Defamation Bill

Simon Hughes Excerpts

Tuesday 16th April 2013 Commons Chamber

[Mrs Grant]

As I intimated earlier, fixing the problem of fairness and creating the right balance between the claimant and defendant is not just about an early strike-out procedure. It is about a package of proposals that create fairness, are proportionate and allow for freedom of expression while protecting the reputations of individuals.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Before my hon. Friend leaves this issue and following the intervention by our hon. Friend the Member for Worthing West (Sir Peter Bottomley), will she say whether the implication of what she said a few minutes ago is that she and the Government are willing to look at how we reflect the Lords amendment, but in a different way, to deal with corporate actions against vulnerable individuals, which is clearly a concern on both sides of the House?

[Mrs Grant]

In relation to serious financial harm—that aspect and that aspect alone at the moment.

I now turn to the second element of the Lords amendment. In the case of Derbyshire county council v. Times Newspapers, the House of Lords held that local authorities and government bodies were already prevented from bringing actions for defamation. The amendments seek to extend that principle and prevent claims by any non-natural person performing a public function. We do not consider that appropriate, as it would remove completely the right of a wide range of businesses and other organisations to protect their reputation. Although the provision focuses on criticisms in connection with the exercise of public functions, that criticism could of course have a wider impact on the reputation of the business more generally.

Our view is that a rigid, restrictive statutory provision that would remove the right to claim from a wide range of bodies does not represent a proportionate approach. We consider it much better to allow the courts to develop the Derbyshire principle, as they consider appropriate and necessary in the light of individual cases. The removal of the amendment will not affect the Derbyshire principle, which will continue under the common law as it does now. I hope that the House will therefore agree to reject Lords amendment 2.

--- Later in debate ---

[Sadiq Khan]

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

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

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

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

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

Opposition Members support that statement.

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

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

Dr Simon Singh said today:

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

[Simon Hughes]

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

[Sadiq Khan]

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

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