Riot Compensation Bill

Steve Reed Excerpts

Friday 5th February 2016 Commons Chamber

[Mr Speaker]

I am grateful to the hon. Gentleman for his point of order and his characteristic courtesy in giving me advance notice of his intention to raise it. My initial reaction, off the top of my head, is that it is not disorderly, though it might be considered unhelpful. In my experience, it constitutes a somewhat odd transfer. Transfers are commonplace, but where the question is as specific as his, it is an odd, perhaps unconventional transfer that might have been requested by people acting on behalf of the Prime Minister who are perhaps not as well versed in our procedures as the hon. Gentleman is or as the Chair likes to consider himself to be. I advise him to make the short journey from the Chamber to the Table Office to seek guidance on how he can take the matter forward. Knowing him as I do, I think it improbable in the extreme that he will allow the matter to rest there.

[Mr Steve Reed (Croydon North) (Lab)]

Hon. Members will be aware that Croydon was hit very hard in the 2011 riots. Many members of the public, seeing the damage caused to local businesses, homes and property, wanted to help those seeking to recover and deal with the losses incurred, and they generously gave money to a fund set up by the mayor of Croydon for precisely that purpose.

I rise to speak in favour of amendment 8, which was tabled by my right hon. Friend the Member for Tottenham (Mr Lammy). I am sorry I missed the start of his contribution, but I heard the end, and it was typically magnificent. I would like those who give generously to help their neighbours who have suffered a loss to have the reassurance that the money they contribute will not subsequently be deducted from official compensation payments, but tragically that is exactly what happened in Croydon in 2011. Money was donated to the mayor’s fund and was then distributed to individuals and businesses that had suffered a loss, but those generous payments were then deducted from the official compensation payments that were made. That is clearly wrong and a disincentive to people to give generously, as they did in Croydon to help their friends and neighbours. It is entirely wrong that such generosity should be discouraged by the deduction of those contributions from official payments. I strongly support my right hon. Friend’s amendment, which I hope will have the support of the House.

--- Later in debate ---

I have one further piece of clarification. If a payment from a public fund has been given for a purpose not covered by the Bill, a deduction will not be made. For example, if payments were made for personal injury or to cover a loss of income, which would take us into the sphere of consequential loss, a deduction would not happen. In other words, it will be fine if a payment has been made for a purpose for which the Bill provides through the compensation schemes covered in it, but if payments have been made through schemes designed for other purposes, it will clearly not be appropriate for a deduction to operate. I hope that that clarification is helpful in explaining how we envisage the inter-relationship between compensation schemes under the Bill and other schemes.

[Mr Steve Reed]

I take the right hon. Gentleman’s point about the public purse, but what reassurances can he give that charitable donations from members of a community that were given to help victims in the locality will not be—rather than should not be—deducted from official compensation payments?

[James Brokenshire]

Again, the best place to deal with that and give clarity about the operation of the Bill is in regulations. I hope that given what I have said today about the intention to introduce regulations to sit alongside the Bill, hon. Members will be reassured on this important point about charitable donations. The right hon. Member for Tottenham indicated that he thought the best place to deal with that would be in regulations. That is our judgment too, but I hope that what I have said to the House is helpful in providing clarification and setting out the how the Government will seek to operate the provisions in the Bill. Obviously, right hon. and hon. Members will be able to examine the regulations when they are published, following Royal Assent—we hope that will happen, but both Houses need to give the Bill their consideration.