Fraud (Trials without a Jury) Bill


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Mr. Hogg: I want to propose that clause 1 does not stand part of the Bill. As I said, my familiarity with Committees is rusty in the extreme but I think that it is in order for me to advance the arguments why the clause should not stand part of the Bill.
The effect of clause 1 not standing part of the Bill is that we would go back to the affirmative resolution procedure, which is provided for in the Criminal Justice Act 2003. Mr. Bercow, you and I, and my hon. Friend the Member for Beaconsfield were very interested in the passage of that Bill, as, no doubt, was the Solicitor-General, who will remember the considerable disagreement that arose between the Houses on what was then clause 42, which became clause 43; namely, whether complicated fraud cases should be held without a jury.
The House reached deadlock. At that stage, there was a bargaining process, to which I was not party, but it was reflected in the speeches made by the then Home Secretary and the Government spokesman in the other place, Lady Scotland, when they laid the affirmative resolution procedure. That procedure was part ofa bargain, which comprised something like the Government not trying to force their proposals forward; they would have very serious discussions with all the interested parties to see whether it was possible to formulate a lay assessor or special jury. It was plain that undertakings were being given to both Houses that very serious attempts would be made to agree a special procedure that did not involve judge-alone trials. That was the basis on which the other place accepted the Bill, and the basis on which it was enacted.
Stephen Hesford (Wirral, West) (Lab): The right hon. and learned Gentleman will recall that on Second Reading I asked him if he would be in favour if the Government had come forward with a different procedure of judge and tribunal. He gave me an honest and straightforward answer: no, he would not. In those circumstances, even if the discussions had taken place, the right hon. and learned Gentleman’s position would have been the same. What, therefore, is his point?
Mr. Hogg: The point is that Governments should keep their word. It is as simple as that. Integrity is an important thing in government. This Government have not got a reputation for integrity and this is yet another example of why they have not. They entered into a bargain; they told the House of Commons and the House of Lords what that bargain was, and they are departing from it. It is unseemly and dishonest and we should not be a party to that kind of conduct.
The question is whether anybody has made a serious attempt to become involved with the other parties—
The Chairman: Order. I must ask the right hon. and learned Gentleman to withdraw the term “dishonest”.
Mr. Hogg: I certainly will.
It does nothing for the reputation of politics that a government should give their pledged word to the House of Commons and to the House of Lords and then not deliver on their pledge. I will not say that it is dishonest, simply that it is unseemly and disgraceful, and I hope that that will satisfy the decorum of this place.
There is no doubt what the House of Lords was told, and no doubt what the House of Commons was told. It is in Hansard; I have it here—I have the reports in front of me.
Mr. Heath: Actually, three parties to that agreement, who are sitting in the Committee at the moment, can confirm the details.
Mr. Hogg: I will sit down soon, Mr. Bercow, so that the hon. Gentleman and my hon. Friend the Member for Beaconsfield can confirm what I am saying. There has been no serious attempt to involve anybody in finding alternative ways forward, which breaches the commitment to this House. For that reason alone, we should go back to the affirmative resolution procedure.
I have one other point, Mr. Bercow—I know that we need to press on. We are seeing this primary legislation simply in order to enable the Government to use the Parliament Act. The right hon. and noble Lord Hunt of Wirral made it absolutely plain that he and our friends would not support this on an affirmative resolution. The Government know full well that they will have difficulties with that resolution in another place and are introducing primary legislation so that the Parliament Act can be applied—and this change in the law, fundamental in its character, can thus be forced through. I happen to think that that is a disgrace.
Therefore there are two reasons for opposing the motion, Mr Bercow. First, although the Government have not been dishonest, they have departed from their pledged commitment to both Houses. Secondly, I deeply disapprove of the Parliament Act procedure.
Simon Hughes: Of course, there will be agreement between the three of us on these Benches, but the negotiations that led to the insertion of the clause with the affirmative resolution in both Houses was expressly done in order to require both Houses to be able to take part in that agreement—and expressly to avoid a type of Parliament Act procedure which in the end allows one House to prevail over the other.
Mr. Hogg: I am grateful to the hon. Gentleman for making that point plain. Indeed, it was correct for him to make that point on the Floor of the House. I have a copy of that speech before me. This is a serious matter. It goes to the integrity of government, and I very much hope that we do not give clause 1 a fair passage.
Simon Hughes: I, too, have some short but similarly strongly felt views to express. This important matter is controversial because it is a move away from the principle that, in England and Wales, there should be a jury trial for all serious offences. That is why, when the relevant legislation was going through the House in 2003, it was important for the Government to get their Bill, but it was also important for the Opposition parties—and some Government Back Benchers—to ensure that the Bill was passed without a proposal to get rid of jury trial in England and Wales for this category of offences.
We had many robust debates in both Houses, and the Lords rejected the Government’s proposal on several occasions. Mr Bercow, you will remember that this has been round the course before in earlier guises. Finally, with the clock against us at the very end of the Session—literally, a day or two before prorogation—there were extremely intensive discussions. In the end, it was proposed to have a double lock on a proposal to move to jury trial: the House of Commons and the House of Lords both needed to agree it. That is contained in the section that clause 1 proposes to amend by taking out the double lock.
Three things follow from that. First, when discussing whether there was a way for the Government to have their Bill in general but not this particular desired part, we looked at various options and there was negotiation through day and night to see what accommodation could be given. In the end, this was found to be the most convenient outcome, so it was not an outcome that did not ultimately command the agreement of both Houses.
Secondly, it was clear—and the references are in Hansard, in exchanges between the then Home Secretary, the right hon. Member for Sheffield, Brightside (Mr. Blunkett) and myself—that there were other conditions to be fulfilled, with the double lock and negotiations. There is, to put it gently, debate on whether the envisaged formal consultations ever happened; I do not want to elaborate at this stage. In our view, they never happened in the way that we expected or envisaged. There was a consultation of sorts, but it was never sold at the time as what we had agreed. Indeed, we were surprised to be then told that that had been the expected consultation. In our view, therefore, the second part of the proposal was not delivered at the time.
My third point is that there have been discussions with the Attorney-General and the Solicitor-General. I know that the hon. Member for Beaconsfield has had such discussions on more than one occasion, as have I. The discussions were not meaningless—alternatives were considered, but in the end agreement was not possible and the block therefore remains. We sought agreement irrespective of the formal consultation, but it was not possible, and we are back where we started.
Mr. Hogg: The hon. Gentleman was party to the agreement and it was anticipated that he would be party to the following discussions. He will remember that the then Home Secretary said:
“I find no difficulty tonight in offering the opportunity to the two main Opposition parties working with the Attorney-General, the Serious Fraud Office and the senior judiciary to take a further look at how that might be taken forward.”—[Official Report, 20 November 2003; Vol. 413, c. 1027.]
Will the hon. Gentleman say whether he has been involved in any detailed discussions with the Government in fulfilment of that pledge?
Simon Hughes: The answer is that I can say expressly what happened: there was never any formal consultation with either of the Opposition parties, nor with the judiciary. There was a seminar in the Lords to which certain people were invited, but that was all, and it was never billed as such a consultation. There were then separate bilateral conversations at the invitation of the Attorney-General—both to the Conservative party and to me. So conversations have occurred, though not quite as we expected. The conclusion is the same, however: there was no agreement.
As the hon. Member for Wirral, West said to the right hon. and learned Gentleman, there was no presumption that alternatives did not exist—we considered alternatives. For example, we examined the possibility of smaller juries, and we considered juries with particular qualifications or characteristics. Some of us, however, were unwilling to move from the principle that there should be a jury trial, or a trial with jurors, to decide questions of fact. The double lock is intended to ensure that both Houses must be satisfied on the question of departing from the principle of jury trials in fraud cases in England and Wales. They have not been so satisfied. The right decision was made previously, and that decision remains the right one now. The clause should therefore be rejected because it would change a very clear political, parliamentary and constitutional agreement.
Mr. Grieve: I, too, was party to the discussions at the conclusion of the passage of the Criminal Justice Billin 2003—in particular during the stand-off disagreement between the House of Lords and the House of Commons on certain parts of that Bill. I have absolutely no doubt that the way in which the matter was resolved—in particular the introduction of the double-lock mechanism—was a direct consequence of the impasse that had been reached between the positions of the two Houses. There were numerous late night negotiations that covered different topics. At the end of the day, virtually every aspect had been satisfactorily resolved, except for the Government’s desire to remove juries from certain fraud trials.
Let me make the position clear, because I recollect the explicit words of my right hon. Friend the Member for Haltemprice and Howden (David Davis) to the Home Secretary, outside the Chamber. He said that the Opposition were prepared to collapse the Criminal Justice Bill if the Government persisted in their desire to retain section 43, because we felt extremely strongly about it. It was in response to that that, after a time of meditation, the Government proposed what I assumed at the time to be a face-saving device to allow a graceful withdrawal; indeed it was almost explicitly represented to us as that. That was the double-lock mechanism, and it was designed to ensure that section 43 would not be implemented without the consent of both Houses of Parliament.
11.15 am
I entirely agree with my right hon. and learned Friend the Member for Sleaford and North Hykeham that the removal of the double-lock mechanism is undesirable because we do not wish to end up with a Parliament Act position. The Government appeared to concede, as I understood it at the time of those negotiations, that only the consent of both Houses of Parliament would be satisfactory for the implementation of the proposals. These proposals are almost identical to the original ones, apart from the substitution of “High Court Judge” for “Crown Court Judge”. I can think of no good reason why the double-lock mechanism should not remain.
One of the startling aspects of this Bill is that, according to clause 4, on commencement, it appears that the Act is to come into force at the end of a period of two months beginning with the day on which it is passed. As I highlighted on Second Reading, even if this Bill were to reach the statute book, there would be some procedural aspects that needed to be resolved by way of new court regulations before it could be implemented. I am startled to note that it is blithely assumed that eight weeks after this Bill is passed by the Houses of Parliament the first applications can be made to the Lord Chief Justice. The procedure exists for conducting such trials without further difficulty.
As we highlighted on Second Reading, there will be procedural issues about how to conduct a trial without a jury where the judge has to make rulings on law, possibly on public interest immunity material, and at the same time not be influenced in the decisions that he makes based on the facts. I assume that, if this unfortunate Bill were to be implemented, at some point the Government would tell us what they propose. There are, therefore, powerful reasons for having a commencement order. As the commencement order that we agreed back in 2003 was a resolution of both Houses of Parliament, it seems to me that it is a very good idea to keep that in.
Mr. Heath: As I did not have the opportunity to do so on my earlier interventions, may I say what a pleasure it is to serve under your chairmanship, Mr. Bercow?
The right hon. and learned Member for Sleaford and North Hykeham is absolutely right when he says that this is a matter of integrity. It is the integrity of the Government that is in question because I, too, was a party to the discussions that were held with the Home Secretary in his room behind the Speaker’s Chair very late into the night when we were discussing the Criminal Justice Bill, as it then was.
It was absolutely clear to all who were involved that the proposal was supposed to have a particular effect, the double lock. It was absolutely clear that the Government were, in good faith, to undertake discussions with the Opposition parties to see if there was a consensus view on dealing with complex fraud cases. It is equally clear that, by virtue of this clause, the Government are going back on the double-lock mechanism and, secondly, that no such meaningful consultation between all parties took place. Instead we had this absurd seminar in which the Attorney-General in another place invited a few of his chums round to talk about jury trial in an amorphous and unstructured way. I am not sure about the Conservative Front Bench, but members of this Front Bench who speak for the Liberal Democrats on home affairs, on constitutional affairs or in respect of the Law Officers in our House were at no time asked to attend, invited to attend or even told of the existence of this seminar.
Mr. Grieve: I did not touch on the discussions in my own remarks but I am on the record on many occasions as saying that we did not consider the seminar to be the “discussions and negotiations” that the Government had offered, and we were totally unaware that that was in fact the only offering that was going to be made.
Mr. Heath: I am grateful to the hon. Gentleman, who confirms my view. We are left with a rather unpleasant taste in the mouth from the whole episode.
The one area in which the Government have been true to their word has been the undertaking that they gave a short time ago in another place not to use the order-making process that was outlined in the 2003 Act to proceed with the matter, but to bring it back as primary legislation. That is why the Bill is before us. For that, at least, I applaud them. However, many of us feel that it is brought before us in this form thanks not to altruism on the part of the Government but because they know perfectly well that they would not receive the consent of the other place to secondary legislation. In using the primary legislative route—particularly through a short Bill such as the one presented to us today—they accept that they will not get the measure through in this Session, but open up the opportunity of using the Parliament Acts to force it through against the strong arguments that will, I suspect, be adduced in another place.
We are left with what I think is a rather underhand procedure to achieve an objective that the Government undertook not to try to achieve by those means. That is a heavy charge to lay against the Government. The other matter that is pertinent, given that we are considering clause stand part, is the timeliness of the proposals in any case. I listened carefully to all the remarks made on Second Reading. At no time was any cogent argument put forward that circumstances had changed since our discussions on the Criminal Justice Bill in 2003.
In fact, if there were arguments of timeliness, they would be in the reverse direction, because we have had changes in procedure and changes to the definition of fraud, by virtue of the Fraud Act 2006, which we dealt with in the last Session. We have had the interesting experience of observing from afar very significant fraud trials under another jurisdiction—the common law jurisdiction of the United States of America, which has retained jury trial for complex fraud and appears to have no difficulty whatsoever in securing convictions on that basis. We are still, therefore, at a loss to know why the Government persist in the view that there is a difficulty that can be solved only by the abolition of an ancient right of the people of this country in respect of complex fraud.
For all those reasons, we would be absolutely right not to allow clause 1 to stand part of the Bill. In fact, if it were possible for the Committee to vote out every single clause of the Bill and to ask you, Mr. Bercow, to report that the Bill had been deleted in Committee, I would feel that it had done its work well.
 
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Prepared 13 December 2006