Civil Liability Bill [Lords]

Debate between Simon Hoare and Rory Stewart

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

[Simon Hoare (North Dorset) (Con)]

rose—

[Rory Stewart]

rose—

--- Later in debate ---

[Simon Hoare (North Dorset) (Con)]

rose—

[Rory Stewart]

I will give way in one moment. To clarify, the intention is that the companies not just may but will pass this information to the Treasury and the Financial Conduct Authority, and the Treasury and the Financial Conduct Authority not just may but will request that information, so that we can accurately explain to Parliament and the people how much money the insurance companies are making from their premiums, how much they are paying out to claimants, how much savings they are making and how much of those savings they are passing on to their customers.

--- Later in debate ---

[Rory Stewart]

Absolutely. It is an unprecedented move. The fundamental idea is that the insurance companies are operating in a competitive market, so this is not simply a question of how much money they take in premiums or how much money they pay out; it is also about attracting customers, and in order to attract customers, they need to compete with one another on price. If they were not to do so, they would in effect be running a cartel, and the information they give to the Treasury and the Financial Conduct Authority would provide exactly the evidence to display that kind of unfair practice. We are therefore guaranteeing that the commitment made by 85% of the insurance industry to pass on these savings to customers will be upheld. I give way to the hon. Member for Belfast South (Emma Little Pengelly). [Interruption.] Oh, no, she was not intervening on me. I apologise.

[Simon Hoare]

It was me.

[Rory Stewart]

I give way to my hon. Friend.

[Simon Hoare]

I must say that I have been confused with many things, but to be confused with an hon. Lady from the DUP is a first.

My hon. Friend the Minister, perfectly properly and quite rightly, is placing very important obligations on the insurance industry. The FCA has a raft of things of which it has oversight. How is he proposing, alongside the Treasury, to communicate to the FCA that this House has the legitimate expectation that the FCA should be robust in seeking that information from the insurers?

[Rory Stewart]

This is a very good challenge, and we will reinforce that duty on the FCA through both the legislation and the statements within the amendment proposed by the Government. We will also reinforce it through this statement from the Dispatch Box: we will require the insurers to pass this information on and we will require the Treasury and the FCA to request it. The purpose of requesting that information is rigorously to hold the insurance industry to account and ensure that the savings are passed on to customers.

I want to take this opportunity to pay tribute to the personal injury lawyers. One of the problems in this debate has been the suggestion that it is a black-and-white, sometimes Manichean dispute, with the press and civil society sometimes unfairly implying that the personal injury lawyers are somehow to blame. We must put on the record very clearly our respect for the personal injury lawyers and the work they do.

In addition, we must send a very strong message of respect towards people who are genuine victims of whiplash injuries, or indeed of any other form of personal injury. They are entitled to a fair level of compensation and to an adequate level of representation. We believe very strongly that the measures in the Bill strike a proportionate and reasonable balance between fair compensation, reasonable representation and the costs imposed on the rest of society.

Privately Financed Prisons

Debate between Simon Hoare and Rory Stewart

Wednesday 27th June 2018 Commons Chamber

[Rory Stewart]

The general point the hon. Lady is making is difficult to disagree with. Obviously, we need to look at the viability of particular companies. I cannot comment on Capita, or on what exactly the MOD is doing, but when assessing bids the Ministry of Justice will very much take into account the financial viability of the company bidding.

[Simon Hoare (North Dorset) (Con)]

To maximise the efficacy of any contract, one needs a devoted and focused contracted business, but one also needs expertise in the management of that contract. Will my hon. Friend assure me that the skill set among his officials monitoring contracts on a daily, in-real-time basis is as sharp, professional and focused as it needs to be?

[Rory Stewart]

That is absolutely right. It has traditionally been a challenge to bring those private sector skills into government and to make sure we have a critical mass of people who really understand how to stay on top of those contracts, as my hon. Friend says, not just annually but day by day. We are very proud of our director, Ian Porée, who focuses on this procurement, particularly in relation to probation, and has those private sector skills. As I said, we also have 25 years of experience here.

Oral Answers to Questions

Debate between Simon Hoare and Rory Stewart

Tuesday 5th June 2018 Commons Chamber

[Simon Hoare (North Dorset) (Con)]

The safety of prison officers in prisons is absolutely pivotal, as my hon. Friend the Minister recognises. May I urge him to give serious consideration to prison officers carrying pepper spray?

[Rory Stewart]

We are in fact already piloting the use of pepper spray. With the correct training—it needs to be used with the correct training—it can be an important part of reducing violence, and we are working on the lessons of those pilots.