Equitable Life (Payments) Bill

George Freeman Excerpts

Tuesday 14th September 2010 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

Let me add my name to the list of those congratulating my hon. Friend the Member for Congleton (Fiona Bruce) on her fine maiden speech.

It is an understatement to say that this is a complex and difficult issue. I think that we all recognise the reasons for that complexity, not least the difficulties that Equitable Life had with its guaranteed annuity product and issues to do with regulation and jurisdiction, compensation, mismanagement and delay. I welcome the speeches of Members from all parties who have talked straightforwardly about those difficulties.

In many ways, this is a story of our times. It is a story of boom and bust—the very boom and bust that the former Prime Minister promised us he had abolished. It ill behoves some Opposition Members to leap on the moral high horse after not dealing with this matter for so long and leaving us with the crisis in public finances that makes it so difficult to deal with. In this issue, above all, we are all in this together.

I welcome the coalition’s commitment to dealing with this matter so quickly. I welcome the transparency of the process and I sincerely welcome the Minister’s deep personal commitment to trying to resolve this issue as fairly as possible. I appreciate the complexity and the challenge of finding a fair settlement when we have inherited, in the words of the former Chief Secretary, no money.

As someone who signed the pledge in good faith, I urge the Minister, in considering the Government’s proposal, to recognise that this is not just about money. It is about something much more important. It is about trust—trust in our savings industry and its regulation; trust in Government; trust in this coalition’s commitment to financial responsibility and compassion; trust in the idea of the covenant between the generations, which sits at the heart of the big society; and trust in this Parliament and its commitment to do the right thing. I ask the Minister, as he considers the Government’s response, to explore any method he can to soften the blow—in particular the solution proposed by EMAG of offering some choice to those victims who want to take short-term compensation and to those who prefer to wait. In due course, when the Government’s finances return to rude health—as I have no doubt they will—some might choose to take a better return later.

The people have placed their trust in us; I am happy tonight to place my trust in the Minister and the Government and to support the Bill, in the expectation in good faith of a genuinely fair solution.