I understand the sentiment behind my hon. Friend’s question. I can reassure him that we have been working directly with representatives of the local press to ensure that the new system does not, as he suggests, burden them unnecessarily. Perhaps the right hon. and learned Member for Camberwell and Peckham (Ms Harman) will remark on that further; I will do so in my comments later.
Exemplary damages will be awarded only in the most serious cases, in line with both the Leveson report and the report of the 1997 Law Commission. The test for the award will be: where the defendant’s conduct has shown a deliberate or reckless disregard of an outrageous nature for the claimant’s rights; where conduct is such that the court should punish the defendant for it; and where other remedies would not be adequate to punish that conduct. The supplementary new clauses ensure that the new exemplary damages system works in practice.
New clause 22 sets out factors that the court must take into account in deciding whether an award of exemplary damages is appropriate, and whether membership of an improved regulator was available to the defendant at the time of the events giving rise to the claims. If so, what reasons the defendant had for not being a member are factors that can be considered. The court must also have regard, so far as it is relevant, to whether the defendant has internal compliance procedures of a satisfactory nature in place and how they are adhered to.