§ 2.55 p.m.
§ Lord Islwyn asked Her Majesty's Government:
§ Whether the £168 million surplus in the pension fund of the National Bus Company has now been handed back to the pensioners, and what are the up-to-date costs in legal fees involving the Department of the Environment, Transport and the Regions and the Official Solicitor.
§ Lord WhittyMy Lords, the previous government decided to fund litigation by the National Bus Company pension trustees on this matter. We opened discussions on a settlement of the trustees' claim as soon as all the 1349 facts and arguments had been fully prepared and considered. We are giving high priority to achieve a just out-of-court settlement without any unnecessary delay.
Expenditure to date by my department on legal and other costs relating to all aspects of the litigation has been £610,000.
§ Lord IslwynMy Lords, bearing in mind the pensions ombudsman's ruling on 6th September 1996, would the Minister not agree that this issue is a scandal of Maxwell proportions? Which matters are now being discussed by the department and the NBC pension trustees? Has the Secretary of State made a specific offer for consideration by the trustees? How long is it estimated that it will take to finalise the negotiations?
§ Lord WhittyMy Lords, as soon as the legal advice was followed by the department, the Deputy Prime Minister ordered that the negotiations should begin. They will be complex negotiations and they may take some time. Nevertheless, we wish to conclude this matter with as much rapidity as possible. I believe that it is unhelpful to describe this as a scandal of Maxwell proportions. Clearly the ombudsman made his judgment on the decision of the previous government and of the previous trustees and we are seeking to remedy that. The precise sum is a matter for negotiation and it would be better to allow those negotiations to proceed.