David Heath (Shadow Secretary of State for Justice & Lord Chancellor, Ministry of Justice; Somerton & Frome, Liberal Democrat)

As the House may recall from our previous discussions on the subject, we had two problems with the Government's proposal. First, the blanket exemption was far wider than we were prepared to accept, because in the provision of legal services by trade unions, it would have allowed what I would term trading in the open market. There is nothing to stop trade unions offering legal services on the basis of a general legal practice, rather than on the specific areas that were relevant to members.

The other issue for us was the position of other mutual organisations and how they might be accommodated. We still do not have satisfaction on that, but I accept that it would be extraordinarily difficult to draft an appropriate amendment to the Bill which did not effectively provide a get-out clause for a great number of organisations that would want to provide legal services on a commercial basis. Although I still think that there is a substantial argument that what is right for the trade union goose should be right for the mutual gander, I have yet to persuade myself that I can draft something that adequately makes the point in legislation. I therefore do not criticise the Government for acknowledging the point but failing to accommodate it.

On the position of trade unions, I welcome the amendment moved by the Minister. It represents a substantial reduction in scope from the previous drafting. I find little difficulty in accepting the Minister's amendment as being very close in spirit and in letter to that which was proposed by noble Lords in another place, and it achieves the same results. Mr. Djanogly shakes his head, but I look at the Lords amendment and at what the Minister has produced today, and I do not see a substantial difference between them. Of course there are still issues of definition. We know that there always would be, because it is impossible to provide a schedule to the Act that lists every single potential activity of a trade union. I accept that there are still problems of definition.

However, I do not have the same sort of problems, which seem to be reaching phobic proportions on the part of the hon. Member for Huntingdon, in respect of trade unions providing services to their members. I acknowledge the valuable work that they do. I shall therefore recommend to my right hon. and hon. Friends that they support the Government amendment. I have quarrels with the Minister later, so she should not feel too complacent. I applaud the considerable movement that the Government have made in our direction and see the amendment as an acceptable compromise.

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