Equitable Life (Payments) Bill

Debate between Dominic Raab and Baroness Blackwood of North Oxford

Tuesday 14th September 2010 Commons Chamber

[Nicola Blackwood (Oxford West and Abingdon) (Con)]

I am grateful to have the opportunity to speak in this debate. At the outset, I would like to pay tribute to the many EMAG members and Equitable victims who have contacted me urging me to participate in this debate, and to those, including many Members on both sides of the House, who have campaigned so selflessly and for so long for justice for the thousands of Equitable victims in Oxford West and Abingdon and across the country.

As a fellow EMAG pledge signatory, I welcome the swift action that the Financial Secretary has taken in bringing this Bill before the House. In particular, I know that the many Equitable victims who live in my constituency—more than 3,000, according to EMAG—will welcome the commitment to an urgent and transparent timetable for payments. More than 30,000 policyholders have already died waiting for their Government to deliver them justice. For their dependants and the policyholders that remain, certainty and speed are imperative.

Nevertheless, since my Westminster Hall debate on the subject on 20 July and the Minister’s statement on 22 July, a number of concerns have been raised with myself and colleagues by Equitable victims, and I would like to raise some of those concerns today. First, my constituents tell me they are uncertain about the current status of Sir John Chadwick’s advice. In the Financial Secretary’s remarks on 22 July, he stated that as he understood that certain aspects of the report were contentious, he had not yet accepted Sir John’s report and would be receiving representations on its content.

The Financial Secretary stated today that he has had a number of meetings with Equitable Life, EMAG and the ombudsman since then. However, paragraph 3 of the terms of reference of the independent payments commission states:

“The Commission will have regard to the work undertaken by Sir John Chadwick on the methodology for calculating relative loss and base its allocation to policyholders on the relative loss figures provided to HM Treasury by Towers Watson.”

Will the Minister please clarify whether the Treasury has indeed decided to accept the report and whether there will still be an opportunity for Equitable victims and others to attempt to influence that decision? In particular, will she explain why, if the report is not yet Government policy, the independent payments commission should have been directed to have regard to it and to the Towers Watson calculations that arise from it?

Secondly, I know that the Bill does not predetermine the amount of compensation or to whom it will be paid, but I would like to take this opportunity to applaud the decision to include in the commission’s terms of reference a direction to take account of the estates of the deceased policyholders. Many Equitable victims in my constituency have welcomed that and feel that it goes a little way towards recognising the suffering of those who died waiting for justice.

I am happy to support the Bill this evening, as I believe that acting quickly to set up a compensation scheme for victims is of the utmost importance, but I am also aware that it does not address the elephant in the room: the final compensation amount. Equitable victims in my constituency have informed me that they are uncertain about to whom they should put their concerns about the final figure and how it will be calculated. There has been endless press speculation on the subject, some of it very heated. I know that the Minister will not be drawn into a debate on the final amount in advance of the comprehensive spending review, but I would like to press her to bring the decision on the quantum to the House as an oral statement, so that Members such as myself who have received extensive representations from constituents will have the opportunity to raise those concerns effectively. I fully support the principle that the amount of compensation allocated to Equitable victims must be affordable in the wider context of the public purse, but I share the concern of many in the House about some of the figures that are being bandied about. Given the sensitivity of the issue, I feel that Members should have the opportunity to debate that decision.

[Mr Dominic Raab (Esher and Walton) (Con)]

Like my hon. Friend, I welcome the transparency and the finality provided by the Bill. However, like her constituents, none of the victims in my constituency will regard it as justice if compensation is just one tenth of the relative loss. Does she agree that we need a debate not just about the overall package, but about the quantum, the timing of the compensation and the tax status? All those issues need to be looked at creatively, and the pressure on the public finances make that debate more, not less important.

[Nicola Blackwood]

I agree with many of those points. It would be helpful if we could have some clarification about the future opportunities for Members to contribute to the debate, as it will continue and we will continue to receive significant representations.

I am conscious that the process of compensating Equitable victims and designing a scheme that campaigners can support must be done in the context of the previous Administration’s record of delay and obfuscation—a record that has left Equitable victims with completely shattered confidence both in the Treasury and in politicians to deliver any kind of justice at all. I will not go into the details of the previous Government’s attempts to put roadblock after roadblock in the way of the Equitable victims. I am sure that everyone here is sadly familiar not only with that tale but with the morbid accusations that it led to: that the Treasury made a cold-hearted calculation that the longer it dallied, the more Equitable members would die—at a rate, I believe, of about 15 a day.

I know that the Minister is well aware that the victims of Equitable Life, who have been treated so shabbily for so long, need to see that despite their fears, not all politicians will betray them. I know that I am only one of many who have emphasised the appalling toll that this scandal and the decade-long battle for justice have had on our constituents. That is why I believe it is so important to have a process that is as transparent as possible, so that Equitable victims can be reassured that their Government are acting in good faith.

This issue is just one area where the coalition Government must try to rebuild the trust broken by the last Government’s failures to take responsibility for their actions, but it is one that has ramifications that go far beyond the victims. If we get it right, it will communicate effectively and clearly that this Government will act in the interests of those who do the right thing and save for the future. At a time when public confidence in politics and politicians is at an all-time low, if we get this right, it will demonstrate clearly and effectively that this Administration will deliver in government what we promised in opposition.