Equitable Life Policyholders: Compensation

Debate between Desmond Swayne and Bob Blackman

Thursday 23rd March 2017 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

I beg to move,

That this House welcomes the Government’s acceptance in full of the Parliamentary Ombudsman’s findings in relation to its maladministration with regard to Equitable Life; notes that the Parliamentary Ombudsman recommended that policyholders should be put back in the position they would have been had maladministration not occurred; further notes that the overwhelming majority of victims have only received partial compensation compared to the confirmed losses directly attributed to regulatory failures; regrets that the Government made no further funding available in the Spring Budget 2017; and calls on the Government to make a commitment to provide full compensation to victims of the scandal as the economy continues to recover.

I draw the House’s attention to my declaration in the Register of Members’ Financial Interests, as I am the co-Chair of the all-party parliamentary group for justice for Equitable Life policyholders.

This saga has been going on for more than 25 years. There have been debates in this House on many occasions. I am delighted the Government took action as early as 2010 to provide compensation for the victims of this scandal. This is a unique scandal, and there are three sets of individuals involved. For the benefit of all Members, I will in due course briefly go through the issues faced by those three sets of people.

It is clear that this is a unique case. When I stood for election in 2010, individual candidates made relatively few promises and pledges, but one of the pledges I made was to seek full compensation for Equitable Life policyholders, and I can assure those affected that I and my colleagues will continue this fight until every policyholder has received the full compensation they are due.

[Sir Desmond Swayne (New Forest West) (Con)]

Given the failure of the regulator to identify, let alone expose, the problem, what information was in the public domain that a savvy investor could have taken into account and that might have alarmed him?

[Bob Blackman]

That intervention goes to the heart of the matter. The reality is that people who were investing their life savings in pension schemes, from the time when it was possible to take out personal pensions, were persuaded by unscrupulous Equitable Life salespeople to transfer those life savings—their hard-earned money—into a Ponzi-like scheme. They were promised bonuses that were unachievable, and the regulator knew they were unachievable. All was well while enough money was coming in, but eventually, as we know, the money coming in was insufficient to pay the bonuses expected, and disaster loomed. The key point, as my right hon. Friend points out, is that there was no information in the public domain, and individuals could not have known that they would be affected, but they were none the less. The regulator, who should have been overseeing this, knew what was going on, and the Treasury knew what was going on, but no one took any action. This was hidden because the cost of collapse to the public purse was so immense that this could not be allowed to continue.

Oral Answers to Questions

Debate between Desmond Swayne and Bob Blackman

Wednesday 29th June 2016 Commons Chamber

[Mr Speaker]

I will call the hon. Member for Harrow East (Bob Blackman) if he undertakes to ask a single, short-sentence question.

[Bob Blackman (Harrow East) (Con)]

Has my right hon. Friend examined Save a Child’s Heart, an initiative by the Israeli Government to treat Palestinian children and save their lives?

[Sir Desmond Swayne]

Yes, I hosted a delegation of Members from across the House who brought this excellent organisation to my attention recently, and my officials are conducting due diligence.

Oral Answers to Questions

Debate between Desmond Swayne and Bob Blackman

Wednesday 16th December 2015 Commons Chamber

[Mr Swayne]

I agree with the hon. Gentleman. We do everything that we can diplomatically to raise the sights of the world community, and we will continue to do so.

[Bob Blackman (Harrow East) (Con)]

Does my hon. Friend not agree that the ill-considered, short-sighted campaign for boycotts and disinvestment is actually leading to more unemployment among the Palestinian people?

[Mr Swayne]

The problem faced by Gaza is restrictions, and the extension of restriction by any means is a block to peace.

Oral Answers to Questions

Debate between Desmond Swayne and Bob Blackman

Wednesday 28th October 2015 Commons Chamber

[Mr Swayne]

I have had substantial discussions with the Israeli Government on this issue and could not have been more robust in my representations.

[Bob Blackman (Harrow East) (Con)]

What consideration has my right hon. Friend given to the provision of a desalination plant for Gaza, as proposed by the Israeli Government, which would supply all the water needs for Gaza and satisfy the humanitarian grounds we want to see?

[Mr Swayne]

My hon. Friend draws attention to a very important issue. UN studies predict that Gaza will become uninhabitable, as a consequence of the water problem, by 2020. A peace process is vital, so that the level of investment required to drive such developments becomes available.