Oral Answers to Questions

Jack Dromey Excerpts

Monday 26th March 2018 Commons Chamber

[Ms McVey]

The regulator is independent, and that is what it does: look at pension schemes. We have, through the White Paper, strengthened the regulator’s powers and now for the first time brought forward criminal sanctions should any director or employer bring into harm wilfully and neglectfully the workers’ pension scheme.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The catastrophic collapse of Carillion saw thousands of workers pay the price, including with their pensions. It was a monumental failure of governance and by Government, who knew Carillion was sinking into difficulties and went on awarding contracts despite profit warnings. The Secretary of State has said before the Select Committee that the Pensions Regulator knew about the mounting problems in 2014; were the Government alerted and did they choose to ignore those warnings, or did the regulator chose to ignore them and fail to alert the Government?

[Ms McVey]

The regulator and assessors are now looking into a whole series of issues. Fundamentally, one of them has to be how Carillion’s books went from being a healthy balance-sheet to, a year later, not being a healthy balance-sheet. The auditors and accountants who had signed those books are now being thoroughly examined to establish what happened there before the regulator would have had to look into things, so a lot of investigations are going on.

--- Later in debate ---

[Mr Speaker]

No time for preamble, I am afraid, as we have a lot to get through and we are running late. A short sentence—Jack Dromey.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The Port Talbot shift supervisor wept as he told the story of how he had been conned out of his pension, and that 20 people on his shift had followed his lead. The ban on pensions cold-calling is welcome, but will the Minister go further to ensure that it is for the Financial Conduct Authority, not just the Information Commissioner, to play a role in enforcement, so that those who act disreputably using information obtained through cold-calling are struck off and can never practise again?

[Guy Opperman]

I will answer this question in detail tomorrow, when I have more time. Anyone considering transferring their pension should speak to the Pensions Advisory Service.