Mineworkers’ Pension Scheme

Debate between Ian Lavery and Gloria De Piero

Monday 10th June 2019 Commons Chamber

[Gloria De Piero]

I accept that and, actually, the negotiations began at the end of the last Labour Government’s term—representatives of the National Union of Mineworkers have told me about the meetings they had in No. 10—but we left office. Will the hon. Gentleman acknowledge the millions that we spent on compensation for industrial injuries and industrial white finger?

[Ian Lavery]

We are talking about good deals and bad deals, but it is not just about the surplus. Is my hon. Friend aware—I am sure she is—that, when the Government acted as a guarantor in 2002, there was a deficit of £390 million? Then, in 2005, the Government took back that £390 million from the scheme’s funds, plus interest. That amounted to £540 million. Not only that, but they took a further £229 million, which was 50% of the fund’s surplus. Talk about good deals and bad deals. I am sure she totally agrees that this is a bonanza for the Government. It is daylight robbery.

[Gloria De Piero]

“Bonanza” is right, “cash cow” is right and “injustice” is right when it comes to the mineworkers’ pension scheme.

In a recent letter on this issue, the Treasury referred to the 50-50 split of the surplus sharing arrangement as “reasonable recompense” for past investment in the MPS. Indeed, the Department for Business, Energy and Industrial Strategy has also stated that this arrangement is “in recognition of contributions” that the Government previously made to the scheme.

I ask for some clarity from the Government on this issue, as a recent answer to a written question I posed states that their involvement in the scheme began at privatisation, and we know from previous answers that the Government have not paid into the scheme since privatisation. What past investment or contributions can they still be being recompensed for? If there are none, surely this, along with the fact they have made far more money than expected from the scheme already, justifies the opening of negotiations into reviewing and reducing the surplus sharing arrangement. With such a strong case on such an important issue, though I thank the Backbench Business Committee for giving us time to debate the MPS, it is high time that we had a debate in Government time, with engagement from Ministers, so that we can look at finally righting this historic wrong.