Riot Compensation Bill — House of Commons, 2016-02-05
Topic: Law and Crime
James Peter Brokenshire (Conservative, Centre-right): 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.