Defamation Bill

Debate between Simon Hughes and Lord Garnier

Wednesday 24th April 2013 Commons Chamber

[Sir Edward Garnier]

She is shaking her head to say she did not, but I am not sure that is an answer to the question. The Government should come to the Dispatch Box and have a coherent case to make, but they do not.

Old and ill-tempered Members of Parliament, whether they represent Worthing or Harborough, must draw their remarks to a conclusion at some stage so I shall do that now. I do so, however, with acute disappointment, and I think the Government are letting themselves down.

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

My hon. and learned Friend the Member for Harborough (Sir Edward Garnier) is clearly experienced in these matters, but he is not satisfied by the conclusion reached by the two Houses after a huge amount of consideration over a very long period, with attempts by everybody to achieve maximum consensus. I understand his point that Parliament works by doing a deal at the end of the day. A Government—any Government—have to get a Bill through both Houses of Parliament, and for a long time no single party has had a majority in the House of Lords. The House of Lords has often intervened to say that it does not like what the House of Commons is doing, and there have been one, two or three attempts at the end of the Session to see whether we can reach a point of conciliation. That is what has happened in this case.

My hon. and learned Friend and I might agree that we ought to have a system that always gives the final vote on Third Reading of a Bill to the elected House at the end of discussions. I hope I can persuade colleagues on the Procedure Committee to eventually come forward with such proposals, but that is for another day.

[Sir Edward Garnier]

I do not suggest that what is being done today is unconstitutional; I say simply that it is incoherent and foolish.

[Simon Hughes]

I understood that and I will say why I think the measure is a reasonable last change that the House should support. I wish to pay tribute to several people, including Lord Lester of Herne Hill who introduced a private Member’s Bill to Parliament some years ago and in many ways triggered this reform of our defamation legislation. I also pay tribute to my noble Friend Lord McNally, who has steered a controversial Bill through many stages. He referred in his speech yesterday to the fact that it has been through the pre-legislative stage and the legislative stage. It has been considered by the Liberal Democrat party; there were conference debates and resolutions were passed on it, and there have also been many cross-party conversations.

I was a little troubled that the hon. Member for Stoke-on-Trent South (Robert Flello) was slightly churlish about the point we have reached. His party and mine, as well as the Conservatives and Cross Benchers, have worked together on the threshold for dealing with corporate claims, and we have made progress on that. Therefore, today is progress along the lines that he wanted, and that he knows colleagues from all three parties wanted. He pretends to be naïve—which he is not—about the way these things work, whether or not there is a coalition Government. At the end of a political process in Parliament, negotiations take place in the public light and also behind the scenes. As he knows perfectly well, that has happened with all three parties to try to get to the most agreeable and consensual place. My party has been as much a part of that process as the Labour party and the Conservatives in arriving at this point.

The Minister rightly says that this is not about what is known as the Derbyshire principle. For those outside the House who have no clue what that is, in essence—I do not pretend to be legalistic about this—it is a principle enunciated by the courts in a case to do with a local authority, which effectively stated that local authorities cannot generally sue to protect their reputation because they are public authorities. However, as I think everybody has agreed in both Houses, common law will evolve, which does not stop it being dealt with by further judgments of the courts across the United Kingdom. In light of the Localism Act 2011, there may be further definitions of a public authority that seek to deal with the issue of a private body that does public authority work. That business remains unaltered by the Lords amendment.

The Lords amendment, which has returned to this House in a form I hope will be accepted, would provide one additional hurdle for people who are seeking as companies to use this country’s defamation legislation. It states:

“For the purposes of this section, harm to the reputation of a body that trades for profit—”

therefore not a body that makes no profit—

“is not “serious harm” unless it has caused or is likely to cause the body serious financial loss.”

I heard the previous speech and we can debate whether that is the perfect wording. It is, however, a clear statement that there must be “serious financial loss” before someone gets to a position from which they can win a defamation case. The Government rejected the idea of a pre-hearing. I understand that and think they were right because it would have meant going round the courts twice.

The Government have accepted that the bar for companies should be higher than that for individuals, which I am sure is right. That measure is meant to deal with the sort of cases that my hon. Friend the Member for Worthing West (Sir Peter Bottomley) alluded to where in the past individuals were clobbered by companies with huge resources and assets in a way regarded as totally unfair. As Lord McNally pointed out yesterday in the House of Lords, not only have we now, I hope, protected the little person in financial terms against the big corporate giant, we have also done things to protect academic reputations and academic dispute, and to allow that to go on without the threat of defamation. We have also, I hope, made the law clearer and brought it up to date.

The hon. Member for Stoke-on-Trent South said that if the Labour party returns to government, it may wish to return to these matters, and I suppose any Government may want to do that. In this country, however, we understandably do not reform defamation law—generally a cross-party exercise—very frequently. This is a major piece of legislation and I hope that we have dealt with the last tricky issue in a way that provides greater protection for the individual against the big corporate. I think that is a job well done in both Houses of this Parliament.