HL Deb 19 January 1994 vol 551 cc606-7

2.53 p.m.

Lord Peyton of Yeovil asked Her Majesty's Government:

What progress they have made in fulfilling the terms of the memorandum of understanding signed by a Minister of the Crown and the Chairman of the British Rail Pension Fund Trustee Company.

Viscount Goschen

My Lords, progress has been made in our discussions with the trustees on these complex matters. The Government intend to honour fully the terms of the memorandum of understanding. Both we and the trustees hope to bring these discussions to a mutually acceptable conclusion as soon as possible.

Lord Peyton of Yeovil

My Lords, is my noble friend aware—and perhaps he will remind his right honourable friends of this—that it is six months to the day since the memorandum of understanding was first signed? Does he agree that, to put it mildly, it is inappropriate to drag into the proceedings matters which were not in contemplation at the time of the signing of the memorandum; and that there is beginning to hang over this whole affair the odour of procrastination which is bound to involve discredit for Ministers?

Viscount Goschen

My Lords, the Government have not introduced matters that were not provided for in the memorandum of understanding. We have made progress in the discussions, by agreeing principles that should be satisfied in any arrangement. It is in the interests of all parties concerned that a. satisfactory solution is reached as soon as possible.

Lord Carmichael of Kelvingrove

My Lords, the House will be grateful to the noble Lord, Lord Peyton of Yeovil, for once again raising this matter. It was a very important question during the debate on the Railways Bill; and there is still a great deal of unease among railway pensioners. Can the Minister say whether there has been recent correspondence between the pensioner trustees and the Government; and whether the. Government have been able in any way to reassure the pensioners that a solution is not far off?

Viscount Goschen

My Lords, I can assure the noble Lord that meetings are continuing on a regular basis, in good faith and in a spirit of co-operation. We all agree that it is in everyone's interest for agreement to be reached as soon as possible. But the trustees consider, and we agree, that the separate issues must be considered together as a complete package on which we need to reach agreement.

Lord Peyton of Yeovil

My Lords, is my noble friend saying that the Government are not attempting to make fresh arrangements for the capital payments into the fund? That matter was not contained in the memorandum of understanding, and I am surprised to learn from him that it is not a subject that is now under discussion.

Viscount Goschen

My Lords, the memorandum of understanding made clear the possibility of deferment of government support contributions to the pensioners' closed fund, taking account of the absolute solvency guarantee being provided by the Government.