2011 Public Disorder (Compensation)

Debate between Steve Reed and Keith Vaz

Wednesday 5th June 2013 Commons Chamber

[Mr Reed]

I thank the hon. Gentleman for that helpful intervention. I hope that the Government will look at other parts of the United Kingdom that have more experience of disorder and that therefore have more agile and nimble ways of responding to it. It would be foolish not to consider such experience and I hope that the Minister will take the hon. Gentleman up on his generous offer and speak to him about experiences in Northern Ireland.

[Keith Vaz (Leicester East) (Lab)]

May I compliment my hon. Friend on the way in which he has brought his communities together? I and the Home Affairs Committee visited Croydon just after the riots and I visited it again just before his election. Local people tell me that he has played an important leadership role in ensuring that their cause is brought to Parliament and is prosecuted properly.

[Mr Reed]

I am very grateful to my right hon. Friend for that intervention, which, typically, was extremely generous and kind.

In many cases, compensation under the Riot (Damages) Act cannot kick in until the insurance process has been completed. Too many insurers have taken too long to complete the process, leaving businesses unable to claim under the Government schemes. As a result of all the factors I have mentioned, the compensation is falling desperately short of the claims.

In the light of the two examples I have given of people from Croydon who have suffered, I want to give a further quotation from the Prime Minister. He was asked by the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe):

“Will the Prime Minister assure me that no business will be lost and no livelihood subsequently lost because of the actions of those thugs and hooligans, and that the £20 million support fund, if deemed not big enough, will be increased to make sure that those things do not happen?”

The Prime Minister replied:

“Of course we will keep the issue under review, and there is the Riot (Damages) Act as well as the £20 million scheme. I believe that should be enough, but my hon. Friend the Minister of State, Department for Business, Innovation and Skills will be on the case.”—[Official Report, 11 August 2011; Vol. 531, c. 1083.]

Those were the warm words, but where are the help, the compensation and the action that were promised? These people are victims, not perpetrators. The riots are still creating new victims, but the Government are not doing enough to help them. I am afraid that the Government’s promises have been shown to be hollow. By failing to act, the Government are complicit in the suffering that people continue to endure in my constituency and elsewhere.

I ask the Minister to look at three things. First, please will he look again at the claims that are disputed? He may consider them to be settled, but too many people whose lives face ruin do not. Secondly, he must consider allowing old business equipment that was destroyed during the riots to be replaced by new equipment where there is no reasonable possibility of the business owner acquiring like-for-like replacements at the value of the property that was lost. Thirdly, please will he consider funding the businesses and individuals who are still being forced to pay mortgages on property that was destroyed? If the property does not exist, it is impossible for the business person to make an income to pay the mortgage. If they are forced to dip into their own finite resources, they will end up being bankrupted and will again be victimised, having already suffered loss during the riots.

Frankly, it is scandalous that people in Croydon who lost so much are still waiting for compensation nearly two years later. People in Croydon, across London and in all affected areas of the country looked to the Prime Minister and believed that the failure of the police to protect them, their homes and their livelihoods during the riots would be made good. That has not happened and it must be put right.