped at source. Ministry of Justice officials will work with stakeholders to assess the work undertaken so far, consider the issues on both sides that are slowing agreement and identify solutions to enable both sides to reach agreement on this vital issue.

The sharing of data on fraudsters will be of immeasurable help to claimant lawyers when considering whether to take on a case and will be a considerable step forward in the fight against fraudulent claims. However, the Government consultation document contained a further proposal on whether the small claims threshold for personal injury claims should be raised from £1,000 to £5,000. Right hon. and hon. Members already know that, following a thorough assessment of the evidence submitted to the Government from both consultation responses and from other sources, we decided to defer the raising of the small claims threshold for now. For the moment, more work is needed to support litigants in person, consider how best to regulate the personal injury claims sector, mitigate any impact on the online portal used to process road traffic accident claims where liability is admitted and assess the impact on the market of other Government reforms.

As Members will also be aware, the Government have undertaken a major programme of reform to civil litigation and costs with significant impacts on the personal injury litigation sector. The implementation of part 2 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 on 1 April introduced major changes to no win, no fee conditional fee arrangements, the provision of after-the-event insurance and a ban on the payment and receipt of referral fees in personal injury cases.

Those reforms, and the subsequent changes to the road traffic accident pre-action protocol and associated fixed recoverable costs, have already begun to have an impact on the personal injury market. However, the Government believe that time is needed for the changes to bed in completely and for the savings that they will create to be fully realised before further reform to the sector is undertaken. I ought to make it clear that the Government have not ruled out further reform to the personal injury market. The consultation document and the Transport Committee inquiry both highlighted areas where further reform would be possible, and the Government may wish to consider such proposals in due course. However, our primary focus for now is on the effective implementation of the measures outlined in the announcement by my right hon. Friend the Lord Chancellor on 23 October.

It is also our desire to identify and eradicate dysfunctional behaviour by those who operate in this sector, and we would like all stakeholders to work together with us to address this issue. In addition, we await with interest the Competition Commission’s forthcoming report and recommendations on the personal motor insurance market.

There is an opportunity now for insurers, claimant lawyers and others to build on the recent spirit of co-operation that was shown in agreeing a sensible consensus position on medical evidence. I call on all interested parties in this market to come together to build a personal injury process that deters speculative and fraudulent claims, while providing the genuinely injured with the help and support that they need to recover from an accident.

I thank the Transport Committee for its valuable inquiry and report on the cost of whiplash claims on motor insurance premiums. The report was well-balanced and thought provoking, and it provided much useful evidence that helped to inform the Government’s final decisions on whiplash reform.

As Members are no doubt aware, Ministers helpfully agreed to defer the publication of the consultation response to allow the Committee’s recommendations to be considered in full. The Committee published its recommendations on 31 July, and my predecessor wrote to the hon. Member for Liverpool, Riverside on 25 September to propose that a combined response to the consultation and the Committee should be published. I understand that the Committee was content with this approach, and the response was published on 23 October.

As I have already mentioned, the Government agreed with a number of the Committee’s conclusions, such as those on improvements to medical reporting, data sharing and evidence gathering and on whether to raise the small claims threshold for personal injury claims, so I will not go into them again now. I should point out that the Committee’s report addressed areas where the Government felt, on balance, that change was either not required or not appropriate.

Whiplash is a complex issue and all options, including whether it would be proportionate and appropriate to make changes to primary legislation, were looked at before final decisions on the way forward were made. For example, the Government considered the Committee’s recommendation on whether to amend the limitation period for whiplash claims, and I have already dealt with that issue. As I said, the limitation period is long-standing and applies to all personal injury actions arising from negligence or breach of duty. However, the Government decided that the available evidence did not at present support such a change.

As I said in my opening remarks, we have received the letter of 29 October from the hon. Member for Liverpool, Riverside, and we hope to reply to her more substantively very shortly.

I conclude by noting that the Transport Committee issued a further call for evidence on Tuesday relating to the publication of the Government’s response document. The Government will, of course, provide an appropriate contribution, and I look forward to the Committee’s further report.

North Liverpool Community Justice Centre

Debate between Shailesh Vara and Andy Slaughter

Tuesday 29th October 2013 Westminster Hall

[Mr Vara]

I would like to make a little progress, but I am happy to give way to the hon. Lady a little later.

The outcome of the consultation is to proceed with plans for closure of the centre, but the consultation response identified two areas in which the original proposals should be revised: youth and educational welfare cases. We have listened to those views and revised the proposal accordingly. Youth and education welfare cases will now be dealt with by the Liverpool youth court and the Liverpool and Knowsley magistrates court, respectively. Again, they are around two miles away—no more.

The points about work load and courtroom utilisation, plus the high running costs of the centre, were set out in the initial consultation document and in the consultation response document published last week. Moreover, the criminal justice agencies have reduced the number of people based at the centre, in line with the decrease in work and to meet their changing operational needs. For example, the Crown Prosecution Service has reduced its presence significantly and is now supporting the centre’s cases in the same way as it would in a mainstream court, as opposed to providing dedicated prosecutors and service levels, as it did previously.

As announced last week, the proposal to transfer the work from the centre to the nearby Sefton magistrates court will now proceed. Sefton has excellent modern facilities and good transport links. It has earned its own reputation for innovation, including a dedicated problem-solving court, and because of its efficient processes it was the first model court—subsequently, beacon office—in what was then known as Her Majesty’s Courts Service. Indeed, Sefton magistrates court’s problem-solving approach is built on the principles of the North Liverpool community justice centre, but is achieved at much lower cost. The principles and ethos of the centre will not be lost; they will be carried on at Sefton.

We have much for which to thank the centre. It pioneered a scheme to improve case management—to the centre’s credit, that scheme is now in place in all magistrates courts in England and Wales, reducing waiting times considerably, with the majority of cases completed within four weeks. The spirit of the North Liverpool community justice centre will move to Sefton, while allowing us to deliver cost savings of £630,000 per year.

[Mr Andy Slaughter (Hammersmith) (Lab)]

The Minister is being generous with his first speech here; I wish it were on a happier subject. Four weeks is an impressive turnaround time. What assurances will he give that it will be maintained when those cases are transferred to a much larger court?

[Mr Vara]

There is plenty of capacity at Sefton. It has five courts at the moment, and on any given day, two or three are being used. To the extent that more staff and the like are needed, provision for that has been taken on board. I am confident that the rate of processing cases will continue.

The Government published our consultation response on 22 October 2013. There were 18 responses. Five supported the proposal fully, three were neutral and 10 were opposed in some way to the closure of the centre, the choice of Sefton as the court to receive the centre’s work, or both.

The main issues recognised in support of closure were the financial benefit and the fact that the centre had moved away from its original community-focused role. Those opposed to closure focused on what they perceived as an adverse impact on the provision of justice within the north Liverpool community and raised concerns about youth and mental health cases at Sefton magistrates court. As I have said, we listened to those concerns and have acted accordingly.

Closure of the North Liverpool community justice centre will result in savings of £630,000 a year, whereas maintaining its operation would mean a continuation of costs of £930,000 a year, based on this year’s budget. The proposed savings outweigh any perceived benefits from continuing to operate the centre. That is particularly so given that I have been assured that the ethos and principles developed at the centre will live on at Sefton magistrates court, which itself has a reputation for innovative work, but will provide far greater value for money.