Corporate Manslaughter and Corporate Homicide Bill

The hon. Gentleman makes an important point. He also made an important point about the possibility that one prosecution would fail where another might succeed. Ultimately, however, the decision must be for the Crown Prosecution Service and the Director of Public Prosecutions, who must authorise prosecutions. What is important is for us to look at a wider range of alternatives. A series of suggestions have been made. One is corporate probation, a supervision order imposed by the court on a company that has committed a criminal offence. A court can require a company, its officers or its directors to alter their conduct in a particular way. Those penalties have been used very successfully in, for example, the United States and Canada. Another option is the use of equity fines. They would reduce the value of shares in the company, clearly bringing home to shareholders—the owners of the company—the implications and effect of the criminal offence that their company had committed. I think that the Bill’s main shortcoming is the lack of individual liability. In my view, that is one of the essential requirements of a successful reform of the law such as I proposed in my own Bill. Since 2003, the Government have ruled out individual directors’ liability in criminal law, which I consider to be a tragic mistake. The strongest incentive for an individual director would be that he could stand in place of his company in the dock as a result of its failings, leading to the deaths of employees or members of the public. If company directors can face individual liability for offences committed by their companies under the Companies Act 1989, or frauds committed by their companies, it is so much more right that they should face prosecution if those companies kill. Without that, the only option is prosecution for regulatory offences. However—this picks up a point raised by the hon. Member for Hertsmere (Mr. Clappison)—there is a strong argument that it is an abuse of process to charge a company with two offences, corporate manslaughter and breach of the Health and Safety at Work etc. Act, arising from the same circumstances. But without a conviction under the Act, there can be no individual liability of directors or managers under section 37. We could end up with corporate manslaughter charges actually reducing the individual liability of directors in the most serious cases. Given that clause 17 also excludes secondary offences, I believe that one of the main requirements of reform has been rejected. After all, the purpose of the Bill must be to act as a deterrent, which, without individual liability, it is far less likely to do. Let me end with a short comment on jurisdiction. Much has been written about it, especially when the failures have been in England and Wales but the deaths have occurred in either Scotland or Northern Ireland. However, I am anxious that we should not rule out possible prosecutions when a death could be further afield. It is well established that inquests can be held into deaths abroad—indeed, they may be required under human rights obligations. What if an inquest reveals facts that show that serious management failure in England led to a death overseas, but, owing to the Bill’s limited jurisdiction, those responsible cannot be prosecuted? Of course, ships and planes may be under our jurisdiction, but what of the package tourist killed on a far eastern holiday as a result of the substandard construction of his hotel, which the British-based tour company knew about and ignored, or killed by bandits or terrorists when the tour company had clear warnings but turned a blind eye in the interests of profit? I believe that we would face immediate calls for further change in the law, as has happened in relation to compensation for victims of crime abroad as a result of recent terrorist attacks. Having said all that, I believe that the Government are to be congratulated on the way in which they have engaged with so many organisations in considering suggestions for improvement. However, given the Bill’s current drafting, I also believe that the answer to my original proposition ““Will it be easier to prosecute companies that kill?”” is a resounding ““No””. While some obstacles have been overcome, other more serious obstacles have been created. I have highlighted just some of the shortcomings which I believe must be addressed in Committee, so that we can all welcome the Bill as a major improvement in health and safety in the workplace, in our transport system and in our public services, ensuring that our manifesto commitment for three elections is met in full.