Parliamentary Contributory Pension Fund

Margot James Excerpts

Monday 17th October 2011 Commons Chamber

[Mr Christopher Chope (Christchurch) (Con)]

My amendment effectively separates the two distinct issues in the motion and says that the first of those—whether the issue of pensions should be referred to the Independent Parliamentary Standards Authority—is something that we should support today. Indeed, it might not have been necessary to have a debate, because the Government could have dealt with it, and done so earlier, by laying an order under subordinate legislation.

The second part of the motion was described by my right hon. Friend the Leader of the House as declaratory, in that we do not expect to be treated any better or any worse than other public sector employees. If that is what it actually said, I am sure that there would not be any dispute. Certainly, I would not have tabled an amendment, and I do not think that the hon. Member for Blaydon (Mr Anderson) would have been as troubled as he, too, is about this issue.

My right hon. Friend said that the essence is that we are handing over to IPSA the responsibility for looking at our whole remuneration package, including salary, allowances and pensions, and ensuring that it should be able to do that independently. As he and the hon. Member for Wallasey (Ms Eagle) said, once IPSA has that responsibility, it will make proposals or issue a consultation paper and invite comments from you, Mr Speaker, from the Government, from Members of Parliament, from members of the public, and from other so-called stakeholders. The Government seem to be pre-empting that consultation process by saying, “Irrespective of whether IPSA asks us any questions, we’re going to volunteer some answers before we’ve been asked the questions.”

The hon. Member for Wallasey raised a number of key issues that she thinks IPSA should take into account when it considers parliamentary pensions. It was not an exhaustive list, but it contained a number of points that are not included in the second part of the motion. The second part of the motion therefore invites colleagues to sign up to a selective list of propositions, including that there should be an increase in contribution rates from 1 April next year

“in line with changes in pension contribution rates for other public service schemes.”

However, no standard formula affects all other public service schemes, which vary from one to another. The Government have said that any increases in contributions should be made in progressively and in stages. That is not included in the motion.

The motion states that the House

“supports the approach to public service pension reform”.

I do not think that is a controversial issue, but it is important that we do nothing to undermine our commitment to the belief that this is now the responsibility of the Independent Parliamentary Standards Authority. We should not give it authority with one hand while putting constraints on it with the other. That is where the Government have got it wrong; they are seeking to interfere in the process.

[Margot James (Stourbridge) (Con)]

I see no discrepancy in the Government seeking to apply the principles of public sector reform to the decisions that IPSA will ultimately take, as is stated in the motion. That does not preclude IPSA from consulting on the finer details, as my hon. Friend said. It is important that it is explicit in the motion that the principles of the wider public sector reforms should be applicable to MPs’ pensions. It is imperative that the message goes out that that is what we are voting for.

[Mr Speaker]

Order. I am extremely grateful to the hon. Lady. That may well be imperative, but it is also imperative that interventions from now on are brief, because a number of people wish to speak. I remind the House that a debate of exceptional importance is to take place under the auspices of the Backbench Business Committee. I do not think that I am alone in hoping that that debate will not be delayed unduly.