Courts and Tribunals Fees

John Howell Excerpts

Monday 4th July 2016 Commons Chamber

[Robert Neill]

I am grateful to the hon. Gentleman for the spirit in which he made his contribution. I am a friend of the current and the former Secretary of State, and giving credit to those who responded to the evidence is perhaps the appropriate and balanced way to deal with the issue.

It is worth looking at a little of the chronology of one of the matters I am going to turn to. As well as having significant witnesses from the judiciary, we heard evidence from the trade unions, the business community, the Bar Council, the Law Society and a number of individuals and interest groups. We had four oral evidence sessions between November 2015 and February 2016, the last of which was on 9 February, when we heard from the legal profession and then from the Under-Secretary of State for Justice, my hon. Friend the Member for North West Cambridgeshire (Mr Vara).

We then waited, because we were anticipating the promised post-implementation review of the impact of employment tribunal fees, which had formed an important part of the evidence that was put before us. We knew that the review had been commissioned some time back, so we waited—and nothing came forward. In the end, on 25 April, the Under-Secretary of State for Justice, my hon. Friend the Member for Esher and Walton (Mr Raab), who is on the Front Bench and who had taken over responsibility, courteously responded, but he was unable to give any indication of a publication date. I have to say that we do not regard that as satisfactory.

It was against that background that, rather than waiting for the two months the Government normally have to reply to a Select Committee report to lapse, we thought it right to bring our report to the House today in this estimates day debate.

[John Howell (Henley) (Con)]

Will my hon. Friend tell us whether we have yet received that report?

[Robert Neill]

No, we have not, and I have to say that we used quite strong language about that in our report, because we were, frankly, disappointed. What happened does actually go against the spirit of courtesy, openness and co-operation I have seen from the Ministry of Justice team throughout the year or so I have chaired the Select Committee, and I hope it is an outlier. I hope the Minister will give us an indication of why the review report has taken so long and when we will get it. I know it is sometimes not easy to agree these things across Government, but it is pretty clear that the data required for the analysis were collected a long time ago, and, as we say in our report, there can be no reason why at least that factual material cannot be published forthwith, even if the Government are not yet in a position to respond, because the more informed the House and the public are, the better. That is an area of regret, and that is why today’s debate is important and timely.

Let me touch on some of the principles we are concerned with. The levels of various courts and tribunal fees have been politically controversial. We all need to bear it in mind that a balance must be struck between the cost to the public purse of administering a justice system, which is an integral part of any civilised society and of the rule of law, and how much can reasonably be recovered from litigants. We say that, in principle, we do not object to the idea that there should be some financial discipline on those who choose to go to law—those who choose to litigate—in deciding whether that is a wise decision for them to make. We do not have a problem with the principle of a certain level of a fees. Equally, however, we must bear in mind the comments that have been made consistently ever since Magna Carta but were recently elegantly captured by the late Lord Bingham of Cornhill in his book, “The Rule of Law”—which I always think should be compulsory reading for anyone in the political sphere—in which he says, in essence, that the accessibility of justice is as much a part of the fundamentals of the rule of law as clarity of the law itself. He says that justice is not a commodity—it cannot be commoditised in the way that, perhaps, other services can be. It is important to get the balance right. That is where we have some concerns that I will now turn to.

We accept that there is no problem, in principle, with fees for litigants. We know that there are financial pressures on the Ministry, which is not a protected Department. I understand the pressures that Ministers were under when these decisions were taken. We think it is entirely legitimate to find a number of means of reducing the number of vexatious claims. That could be done as part of the financial discipline we referred to, but it could also be done by changing the substantive law to raise the threshold or by making changes to court procedure. That is a legitimate part of the mix. But—we then have to say a number of “buts”, looking at the evidence —the answer to what is a reasonable charge in striking this balance will vary depending on a number of factors such as the effectiveness of fee remission, the vulnerability or otherwise of the claimants, and the degree of choice that they have. There is a distinction, for example, between someone who chooses to litigate over a commercial contract dispute and someone who is charged by the state with an offence, or someone whose marriage has broken down and has no other recourse, in order to have the marriage dissolved and move on with their life, than to go to the courts. The degree of choice is an important issue that must be considered carefully in each case.

There is an argument for trying to recover, as far as one can within that balance, some of the costs that fall on the public purse. In some cases, it may be possible to recover all the costs, but that cannot be an absolute. We were particularly struck by the fact that in some cases there are fees that exceed the full cost of the operation of the court; they are sometimes referred to as “enhanced fees”. We take the view, consistent with Lord Bingham’s formulation and with a public policy approach that we have had in this country for decades, that making a profit from the justice system, in effect, albeit one that is intended to be used elsewhere, requires particular care and a strong justification.

--- Later in debate ---

[John Howell (Henley) (Con)]

It is a great pleasure to follow the right hon. Member for Delyn (Mr Hanson) and my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), the Chairman of the Justice Committee. The difficulty for me is that they have already covered all the issues I was going to cover, but let me touch on one highlighted by the right hon. Member for Delyn and the Chairman of the Committee: access to justice.

Access to justice has been the key issue for all of us throughout this process. It was a big issue for the Committee, but it is a big issue for the courts and the senior judiciary. Through an Industry and Parliament Trust Fellowship, I have had the opportunity to talk to members of the judiciary about many of these issues, and I can assure the House that they are very concerned about access to justice.

Without the information from the Ministry of Justice, it is difficult to know what the impact of the changes will be. An enormous number of reforms are taking place; it is not just court and tribunal fees that are being put through at a rapid pace by the MOJ. The Lord Chief Justice is a great reformer, and when talking to him one really gets the feeling that he understands the issues relating to access to justice. At the same time, Lord Justice Briggs is taking forward his views for an online court, which could reduce the costs of justice by taking lawyers out of the equation in bringing a relatively small case to court. A lot of work needs to be done to get the detail of online courts right. Nevertheless, it will be there to provide access to justice.

The Committee’s report highlights the need to consider other means of determining court applications. One of those comes under the term “alternative dispute resolutions”. I happen to be the chairman of the all-party group on alternative dispute resolutions, so it is an area I am aware of. The courts, too, are aware of this. When I sat in the commercial courts, the judges were very keen to ensure that when there was an option of alternative dispute resolution, people took it. Some did and some did not, but it is important that it is offered as an alternative to their carrying on with their day in court. If they do take the option, it is important to ensure that the alternative dispute resolution sector can also keep costs down.

When I sat with judges in the courts, the issue on their minds all the time was how to keep costs down. We went through this with a lot of the cost hearings and cut out quite a lot of the barristers’ fees. It is important to ensure that we can tell whether it is the changes to the courts that are having the effect on tribunal numbers, or whether it is the effect of the fees being charged. I say that because as part of the experience I spent a day with an employment tribunal. There were three members sitting and I asked them how long it would go on for. They said that they had scheduled six days for an employment tribunal that could have lasted one day, so the court fees had not had a significant effect on this individual bringing their case. They had assigned six days to it, because it was a litigant in person and they wanted to bend over backwards to provide the time for that individual to make their case. A much more sensible approach would have been to ensure that the case went on for a lot less time, while still preserving access to justice and ensuring that the litigant in person could still achieve what they wanted to achieve.

The senior judiciary have been pursuing one line of cost reduction, while the Government have been pursuing another. There is nothing wrong with pursuing reductions along a twin track, provided that the two groups work together and talk to each other. The criticism that came back to me from the senior judiciary I sat with was that the Government were not talking to them about the changes they were making. That is a great shame, because without that I do not see how we can make sense of, and really get to the bottom of, access to justice.

My hon. Friend the Member for Bromley and Chislehurst, the Chair of the Committee, has already highlighted the issues around the impact assessment of the changes to court fees and the fact that the information is still not available. He also pointed out that the Master of the Rolls was absolutely scathing about the quality of that evidence. I put that on record again, because it is very important when someone as senior as the Master of the Rolls is critical of the Government’s approach. I have to say that I share his views. The courts and tribunal fee is not a milch cow; it is a real issue of access to justice. Without the information we still have not received, we cannot assess the impact of the fees on access to justice and what impact they will have.