HL Deb 21 April 2004 vol 660 cc48-52WA
Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Whether, in accordance with its statutory duty, the Department of Trade and Industry's Corporate Law and Governance Directorate and its Companies Investigation Branch will investigate those companies and directors against whom misconduct and unscrupulous practice is alleged in operating as claims farmers and exploiting miners and widows in connection with compensation claims against the former British Coal Corporation. [HL2309]

Lord Sainsbury of Turville

Where the department's Coal Liabilities Unit has first-hand evidence of wrongdoing it will make referrals to the appropriate regulator. However, in most cases it will be more appropriate for those acting on behalf of an individual directly affected to make a formal complaint.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

What is the average cost of administering and handling each claim under the British Coal respiratory disease litigation, taking into account expenditure within the Department of Trade and Industry and payments to all contractors and solicitors, but excluding sums paid by way of compensation. [HL2310]

Lord Sainsbury of Turville

The average cost of handling a claim over the course of 2002 and 2003 was approximately £2,700.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Why the option of a minimum compensation payment, funded by contractors and solicitors, was not provided for under the British Coal respiratory disease litigation, thereby taking claims out of the scheme and ensuring that public funds were spent on miners and widows. [HL2311]

Lord Sainsbury of Turville

Compensation is decided following a medical assessment, which takes account of the claimant's level of disability caused by lung disease, the dust levels in the mines he was employed at and the effects of smoking and other conditions for which British Coal was not found liable.

The claims handling agreement negotiated with the miners' solicitors' aims to calculate accurately and fairly the amount of compensation due to each claimant whether this is a relatively small amount or a considerable sum. The agreement respects the court judgment.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Whether it is the case that six years after the High Court judgment in the British Coal respiratory disease litigation over 300,000 miners and widows have yet to receive their entitlement to compensation; and what is their view of this delay. [HL2312]

Lord Sainsbury of Turville

The claims process is by necessity complex and there was delays at the beginning but with each claim being assessed individually it is inevitable that it will take some time to settle all claims. Over 555,000 claims had been received up to the cut-off date of 31 March 2004, around half of these since last September.

The department and our contractors are doing all we can to speed up this process and as you know we have so far settled some 117,000 claims. We are on target to make 35,000 full and final offers within the first six months of 2004. It is hoped the solicitors dealing with these claims will quickly turn these offers into settlements.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Why the Department of Trade and Industry did not take sufficient action to prevent claimants under the British Coal respiratory disease litigation failing to meet the registration deadline of 31 March 2004, despite the department's awareness that this was a risk. [HL2313]

Lord Sainsbury of Turville

The department considers that it did take appropriate action to ensure potential claimants were aware of the deadline. The department's communication strategy was agreed with Mr Justice Turner.

The department advertised four times in the national and regional press, with extensive coverage in those areas where there are pockets of ex-miners. In addition there has been very extensive advertising and leafleting by solicitors and claims handlers in local papers. To date, only 18 claims missed the deadline.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

How many of the claims made under the British Coal respiratory disease litigation relate to miners or widows who have died since the High Court ruling in their favour in January 1998. [HL2347]

Lord Sainsbury of Turville

The number of claimants who have died since 1 January 1998 is nearly 45,000 (out of around 300,000 deceased claims). There are no figures for widows.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Why there is no provision for compensation to be paid to surface workers in the British Coal respiratory disease litigation, given that the issue has been outstanding for six years and the High Court scheme was closed before miners and widows knew whether or not they had the right to claim. [HL2348]

Lord Sainsbury of Turville

The medical expert's advice to the DTI is based on surface dust levels recorded by the Institute of Occupational Medicine. These were not sufficient to cause chronic obstructive pulmonary disease (COPD) in the great majority of cases. The claimants' solicitors refused to accept this position but have not mounted a successful legal challenge.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

With reference to the British Coal respiratory disease litigation, what are (a) the total number of claims registered by the cut-off date of 31 March; and (b) the number of claims subsequently rejected or returned as having been received after the deadline. [HL2349]

Lord Sainsbury of Turville

The total number of claims fully registered before midnight on 31 March 2004 is 559,000.

Another 51,000 partially registered claims were received, which will be accepted into the scheme upon receipt of the information they are currently missing.

To date, 18 claims have been rejected as having been received after the deadline.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Whether the advice given to miners and widows by the Department of Trade and Industry in 2002 and 2003, that those who missed the cut-off dates in British Coal vibration white finger litigation would be able to claim at common law, was correct. [HL2350]

Lord Sainsbury of Turville

The department is satisfied that it acted correctly in advising claimants to seek legal advice in pursuing a common law claim for VWF.

Lord Lofthouse of Pontefract

asked Her Majesty's Government:

Whether, in connection with miners' compensation claims, the Companies Investigation Branch of the Department of Trade and Industry is taking action against (a) the Miners Welfare Agency, for allegedly posing as Miners Welfare; and (b) Zuko Legal, for allegedly posing as the Legal Rights Board. [HL2351]

Lord Sainsbury of Turville

The department does not comment on the affairs of individual companies or any possible action being undertaken.

Companies Investigation Branch will consider any information the noble Lord has suggesting that investigations into these two companies are necessary.