Mineworkers’ Pension Scheme

Andrew Stephenson Excerpts

Monday 10th June 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

I would like to start by paying tribute to all hon. and right hon. Members who have contributed to today’s debate, and to the many emotional and passionate speeches reflecting the importance of this issue. This is a question about real people and their incomes. It is about real people who have done some of the hardest work in our country, and about the respect and loyalty owed to them by their Government.

This subject is really important to me because, like many of those who have spoken today, I have a strong family connection. My family worked in the pits in the north-east for generations. My grandfather, George Stephenson worked at the Windlestone colliery in County Durham, following in the footsteps of his father, John. My uncle Bert worked at the Dean and Chapter colliery and then at the Mainsforth colliery. My great aunt Daisy and great uncle Tom spent most of their working lives at the National Coal Board in Team Valley in Gateshead. I grew up with stories of hard work, tough times, soot black baths and three pints after a hard day’s work because you could not taste the first through all the coal dust.

The Whips are rarely mentioned in this place, but the Business, Energy and Industrial Strategy Whip, the Lord Commissioner of Her Majesty’s Treasury, my hon. Friend the Member for Castle Point (Rebecca Harris), is on the Front Bench this evening. Her grandfather worked in the mines and her great-grandfather was in charge of the pit ponies at Boldon colliery in County Durham, so we both have strong links with the mining industry. I know that the same goes for one of my predecessors in this role, the Minister for Energy and Clean Growth, my right hon. Friend the Member for Devizes (Claire Perry). Her connections to mining communities were so strong that she had to pass responsibility for their pensions over to me.

[Stephanie Peacock]

The Minister refers to his predecessor. In my Adjournment debate back in February, she agreed to a meeting with me, coalfield MPs and the trustees, but unfortunately, despite several emails, that meeting never happened. Will the Minister commit today to a meeting with us?

[Andrew Stephenson]

I am always happy to meet anybody, and I am more than happy to meet people who have asked for meetings today. I believe that my predecessor, my hon. Friend the Member for Watford (Richard Harrington), who took on responsibility from my right hon. Friend the Member for Devizes, did have a meeting, but I am always happy to have further meetings on this topic or any other.

I was just going to clarify that the connections of my right hon. Friend the Member for Devizes were so strong that she had to pass over her responsibility for this topic. Her mother-in-law is a beneficiary of the scheme that we are discussing today. Her mother-in-law’s late husband, Bill O’Neill, was a leader of the coke workers union and I understand that he died very young as a result of his years of service underground. At the age of 16, my right hon. Friend’s husband turned down a job in the Keresley pit, but that did not stop him helping to organise port blockades to prevent Polish imports while he was a student, and getting into trouble with his university to protect—in his view—British coal. It is because we appreciate the importance of fairness to mining communities that my right hon. Friend the Member for Devizes, when she was in post, dedicated a considerable amount of time to this issue and instructed officials to do the same. She spent time understanding the arguments and concerns of all sides, thinking and talking through alternative proposals and weighing up the merits of the cases presented.

It has been four months since the last Adjournment debate on this matter. Since then, my right hon. Friend the Minister for Energy and Clean Growth has met the scheme’s trustees, and my predecessor as business and industry Minister, my hon. Friend the Member for Watford, has met campaigners and coalfield MPs. Officials have also met the scheme’s trustees. For my part, even though I have been in post for only two months, I have taken an interest in this debate not just because of my family background, but because a number of the right hon. and hon. Members who have spoken today have collared me in the corridors since my appointment.

I have reviewed the trustees’ proposals, which my officials have been considering for some time, and I wrote to Her Majesty’s Treasury last week giving them my full support. I will be meeting the chair of the trustees, Chris Cheetham, on 24 June. Central to the trustees’ proposals is protecting existing bonuses. Under that option, if there is a deficit in the future, members will still see their guaranteed pensions continue to rise in line with RPI, and their current bonuses will not be eroded. Without that additional guarantee, members may not be able to get any increase in payment, possibly for many years. The proposals put to my predecessor by the trustees offer benefits to all pensioners, who will see their pensions secured into the future, even if the scheme was to go into deficit, by protecting the bonuses that have accrued to date. The trustees, who include former miners, believe that that is an important way of protecting future revenues for scheme members in the event of a future scheme deficit, because bonuses accrued at past evaluations could be eroded.

The trustees’ proposals would mean a significant additional liability for the Government. In turn, that creates an additional risk of a sizeable call on the public purse. However, I support the trustees’ aim to protect the revenues of individual pensioners. My officials have provided an analysis of the proposals, which I have now shared with Treasury colleagues. As I have said, I am dedicated to the best for miners across the country, which is why I am immensely proud of the scheme and of the investments that we are making to transform mining communities across the country.

[Ian Lavery]

I agree that this has been a fantastic debate, with everyone who participated believing that justice should be done for the mineworkers. Will the Minister say whether the trustees’ proposals include a review of the 50-50 split?

[Andrew Stephenson]

They do not. There are six proposals, which I have written to the Treasury about, and the trustees felt that protecting existing bonuses earned is more important than a review of the 50-50 split at this time.

[Edward Miliband]

The motion states:

“That this House calls on the Government to carry out a review of the existing arrangements for the sharing of the surplus generated by the Mineworkers’ Pension Scheme.”

As I understand it, the Government will not vote against the motion, so will the Minister tell us what he is going to do after the motion passes, because it calls for precisely such a review?

[Andrew Stephenson]

As I just said, I will be meeting the trustees, and their proposals relate to six points, about which I have written to the Treasury to share my analysis.

[Edward Miliband]

But this House is about to pass a motion agreeing to a review, so the Government are going to have to do something about that. That is the point, and I think we would all be interested to know what the Minister intends to do.

--- Later in debate ---

[Andrew Stephenson]

I am setting out my Department’s position. Whether a review is undertaken is a matter for the Treasury, and the Treasury’s position was set out in a letter from the Chief Secretary to the Treasury to MPs on 14 May. That position has not changed. I am sure that the Chief Secretary to the Treasury and other colleagues in that Department will want to reflect on any motion passed by this House, but I am trying to update the House in response to the Opposition Front-Bench spokesman, who asked what the Government were doing about the proposals that had previously been under discussion—the proposals that have been brought forward by the scheme’s trustees.

The proposals have been considered for several months. They are balanced, and I support them. With the support of my Department, I have formally written to the Treasury to say that we support the proposals, because the trustees have identified that protecting already accrued bonuses is more important than the 50-50 split.

[Alan Brown]

The Minister seems to be saying that the proposals being considered are from the trustees and they have not proposed any changes to the 50-50 split. Is it not the case that the trustees have said today that the Government are not willing to discuss a change to the 50-50 split? Is he saying that he thinks it is fair to maintain that 50-50 ratio?

[Andrew Stephenson]

The trustees have made it clear that protecting bonuses already accrued is their priority, rather than renegotiating a greater share of future surpluses. I have not met the trustees, and I have already given the House the date when I will be meeting them. I have seen the six proposals from the trustees, which have been considered by my predecessor and his predecessor, and I acted swiftly in my first two months in office to ensure that my Department supports those proposals and will write to the Treasury encouraging their adoption.

[Stephanie Peacock]

The trustees’ proposals are important. However, speaking to that is a red herring and does not answer what this debate is about. Every single person who has spoken in this debate has talked about the 50-50 split. Will the Minister please get up and answer that point?

[Andrew Stephenson]

I certainly will. I think I have only two minutes left, and I was going to come on to exactly that point. I was addressing the question of what has been done to date.

I began by saying that we owe the miners loyalty and respect, which includes being honest. In this case, the honest answer is that the current position, whereby the Government guarantee arrangements and split the surpluses, is a fair settlement. It is reflected in the fact that successive Governments of all political persuasions have retained the split currently in place.

[Helen Goodman]

On a point of order, Mr Speaker. Surely the Government cannot ignore a motion passed by the whole House following a Backbench Business Committee debate.

[Mr Speaker]

The short answer is that that is not a point of order, but it is open to the Government to do that. Whether it is politically wise is another matter. In the event that Members are disappointed, I feel sure they will trouble the Backbench Business Committee for further debates, which may continue ad infinitum. I am sure the Minister would not want to countenance such an unfortunate, even grisly, scenario.

[Andrew Stephenson]

Thank you, Mr Speaker. The guarantee gives recipients security because, of course, they know future outcomes can never be known. As referenced earlier, my right hon. Friend the Chief Secretary to the Treasury has responded to the letter from the hon. Member for Blaenau Gwent (Nick Smith), sent on behalf of a cross-party group, by saying that she will not be reviewing the current arrangements.

I believe that all of us here today are united by our commitment to fairness for our miners and mining communities. Although we may be divided on the best way to deliver that, I can assure the House that I will seek to agree changes to the scheme that benefit scheme members and protect taxpayers.