Compensation Bill [Lords]

This has been a very good, purposeful debate. I am grateful to all hon. Members for their support for new clause 13 and I thank in particular my hon. Friends for their positive, kind words, although I repeat that without their campaigning we would not be in this position. I am grateful to them for raising the issue not just recently but over a long period of time, and I am glad that this Government have been able to respond to them. On the question whether the ABI scheme and creation of a board would offer a quicker solution, the whole point of the legislation is to tackle the effects of Barker as quickly as possible. That is why we and key stakeholders such as the ABI are looking at other ways to improve how cases are dealt with. Before the recess, my right hon. Friend the Secretary of State for Work and Pensions will make a statement in the House on certain relevant issues, and I am very conscious of the fact that we want to deal with the matter speedily. The issue of costs has been raised tonight. As several hon. Members have pointed out, between 1,000 and 2,000 people a year are diagnosed, to whom average compensation of £100,000 is awarded. That is equivalent to between £100 million and £200 million in compensation. We estimate that the number of cases will rise to about 2,500 by 2015 and then gradually reduce until 2050. It might reassure Opposition Members if I said that, because people expected Fairchild to be in some ways reinforced by the Barker decision, the money is not new money. Barker affected not the level of damages but simply how they should be paid and apportioned. Therefore, we should not be overly concerned about any changes. In the Barker case, the House of Lords did not make any ruling on costs—possibly because such costs had not been decided. The cases were to be sent back to the law courts for apportionment. Therefore, we do not really know what the costs would have been. As my hon. Friend the Member for Aberdeen, North (Mr. Doran) said, Miss Barker’s case was supported by the GMB and therefore the fact that it was brought in her name does not necessarily mean that costs would be paid by her. However, if she were to pay costs, she would be able to apply to vary the order and how damages should be apportioned, although that might not go back to court anyway because it is very likely that the parties would settle on the basis of the legislation that I hope we shall shortly pass. I was asked whether the rules of court would have to underpin subsection (4). The civil procedure rule committee will be asked to consider the employment exposure history of a claimant. I hope that that reassures the hon. Member for North-East Hertfordshire (Mr. Heald). However, as I have said, the apportionment of contributions is already established in the presumption in the clause, and that should enable insurers to resolve those issues without further court involvement.