I rise to speak to this extremely important Bill. I take a strong constituency and personal interest in the subject, having seen people and their families suffer from this terrible disease. Under the previous Government, I sat on the Committee for the Child Maintenance and Other Payments Bill, part 4 of which set up the mesothelioma payments scheme in 2008.
The Bill is the result of the consultation exercise that Labour set up in February 2010. I share with my hon. Friends the considerable concern that it has taken nearly two and a half years for the Bill to come to fruition, particularly given that the results of the consultation were already on Ministers’ desks when the Government
changed. It has taken a considerable time, and there is serious concern about the victims and families who will miss out as a result of the delay.
I want to talk, first, about an area that has not been mentioned particularly today, before adding my voice to some of the strong criticisms from the Opposition. I am concerned about the implications for reputable small businesses that are unable to trace insurance. It is very difficult for a victim trying to suss out exactly who their employer was when they contracted the disease, particularly if they worked for several different employers, and for them then to suss out who the insurer was for that particular employer. Victims are now finding that many of the companies they have worked for have disappeared or re-emerged under different names, and sometimes the only company a claimant can find will be one of a few family firms that have a good reputation in an area and which want to maintain good health and safety standards.
One case in my constituency concerns a highly reputable firm that probably never had any asbestos anywhere near the victim. Nevertheless, it has to prove that and defend itself, because none of the myriad other companies that the poor sufferer of mesothelioma worked for still exist. Even prior to 1969 when the Labour Government made employers’ liability insurance compulsory, we are pretty certain that most companies had such insurance because there was no massive increase in the number of companies taking it out. Nevertheless, records seem difficult to trace. The case goes back a considerable number of years, and finding proof of that insurance is extremely difficult.
The Bill establishes a technical committee, and its remit will be to make decisions on questions that arise
“between a potential insurance claimant and an insurer about whether an employer maintained employers’ liability insurance with the insurer at a particular time.”
A potential insurance claimant is defined in the Bill as a victim, a relative of a victim of mesothelioma who has passed away, or
“an employer alleged…to be liable for damages in respect of the disease or death.”
The technical committee has an extremely important role, and responsible employers are anxious that employers should be represented on it. If a potential insurance claimant can be defined in that way, it seems only fair that the technical committee set up to adjudicate on such matters should include employer representation. Will the Secretary of State or Minister confirm, either today or certainly before the Bill Committee, that employers will be represented on the technical committee?
Briefly, I will also mention the Employers’ Liability Tracing Office, and ask that the Government continue to identify areas for improvement. We know that as a result of the consultation last year, the Government have already announced their intention to require employers’ liability insurers to be members of the ELTO, and it is important that potential claimants can access from the ELTO the information they need as simply as possible. Promises have been made in the other place about improving the money available for research, and taking the issue extremely seriously. I know that a lot of good work has been done, not least by the former hon. Member for Barnsley West and Penistone, Michael Clapham.
Some areas of the Bill are not at the point they should be, including the percentage of payment—a point raised by a number of my hon. Friends. Insurance companies have said that they would consider figures that go up to 3% of gross written premium. Why on earth are the Government settling for 75% of average civil compensation claims when their team has produced figures to indicate that 90% would still mean that insurance companies are looking at a percentage of GWP of something like 2.9%—well within the 3% limit? Indeed, 95% of average civil compensation claims would be only 3.05% of GWP, and 100% would be 3.19%. The Government could clearly afford 90% of average civil compensation claims as a very minimum, rather than a measly 75% that leaves people up to £18,000 worse off than if the average were 90%. There is no excuse for plucking a figure out of the air rather than matching what insurance companies have said they could afford.
On the date from which the scheme should commence, it was clear back in February 2010 that we were looking at an insurance company-funded scheme. In other words, the insurance companies were fully aware of what was being discussed in the consultation. They knew it would be an industry-funded scheme, so there is no excuse for the funding not to start from then, if not considerably earlier, as a number of my hon. Friends have pointed out.
Other diseases related to asbestos—asbestosis, pleural plaques and cancers related to asbestos—account for 50% of cases, but would account for only 20% of the cost. Many sufferers could benefit, but they are not included in the provisions in the Bill. People ask how it is possible to identify those diseases and whether it is possible to trace them back, yet the T&N Asbestos Trust manages to do so and administers claims for other asbestos diseases, as well as mesothelioma.
Many of my hon. Friends noted the disparity between the Department for Work and Pensions’ 100% clawback of benefits and the Bill allowing for a claim of only 75% of the average civil compensation. That is a huge disparity, with the state clawing back unfairly considerably more than a victim can claim in compensation.
I welcome the Bill and want to see it on the statute book as quickly as possible to help the victims and their families, but I have serious reservations. This is a missed opportunity: the Bill could be considerably more generous to claimants and ask a great deal more from insurance companies.
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