Local Government Pension Scheme
Debate between Lord Whitty and Baroness Williams of Trafford
Lord Whitty
To ask Her Majesty’s Government whether they intend to introduce any safeguards as part of their reform of the local government pension scheme (LGPS) in order to ensure that British wealth funds conduct their investment strategies solely in the interest of their LGPS members.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
My Lords, the 90 pension fund authorities in England and Wales will continue to be responsible for determining their own investment strategy and for making strategic asset allocation decisions. Those responsible for making investment decisions must take proper investment advice and comply with their legal duty to act in the best long-term interests of scheme beneficiaries.
Lord Whitty (Lab)
My Lords, I thank the Minister for that Answer. However, does she understand that whatever the merits of the pooling and merging system between local authority funds, there is anxiety because of the way that the Government have designated them as British wealth assets, and a fear that they may be advised to move in directions which reflect the priorities of the Treasury rather than those of the members? In particular, why do she and the Government not accept the advice of the LGA and the Law Commission that this provision should be written specifically into the new regulations covering the combined schemes, particularly the reference to Article 18 of the IORP directive, which underlines the need to manage these schemes, and their investments, in the interests of their members and nobody else?
Baroness Williams of Trafford
My Lords, the funds have a duty to manage the schemes for their scheme beneficiaries—that is their first duty. I understand why the noble Lord has concerns at the pool level. However, the strategic direction will be set at the funding level and carried out at the pool level.
Housing: Brownfield Sites
Debate between Lord Whitty and Baroness Williams of Trafford
Baroness Williams of Trafford
My Lords, the Government have made it clear that, in terms of affordable housing and the right-to-buy market, they expect land that is developed to be built on within three years—and, if it is not, it will go back to the HCA, which will itself develop it.
Lord Whitty (Lab)
My Lords, will the Minister accept that it is not just the availability of land that is preventing the creation of new affordable housing, particularly in the social housing market? We have a pathetic record of council house building, and the finances of housing associations will be further hit by the right-to-buy proposals. What is the level of the Government's ambition in creating social housing over the coming few years?
Baroness Williams of Trafford
My Lords, I agree with the noble Lord when he says that they have a pathetic record, because certainly under the previous Labour Administration only one house was built for every 170 sold on. He also asked about our aspirations; they are based on the trajectory that we have achieved so far, which means that we will build approximately 200,000 houses per year by 2020 if we keep on the way we are going.