Public Sector Pensions

Debate between Gordon Banks and Iain Stewart

Thursday 8th December 2011 Commons Chamber

[Iain Stewart]

Absolutely. It is just a smoke screen.

It would create an enormous muddle if we had to pull apart the pension contributions, and we have heard absolutely nothing from the Scottish nationalists about how they would do that.

[Gordon Banks]

Although there might not be a pension pot, there is a pot of responsibility.

[Iain Stewart]

I am sorry but I did not catch the hon. Gentleman’s point.

[Gordon Banks]

There is a pot of responsibility. There might not be a pension pot, but there is a pot of responsibility, and it is that responsibility for future pensions that the SNP would have to bear.

[Iain Stewart]

The hon. Gentleman makes a good point.

As well as the nightmare of disaggregating the fund, a range of dynamics would be set in train that would be difficult to forecast. I remember when the Scottish Executive set a pay increase for teachers that was more generous than that given to teachers in England—I think it was back in 2001. That resulted in a significant transfer of teachers wanting to work in Scottish schools because of the more beneficial terms. If we move from a unified pension scheme, we will set in train in those difficulties in accounting for who is responsible for paying what.