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Mr. Leslie: First, I commend my hon. Friend the Member for Hendon (Mr. Dismore) on raising this issue. He discussed the question in Committee, and we talked about it then.
Amendment No. 9 would allow the court to make a periodical payments order for civil court damages only with the claimant's consent. I am afraid to tell my hon. Friend that the Government cannot accept the amendment because it would go against the whole purpose of the provisions on periodical payments. In previous debates on this issue, Members of both Houses recognised the significant benefits of periodical payments. They help to ensure that people receive the
compensation to which they are entitled for as long as it is needed; they transfer investment responsibility from claimants to defendants, who are better able to bear it; and they can even benefit defendants, including the NHS, by allowing awards to be managed more cost effectively. The Government believe that a power for the court to order periodical payments is needed to realise those benefits.9.30 pm
The court must be allowed to take into account all the individual circumstances of the case and weigh all the relevant factors against one another in making the order that it considers best meets the needs of the claimant. The Bill provides for rules of court to specify matters that the court must take into account when considering whether it needs to order periodical payments. We fully accept that the claimant's wishes are an important factor in this decision and they will certainly therefore be one of the factors that the court must consider. However, allowing the claimant effectively to veto an order for periodical payments will undermine the whole purpose of this clause, and we cannot allow that.
We do not consider that claimants have an automatic entitlement to receive a lump sum. A central legal principle in awarding damages is to restore claimants, as far as is possible, to the financial position that they would have been in but for the accident. Before the accident, they would have received their future earnings and pension not in a single lifetime lump-sum payment, but in the form of a stream of income against which they could spend, save or borrow as they chose. Periodical payments reflect that position much more accurately than lump sums.
Amendment No. 10 would remove any provision for the indexation of periodical payments from the Bill. Although I recognise concerns about indexation, I do not believe that amending the Bill in this way is appropriate.
Clause 100 deals with how payments of personal injury compensation are made. It does not attempt to go into detail about how such claims are to be valued. The provisions in the Bill merely seek to reflect the current position in which the great majority of orders—whether for structural settlement purposes or for lump sums— are linked to the retail prices index. Moving away from the current indexation position would raise much wider issues of how care and medical costs are calculated, an issue on which the chief medical officer has recently made recommendations relating to clinical negligence. As the hon. Member for Surrey Heath (Mr. Hawkins) suggested, the amendment would raise regulatory issues for the insurance industry, which is restricted in the index-linked products that it can provide. Any change would result in substantial increased costs for the NHS and insurers. It would therefore not be appropriate to consider any change without full and wide-ranging consultation. All the issues and potential impacts of change would need to be taken into account, along with the chief medical officer's recommendations.
The Bill therefore suggests that the retail prices index should be, as it is now, the norm. However, under clause 100 and proposed new section 2(9) of the Damages Act 1996, the court will remain able to take a different approach to indexation when it considers that the
particular circumstances of the case make it appropriate. That is a very important provision in the Bill.I hear what my hon. Friend says about the extent to which procedure rules give guidance on circumstances when the court may depart from the retail prices index, and I shall certainly undertake to consider the matter in more detail. Nevertheless, I remain of the view that the Bill is drafted flexibly and gives latitude and discretion to the court. I therefore invite him to withdraw his amendment.
Mr. Dismore: I have listened to my hon. Friend and I am rather disappointed by what he said. Nevertheless, I take a crumb of comfort from the fact that he will consider the draft rules and guidance through the code. I urge him to reflect on the fact that the effect of his comments will be to ensure that accident victims will, yet again and as usual, lose out and that the insurance industry will, yet again and as usual, end up through its powerful lobby being quids in.
I will not press the amendment to a vote even though I regard the Government's position as disappointing. I beg to ask leave to withdraw the amendment.
Amendment, by leave withdrawn.
Amendment made: No. 39, in page 56, line 13, leave out subsection (3) and insert—
'(3) For subsection (1) substitute—
"(1) The Lord Chancellor, after consultation with the Lord Chief Justice, may appoint as Official Solicitor to the Supreme Court a person who is—
(a) a solicitor of the Supreme Court of at least 7 years' standing, or
(b) a member of the Bar of Northern Ireland of at least 7 years' standing."'—[Mr. Leslie.]
Clause 109
Amendment made: No. 40, in page 59, line 30, at end insert—
'( ) Schedule (Transitional provisions and savings) contains transitional provisions and savings.'.—[Mr. Leslie.]
- Interpretation
1 In this Schedule "the JPA 1997" means the Justices of the Peace Act 1997 (c. 25).
Orders contracting out the provision of officers and staff
2 Any order which, immediately before section 2 comes into force, was in force under section 27(3) of the Courts Act 1971 (c. 23), including, in particular, any order made under section 27(3) by virtue of —
(a) section 4(7) of the Taxes Management Act 1970 (c. 9), or
(b) section 82(3) of the Value Added Tax Act 1994 (c. 23),
shall have effect as if made under section 2 for the purpose of discharging the Lord Chancellor's general duty in relation to the courts (and may be amended or revoked accordingly).
Local justice areas
3 The first order under section 8 must specify as a local justice area each area which was a petty sessions area immediately before the time when that section comes into force.
Appointment and assignment of lay justices
4 A person who, immediately before section 10 comes into force, was a justice of the peace for a commission area under section 5 of the JPA 1997 shall be treated as having been—
(a) appointed under section 10(1) as a lay justice for England and Wales, and
(b) assigned under section 10(2)(a) to the local justice area which—
(i) is specified as such in the first order under section 8, and
(ii) immediately before section 10 comes into force, was the petty sessions area in and for which he ordinarily acted.
The supplemental list
5 (1) The existing supplemental list shall have effect as the supplemental list required to be kept by section 12; and any name which, immediately before that section comes into force, was included in that list under a provision listed in column 1 of the table shall be treated as having been entered in the list under the provision listed in column 2—
| Provision of the JPA 1997 | Provision of this Act |
| Section 7(2) | Section 13(1) |
| Section 7(4) | Section 13(5) |
| Section 7(6) | Section 13(4) |
(2) "The existing supplemental list" means the supplemental list having effect under the JPA 1997 immediately before section 12 comes into force.
Keepers of the rolls
6 A person who, immediately before section 16 comes into force, was under section 25 of the JPA 1997 keeper of the rolls for a commission area shall be treated as having been appointed under section 16 as keeper of the rolls for each local justice area which—
(a) is specified as such in the first order under section 8, and
(b) immediately before section 16 comes into force, formed part of, or consisted of, that commission area .
Chairman and deputy chairmen of the bench
7 A person who, immediately before section 17 comes into force, was under section 22 of the JPA 1997 the chairman (or a deputy chairman) of the justices for a petty sessions area shall be treated as having been chosen under section 17 as the chairman (or a deputy chairman) of the lay justices assigned to the corresponding local justice area specified in the first order under section 8.
Senior District Judge (Chief Magistrate)
8 (1) The person who, immediately before section 23 comes into force, was under section 10A of the JPA 1997 the Senior District Judge (Chief Magistrate) shall be treated as having been designated as such under section 23(a).
(2) A person who, immediately before section 23 comes into force, was under section 10A of the JPA 1997 the deputy of the Senior District Judge (Chief Magistrate) shall be treated as having been designated as such under section 23(b).
Justices' clerks and assistant clerks
9 A person who—
(a) immediately before section 27 comes into force, was a justices' clerk for a petty sessions area (or areas), and
(b) is transferred to the Lord Chancellor's employment by virtue of paragraph 11 of Schedule 2,
shall be treated as having been designated as a justices' clerk under section 27(1)(b) and assigned under section 27(3)(a) to the corresponding local justice area (or areas) specified in the first order under section 8.
10 A person who—
(a) immediately before section 27 comes into force, was employed to assist a justices' clerk by acting as a clerk in court in proceedings before a justice or justices, and
(b) is transferred to the Lord Chancellor's employment by virtue of paragraph 11 of Schedule 2,
shall be treated as having been designated as an assistant to a justices' clerk under section 27(5)(b).
11 (1) Any regulations made under—
(a) section 42 of the Justices of the Peace Act 1949 (c. 101) (compensation in connection with Parts 2 and 3 of the 1949 Act), or
(b) paragraph 16 of Schedule 3 to the Justices of the Peace Act 1968 (c. 69) (compensation in connection with section 1 of the 1968 Act),
and in force immediately before paragraph 20 of Schedule 4 to the JPA 1997 is repealed by this Act shall continue to have effect and may be revoked or amended despite the repeal by the Justices of the Peace Act 1979 (c. 55) of the provisions under which they were made.
(2) The power to make amendments by virtue of subparagraph (1) of regulations falling within paragraph (a) of that subparagraph shall extend to making provision—
(a) for compensation to or in respect of persons falling within subparagraph (3) to be payable if such persons suffer loss of employment, or loss or diminution of emoluments, attributable to anything done under Part 2;
(b) for the determination by persons other than magistrates' courts committees of claims for compensation to be made;
(c) for the payment by the Lord Chancellor of compensation payable under the regulations.
(3) A person falls within this subparagraph if—
(a) on 2nd February 1995 he held the office of justices' clerk or was employed to assist a justices' clerk, and
(b) is transferred to the Lord Chancellor's employment by virtue of paragraph 11 of Schedule 2.
(4) A person who under regulations made by virtue of subparagraph (2)(a) is entitled to compensation in respect of anything done under Part 2 is not entitled to compensation in respect of that thing under a scheme made under section 1 of the Superannuation Act 1972 by virtue of section 2(2)(a) of that Act.
Family proceedings courts
12 Any justice of the peace who, immediately before section 49 comes into force, was qualified to sit as a member of a family proceedings court shall be treated as having been authorised to do so by the Lord Chancellor under section 67 of the 1980 Act (as substituted by section 49).
20 Oct 2003 : Column 470
Youth courts
13 Any justice of the peace who, immediately before section 50 comes into force, was qualified to sit as a member of a youth court shall be treated as having been authorised to do so by the Lord Chancellor under section 45 of the 1933 Act (as substituted by section 50).
Inspectors of court administration
14 Any person who, immediately before section 58 comes into force, was an inspector of the magistrates' courts service under section 62 of the JPA 1997 shall be treated as having been appointed as an inspector of court administration under section 58(1).
Collection of fines and discharge of fines by unpaid work
15 (1) This paragraph applies if section 97 and Schedule 5 are brought into force before section 8.
(2) Section 97 and Schedule 5 have effect in relation to the period ending with the date on which section 8 comes into force as if any reference to a local justice area were a reference to a petty sessions area.
Register of judgments and orders
16 The register having effect under section 73 of the County Courts Act 1984 (c.28) immediately before section 98 comes into force shall be treated as part of the register required to be kept under section 98.'.—[Mr. Leslie.]
Brought up, read the First and Second time, and added to the Bill.
Remaining Government amendments agreed to.
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