Public Sector Pensions

Roger Williams Excerpts

Thursday 8th December 2011 Commons Chamber

[Lindsay Roy]

The Government pre-empted Hutton and were precipitate in taking forward the action with the 3% increase.

Not only have public sector workers been penalised, but the wealthier owners in our society, particularly the bankers, have not been challenged in the same way. As taxpayers, we have bailed out the bankers, so some of the richest people in our society continue to be rewarded, and it was some of them who created this financial crisis. Patently, we are not all in this together.

As a cover for their actions, the Government continue to peddle a number of myths, which, if Members will pardon the pun, I will try to scotch. First, it is said that public sector pensions are gold-plated. As we have heard, there are varying figures for this, but they vary between £3,000 to £5,000.

Secondly, it is said that the public sector unions were spoiling for confrontation. Nothing could be further from the truth.

[Roger Williams (Brecon and Radnorshire) (LD)]

The hon. Gentleman is making a powerful point, and many of us have sympathy for those on small and medium incomes, but there are people on large incomes who also receive very large pensions. People pay taxation to provide those high pensions and that is a matter of concern.

[Lindsay Roy]

I do not want to be drawn to the lowest common denominator. We have already heard the issues surrounding tax relief in the private sector.

Industrial action is a last resort and a signal of anger and frustration among our constituents. Most of my constituents had never taken industrial action in their life and hope not to do so again.

The third myth was that the immediate 3% increase was recommended by Hutton; it was not. The fourth is that the intensive and serious negotiations between senior Ministers and senior trade union officials had continued right up until the 11th hour; they had not. Senior leaders last met on 2 November. To add insult to injury, this coalition Government decided to break the pension link with the retail prices index and move to the consumer prices index, thereby having a significant detrimental effect on the value of pensions, with a drop of between 11% and 14%.

All mainstream political parties fully recognise that there needs to be a comprehensive review of public sector pensions to ensure fairness, sustainability and affordability. At no time did we pretend that challenging decisions would not have to be made about contributions, entitlement and retirement age. Reform was to be strategic and phased and it would inevitably involve difficult decisions as people are living longer. It is now incumbent on the Government to engage as a matter of urgency in serious and meaningful negotiations at the most senior level and as immediately as possible with trade unions to agree an acceptable settlement.

Fundamentally, we need to draw up a long-term plan for decent pensions in the public sector, to continue to engage high-quality recruits, to retain the many committed public servants who do a tremendous job on our behalf and to reward fairly those who reach their pension age. I therefore urge the Government to go home and think again, rescind these unfair short-term changes and to bring to the table a fair, affordable and sustainable plan for long-term pension reform.

Scotland Bill

Roger Williams Excerpts

Tuesday 15th March 2011 Commons Chamber

[Iain Stewart]

The devolution of tax powers to Normandy or Brittany is slightly outwith the scope of this Bill, so I will not risk the ire of Mr Benton by going down that route.

If there were a different time zone and England were an hour behind Scotland, my friend could board the train in Glasgow before midnight and arrive in England before midnight, so goodness knows what tax status he would incur for that journey. We often hear of the Bermuda triangle, but I do not want to introduce a Beattock triangle.

[Roger Williams (Brecon and Radnorshire) (LD)]

Does the hon. Gentleman think that arriving before one sets off is a contradiction of the general law of relativity?

[Iain Stewart]

I am grateful for that information. Unfortunately I ceased to study physics after higher grade, so I am not qualified to go down that route.

The example I cite is perhaps slightly silly but there is a sensible point. It illustrates the practical difficulties that would arise if we had different time zones in a small geographical area. Although I am at one with the hon. Member for Na h-Eileanan an Iar in opposing the introduction of central European time or any other Europeanisation of our time in this country, I must reluctantly oppose the new clause. I urge him and other Opposition Members to continue to oppose any moves in this place to introduce such a time zone in Scotland or anywhere else in the United Kingdom.