Part of Arbitration Bill [Lords] – in the House of Commons at 3:00 pm on 11 February 2025.
Nicholas Dakin
Government Whip, Lord Commissioner of HM Treasury, The Parliamentary Under-Secretary of State for Justice
3:00,
11 February 2025
I give my sincere thanks to hon. and right hon. Members on both sides of the House for their contributions today to what has been a succinct and precise debate. We are all agreed that this is an important step forward, and I am particularly grateful to the Opposition spokesman, Dr Mullan, and the Liberal Democrat spokesman, Josh Babarinde, for welcoming the improvements to the Bill and recognising that they have been the work of many people in the Lords and the Commons as well as of contributors from outside, as my hon. Friend Chris Vince reminded us earlier.
The hon. Member for Bexhill and Battle raised the important issue of corruption. As I mentioned during the Bill’s Second Reading debate, arbitral corruption is not the result of our domestic framework, which provides several effective remedies to quash corrupt practices. We support sector initiatives to enhance anti-corruption practices such as the International Chamber of Commerce’s anti-corruption taskforce, and we will push for the adoption of best practices as they are developed.
The hon. Member also raised third party litigation and funding issues. The Government have carefully considered the impact of the UK Supreme Court judgment in Paccar, and have decided to wait for the outcome of the Civil Justice Council review before deciding whether to legislate. A comprehensive review of the market will allow us to take a wider range of factors into account. Following the Paccar judgment, concerns have been raised about the need for greater regulation of litigation funding agreements and greater safeguards for claimants. This is therefore an opportune moment to review the status of the market. The review is being undertaken by the Civil Justice Council, supported by a wider consultation group of experts across this area. The final report and recommendations will be published in the summer of 2025, after which the Government will consider the way forward.
The hon. Member also mentioned mandated mediation, and I will try to pick that up as well. The Government agree that dispute resolution, such as mediation, has a key role to play in ending disputes more quickly and cheaply. This is why all parties to a small money claim in the county court are now required to attend a free one-hour mediation appointment with His Majesty’s Courts and Tribunals Service’s small claims mediation service as an integrated step in the litigation journey. This reform will help thousands of people and businesses each year to resolve their legal disputes without the need for a court battle. We will continue to work to drive the uptake of dispute resolution throughout the justice system to allow parties to resolve their disputes more consensually and at an earlier stage.
That concludes my responses to the points raised during the Committee of the Whole House. I once again thank all those who have contributed to the debate.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 18 ordered to stand part of the Bill.
The Deputy Speaker resumed the Chair.
Bill reported, without Amendment.
Third Reading
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