The case of a planned Cumbrian coalmine shows how governments around the world are being threatened by litigation in shadowy offshore courts
H
ow do you reckon our political system works? Perhaps something like this. We elect MPs. They vote on bills. If a majority is achieved, the bills becomes law. The law is upheld by the courts. End of story. Well, that’s how it used to work. No longer.
Today, foreign corporations, or the oligarchs who own them, can sue governments for the laws they pass, at offshore tribunals composed of corporate lawyers. The cases are held in secret. Unlike our courts, these tribunals allow no right of appeal or judicial review. You or I cannot take a case to them, nor can our government, or even businesses based in this country. They are open only to corporations based overseas.
If a tribunal determines that a law or policy may compromise the corporation’s projected profits, it can award damages of hundreds of millions, even billions. These sums represent not actual losses, but money the arbitrators decide the company might otherwise have made. The government may have to abandon its policy. It will be discouraged from passing future laws along the same lines, for fear of being sued.
