Standard stirred me into action on Bribery Act, says Ken Clarke

Joe Murphy, Political Editor
30 Mar 2011

Kenneth Clarke today praised the Standard's campaign to highlight business fears over the new Bribery Act and admitted it "stirred me into action".

The Justice Secretary spoke out as he announced the legislation will come into force on July 1, three months later than planned, and vowed corporate hospitality will not be made illegal.

He accused greedy lawyers of scaremongering to make exporters believe - wrongly - that they would have to spend millions of pounds on extra staff to comply with the law and avoid prosecution.

"You had a bit of a scoop because you set the story off and rather stirred me into action," he told the Standard. "You were the first newspaper to report the extent to which some firms had been alarmed about the advice they were getting. It probably stirred me into talking to more firms about it."

Mr Clarke published the long-awaited official guidance to interpreting the Act, saying it was simplified to the point where any director would understand - without a lawyer - the difference between an illegal bribe and everyday business entertaining or gift-giving.

The three-month delay was ordered after the Standard revealed concerns that the Act was so loosely worded that ordinary gift-giving and hospitality could be deemed illegal.

Uniquely, the Act will make it possible for UK directors to be jailed for up to 10 years if staff based overseas pay bribes to influence local officials.

Asked if lawyers were taking companies for a ride by the lawyers, Mr Clarke said: "I think they were acting as salesmen as well as advisers.

"Most of these proposals should not make the slightest difference to any reputable company. They won't have to spend millions of pounds on new control systems, which the compliance industry will tell them they need."

He said a "common sense" approach would be used and stressed no actions could take place without approval by the Director of Public Prosecutions or the Serious Fraud Office - avoiding the "fatuous prosecutions" sometimes brought under health and safety law.

"Neither will bring silly prosecutions," he said, adding that it would be "completely safe" to take clients motor racing or to a football match.

"Taking customers to Twickenham is normal," said Mr Clarke - himself no stranger to corporate hospitality boxes. "But if you took them for a Caribbean cruise with the wife, that's different.
"It is normal business hospitality to get to know your customers better. No one is going to call that dishonest."

A short version of the guidance has been written for small firms where one hard-pressed boss takes all decisions.

Legal experts said Mr Clarke's assurances will not necessarily protect business figures from being jailed. Robert Mitchell, of World-Check, said: "The guidance does not provide a defence to any of the new offences created." He said "all levels of directors" will be "potentially liable for prosecution".