Oral question asked in the House of Commons, by Jack Straw (Labour). It was answered on Tuesday, 13 September 2011 on behalf of the Ministry of Justice.

Referral Fees

Question: May I first express an unequivocal welcome for the announcement that the right hon. and learned Gentleman and the Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly), made on Friday not only in respect of motor insurance but more widely about implementing this central plank of Lord Justice Jackson's recommendations? Since the Justice Secretary used the word ““ban””, which I think is the correct word, may I ask him whether he accepts that, given the level of malpractice we see across the legal and paralegal industry, the ban will have to be backed by the criminal law?

Answer: First, may I say that I am glad that my old friend the right hon. Member for Blackburn (Mr Straw) and I are in complete agreement on this subject? It is not the first time. He got in first, really, because I waited for the opinion of the Legal Services Board, which I have not followed but which I had to consider, and he rightly prompted a decision. People who agree with us include not only Lord Justice Jackson but my noble Friend Lord Young in his report, ““Common Sense, Common Safety””, the Law Society, the Bar Council and the Association of British Insurers. The main beneficiaries will be claimants who are genuinely referred to the best expert to act for them and the justice system in general. We are now considering the way in which to put this into practice, but it is likely to be in the form recommended.

Secondary information