Ford and Visteon UK Ltd

Debate between Simon Burns and Gregg McClymont

Thursday 12th December 2013 Commons Chamber

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

May I add my congratulations to the hon. Member for South Basildon and East Thurrock (Stephen Metcalfe) on securing this debate? We have heard unanimity across the House on the issues at stake.

I have been struck by the strong sense in the contributions to this debate that Ford has a moral responsibility to take seriously the issues that have emerged since Visteon’s collapse. That point has been put across eloquently by Members from across the House. That moral responsibility comes from the fact that Ford workers, who had given many years of service, believed that their pensions were safe. Some of those workers are with us today. Members from across the House have made the point that Ford is a blue-chip brand with a long track record in the UK. For those reasons, this case has continued to arouse strong feelings on both sides of the House.

I ask hon. Members across the House to reflect on how one ensures that companies engage in and understand their responsibilities beyond the bottom line. Another way to describe a moral responsibility is to say that companies, corporations and those that employ people in our country have obligations beyond just the maximum profit they can make. That is certainly what the workers at Ford always felt, and they were assured—and felt assured—that in transferring their pensions to Visteon, their accrued rights would be protected.

It is important to add and iterate—I suspect the Minister will want to reflect on this—that at play here is the wider issue of what happens when occupational pension schemes get into trouble and it is discovered that they are sponsoring an employer that is going under. The previous Government, reacting to the Visteon case and to other well-known examples, created the Pensions Regulator and the Pension Protection Fund. I suspect the Minister will want to say something about the interaction between those institutions—not just the pensions landscape as it sits now, but as it relates to Visteon pensioners. Indeed, he recently proposed an amendment to the Pensions Bill so that the cap on payments under Pension Protection Fund regulations can be raised. I understand that there are Visteon pensioners who will benefit from that—those who might have retired before Visteon collapsed, but who have long years of service with Ford and then Visteon—but it is not a solution for all those pensioners.

A significant question that has been raised by Members across the House concerns what the Government can do and need to do to ensure and underpin occupational pension arrangements. The Pension Protection Fund and Pensions Regulator are central to that, and if I remember rightly, the hon. Member for South Basildon and East Thurrock said that the Government can do more on the cap and the need for proper independent advice on transfers.

Pensions are a complicated business, and during pension transfers from one company to another, employees inevitably depend on the advice they are given from what they understand to be expert sources.

[Mr Simon Burns]

I have listened carefully to the hon. Gentleman, and I should be grateful to know what his message is to Ford about this unacceptable situation.