Parliamentary Contributory Pension Fund

Richard Graham Excerpts

Monday 17th October 2011 Commons Chamber

[Mr Anderson]

I could not agree more with the hon. Gentleman. This debate should be about the processes of this House—House business is about that, not the politics of this House. It should be about whether we agree that this is the right way for Members of this House, and whoever comes after us, to be treated. This should not be about whether this suits someone’s political agenda and allows them to go outside and say, “Look, MPs think it’s legitimate to have a 5% or 3% levy. Why won’t you do the same?”, but my worry is that that is what this is about.

Let us not forget that we had a debate that concluded three years ago about public sector pensions, including our own. That resulted in big changes to public sector pensions. As has been suggested by our trustee colleague, my hon. Friend the Member for Central Ayrshire (Mr Donohoe), a cut-off was introduced: people would retain the benefits if they joined before a certain date, but for those who joined after and for new members the pension contributions would be more and their benefits would be less. Public sector workers agreed to that three years ago on the basis that it would make their pensions sustainable for the future. Nothing has changed since then, except for the fact that the Government want to impose a levy on public sector workers to try to dig themselves out of the hole created by the collapse of the global financial system. That approach is clearly wrong. Public sector workers should not have to carry the can for the failure of the banks, and that is clearly the message being given throughout the world.

My worry is that if we tell people that they should start paying 50% more for their pensions at a time when they face pay freezes, freezes of increments, a tax on shift payments, potential redundancies and so on, they will walk away from these pension schemes, as I said earlier. That will be to the detriment of the schemes, investment and the welfare system, because as people reach retirement age there will be a bigger drain on the welfare state than there would have been had they been able to provide for themselves.

This approach is a con trick. It is not about pensions’ stabilisation; it is about taking money out of the pockets of nurses, firefighters, street cleaners, social workers and home care workers to pay for the failures of capitalism. The truth is that we should stand together with those workers, as public sector workers, in a debate that is about our terms and conditions. They have a similar debate about their terms and conditions and we should say, “We stand in solidarity with you. It’s wrong that the Government are robbing you for your pension and taking money out of your pockets.”

[Richard Graham (Gloucester) (Con)]

I thank the hon. Gentleman for giving way and I should declare an interest as the chairman of the all-party group on occupational pensions. I am puzzled by where the hon. Gentleman is going on this, because the motion is surely all about the parliamentary pension fund rather than about those of trade union members in general.

[Mr Anderson]

If the hon. Gentleman had been here from the start of the debate, he would realise that it has expanded into a discussion about public sector pensions because they are included in the motion, in which the Leader of the House has clearly linked this scheme with other applicable schemes. Some of us who signed the amendment want to remove that link so that we can have a debate about when and whether we will give IPSA the right that it should have had since last May. If we had had that debate, we would not be sitting here now and we could have talked about the issue that most people in the House today want to talk about.

Ultimately, we are showing support for other public sector workers and we are not saying that we are a special case. We are saying that the Government should not make any public sector worker a special case by making them pay a levy to subsidise the failure of the banking system.

--- Later in debate ---

[Mr Bone]

That is tempting, but I do not think it is that. I think that the Opposition are between a rock and a hard place. They do not want to support that particular point, but, equally, they do not want to be spun against by the Government who will say, “There we are, the official Opposition didn’t want to restrict our pensions.” That is what they are really scared of. They have decided that they would rather put the perception in the papers above taking a principled stand. Time and again we do that in the House, and I think it is a huge mistake.

[Richard Graham]

How would my hon. Friend answer his constituents in the public services whose pensions are about to be significantly downgraded when they ask him why the parliamentary pension scheme remains the most generous of all and whether he missed the opportunity to amend it?

[Mr Bone]

That is simple to answer in the way that I hope that my hon. Friend would answer it: the House believes that our pensions, expenses and salaries must be determined independently, so they should be determined by the independent body, not by him or me. That is how we got into this mess in the first place. I hope that he and all other Members would make that point.

I came to the House expecting the amendment tabled by my hon. Friend the Member for Christchurch (Mr Chope) to be a probing amendment, because we thought that the Government would say that this was up to IPSA, that this was just their view and that it was an independent matter. Unfortunately, the remarks of the Leader of the House have so incensed me that, if my hon. Friend wishes to put the amendment to the vote, I shall support him.