P&O Ferries

Lord Davies of Brixton Excerpts

Tuesday 22nd March 2022 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I do not have any information on the employment status of workers in freeports but, if I can find out any information, I will certainly write to the noble Baroness.

[Lord Davies of Brixton (Lab)]

My Lords, I want to pursue the issue of pensions, which was raised by the noble Lord, Lord Fox, and highlight the question to the Minister: to what extent are the pension arrangements that apply to these workers under threat? Is the company doing this because it is encountering commercial difficulties? Is the covenant to which most company pension schemes rely therefore under any sort of threat? The fact that the pension arrangements are continuing is not sufficient comfort.

It is also important to understand that two pension arrangements are involved here: the P&O scheme and whatever other arrangements that provide pensions for the unfortunate workers who have lost their jobs, and the Merchant Navy Ratings Pension Fund, which is a separate arrangement in which I assume many of those who have been fired have deferred benefits. Because of the way that scheme has operated in the past, P&O potentially owes it a lot of money. There was an implication that pensions are not a problem but the issue bears further investigation and reassurance, both to the House and to the workers involved.

[Baroness Vere of Norbiton (Con)]

I would be pleased to take that issue away and ensure that we have looked into it in great detail. My understanding is that the employees’ pensions are protected. We are aware of the pension deficit in the Merchant Navy Ratings Pension Fund; P&O Ferries will need to pay what it owes.