The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)
I beg to move,
That this House agrees with Lords amendment 2B in lieu of Lords amendment 2, to which this House has disagreed.
The reasons that this House gave for disagreeing to certain amendments to the Bill have been considered in the other place, and a further amendment has been agreed there that now requires consideration by this House. I ask the House to agree to Lords amendment 2B.
The Lords amendment is to clause 1 and makes it clear that a body that trades for profit will satisfy the serious harm test only if it is able to show that the statement complained of has caused that body, or is likely to cause it, serious financial loss. As I made clear when we originally considered Lords amendments, we recognise the strength of feeling that exists on whether there should be a specific provision in the Bill on the issue. I indicated that I would consider the matter further, and the amendment reflects the outcome of those considerations.
As the Government explained at earlier stages of the Bill’s passage, we amended what was initially a “substantial harm” requirement to one of “serious harm” to raise the bar for bringing defamation claims. The Lords amendment therefore refers to “serious financial loss”, to reflect that aim, and is now linked explicitly with the serious harm test.
We consider that the approach that we have taken is clearly preferable to that in the earlier Lords amendment 2 for two main reasons. First, the use of the words “serious financial loss” makes it absolutely clear that the financial loss required to meet the serious harm test must itself be serious. By contrast, the reference in the earlier amendment to “substantial financial loss” could inadvertently have weakened the requirements of what must be shown to satisfy the test.
Sir Edward Garnier (Harborough) (Con)
Why does my hon. Friend say that? What is the difference between “serious” and “substantial”?
Mrs Grant
I am sure that my hon. and learned Friend will go into details about the motion that he tabled, but as we have made clear, we think it is helpful that there will be a direct link between serious harm and serious financial loss. That will make the situation absolutely clear to those wishing to bring an action.
The second reason why Lords amendment 2B is preferable to the earlier Lords amendment 2 is that the term that we have used to define those who will be subject to the requirement—
“a body that trades for profit”—
is a much clearer and simpler definition. Those are the bodies about which people have expressed concern, so we have phrased the amendment specifically and directly to meet those concerns.
I believe that the Lords amendment represents an effective and proportionate approach that addresses the concerns that have been expressed in this House and elsewhere. I urge the House to support it.
Robert Flello (Stoke-on-Trent South) (Lab)
Thanks to a lot of hard work—especially in the other place, it has to be said—the Bill is now in a much better place. It is still far from perfect, sadly, which is a huge shame. It could have been perfect and a marvel to behold, but sadly the to-do list in the Bill includes early strike-out, website operator regulations and clarification for booksellers of the innocent dissemination rules, about which they were concerned. It also includes costs, which are a strange case, because we are really no further forward on them.
Indeed, we are left in a wholly unsatisfactory place. The last-minute announcement of a consultation on costs over the summer shows how sloppily this Government have treated parts of the Defamation Bill. The mess in respect of defamation, Leveson and the Legal Aid, Sentencing and Punishment of Offenders Act 2012 means in future people in a similar position to the Dowlers, Simon Singh and Peter Wilmshurst who will fight defamation cases will probably be in a worse position on costs than they would have been had the Government not got their hands on this legislation. Despite the promises that were made during the passage of the LASPO Act, costs is a major issue, and it should have been dealt with properly before this Bill returned to the Chamber.
The Minister commented on extending the Derbyshire principle to private companies. It is estimated that, following this Government’s privatisation agenda, in the NHS alone private companies will take over £16 billion- worth of Government contracts to provide services previously carried out by the public sector. Those services will go to private companies that use the law to chill debate in a way that the NHS cannot. Atos frequently suppresses disquiet, and Baroness Hayter cited Serco in the other place yesterday.
I hope the judiciary is listening to this debate and has listened to some of the other debates, because as Ministers both in this House and the other place have repeatedly said, the courts should further develop the Derbyshire principle in line with the will of Parliament. That is an unsatisfactory position, however, and this is on the to-do list of things that would have improved the Bill dramatically, but I hope the courts will now extend Derbyshire to contracts between the private sector and the Government or local authorities, because that is in line with the will of this House. [Interruption.] The Minister has commented on that, as I have said.
It is thanks to Opposition Members that the Bill has been improved. No matter what is claimed on the Liberal Democrat Voice website, not once have the Lib Dems backed us against the Government. Indeed, yesterday in the other place in the vote on the Derbyshire aspect of what was amendment 2—[Interruption.] The Minister keeps chuntering about Derbyshire, but the issue here is clearly that the will of this House has been expressed on many occasions, but thanks to the Liberal Democrats supporting the Government, we are not able to take that forward. It is important to put that on the record. No matter what they say, it is all talk and no action from the Liberal Democrats.
This is now a better Bill, but it is not the best it could be, and we will need to return to it after Labour is re-elected to government in 2015—or sooner, I hope. It is the best we can expect at present, however, and that is a shame. I am disappointed—and also surprised, although perhaps I should not be—that the hon. and learned Member for Harborough (Sir Edward Garnier) has introduced his proposal. We will hear his observations on this matter in a few moments. We will decide whether what is before us is the best we can get today after we have heard the Minister’s final comments.
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.