Evidence submitted by The British Association
of Leisure Parks, Piers & Attractions Limited (BALPPA)
BALPPA is delighted to have the opportunity
to provide input to the Constitutional Affairs Committee's inquiry
into the UK's `Compensation Culture'. This issue has caused great
concern amongst our members and the wider leisure and tourism
industry for many years. BALPPA has been confirmed by the Tourism
Alliance to lead on this issue on behalf of the industry.
BALPPA is the leading trade association representing
the interests of owners, managers, suppliers and developers in
the UK's commercial zoos, leisure parks, piers and static attractions
sector. It speaks for some 300 members and includes leading UK
attractions such as Blackpool Pleasure Beach, Alton Towers, British
Airways London Eye, Butlins, Colchester Zoo, Madam Tussauds, Thorpe
Park and Woburn Safari Park among our members.
We welcome the publication of the Compensation
Bill and agree there is a need to legislate in this area. We hope
that the Bill will put an end to the unethical promotional practices
of claims brokers, which continues to fuel significant increases
in our member's public liability insurance premiums.
At the same time, we are disappointed that the
Bill does not address the important issue of personal responsibility,
where it would recognise that individuals have a responsibility
to behave in a safe and sensible manner. This would mean that
individuals should follow advice that has been given in the interest
of their own health and safety.
I have attached a briefing that outlines BALPPA's
position in more detail, illustrates the solutions found in other
countries when tackling this issue, as well as suggested solutions
to the problems currently experienced in the UK.
I hope that you find the information useful
and I reiterate that BALPPA would be very willing to present our
case to the committee through oral evidence. If you wish to discuss
anything further, please do not hesitate to contact me.
BALPPA has a number of concerns:
(1) The law should encourage the public to
behave in a responsible and safe manner when enjoying leisure
pursuits. Behaviour analogous to that required of employees under
the Health and Safety at Work Act 1974 would be an appropriate
measure. This would place participants under a legal duty to comply
with the safety instructions they receive both visually and verbally
when enjoying leisure pursuits. Whilst the current law provides
a system of contributory negligence, the Courts seldom make a
finding (especially where the claimant is a child and irrespective
of the fact that the child was under the control of the parent
at the material time). Even where a finding is made, it is almost
unheard of for the amount to exceed 50% and more often the figure
is around 20% and fails to reflect an individual's responsibility.
(2) One of the factors influencing the dramatic
increases in BALPPA member's employee and public liability insurance
premiums is the number of claims being made on a "no win-no
fee" basis. While some of the claims are genuine and treated
accordingly, many of them are frivolous and clearly an attempt
to work a system perceived as easy to utilise with minimal risk
of discovery. Un-ethical promotional practices of claims farmers/brokers
need to be curtailed. Practices such as soliciting potential claimants
by questioning passers by, knocking on doors of possible leisure
facility employees, offering cash incentives to doctors in exchange
for leads to accident victims and advertising in hospital and
doctors waiting rooms and A&E departments, are some examples.
Whilst the no win-no fee arrangements were introduced
as a result of the Government reforms to improve access to justice,
the unrealised financial impact of these reforms has been met
by companies and their insurers. It is the excessive legal costs
that have been permitted that have caused the damage, where such
costs can be uplifted by up to 100% and more when after-the-event
insurance policy premiums are charged. Fixed costs have been introduced
to cover RTA claims, but BALPPA members face claims under the
Occupiers Liability Act 1957/1971, and fixed costs should be extended
to these claims.
(3) We are aware that other countries have
faced the same problems now affecting England and Wales, namely
the U.S.A. Australia and the Republic of Ireland.
In the USA the Colorado Ski Industry was saved
from closure through the introduction of measures to outline an
individual's personal responsibility for their own health and
safety where relevant information and guidance is provided.
In Australia, many states have re-written their
laws on negligence and occupiers liability so as to create a more
equitable balance.
In the Republic of Ireland, the Government has
created a department dealing exclusively with claims for accident
compensation, where the claim is filed, liability is determined
and a level of compensation is fixed. Costs are therefore fixed,
with an Appeal to the Courts in limited circumstances.
Scotland has operated on a fixed costs scale
for many years.
We also wish to comment on the argument relating
to the existence of a so-called Compensation Culture. It may be
correct that claims being issued with the Court Service have not
increased, but it is also correct that our members and their insurers
are having to take an economic approach to claims received because
of the potentially high costs involved. This translates into a
situation where claims are settle, particularly by insurers, even
where the injury circumstances may be clearly against such action
but our Members have no right to insist a defence claim is made,
and these claims are therefore excluded from official statistics.
The Courts have not adequately controlled the spiralling costs,
and consequently satellite litigation has risen.
During its campaign, BALPPA has received support
from many other tourism related bodies including
— Association of Leading Visitor Attractions
— Historic Houses Association
— Guild of British Travel Agents
— Visitor Attractions Forum
— The Showman's Guild of Great Britain
C Dawson
Chief Executive
BALPPA
November 2005
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