Haemophiliacs: Financial Assistance (Hansard, 18 October 1988)

§ Lord Hesketh
My Lords, a charitable trust known as the Macfarlane Trust has been established to provide financial help to both haemophiliacs infected with HIV and their dependants. On 17th March this year the Government made an ex gratia payment of £10 million pounds to the trust. This was not compensation but to enable the trustees to provide financial help for those in need of such assistance. I understand that the trustees have so far received 350 applications and have made 297 payments.

Lord Campbell of Croy
My Lords, I thank my noble friend for his reply. When this tragic subject was raised by some of us a few months ago the Government responded quickly and generously. However, can my noble friend now comment on reports that very little of the £10 million has yet been allocated, while several more of the haemophiliacs concerned have died in the meantime?

§ Lord Hesketh
My Lords, my noble friend is entirely correct to point out that one cannot set up a 1007 charitable trust overnight, because it involves not only the department but also the solicitors acting for the Haemophilia Society, the Charity Commissioners and the Inland Revenue. The time which elapsed was some four months. I am under the impression that from now on it is expected that there will be an increase in the amounts and numbers of payments, but it obviously tended to start off rather slower than it will finish up.

§ Lord Ennals
My Lords, bearing in mind the Minister's reminder that this is not a fund for compensation, is he aware that about 100 cases for compensation are being prepared for court hearings? Is he also aware that it is immensely time-consuming and costly; that some of the cases concern people who contracted AIDS several years ago; and that in some cases the court hearings are being undertaken by widows because the victims have died? Is this not the most compelling possible case for the introduction of some form of no-fault liability?

§ Lord Hesketh
My Lords, writs have already been served by some infected haemophiliacs who are pursuing their case for compensation through the courts. It would not be appropriate for me to comment further. The Pearson Commission, which reported in 1978, studied the evidence from other countries and considered a possible compensation scheme for personal injuries that have resulted from medical accidents. The commission concluded that such a compensation scheme should not be introduced here and recommended that negligence should continue to be the basis for liability for most medical injuries.

§ Lord Campbell of Alloway
My Lords, does my noble friend agree that this is a classic case for the introduction of a no-fault compensation scheme, even akin to the vaccine damage payment scheme under the 1979 Act? Does my noble friend agree that his reference to the Pearson Report truly, with respect, is not in point? Does he not agree that, because it is so clear that it is no-fault, there ought to be statutory compensation? I ask my noble friend on what basis that compensation should be awarded.

§ Lord Hesketh
My Lords, I really cannot go far beyond what I said in my last answer, except possibly to add that the Civil Justice Review has suggested ways in which personal injuries litigation might be made quicker and cheaper. I understand that the Government's response will be published later this year and it is our intention to monitor the benefits of any changes flowing from the review before considering the matter further.

§ Lord Kilmarnock
My Lords, in view of newspaper reports that only £132,000 had been disbursed by 9th October, will the Government bring pressure to bear on the trustees to see that they get on with processing this money, which, after all, has been provided by the Government for this purpose? Will he further tell the House whether the Government will disregard these sums, when they are paid out, for tax and benefit purposes?

§ Lord Hesketh
My Lords, the answer to the last question is yes. To answer the first question, it is an independent charitable trust. The department appoints only four of the 10 trustees so it would be rather difficult to ask the department to put pressure on directly.

§ Lord Allen of Abbeydale
My Lords, as a member of the Pearson Royal Commission, I wonder whether the Minister will look again at the way he summarised its conclusion on medical injuries. Would it not be more accurate to say that the commission came to the conclusion that on the available information it was not prepared to recommend a no-fault scheme, but recommended that the Government should see what went on in the rest of the world where no-fault schemes were operating and perhaps think again when further experience had been gained?

§ Lord Hesketh
My Lords, I have to admit that the noble Lord, Lord Allen of Abbeydale, is a far greater expert on this matter than I am. I seem to recollect drawing his attention to New Zealand when answering a Question in this context some months ago. It was felt that that was not an entirely encouraging example.

Lord Winstanley
My Lords, would it not be very damaging if a whole series of these tragic cases came before the courts for compensation? Would not the best way to avoid that happening be for the Government to embark rapidly on a satisfactory compensation scheme?

§ Lord Hesketh
My Lords, I cannot add to what I have already said on this matter.