Compensation Bill [Lords]


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Mr. Heald: Given that it is a technical matter and that a lot of legal issues may be thrown up by it, does the hon. Gentleman agree that if the Minister were to table an amendment it would be useful to have a helpful explanatory note about how it would tackle the issues in Barker and Corus?
Simon Hughes: That would be helpful. I know that the Minister will try to do so.
I have a four-page note on the implications of Barker v. Corus from my hon. and academic Friend the Member for Cambridge (David Howarth), whose life work has been to study and teach the law of negligence. I have read it twice and I am still not sure that I understand all the implications. I am sure that it just requires a bit more fresh air and a flannel and less distraction because of the World cup. The serious point is that, yes, the more information we get at an earlier stage, the better. If that is not possible, I would be happy for that information to be provided on Report, with plenty of opportunity for colleagues to think about it. Ideally, though, it would be provided in Committee.
4.45 pm
I have two final points. I have never before been on a Committee in which the Conservative party—for that matter, any party—has done a sort of trailer for the real film of all the things that are to come. Now we know what issues the Conservative party will treat us to. It is always useful to know what is coming down the tracks, and we look forward to discussing those issues. The one that we clearly need time for—the trade union relationship and trade union solicitors—was referred to in part 2, which is much less controversial. There is a willingness to make sure that we understand what the law is and what it should be.
Lastly, in case people comment later, I have always taken the view that, in Committee, we should be as lightly whipped as possible, because Committee stage is when people should be able to express individual opinions. So, if my hon. Friend the Member for Montgomeryshire and I have a difference of view—I have not discussed with him whether we do—we shall vote differently. In my view, that is what Committees should be for: to allow Members to express their view unless there is a party manifesto commitment. I do not think that there are any great party manifesto commitments at stake. I hope that we will have a constructive debate and be persuaded by the argument, not by pre-ordained views that drive us into a particular voting Lobby or in a particular direction.
The Chairman: Let me respond to Mr. Brazier’s earlier question. There was a difficult decision as to whether to put all the amendments together and debate them in common. We decided that to do so would give the Committee a better opportunity to discuss all the issues. Like the hon. Gentleman, I hoped that we would avoid a separate stand part debate because we would have covered everything in detail by that point. The more general points would be most appropriately made in the debate on the amendments grouped with amendment No. 27.
Bridget Prentice: Normally, I hope that the programme motion will pass virtually unscathed, but we have had an important debate about what is in the Bill and what we hope will be in the Bill.
Mr. Heald: The hon. Lady will be aware that some major insurers in this country—Norwich Union, Zurich and so on—have good systems for tracing companies that were insured by them through the years. The same is not true of some others. Clearly, a level playing field helps everyone. It helps the claimant because he is able to trace an employer’s insurer and therefore has someone to sue. It also means that the system is fairer.
Bridget Prentice: I accept what the hon. Gentleman says. We are aware of that. It is one of the reasons that a great deal of work is going on in that area.
Mr. Kevan Jones (North Durham) (Lab): I warmly welcome the inclusion of the amendment on mesothelioma. The issue of pleural plaques was raised on Second Reading. Has that issue been considered on the scope of whatever amendment the Government are bringing forward?
Bridget Prentice: We are concentrating on the Barker judgment and have asked officials to work on that. As for timing, I would like that amendment to be introduced in Committee for two reasons. First, I said as much on Second Reading, but, secondly and more importantly, Labour Back Benchers in Committee have been most vociferous in advocating the cause of mesothelioma sufferers. It is appropriate that my hon. Friends should be the first to ensure that such changes take place. However, if it cannot be done by the end of our time in Committee, we can come back to the issue on Report.
In reflecting on the issues, we have received cross-departmental support for what we are trying to do. I can tell the hon. Member for North Southwark and Bermondsey (Simon Hughes) that the Bill is a Labour party manifesto commitment, and I am pleased that the proceedings are taking place. However, I hope that people do not underestimate the amount of work that has already been done in the short time since the Barker judgment to make sure that people who suffer from mesothelioma and their families receive the justice that they deserve. I know from comments in Committee that everyone here will help us to try to achieve that.
Mr. Heald: I mentioned the explanatory note.
Bridget Prentice: Absolutely. We will make sure that an explanatory note is attached to any amendment that we table. On that basis, I recommend the programme motion to the Committee.
Question put and agreed to.

Clause 1

Deterrent effect of potential liability
Angela Watkinson (Upminster) (Con): I beg to move amendment No. 11, in page 1, line 4, leave out ‘may' and insert ‘shall'.
What a pleasure it is to serve under your chairmanship, Mr. Caton. I am introducing the amendment as my hon. Friend the Member for North-East Hertfordshire has to leave our proceedings before the debate is likely to conclude. The amendment is small. It is an attempt to move the power of the court from a discretionary to a mandatory power. In its report “Better Routes to Redress”, the Better Regulation Commission concluded that the compensation culture is a myth. However, the cost of belief in it is real. I agreed with that conclusion and therefore support the principle of clause 1.
The Department for Constitutional Affairs report “Effects of advertising in respect of compensation claims for personal injuries” demonstrated how widespread is the perception that we live in a compensation culture. Quantitative findings suggest a very strong, widespread belief that there has been an increase over the past five years in the number of people making successful claims for personal injury compensation. The report showed that 87 per cent. of those who responded believe that more people claim compensation for personal injury than did five years ago. The majority expressed the view that a lot more—67 per cent.—were doing so, while 20 per cent. of people thought that a few more people were doing so. Only 1 per cent. thought that fewer people were claiming compensation. None thought that a lot fewer were. Those findings are of concern and underline the importance of clause 1, which is designed to add greater clarity and certainty to the law.
Paddy Tipping: I do not deny that there is that perception, but the reality is different. The number of cases entered before the court is, in fact, dropping. One significant thing about clause 1 is that it works on perceptions of what is happening rather than the reality of what is happening on the ground.
Angela Watkinson: The hon. Gentleman has pre-empted my later comments Clause 1 is designed to add greater clarity and certainty to the law. That is also the purpose of the amendment. There should be some readily understood clarity on what the clause seeks to do. The amendment accentuates the fact that clause 1 does not change the law but merely clarifies the existing law.
In another place, Baroness Ashton argued:
“The reason why we said "may" rather than "shall" is that when a court looks at a negligence claim it takes into account all the circumstances of an individual case; those circumstances, of course, vary dramatically from one case to another, as all those who are members of the legal profession will know far better than I.” —[Official Report, House of Lords, 15 December 2005; Vol. 676, c. 200.]
I understand that Ministers may be reluctant to fetter the discretion of the court, but the discretion remains in the overall provisions of clause 1, which enabled the court to consider all the circumstances of the case. The law should continue to develop. However, a clear statement is necessary for judges and the public. There should be some readily understood clarity on what it seeks to do.
What is wrong with the clause stating that the circumstances will be considered, if it does not amend the law? Why do Ministers not have the confidence to say that those matters are required, not optional? Greater clarity and certainty are necessary. I envisage, unless the Minister is willing to respond, endless satellite litigation on whether the judge should exercise the discretion, let alone on how the discretion is to be exercised.
Lembit Öpik (Montgomeryshire) (LD): Welcome to the Chair, Mr. Caton. Does the hon. Lady agree that it is hard to see why the Government would want to resist that? By putting “shall” instead of “may”, we are asking that the court will always take account of that condition. If it does not apply, that will be fine. However, it may be inferred from “may” that there might be occasions when the conditions should be taken into account but will not be. Does she agree that the amendment is a sensible—almost a housekeeping—change to ensure that the clause is properly applied.
Angela Watkinson: I thank the hon. Gentleman for his thoughtful intervention. He has triggered my awareness of an omission in my introduction; I should have said that the amendment is introduced in the name of my hon. Friend the Member for North-East Hertfordshire, my own and that of the Liberal Democrat spokesman, the hon. Member for North Southwark and Bermondsey. I apologise for forgetting to do that.
I return to the Arculus report from the Better Regulation Task Force entitled “Better Routes to Redress”, which Members may recall was published in May 2004 and it put forward this view:
"an exaggerated fear of litigation, regardless of fault can be debilitating. The fear of litigation can make organisations over cautious in their behaviour. Local communities and local authorities cancel events unnecessarily and ban activities which, until recently, would have been considered routine. Businesses may be in danger of becoming less innovative and without innovation there will be no progress".
Those words underpin the strength of the case for being more certain about the impact of the legislation and therefore moving from a discretionary situation to a mandatory one. That is why I move the amendment.
Mr. Brazier: I did not intend to be churlish in not welcoming you to the Chair earlier, Mr. Caton. I do so now and think we will have as interesting a Committee stage as we had on Second Reading.
I support the amendment. The intervention a moment ago by the hon. Member for Sherwood (Paddy Tipping) slightly missed the point. There may be a sharp decline in the kind of activities that attract litigation, but a fall in the number of cases does not show lesser willingness to litigate, it shows that activities are disappearing. That is perhaps a theoretical point.
The practical fact is that my colleagues and I in the all-party group on adventure and recreation in society—I am delighted to see my co-chairman, the hon. Member for Montgomeryshire, on the Liberal Democrat Benches, and our Labour co-chairman, the hon. Member for Sittingbourne and Sheppey (Derek Wyatt), made a powerful speech on Second Reading—are concerned not by the great raft of litigation across all headings but by the amount relating to adventure training, sport and physical recreation, which is a very small proportion of the total. The overall statistics are not relevant.
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Paddy Tipping: The hon. Gentleman confuses the argument. He accuses me of saying that the number of cases has gone down because people have been put off activities, but has now admitted that adventure and outdoor training, which is indeed important, is a very small part of the claims total. If we are legislating, we must legislate from fact, which is that claims registered are decreasing, rather than from perception.
Mr. Brazier: The hon. Gentleman makes a good point, but the fact is that America, which has the worst compensation culture in the world with more than five times our level of litigation, has a much higher barrier in most states to protect sport and adventure training than would be created even by a clause 1 strengthened in the way the amendment proposes. In most American states, reckless disregard must be proved, which means in practice that intent must be proved, and my concern is with those areas. My hon. Friend the Member for Upminster (Angela Watkinson) made a powerful case by saying that the courts should take the circumstances into account rather than having the option to do so.
It would be burdensome to repeat the case from a court in Manchester that I described in detail on Second Reading, as almost everybody here was present. However, I ask hon. Members to consider whether the judge in that case, which took place while the matter was being debated in another place, would have bothered to use his discretion in the way the clause advocates. Hon. Members will remember that he awarded £15,000 against the Scouts for allowing a Brownie to cut herself by sitting on a seat in an auditorium that had been doubly inspected before a pantomime that the Scouts were performing for the Brownies.
Ian Lewis, the director of Campaign for Adventure, which brings together most of the adventure training organisations in this country, commented:
“The British Hang Gliding and Paragliding Association and the British Horse Society...are being forced to close centres because the insurance is becoming unaffordable. This is because the judiciary fail to realise the implications of their decisions and perceptions related to them.”
The question is not about the wider compensation culture but whether the activities of youth, adventure training and sporting groups are being affected by the kind of decision that was not made 15 years ago.
I mentioned on Second Reading that I have submitted a string of cases to the Government. When the all-party group submitted them, we were told that they did not have law reports and so could not be taken into account, even though we provided dates, locations and the names of the judges concerned. There were cases against the Scouts, a case against a yacht club and a case against a rugby club; there was a whole string of them. In only one case, that of the rugby club, was there a fair degree of argument on both sides. In every other case, the ordinary layperson would have agreed that it was completely unreasonable, if we want people to operate voluntary organisations for the benefit of young people and others who want those opportunities, to make such decisions.
I shall quote a new ally. The website of the Royal Society for the Prevention of Accidents says:
“Exciting and stimulating play areas not only contribute to the physical and psychological development of the child but also discourage children from playing in dangerous locations such as railway lines, canals and river banks and alongside roads.”
Indeed, on the “Today” programme on 15 June, David Yearley of ROSPA said that in his view, play areas were simply becoming “boring”. The Daily Telegraph also reported that he told an international play safety conference at Loughborough, Leicestershire, that playgrounds should be
“as safe as necessary, not as safe as possible”.
That is not the mentality of modern judges, and the cases that I have quoted illustrate that.
The Girl Guides, who have a waiting list of 50,000 girls and are 8,000 volunteers short, have stated:
“We want the Bill to renew the recognition by the public at large that there is an acceptable degree of risk in worthwhile activities for children and young adults...The perception that anyone working with other people’s children risks being sued for even the most minor accident is hugely detrimental to children’s freedom to partake”
in adventure activities
“by discouraging existing volunteers to run activities”.
Mr. David Anderson (Blaydon) (Lab): The hon. Gentleman says clearly that he wants to protect people who act as risk takers and look after children, but we should surely not stop people made genuinely ill or injured at work, due to negligence, from having the right to make a legitimate claim.
 
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