Equitable Life — House of Commons, 2015-02-26
Topic: Labor
Geoffrey Robinson (Labour, Centre-left): I shall confine myself to the reduced speaking time, Mr Deputy Speaker, and in doing so, I shall pay only short tributes to those who have secured this timely and necessary debate. I believe that my hon. Friend the Member for Leeds North East (Fabian Hamilton) has followed this issue—as I have followed similar issues—through several Parliaments, and that the hon. Member for Harrow East (Bob Blackman) has, in a very determined and concentrated fashion, made it a priority since his election on the basis of a very strong campaign on the subject Several aspects of this issue must make us uncomfortable. We can all respond, in a way, to the emotive interjection of the hon. Member for The Cotswolds (Geoffrey Clifton-Brown), who called for immediate full payment and said that there was no alternative. That makes us all feel very good. However, I wonder what impact the debate will have on the many pension holders who are wondering whether we can improve on the present situation. We must not, as my hon. Friend the Member for Stretford and Urmston (Kate Green) made clear, give false hope. We are dealing with recalcitrance in the machinery of government and although we are entirely rightly approaching this on an all-party basis, which it is important for us to maintain, it is clear that for some reason, although there is a will to do this among Ministers it is held up because the machinery of government initially does not want to admit guilt, and at a later stage has to constrain things and uses the grounds of the public purse to do so. That will happen whatever state the public purse is in: other priorities will rank higher and there will be other things we need to do. We will be told we must look to the future and, above all, we must not create precedents. I say to the Minister and my right hon. Friend the Member for East Ham (Stephen Timms), who was a Minister, that they will find that the roadblocks put up by the machinery of government are almost insuperable. However, I believe that there is a way through in this case Many Members have referred to the Penrose committee and to the ombudsman’s report. There was a very clear statement, the like of which I do not think I have seen in my time in the House, about a total and comprehensive failure of regulation. There are no ifs, no buts and no extenuating circumstances, just an admission of failure and of incompetence on the part of Government that should be put right. I believe that it can be put right and think that there is a measure for doing so The great thing about this debate is that there is no doubt about the figures. I cannot see anybody disputing the figures, not even the Treasury. The total is £4.3 billion and the Government have pledged £1.5 billion. Without damaging the present deficit, £115 million would enable us to deal with the most chronic, the most aged and the least well-off of the pension holders. They could be dealt with straight from the contingency of about £100 million that is committed in the Government deficit, as is the total £1.5 billion. That is all in the deficit—it has to be for the Government to commit it. In my day, a commitment to spend counted as expenditure in the year it was committed, not in the year it was paid out. That might have changed, but it is a commitment and it will have been taken into account in the Budget this year. In my opinion, the whole amount could have been taken into the year in which it was committed and future Government projections will certainly all have it in Without any effect on the Government deficit, we could pay off the clearly identified with £115 million straight away and we could look at the as yet unspent £500 million. That would make a big start, although it would not go all the way. I share the emotion expressed by the hon. Member for The Cotswolds and could speak about it with the same intensity as he did, but the fact is that £500 million is there. There is £115 million to deal with the worst cases. Let us get that paid out. I agree with the hon. Member for Harrow East—this seems very much to be his idea—that we should have it in the party manifestos. There might not be great hope of that, but why not try? I will certainly support it with my party and I am sure that he will with his. I am not sure what success we will have, but we should support that Beyond that, we are dealing with a further £2.3 billion. I do not think that we should consider a time period of any more than three years. We must be precise, so that unlike with the contaminated blood scandal, when the Government could sit back and say that having caused those people’s deaths they would die sooner or later, this does not become a terminal problem. We cannot wait that long. That money should be timetabled, committed and spent within three years of the new Government taking office. That is a proposal on which I think we can unite. We could bring most policy holders into it and it is doable.