David Nuttall
Main Page: David Nuttall (Conservative - Bury North)Department Debates - View all David Nuttall's debates with the Home Office
Riot Compensation Bill
David Nuttall Excerpts(8 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mike Wood
I recognise the right hon. Gentleman’s point. It is important that alongside any new legislation and regulation we have the co-ordination at a community level to support the people he mentions, who, as he says, are often in our most vulnerable communities.
The basis for switching from old-for-old to new-for-old is one of basic fairness for riot victims. It cannot be fair for them to be expected to engage in extensive negotiations on the book value of a three-year-old dry cleaning machine, as was the case in one claim in 2011, and then to have to search for such a machine at the specified price just at the point when they are trying to rebuild their homes or their businesses. A new-for-old system is already used in most private insurance policies, and it would mean that victims could set about the important business of getting their lives, homes and businesses back on track.
Mr David Nuttall (Bury North) (Con)
My hon. Friend is right to say that new-for-old replacement will be welcomed by businesses that are affected by a riot, but often the most worrying and biggest problem for such businesses is the consequential losses that arise from that destruction and loss of property. Will he explain why those losses will not be covered, and why they are expressly excluded?
Mike Wood
As my hon. Friend says, the Bill would explicitly restrict a police force’s liability to direct losses, and it would exclude the consequential losses to which he refers. This is a question of fairness and affordability, because the potential impact on the public purse would be enormous should the riot compensation scheme be extended to cover full consequential losses.
Mr Nuttall
There is a cap, so any claims would be limited and caught by that cap. Bearing in mind that that exclusion exists, does my hon. Friend agree that it is extremely important that all businesses—especially small businesses—are made aware of the limitations of the Bill, and the need for them to take out insurance to cover otherwise uninsured losses?
Mike Wood
My hon. Friend makes an excellent point, and businesses need to do as he suggests. This is about what private insurance should reasonably cover. Although direct losses tend to be relatively easy to quantify, consequential and other indirect losses can be more difficult to quantify, and they cause much more difficulty for public authorities when assessing and paying for those claims.
Mr David Nuttall (Bury North) (Con)
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I hope that none of the properties I own is ever affected by a riot, but that is a theoretical possibility.
I rise to speak briefly in support of the Bill. I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on introducing it this morning. It is a pleasure to debate a Bill that does not seek to add further cumbersome regulations or which creates more problems than it seeks to solve.
We have heard a lot about what happened in London in 2011, but, as the right hon. Member for Tottenham (Mr Lammy) mentioned, Manchester and Salford were also affected by riots in the summer of 2011. In August 2012, it was reported that Greater Manchester police had paid out £442,000 for uninsured claims and £584,000 for insured claims under the Riot (Damages) Act 1886. It was a very big story locally. The right hon. Gentleman mentioned JD Sports, which has its headquarters in the borough of Bury. It was one of the companies affected when its store in Manchester was looted.
As hon. Members have said, the riots demonstrated the need to look again at the 1886 Act and to update what is widely accepted to be archaic and out-of-date legislation. While updating it, however, we will still maintain the principle that as the police are responsible for the maintenance of law and order, they should be liable if law and order breaks down and a riot breaks out. The Kinghan review, which was set up to look into how the 1886 Act could be improved, decided that maintaining such a statutory principle was the best way forward, but we could have provided for these losses to be dealt with as losses for uninsured motorists are dealt with through the Motor Insurers Bureau. I agree that we should maintain the existing principle from 1886.
The legislation has to deal with the competing interests of taxpayers, whom the Government want to protect by restricting the amount that is paid out, and uninsured businesses and individuals, who need to be protected when they are affected by loss. It makes absolute sense in the 21st century that the legislation should cover vehicles.
I agree that there is a simplicity in having a cap on claims of £1 million, but the amount needs to be kept under review. We do not want to think in 40 or 50 years’ time, “Oh dear, we should have reviewed that £1 million limit because it is woefully inadequate.”
Mr Nuttall
My hon. Friend is right that that ability is written into the Bill, but it requires the Government to take a proactive approach and make use of it.
Mr Lammy
On the very sensible point that the hon. Gentleman is making, is he worried, as I am, that the Government will recognise that £1 million is inadequate only after another riot? It is very unlikely that the Government would return to the limit between riots, because there would be no reason to do so.
Mr Nuttall
That is my concern. We need an assurance from the Minister that someone will look at the limit every few years because, as the right hon. Gentleman says, there is a danger that the legislation will be dusted down and looked at only after the event, as happened after the 2011 riots, when everybody realises that it is woefully out of date. A proactive approach is therefore needed.
Where I perhaps part company with the right hon. Gentleman is on whether the riot claims bureau should be a permanent body. Was he suggesting it should be?
Mr Nuttall
No, he was not suggesting that. I would not have agreed with that. I do not think we could set up such a body and have it permanently in operation.
Mr Nuttall
That is the point I am making. Thinking back to the Toxteth riots in the early ’80s, they are mercifully infrequent.
In urban areas that are seen as most at risk, it would make sense to have a stand-alone leaflet available that could be distributed in the event of a riot, so that business owners and affected individuals could be given information simply and straightforwardly in the immediate aftermath to put their minds at ease. They would then know what they needed to do and that they needed to do it within 42 days, or whatever the limit was. They would be aware straight away of the need to take action. In this day and age, there could also be a permanent website after the Bill reaches the statute book, as I hope it will, that can be found easily by somebody who does a search on the internet.
Bob Stewart (Beckenham) (Con)
I am certain that when the right hon. Member for Tottenham (Mr Lammy) went around all the destroyed buildings and spoke to the people whose livelihoods had been ruined, he told them, “This is what you’ve got to do.” I entirely endorse the point that an aide memoire should be available immediately to people who wanted to help, particularly Members of Parliament. This is a situation where Members of Parliament can help out big time. When there is a riot, it affects us directly, and that goes straight the way through local government. MPs should be there in protection of their constituents. They should have an aide memoire in their pocket that says, “Sign there”.
Mr Nuttall
I am grateful to my hon. Friend for his support on that point.
In conclusion, I congratulate again my hon. Friend the Member for Dudley South on introducing the Bill. He is absolutely right that the legislation should be updated and the archaic language replaced. It is one of the key requirements on us as legislators to produce legislation that can be understood not just by us, but by those who have to use it outside this place—in this case, by the police and members of the public who may be affected in the event of a riot. That is what the Bill seeks to do. I wish it well and hope it has a speedy passage through this House. [Interruption.]