Corporate Manslaughter and Corporate Homicide Bill

I shall respond to my hon. Friend’s question in due course—[Interruption.] If hon. Members give me the opportunity, I shall refer to the point that he raised. The potential application of the offence is sometimes considered to be more restricted than it will be. For example, NHS hospital trusts are sometimes quoted as a type of body that will not be covered because they are not incorporated, but that is not correct because NHS trusts are, by statute, corporate bodies. There was also an interesting example on Second Reading, which was further considered in Committee. The hon. Member for Beaconsfield referred to an example of a potentially serious gap, suggesting that the Bill would not apply to Lloyd’s Register of Shipping, which was prosecuted some years ago following the collapse of a pedestrian walkway in Ramsgate. That case involved six fatalities and Lloyd’s Register, which had certified the walkway, was prosecuted along with the design and build contractor, the sub-contractor and the port of Ramsgate. We are satisfied that there would be no gap in the law in that respect, and that the offence would have applied to all four defendants in that case. Specifically, we understand that Lloyd’s Register of Shipping is a registered industrial and provident society. As such, under the terms of the Industrial and Provident Societies Act 1965, it is a form of statutory corporation and is not an unincorporated body. We have approached the issue from a pragmatic angle. Our focus has been on addressing the key problem in the law, which is the difficulty of prosecuting large companies and corporations under the identification principle. Information from the Health and Safety Executive suggests that only 2 per cent. of its prosecutions are against unincorporated bodies, and that they typically involve smaller businesses, such as building firms and sole traders, where individual prosecutions are likely to be possible. A wholesale extension of the offence to unincorporated bodies would mean that it would apply not only to larger partnerships and similar organisations, but to smaller clubs and societies. Organisations of that nature are least likely to understand the implications of the new offence, and most likely to act risk aversely through ignorance. We would not want to put off local sports clubs and the like, although I recognise that there is a range of opinion that the offence should extend in some fashion to those bodies. My hon. Friend the Member for Hendon (Mr. Dismore) asked about the offence not applying to undertakings, as was originally proposed in 2004. In May 2000, in the consultation paper, ““Reforming the Law on Involuntary Manslaughter””, the Government canvassed the possibility of the offence applying to all undertakings. They noted in paragraph 3.2.4 that although the term is used without definition in the Health and Safety at Work, etc. Act, the Health and Safety Executive had relied on the definition in section 15 of the Local Employment Act 1960, which has since been repealed, in which it means"““any trade or business, or other activity providing employment””. " An alternative definition can be found in the Information and Consultation of Employees Regulations 2004, in which ““undertaking”” means"““a public or private undertaking carrying out an economic activity, whether or not operating for gain””." Notwithstanding the circularity of the latter definition, and the fact that "undertaking" is frequently used without definition, we think that it is reasonably clear that the term ““undertaking”” would cover the business of a sole trader. That is apparent, for example, from section 3(2) of the Health and Safety at Work, etc. Act, which imposes a duty on"““every self-employed person to conduct his undertaking in such a way as to ensure””" that he is not exposed to risks. We consider that it would be illogical and unnecessary to apply corporate liability to the business of a sole trader. The purpose of the Bill is to ensure that criminal liability exists in circumstances in which reliance on individual liability would be inadequate, hence the exclusion of corporations sole in clause 1(2). In our view, nothing would be added in terms of deterrence or the rights of victims if we were to legislate to provide that sole traders could face corporate as well as personal liability. We do not therefore consider it appropriate to apply the new offence to undertakings. To the extent that that would enable the offence to extend to unincorporated bodies, the position is covered. I explained to my hon. Friend the Member for Hendon that I was happy to discuss further details with him during the passage of the Bill. I am conscious that Scottish partnerships are in a different position from other unincorporated bodies, as they have a separate legal personality. I have not acted on that with any amendments today, but I will consider the matter further, and the Government will introduce amendments in relation to unincorporated bodies in the other place. I do not want to make false promises at this stage, as the answers are not straightforward. I am prepared, however, to consider the matter in more detail to see what might be done. I recognise the sincerity of hon. Members in wanting to get the provision right. I hope that I have set out how difficult that is, not only through my explanation but through that given by the Law Commission. We have had an opportunity to air the matter further, and we will consider what amendments can be tabled in the other place. With those guarantees, I hope that the hon. Member for Hornchurch will not press the matter to the vote as he threatened. I also ask my hon. Friend the Member for Hendon not to press his amendment to the vote.