Gordon Banks
Main Page: Gordon Banks (Labour - Ochil and South Perthshire)Department Debates - View all Gordon Banks's debates with the HM Treasury
Equitable Life (Payments) Bill
Gordon Banks Excerpts(14 years, 1 month ago)
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Gordon Banks (Ochil and South Perthshire) (Lab)
I will also try to keep my remarks brief.
First, I associate myself fully with the remarks of my hon. Friend the Member for Leeds North East (Mr Hamilton). I look forward to seeing the amendments proposed by my right hon. Friend the Member for East Ham (Stephen Timms) as the Bill moves into Committee. This is such an important issue to the people who have been affected by it, and we do need a solution, but I worry that the solution we will get from the Government will bear no likeness to what they promised or intimated when they were in opposition.
In terms of the number of representations from constituents, this is the biggest matter that I have dealt with since coming to this place. It is certainly the longest running issue for me, and many other Members will have had it on their plates for much longer than I have. However, we should think about those who lost their money. They have had worry and hardship from the start, and what is the solution? To my constituents who are affected, it is the implementation of the ombudsman’s recommendations. Let us be honest: if we were personally affected, that is what we would want. It was what my constituents wanted from the last Government and what they expect from the current one.
The tone of the communications that I am receiving from my constituents is changing from blaming the Labour Government to blaming the Conservative party, the Liberal Democrats and the coalition Government. In reality, the blame game is not really productive, as the events of the past decade have shown. We all know that the problem and its causes have spanned different Governments, and that there have been failures by all parties. I worry that we are being set up for another failure, and I do not want that to happen to my constituents.
Gordon Banks
No, I will not.
Like other Members, I want the Government to have their moral hat on. Forgetting about the failings of the past, this is their opportunity to do right by those who have lost out, and their action should be moral, not party political. Ministers can stand up to Treasury officials and do what is right.
We have heard a lot today about the £5 billion price tag, but let us be clear that it is not £5 billion this year or next. As Members on both sides of the House have said, it could be spread over several years, or possibly decades. It does us as parliamentarians no good to throw telephone number-like figures around to frighten people into believing that we cannot do anything. We need to help the trapped annuitants who are locked into their losses.
I wish to address a point that Members from all parties have made. Many of the people affected are not rich. They span all walks of life, and they were doing the right thing by investing for their future. We need a commitment to help those people now, and we need costs to be allocated so that we understand the annual cost over, say, 10 years. However, we also need to be aware that about a third of the 1.5 million people affected had invested all their future in Equitable. Some of those people have lost their homes and cars, and with them their dignity, and we should take the opportunity to restore that dignity. As I have said, my constituents feel that despite their hopes, nothing has changed with the change in Government.
Gordon Banks
No, I will not.
The situation has been a shock to my constituents and a disappointment to hon. Members of all parties, as we have heard from them. I am concerned that the Treasury is going to impose a limit, in the hundreds of millions of pounds, that will not address the problem, fulfil our moral obligation or improve the hopes and ambitions of many of my constituents. Will the Government confirm whether reports that the Treasury has already set aside money are accurate? If so, how much money and why that amount? Will that be the lot, and who will it be for? We hear a lot about a fair solution, and that is what we need, not just a fair process.
Some will ask why people continued to invest in a failing company. The problem was that there was nothing to cause investors concern. Perhaps if they had known what regulators knew—or should have known—and what Equitable Life itself knew, the situation would have been different, but they did not. That is the crux of the need for fairness.
This is an enabling Bill, and as such I have no problem with it, but we do not know what it enables. The water is murky. What will happen to trapped annuitants, including those who are still in work and will retire in future? What happened to the belief that the Conservatives would sort out the problem, and what has happened to bring the coalition around to embracing Chadwick in some way? The Government do not necessarily accept Chadwick, but they are preparing their information based on Chadwick’s £500 million figure. I ask the Financial Secretary to do all he can to make the Government’s position clear, because it is not clear to me, and judging from my mailbag it is not clear to my constituents. When he was in opposition he implied that he would sort out the mess, but now he is creating his own mess.
Perhaps I can leave Ministers with a few questions to ponder. Do the Government still accept the parliamentary ombudsman’s recommendation, and do they accept her belief that the Chadwick advice cannot mesh with her recommendations? How will she be consulted about the Government’s proposals, and as others have asked, when will the House have the opportunity to debate the Government’s approach to compensation? Finally, and most importantly, when will the Financial Secretary stand up to Treasury officials and do in government what he promised to do in opposition?