Steel Industry — House of Commons, 2016-05-26
Topic: Labor
Sajid Javid (Conservative, Centre-right): I thank the hon. Lady for her comments and questions. She mentioned the demonstration yesterday. She is right that it reminds us that ultimately this is all about people. I was pleased to note that my right hon. Friend the Minister for Small Business, Industry and Enterprise attended that demonstration, alongside the Leader of the Opposition—two unlikely bedfellows but united in this cause to find a long-term sustainable future for our steel industry The hon. Lady, understandably, focused her questions on the pension scheme. I will answer as many of her questions as I can and provide more detail. I note that she is a former Pensions Minister herself and I take very seriously what she says. She has a great deal of experience in this area. While the consultation continues, I would be more than pleased to sit down with her and her colleagues and discuss matters in more detail, as I know will my right hon. Friend the Work and Pensions Secretary The hon. Lady raised the issue of time. It is a four-week consultation, as I think she knows, but time is of the essence. The steel industry is in a very difficult state. As I mentioned in my statement, Tata is looking to secure a sale as soon as possible. It has been responsible with the timeframe so far, but I hope the hon. Lady understands and agrees that timing is very important. With the timeframe that has been set for the consultation, I hope we have plenty of time to consider all the stakeholders that have responded On the consultation itself, one of the first important points to make is that it is the scheme’s trustees who have asked us to look at current legislation, because they believe that changes would lead to better outcomes for their members. So this is a product of the scheme trustees approaching us directly. Under the scheme’s current rules, they have the ability to make all the changes that they have proposed, but they are prevented, rightly, by legislation—the Pensions Act 1995. They have asked us whether we would consider removing that portion of the Act in the case of their scheme, and their scheme only It is clear from the consultation document—it was clear already—that the scheme is in deficit, so it is very unlikely that any situation can come about where, unless some of those changes are made, the scheme can be prevented from entering the Pension Protection Fund. That is not to say that there is any issue with the PPF; it is one of the strongest backbones of our pensions system. It is envied around the world and it provides an excellent safety net for so many people, but the scheme trustees have put forward this proposal and it is only right that we consider it I will not go into detail about how the proposal, if it were taken forward, would affect certain groups of members, but it is very important to emphasise that if the proposal were implemented it would not be the Government making any changes; those would be something that the scheme wanted to do because it believed that it would mean that in almost every case its members would be either better off or no worse off. That is the belief of the scheme trustees and it will be tested by the Pensions Regulator. It is worth highlighting the fact that the Government have not made any decision. We are considering the pension trustees’ proposal. It is right to consider this and to consult widely, and for the Government to determine later whether it is the right thing to do.