§ (".—(1) The Secretary of State may issue guidance to the Mayor concerning the exercise of any function under or by virtue of section 377(1), 378(3) or (4) or 379(1) above by him or any body or person authorised to exercise the function under section (Delegation of Authority's functions) above.
§ (2) In deciding whether or how to exercise that function, the Mayor, or body or person, shall have regard to any guidance issued under subsection (1) above.").
§ On Question, amendments agreed to.
§ Clause 382 [The Superannuation Act 1972]:
§
Lord Whitty moved Amendment No. 93:
Page 228, line 15, at end insert—
("(5) A determination under subsection (4) above shall be without prejudice to—
§ The noble Lord said: My Lords, in moving Amendment No. 93 I wish to speak also to Amendments Nos. 94 and 105 to 113, 167 and 180. This group of amendments deals with the rather complex arrangements for pensions. In particular this group of 669 amendments fulfils the Deputy Prime Minister's commitment to London Transport staff in relation to protecting the pension rights of employees who might transfer to the private sector as a result of the PPP or other PFI deals.
§ More broadly, Amendments Nos. 106 to 110 provide general powers relating to pension transfer arrangements into the GLA. Our general policy on GLA staff pensions remains that existing staff will transfer their current pension arrangements into the GLA and its associated bodies. These amendments and the existing provisions on Clause 402 are designed to allow us to make the necessary arrangements. In the case of the London Regional Passengers' Committee Superannuation Scheme—the LRPCSS—the intention is that the scheme will be closed and its members transferred to the Principal Civil Service Pension Scheme. There are fewer than 20 existing employees within this scheme.
§
As regards the PPP, last March when the Deputy Prime Minister announced in another place his plans for a Public Private Partnership, he also wrote to every member of staff of London Transport assuring them that they would,
have the right to remain in the LRT pension fund, as contributing members".
§
In response to a request for clarification he subsequently said,
I can confirm that the pension arrangements also apply to any current LU staff who subsequently transfer to a sub-contractor, provided they remain in Tube work… The LRT Pension Fund will be structured to guarantee your rights to remain within the Fund, while retaining a single board of trustees and a common governance.
§ The new schedule, introduced by Amendments Nos. 111 and 180, sets the framework for that assurance. Staff who transfer to the private sector will have the statutory right to remain as contributing members of their pension fund, the London Regional Transport Pension Fund. This right continues to apply, under paragraph 3(3)(a) of the schedule, even if these staff are subsequently subcontracted, so long as they remain employed in the "London Underground railway industry".
§ Staff who transfer to the private sector but who then transfer out of Tube work will not be able as of right to remain members of the LRTPF. The structure we propose for the fund will mean that in principle they could remain members of it, but that would be a matter between their employer and the trustees of the fund. However, all employees in this position who remain in continuous employment will have the statutory right to a pension scheme providing benefits which overall are materially at least as good as those which applied at the time they transferred from London Transport. These rights will apply not only to those staff who transfer to the private sector as a result of the PPP—that will be about 6000 people—but also to the smaller number, a few hundreds, transferred to the various private finance deals concluded by LT since the Deputy Prime Minister gave his assurances to staff.
§ The schedule also provides for the Secretary of State to make orders restructuring the LRT Pension Fund, to deliver the protections I have outlined. Your Lordships 670 will have seen that there is a duty on the Secretary of State to consult the fund's existing trustees—which is only proper. I can assure you that the trustees have been, and will continue to be, kept in close touch with the development of this policy.
§ I explained the position in relation to the PPP at some length. It is important that your Lordships understand these provisions. However, they are in essence relatively straightforward. I apologise again for the late tabling of the amendments. We had to get them right and that required consultation with the trustees, as I have mentioned. I beg to move.
§ On Question, amendment agreed to.
§
Lord Whitty moved Amendment No. 94:
Page 228, line 15, at end insert—
("(6) In consequence of the inclusion, by virtue of subsection (2) above, of an entry relating to the London Development Agency in Schedule 1 to the Superannuation Act 1972, in the entry in that Schedule relating to a development agency established under section 1 of the Regional Development Agencies Act 1998, there shall be added at the end "(other than the London Development Agency (for which there is a separate entry))".").
§ On Question, amendment agreed to.
§ Clause 384 [The Race Relations Act 1976]:
§
Baroness Hamwee moved Amendment No. 95:
Leave out Clause 384 and insert the following new Clause—