§ Mr. Cooperasked the Minister of Labour if he has now received the Report of the Inter-Departmental Committee which he set up to study the implications 33W of the judgments in the case of Lister versus The Romford Ice and Cold Storage Company Limited as they might affect the relations between employers and workers; and if he will make a statement.
§ Mr. Iain MacleodThe Report of the Inter-Departmental Committee is being published today, and I have arranged for copies to be placed in the Library.
The Report points out that the House of Lords decision in the case of Lister versus The Romford Ice and Cold Storage Company Limited has confirmed that, under the law as it stands, an employee may be held liable by his employer, or his employer's insurers, for damages which either has had to pay to third parties as a result of the employee's negligence. The Committee point out that the decision shows that employers and their insurers have rights which, if unreasonably exploited, would have a most harmful effect upon industrial relations. The Committee are satisfied, however, that employers and insurers are unlikely to exploit their rights against employees and draw attention to certain voluntary action taken by employers and insurers which in their view further reduces this risk. The Committee did not think, therefore, that the decision has created an immediate or practical problem and in view of the serious objections which they consider would arise from attempting to meet the problem by legislation, they did not recommend such a course at the present time. The Government welcome the voluntary action which has already been taken by insurers in this matter. They accept the conclusion of the Committee and do not propose, therefore, to take any further action in this matter at present.