Riot Compensation Bill

Lindsay Hoyle Excerpts

Friday 5th February 2016 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

That’s killed his career.

[James Brokenshire]

I do not know whether I am going to blot my copybook now or not, but I thank the hon. Lady for approaching this group of amendments in a constructive way, as she and the right hon. Member for Tottenham (Mr Lammy) did in Committee. That is the approach we have taken across the House, recognising that there is an issue in the Bill, and seeking to sensibly examine what is appropriate in terms of the manner in which it has been framed.

In introducing the amendments, the right hon. Gentleman highlighted his desire to probe these provisions and to ensure that the House has the opportunity to scrutinise them properly so that right hon. and hon. Members have the chance to underline important issues. He mentioned the Comptroller of Her Majesty’s Household, my hon. Friend the Member for Croydon Central (Gavin Barwell), who has also fought tirelessly on behalf of his constituents. Obviously, his role on the Front Bench means that he is not able to take part in these debates in the manner that we are. However, it is for him, the public and all of us to consider what the right mechanism is and to ensure that the Bill is appropriately examined so that we get it right. That is the overarching theme reflected in our debates on Second Reading, in Committee and on Report this morning.

I want to draw attention to the operation of clause 8(8), which gives the Secretary of State the ability, through regulation, to make changes to the overall cap of £1 million set out in clause 8(1). It is important to look at the Bill’s subsequent provisions, which, again, underline the protections that are there. If regulations come forward to increase the level of the cap, that would be by the negative procedure. To have an additional safeguard if, say, the level was to be reduced—that would certainly not be our intention—that would be by the more positive affirmative regulation mechanism. That, again, reflects the spirit in which the Bill has been approached and the manner in which it has been examined.

The right hon. Gentleman highlighted a number of measures in the letter my right hon. Friend the Member for Hemel Hempstead (Mike Penning), the Minister responsible for policing, fire, criminal justice and victims, wrote to the Chair of the Public Bill Committee. Obviously, in previous consultations, we examined different ways in which compensation should be capped. My hon. Friend the Member for Dudley South (Mike Wood), in a very clear contribution to the debate, set out why that is needed and some of the thought processes involved. On further analysis, it was felt that the £2 million turnover cap initially suggested by Neil Kinghan would have meant more claimants not being able to get through the mechanism, with additional bureaucracy attached to the process. It was felt that that was not the appropriate way forward.

Through the different amendments, the right hon. Gentleman has made a number of different suggestions. I know he was not seeking to favour one over the other, but rather to ask, “Have we properly examined this? Have we properly thought this through?” In terms of replacing the £1 million compensation cap by a £10 million cap, the experience of the riots of August 2011 demonstrates that it is not right for the taxpayer to shoulder the burden of unlimited liability. As my hon. Friend highlighted, liability for the Sony claim alone has already run into tens of millions of pounds, so it is clear that a cap is needed. As a point of principle, it is not unreasonable to expect a business with more than £1 million in assets to take out insurance to protect itself from a wide range of risks. The £1 million compensation cap was generally welcomed by stakeholders. It will provide full protection to the vast majority of individuals and businesses, while ensuring that liability to the public purse is not unlimited.

[Philip Davies (Shipley) (Con)]

On a point of order, Mr Deputy Speaker. I am very surprised that there is not a statement in the House today. You may have seen the reports in yesterday’s newspapers that European judges have ruled that a foreign—Moroccan—criminal cannot be deported from the country despite the Home Office saying that she committed serious offences which threatened “the values of society”. My understanding is that the person concerned is the daughter of Abu Hamza, so this is a very serious matter for the security of this country. Surely it should be raised in this House and a Home Office Minister should be making a statement today. Have you had any indication that the Home Office intends to make any kind of statement about this issue?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I do not think I am going to shock you by saying that I have had absolutely no indication of anybody coming forward with a statement. However, the hon. Gentleman has quite rightly, as ever, raised the matter, it is on the record, and I am sure that people in different Departments will be listening as we continue this debate.

[James Brokenshire]

A £1 million cap strikes the appropriate balance between protecting the public purse and helping those who need it most. Increasing it to £10 million would increase police and public purse liability tenfold, which is neither necessary nor appropriate. If the cap were raised to £10 million, the most likely beneficiaries would be insurance companies seeking to reclaim the costs of any very large claim from the relevant police and crime commissioner. I do not think that that was the intent behind the right hon. Gentleman’s approach in his amendment, but I respect the manner in which he has sought to draw the House’s attention to how we have reached this point and why we judge that £1 million is the appropriate level.

The right hon. Gentleman has proposed, as an alternative, that there should be regulations following a public consultation, with reviews taking place every three years. As I said, we believe that there is a compelling reason for having a cap in place. There are benefits that attach to having certainty on the level of the cap, with it being clearly defined, rather than perhaps having further uncertainty in the future as to what it might be. Leaving it to be set by regulations after a public consultation would serve only to remove certainty and increase bureaucratic burdens. A public consultation would achieve very little, given that 99% of claimants would have been paid in full from August 2011.

--- Later in debate ---

[Lyn Brown]

I completely get where the hon. Member for Dudley South (Mike Wood) is coming from—frankly, if I were the Minister in charge of his Bill, I would encourage him to say exactly what he has just said—but I am worried about where we are going with this. It has taken us 150 years to revisit the issue and there have been a number of disturbances—nay, riots—in this country during that time, and even when there have been really big riots, the system of dealing with victims has been wholly inadequate. I am concerned that we will find ourselves in 150 years’ time—well, we won’t, because we’ll be dead by then—saying, “Oh, yeah, we didn’t have very effective legislation. We had things for those old-fashioned things called cars, but the hover vehicles we’re driving around in now aren’t covered by this Riot Act.”

I say gently to the hon. Gentleman that even minor disturbances can wreck lives. We must make sure that any future Government have not only warm words to say to victims of riots, but effective legislation on the books so that they can help those victims effectively. I gently say to the Minister, who I have got a lot of time for—he has done an excellent job so far this morning—that we need to be more warm in our consideration of this Bill, so that we can ensure that the people who come after us in 150 years do not say the same kinds of things that we have been saying, with a little frustration, over the past few weeks.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Minister, follow that!