HC Deb 01 July 2002 vol 388 cc18-9
12. Mr. Michael Jack (Fylde)

What plans he has to publish a pensions White Paper on the state of the private pensions industry. [63396]

The Minister for Pensions (Mr. Ian McCartney)

The Sandler review into long-term savings and the Pickering simplification review are due to report shortly. The Government will then consult on proposals in the autumn.

Mr. Jack

In thanking the Minister for that answer, may I say that his combative approach to previous questions and his attacks on the previous Conservative Government are no way to respond to the real fears of people about whether they will have anything like a long-term income from their pensions? On the very day that The Times carries articles questioning the strength of our insurance companies, may I ask the Minister to bring together all the arguments about employees and employers in a White Paper that will review the whole desperate pension situation?

Mr. McCartney

This Government have acted already. We have introduced the state second pension, which means that 14 million low-paid workers will for the first time receive an additional pension as well as the basic state pension. We have made advances in that 2 million carers and 2 million people with disabilities who were outside the system will receive an additional pension in the form of the stakeholder pension. We have sorted out the Tory Government's mis-selling of pensions, we have sorted out SERPS and we have introduced the simplification review.

I have said on at least three occasions today that, when the reviews by Sandler and Pickering are in the public domain, the Government will publish their response to them this autumn. At that point, I will be more than happy to debate the future of pensions with the right hon. Gentleman. Three points apply to the future of pensions. The first is that employers accept their responsibility, the second is that the Government accept theirs and the third is that there should be vehicles that will enable employees to start investing in their own future. When we have got all those three pillars in place, we can modernise the state pension and the contributions that employers and employees make and will be able to secure pensions for the future.

Dr. Vincent Cable (Twickenham)

When the Minister looks further at private pension schemes, will he agree to consider the case of Parsons Energy and Engineering in south-west London? That American company has not merely closed its final salary scheme to existing as well as new employees, but has halved the pension entitlement arbitrarily. Does he not agree that the trusteeship arrangements are far too weak to prevent cowboy capitalists of that kind from stealing from their own pensions funds?

Mr. McCartney

I do not have all the details of that case but, if the hon. Gentleman writes to me, I will be more than willing to meet him and his colleagues to discuss this matter. I will then subsequently give or not give advice as appropriate to the circumstances.