Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 60-79)

MR DAVID GREEN QC

21 MAY 2008

  Q60  Keith Hill: Yes; I acknowledge that the system has been changed.

  Mr Green: To an extent, obviously, it would rest on the honesty of counsel putting in the proper hours for what they had done; secondly, it would rest on the experience of the individual prosecuting lawyer within the Customs and Excise Prosecutions Office as was; thirdly, it would rest with the fees and nominations team who had amongst their number one of the most experienced people in terms of assessing fee notes and knowing how much sort of work, roughly, any particular case would require.

  Q61  Keith Hill: They are submitting their fee notes more promptly nowadays; are they still submitting grossly inflated demands?

  Mr Green: Now the system works in this way, that at the beginning of a large case—we are talking just about our biggest cases, our MTIC frauds and so forth or very large-scale drug importations—counsel would be called in for a conference with one of our prosecuting lawyers and the amount of work to be done roughly under various headings would be worked out. I designed this as a poacher turned gamekeeper, I know what work has to be done, so that would be done and then during the trial the same process would continue, there would be monthly meetings of how much work you need next month and at the end of that month a bill has to be sent in. I have told our counsel, and I keep on banging away saying it, that the day will come when those who do not comply with our new fee arrangements will not be instructed by us.

  Q62  Keith Hill: Ah ha, what about those who you found to be making unreasonably inflated claims in the past, have you disposed of their services?

  Mr Green: I am not quite sure what you would be referring to.

  Q63  Keith Hill: I am referring to the case reported by the NAO where you received in October 2006 a fee note for £991,000 which when you, thank heavens, challenged it was reduced to £550,000. That firm was obviously trying to pull an excessively large fast one, was it not, in terms of their services?

  Mr Green: That was not a firm; that was an individual barrister.

  Q64  Keith Hill: Was it?

  Mr Green: In that case it is hard to say that that claim was improper or that it was inflated. His clerk would probably say that is perfectly reasonable, we say no it is not and so we, as it were, taxed it down. There was a process of negotiation then which had gone on, certainly when I was instructed by Customs and Excise.

  Q65  Keith Hill: I am not going to ask the name of this barrister or indeed his educational background, though others may, but can I ask if you still use this barrister?

  Mr Green: Yes, he has been used since.

  Q66  Keith Hill: Even though he claimed double what you deemed was a reasonable amount of money to give him for his services.

  Mr Green: That is the point, Mr Hill, that is what we deemed reasonable, his clerk doubtless deemed it not reasonable and thought his demand was perfectly reasonable. The point is that it was in those days, under that system, subject to negotiation between counsel's clerk and the fee-paying authority. The whole point of our new system is that we have removed negotiation from the system, it cannot happen any more.

  Q67  Keith Hill: Well done on that. You inherited this unsatisfactory system but it still took you 18 months to put it right; why did it take you 18 months?

  Mr Green: It was first brought to my attention as a problem by the National Audit Office in November 2005. You cannot design a new fee system overnight and it took us some time to put together a three category new fee structure and to get the details out to counsel and to educate counsel's clerks and so forth. It is a process we are still doing, Mr Hill, but it certainly works a lot better and you will have noticed from the overall fee figures paid to counsel over the last few years that the figures are far more in control and have actually been going down. I would like to think that that is because we are managing these costs better.

  Q68  Keith Hill: Finally, what techniques do you use to satisfy yourself that the new system is working properly?

  Mr Green: We dip sample; the finance department polices the process pretty carefully; we have our own quality assurance within our department and certainly it is the responsibility of each divisional head within my organisation to police that function. It is not perfect though, Mr Hill, but we are a very long way down the road and I am confident that great improvements have been made.

  Q69  Chairman: This barrister who put in a fee note for £991,000, how many days work did he do for this?

  Mr Green: I do not know but it was a huge MTIC fraud—missing trader intra-Community fraud—that took a very long time—

  Q70  Chairman: But it is a huge bill too,

  Mr Green: Yes, indeed. There are not many people, Chairman, at the criminal Bar who are capable of doing this kind of prosecution.

  Q71  Chairman: Was it a year's work, two years' work?

  Mr Green: I think it was well over a year's work and of course—

  Q72  Chairman: Say it was a year's work, it is still the best part of a million quid for a year's work.

  Mr Green: There were then two long trials.

  Q73  Chairman: Why should the taxpayer pay these people this kind of money?

  Mr Green: We were not, that is the point, it was halved.

  Q74  Chairman: You still paid him half a million.

  Mr Green: Chairman, as I say there are not many people—our fee rates are not astronomical. We pay a silk now £185 an hour for criminal work and that compares pretty well with any other prosecuting authority. We are a specialist prosecuting authority, we do not do punch-ups in pubs, I cannot have just anybody doing these cases. We look to experts at the Bar, that is why we use certain silks, why we use our standing counsel and why we use the Attorney-General's unified list of approved prosecution counsel.

  Q75  Chairman: He would not have done any other work pretty well during this entire year.

  Mr Green: I have no idea. I can send you the details.

  Q76  Chairman: You must have an idea; you worked in this business for 25 years.

  Mr Green: I am sorry, I am reminded it is actually three years' work from when he was first briefed until the end of the trial. It was a huge project, these MTIC frauds are enormous and very complex to prosecute,

  Q77  Chairman: It would be quite interesting for us if you could send us a note on this. We would like to know exactly how much work he did do to give us an idea of how much you are paying now.[2]

  Mr Green: Certainly, we will let you know.

  Q78  Nigel Griffiths: We get reports from the National Audit Office, Mr Green, where sometimes you look at them and you think yum-yum, a dripping roast of evidence, and I have to say I am somewhat disappointed with the clarity of your responses as to some of it, and I want to pursue that in three areas: one is the Chief Operating Officer. If the Chief Operating Officer had disclosed more would he have avoided being dismissed?

  Mr Green: If he had disclosed more?

  Q79  Nigel Griffiths: Yes. The reason I ask you that is because what appears to anyone reading this is that it is an absolute horror story.

  Mr Green: Yes.



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