Equitable Life

Debate between George Kerevan and Peter Heaton-Jones

Thursday 11th February 2016 Commons Chamber

[Peter Heaton-Jones]

I entirely agree. The Government have done a great deal to support savers and to support and encourage those who invest for the future, and have done a great deal for pensioners as well. That is undeniable. I hope that, as part of the package, there will be some movement on the issue, and that it will be kept under careful consideration.

The letter that the Treasury Minister wrote to me in response to the letter that I wrote on behalf of the EMAG representatives in my constituency contains the welcome information that she is open to submissions in relation to the Budget. She also points out that the Parliamentary Ombudsman’s report was published in 2008, and that—as we heard from the hon. Member for Angus (Mike Weir)—it is only since the Conservative-led coalition Government came to office in 2010 that any compensation has been paid. It is important to remember that this Government started the ball rolling.

[George Kerevan (East Lothian) (SNP)]

I appreciate everything that the hon. Gentleman is saying, but there is clearly a difference between banks that have been mis-selling having to pay up for their misdeeds, and the Treasury, regardless of party—and the state, regardless of who are the Government of the day—paying for a regulatory failure. It is not a question of charity from a Government to the individuals who have suffered under Equitable Life. People suffer as a result of a regulatory failure, and therefore it is the Treasury’s duty to pay full compensation, just as it is the banks’ duty to pay full compensation to those who have suffered as a result of mis-selling.

[Peter Heaton-Jones]

I take the hon. Gentleman’s point, but let me return to a point that I made earlier. He refers to the Treasury paying compensation. The Treasury has no money; it is all taxpayers’ money. We need to strike a careful balance. There must be fairness, not only to Equitable Life policyholders but to taxpayers in general, because it is they who will ultimately have to foot the bill for any compensation.