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Compensation Act 2006 (Contribution for Mesothelioma Claims) Regulations 2006

My Lords, I should like at the outset to declare an interest as a director of Hanson plc. It is fairly well known—at least in financial markets— that Hanson has a significant exposure to asbestos litigation, including that involving mesothelioma. I assure the House that that litigation is all in the United States and, to the best of my knowledge, I have no interests that would in any way affect my ability to deal with the regulations. With that clarification of my position, I thank the Minister for introducing the regulations in his usual meticulous way. The plight of mesothelioma victims is not a matter for party politics. The Compensation Act improved the ability of those victims to gain compensation. The regulations in effect deal with the consequences for responsible persons and their insurers. The approach taken by the regulations has been consulted on, albeit under a shortened period for consultation. However, it seems to us to be a sensible way forward and we will not oppose the regulations. If I may, I have a couple of questions to ask the Minister. The first relates to the ability of mesothelioma victims to get compensation, depending on the existence of a responsible person. If the responsible person no longer exists or is insolvent, the compensation then potentially depends on the ability to find an insurance contract and, through that, to trace a trail to the Financial Services Compensation Scheme. But, as the Minister will be aware, comprehensive paperwork is not a hallmark of companies that become insolvent or have been wound up, and that may leave victims without compensation. I completely understand that such cases will not impact on the FSCS, which is the subject of the regulations, but can the Minister explain what the Government intend to do about those cases? The document issued at the conclusion of the consultation period referred to the matter being taken up by the Department for Work and Pensions. I was a little puzzled by that, and I hope that the Minister can explain what the Government intend to do for this category of mesothelioma victims. My second point concerns the statement at paragraph 8.2 of the Explanatory Memorandum that the regulations mean that government departments or former nationalised industries will benefit from being able to claim a contribution from the FSCS. Will the Minister explain how many of the 1,800 or so new cases each year are expected to result in the Government or a former nationalised industry paying compensation that is then recouped ultimately from the FSCS? How much money are we talking about each year? Are the Government, in effect, picking up the ultimate liabilities of the former nationalised industries involved, or are they borne by the industry, which is now in the private sector? In sum, how much are these regulations worth to the Government? Subject to those points, I repeat that we support the regulations.