§ 13. Mr. Andrew Robathan (Blaby) (Con)If he will make a statement on private pension provision. [153182]
§ The Secretary of State for Work and Pensions (Mr. Andrew Smith)The Government are committed to encouraging private funded provision by people who can afford to save. As set out in the document that we published last week, we want to empower individuals to take control of their retirement planning with the information that they need to make informed choices about working and saving. That is complemented by the Government's legislative programme of member protection and simplification. The Government are also committed to action, including legislation, to combat age discrimination and give people more choice about the timing and pace of their retirement.
§ Mr. RobathanThe Secretary of State said that the Government are encouraging private pension provision, but he will not be unaware of the decline in the value of pension funds over the past couple of years, largely due to the stock market decline. At the same time, however, as a former Chief Secretary to the Treasury, does he acknowledge that the Government played a role, because after the abolition of advance corporation tax in 1997 there was a pension fund raid, which took —35 billion out of pension funds? How will that encourage people to make private pension provision?
§ Mr. SmithI do not accept the hon. Gentleman's argument. He omitted to mention that the dividend tax credit—I believe that that is what he was referring to—was part of a thoroughgoing reform of corporate taxation, which included 3p in the pound off the rate of corporation tax. Moreover, while his colleagues on the Front Bench shed many crocodile tears about this, they have made no commitment to reverse the policy.