Equitable Life (Payments) Bill

Cathy Jamieson Excerpts

Tuesday 14th September 2010 Commons Chamber

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

I add my congratulations to the hon. Member for Congleton (Fiona Bruce) on her maiden speech. I know that she has Scottish roots and she is already proving to be an assiduous member of the Scottish Affairs Committee.

Before being elected to this House in May I met Equitable Life policyholders from my constituency. I am indebted to Richard Cox, the local EMAG regional co-ordinator, for bringing me up to speed on the issue and the background to the Bill. I did not immediately sign the pledge to support EMAG, because I wanted to ensure that if I signed I would be able to carry through my commitment. Having met those affected and read the numerous reports on the issue, I judged that there is an indisputable moral obligation to compensate the Equitable Life policyholders, so I signed the pledge in the knowledge that I would be judged later by my actions and follow-through.

In today’s debate Members on both sides of the House have said that there are areas on which we can agree and build consensus. We all seem to agree that a compensation scheme is important and must happen. The differences between us appear to be the vehicle for compensation, the amount, the timetable for delivery and the payments. As I listened to the debate, I could not help wondering whether some of the exchanges would be seen as not especially helpful by those who want us to unite and find a way forward to helping those who have been affected by this issue. Some of the to-ing and fro-ing across the Chamber may make for a bit of sport and entertainment, but it does not move the debate on. I hope that we will be able to make progress in further contributions.

I do not have any difficulty with the principle of the Bill in that it will enable a payment scheme to be put in place for policyholders, but I do have reservations about the nature of the Bill, as I always do with Bills that do not contain much detail. It is all very well to lay down the general direction, but the Bill fails to answer several key questions to which those affected have long sought answers. For example, the Bill does not set out who will be entitled to what under the compensation payments scheme, but that is the essence of the issue. Despite all the numerous reports, inquiries and legal actions, the Bill empowers the Treasury to make payments, but gives no details. I regret that that is a pattern in the Bills introduced by this Government. The lack of detail also puts some of us in a difficult position. We want the compensation scheme to be put in place as quickly as possible, but we are reluctant to support a Bill that does not actually outline the detail of that scheme.

It is worth quoting the coalition agreement on this issue:

“We will implement the Parliamentary and Health Ombudsman’s recommendation to make fair and transparent payments to Equitable Life policy holders, through an independent payment scheme, for their relative loss as a consequence of regulatory failure.”

There were no ifs and buts in that statement, but we now seem to hear some maybes about what might happen in the future. I urge the Minister to ensure that not only the design of the scheme but its operation is independent of Government, and that is why I welcome the amendment we propose to table.

In the end, not this House but those who voted for the coalition partners will judge whether they have met their promises. Some of those who have brought their concerns to me would not naturally support my politics, but it has become increasingly apparent that while they may not have agreed with the previous Government’s position, they at least knew what it was. Their problem now is that they feel let down, because they were given a clear commitment and now the Government are rolling back on that.

[Chris Skidmore (Kingswood) (Con)]

Will the hon. Lady explain the previous Government’s position and whether she agreed with it? As far as I am concerned, the House will vote tonight for compensation for the victims of a scandal—the people who waited 10 years under her Government and never got a penny.

[Cathy Jamieson]

I would point out gently to the hon. Gentleman that that is exactly the kind of intervention that people in my constituency do not find helpful. What they do find helpful is that we now have a Bill—albeit with some flaws—and I hope that the hon. Gentleman will support our amendments to it. It is important that we take this issue forward and resolve the matter speedily—

[Chris Skidmore]

You didn’t answer.

--- Later in debate ---

[Cathy Jamieson]

It is no use the hon. Gentleman making interventions from a sedentary position when I am genuinely trying to point out areas where we can build consensus.

I hope that the Economic Secretary will address a couple of points. First, do the Government believe that it is their moral duty to compensate policyholders by choosing the issue of relative loss over absolute loss? Secondly, I hope that she will give consideration to the points made today about some compensation payments being made early. I heard what the Financial Secretary said about the need to put a scheme in place swiftly, but that is unlikely to produce any results until next year. Many of my constituents are anxious for some interim payment to be made by the end of this year and I hope that the Government will give some thought to that.

As other hon. Members have said, the Bill raises broader issues. It is clear that hard-working, decent and honest people who tried to do the right thing and provide for their families and their retirements have lost out. I hope that we will keep that in mind as we move forward with this Bill and in the debates to come.