Equitable Life (Payments) Bill

Tessa Munt Excerpts

Tuesday 14th September 2010 Commons Chamber

[Tessa Munt (Wells) (LD)]

In common with other Members, I have a number of people in my constituency who have sent me letters and several hundred who have sent me e-mails about this matter. I want to make a few comments that might be helpful. The independent commission has a chair in Brian Pomeroy who is an EMAG nomination, and I am sure that EMAG will be happy about that. It is ludicrous to suggest—I refer to an earlier comment—that January is a long time to wait to have a report back from that group, because that is very speedy action in the relative scheme of things, and payment shortly thereafter would be welcomed by those members.

On 22 July, the Minister set out the terms of reference when he introduced the Bill. Those terms of reference referred only to Towers Watson’s figures and Sir John Chadwick’s report, but Sir John’s report is just one view and in some ways sets a lower range for the compensation; I wonder why there was no reference to the parliamentary ombudsman’s report. I share the concerns of Equitable Life policyholders in this regard, and I have checked the Treasury website. I want to make two points about that.

First, there is a slight omission on the website regarding what was said on 11 May in the new Conservative-Lib Dem coalition agreement. The agreement contained a pledge to

“implement the Parliamentary and Health Ombudsman’s recommendation to make fair and transparent payments”

but on the Treasury website that phrase is missing.

Secondly, the Treasury website refers to a large number of documents, including Ministers’ oral statements, written statements, answers to questions and press notices, as well as the Bill, explanatory notes, an assessment, a memorandum, various letters, advice, the terms of reference and Sir John Chadwick’s report. That report refers people on the Treasury website to Sir John Chadwick’s website, and I wonder why the parliamentary ombudsman’s report, which is entitled “Equitable Life” is not included among the documents of reference. It would be fair to people to include it on that website.

There is a case for having some categories of Equitable Life victims. There are people in emergency situations—those in most need and the families of those who have died who are in very dire straits—and there are people who need to be dealt with urgently, such as the elderly and those who have lost a lot in relative terms, whereas those who might have lost in part or who are still to retire in years to come can clearly be dealt with at a different time. I hope that, with the moves that are to be made on 20 October and with the way in which the whole programme of deficit reduction will roll out over the next few years, we will then be in a position to deal with those who do not have urgent cases, such as those who are still to retire.

Many victims are affronted and offended by the fact that the regulator seems to have removed most of its pension funds in June 2008. That adds to the question of public confidence in the regulator and affects those who wish to save for the future.

An Opposition Member said earlier that we should have no regard whatever to the comprehensive spending review as a background to payments made under the Equitable Life scheme, but that is a ludicrous suggestion. If we ignore the financial situation in which we find ourselves, we will be committing exactly the same crime as Equitable Life did originally, which got us to the current position. The parliamentary ombudsman’s comments about the “potential scale” of her recommendations need to be set against that background, and what is done has to be affordable. It was suggested earlier that we could look at what the ombudsman said and apply a reduction of 25%—or possibly 40%, depending on what comes out on 20 October. That is not a silly suggestion; perhaps it should be in scale. I am sure that EMAG would understand that the Government have said that everyone must be treated equally and fairly, that everyone will take the pain except the least well-off and that that might apply to this scheme as well.

It is absolutely right that we should try to be fair. The dictionary definition of “equitable” includes words such as fair, just, even-handed, unbiased, reasonable and impartial. We should deliver what Equitable Life and, most critically, the regulator did not deliver. I do not believe that Equitable Life victims are asking for anything unreasonable; they do not want an unreasonable advantage or to make a profit. They have been let down very significantly on two occasions—first by the company and secondly by the regulator—and I would hate to be part of a Government who let them down a third time.