Equitable Life (Payments) Bill

Debate between Nadhim Zahawi and Bob Blackman

Wednesday 10th November 2010 Commons Chamber

[Bob Blackman]

My hon. Friend clearly demonstrates that we are talking about the oldest and most vulnerable people, and that they have been dealt with in a most disgraceful way following this scandal. We have a moral duty to compensate them.

Going back to the points made by my hon. Friend the Member for Cardiff North (Jonathan Evans), it is clear that when the bonuses that were attached early in the process are taken into account, some policyholders might not receive a penny piece in compensation. We need to recognise that, but there is an 18-month gap between the cut-off dates. A large number of the retired people who had taken out annuities could not adjust them once they had purchased them, and they are now trapped in that position. That is why we have a moral duty to compensate them.

[Nadhim Zahawi]

What action would my hon. Friend recommend? My hon. Friend the Member for Cardiff North mentioned the possibility of people being judged to have received too much. Should we take that money away from them? The malpractice took place in 1991, and we should be talking about 1991, not about 1992 or about an open-ended process.

[Bob Blackman]

Clearly, if exorbitant bonuses were attached to certain policies, the policyholders would not be due compensation and they would not receive a penny piece. Remember, we are talking about compensation. We cannot take money off policyholders who have been receiving pensions. Parliament just cannot do that; it would be a retrograde tax and therefore unacceptable. Those who are due compensation should receive it, but those who are not due any would not receive any, and if they have benefited in the meantime, well, that is fine and dandy for them.

--- Later in debate ---

[Nadhim Zahawi]

Does my hon. Friend agree that if the previous Government had acted, and acted sooner, more compensation would have been payable to the victims?

[Bob Blackman]

If the Labour Government had acted when they should have done, £1.5 billion would have represented 100% compensation for everyone that had been so badly wronged. However, the dragging of feet over the past 10 years means that we are in the parlous state in which, ever day, people who should be due their compensation are dying and every day that we delay means that, sadly, more people will not receive their compensation.