Superannuation Bill Debate

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Baroness Donaghy

Main Page: Baroness Donaghy (Labour - Life peer)

Superannuation Bill

Baroness Donaghy Excerpts
Wednesday 1st December 2010

(14 years ago)

Lords Chamber
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Moved by
5: Clause 3, page 2, line 41, leave out “the following limitations” and insert “agreement reached following consultation and negotiation with the relevant trade unions”
Baroness Donaghy Portrait Baroness Donaghy
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My Lords, I have pleasure in moving this amendment on behalf of my noble friend Lady Turner of Camden, who, as noble Lords will know, was taken ill on Monday. She was unable to attend the House today, but I am pleased to say that she is now at home. I am a lifelong admirer of Lady Turner and I hope that I can do justice to her amendment. I have a guess that this amendment might not be received in the same way as one or two of the previous ones.

These are worrying and uncertain times for civil servants, with their job security, pensions and standard of living under attack. I am sure that many noble Lords have received letters from individual civil servants about the impact of this Bill on their lives. They entered the Civil Service with certain expectations about their job security and pensions. The impact on their morale should not be underestimated, and I am concerned that the public focus on Civil Service pay and pensions is always on the higher paid. I notice that when this was discussed on 10 November, one contribution made out that an annual salary of £40,000 to £50,000 was the norm. I know that Members of this House will realise that that is not the norm. The majority of civil servants earn very modest salaries and even more modest pensions. It is not my intention to hold up the House by quoting the figures, but I know that the Minister will be aware of them.

I acknowledge the reassurance of the noble Lord, Lord Wallace of Saltaire, that negotiations will be genuine. However, the general tenor of the Bill will not reassure civil servants. I believe that it is reasonable to reach agreement with trade unions. There is a long and honourable tradition of this in the joint Civil Service negotiating bodies and I hope that the Bill’s tenor will do nothing to undermine it. It is in that spirit that I move the amendment tabled by my noble friend Lady Turner.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, I thank my noble friend Lady Donaghy for stepping into the breach. She did indeed do justice to our noble friend and colleague Lady Turner. Perhaps we can take this opportunity of sending our best wishes to her for a speedy recovery.

I very much agree with the thrust of the amendment, which pretty much replicates a debate that we had in Grand Committee. The difficulty, in a sense, is that the approach is predicated on Clause 1 not standing part of the Bill, so there is a potential inconsistency between these two provisions. In so far as the cap is concerned, we are very clear that it should go from the Bill in its entirety, which would negate this amendment if it were to be pressed and were successful. However, we agree that there must be consultation with every effort made to end up with a negotiated settlement. My right honourable friend in the other place, Tessa Jowell, made clear that we accept that there would be circumstances in which changes would have to be made that did not rely on agreement. We do not recognise this lightly, nor indeed does the Minister. To that extent we may differ a little on my noble friend’s amendment, but we have some other amendments constructed to achieve in large measure the same thing, which is to get rid of the caps.

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I hope that I have provided sufficient clarification about the intention of the coalition Government’s policy and the legislation to deliver it, and that I have explained my concerns about the effect of this amendment. I therefore ask the noble Baroness to withdraw it.
Baroness Donaghy Portrait Baroness Donaghy
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My Lords, I neglected to declare an interest: I am in receipt of a very small Civil Service-related pension as former chair of ACAS. I apologise to the House for not having done that. In the light of the statements made, it does not seem sensible to press the amendment to a vote. I beg leave to withdraw the amendment.

Amendment 5 withdrawn.