Treasury Questions - Equitable Life

Speech by Annette Brooke on Sat 28th Mar 2009

Annette Brooke (Mid-Dorset and North Poole) (LD): What progress has been made by the Chadwick review into compensation for Equitable Life policyholders.

The Economic Secretary to the Treasury (Ian Pearson): Sir John Chadwick has begun the work that the Government asked him to undertake on aspects of the ex gratia payments scheme that was announced by the Chief Secretary to the Treasury on 15 January. The Government will keep the House updated and report back on progress at regular intervals.

Annette Brooke: The Government's position has been described as

"shabby, constitutionally dubious and procedurally improper".

It is clear that the parliamentary ombudsman does not think that injustices will be fully remedied. What assurances will the Government give that my constituents and other Equitable Life policyholders who have clearly suffered injustices will get justice delivered with speed, clarity and transparency?

Ian Pearson: I am very disappointed that the Public Administration Committee should choose to obscure the real help that it accepts the Government's payments scheme will deliver under extreme headlines, seemingly driven by an uncritical acceptance of the findings of the ombudsman's report and by its unjustifiable and irresponsible characterisation of the manner of the Government's response. [ Interruption. ] As a Government, we do not depart lightly from any of the ombudsman's findings, but- [ Interruption. ]

Mr. Speaker: Order. The hon. Gentleman is in order.

Ian Pearson: The Government do not depart lightly from any of the ombudsman's findings, but in such an important and complex case we have a clear duty to the taxpayer to ensure that our response is informed by a proper and comprehensive consideration of her report. That is what we have done and, as I have indicated previously, we want to move forward with an ex gratia payment scheme just as quickly as possible. We are talking to Sir John Chadwick about the advice that he is providing.