§ Mr. David ShawTo ask the Chancellor of the Exchequer if he will make a statement on the possible impact on(a) the United Kingdom (i) if it does and (ii) if it does not participate in the EMU and (b) the proposed euro currency of the falling due for payment of currently unfunded pension fund liabilities among European member states which participate in EMU. [3550]
Mr. ClarkeI refer to the answer I gave to the hon. Member for Southport (Mr. Banks) on 6 November,Official Report, columns 354–46.
§ Mr. ShawTo ask the Chancellor of the Exchequer what assessment he has made of the accuracy of the latest estimate of unfunded pension liabilities published by the International Monetary Fund. [3549]
§ Mr. Kenneth ClarkeThe IMF figures show that, in relation to unfunded pensions liabilities, the UK is in a stronger position than many other leading industrial countries. All estimates of unfunded pension liabilities depend upon a number of assumptions concerning pension entitlement and contribution rates and demographic and economic trends over future decades.
§ Mr. ShawTo ask the Chancellor of the Exchequer (1) what(a) published and (b) unpublished decisions have been made of European Finance Ministers in relation to the operation of article 104(b) and unfunded pension liabilities; [3547]
(2) if he will list the meetings of European Finance Ministers at which the operation of article 104(b) in relation to unfunded pension liabilities has been discussed; [3546]
(3) what discussions have been held by (a) civil servants and (b) ministers with their counterparts in the European Union in relation to European Union member states' unfunded pension liabilities; [3548]
(4) what provisions the proposed stability pact in respect of EMU includes specifically on the treatment of unfunded pension liabilities. [3552]
§ Mr. ClarkeParliament has been kept informed of discussions by European Finance Ministers in relation to the operation of article 104c. The most recent explanatory memorandum, on the Commission's proposals for a stability pact, was submitted to Parliament on 31 October.
Since November 1995, the proposed stability pact has been discussed on several occasions by the Council of European Finance Ministers, most recently on 11 November 1996. It aims to reinforce the operation of the excessive deficits procedure in EMU as set out in article 104c. Its purpose is to ensure that member states participating in EMU do not follow irresponsible fiscal policies. It is designed to ensure that if a member state needs to address the consequences of a build-up of liabilities of any kind it will not be able to fund them through excessive borrowing. This applies to all forms of liabilities, including pensions liabilities.
The UK and other member states provided the European Commission with information on pensions schemes earlier this year, and the issue of pensions liabilities will form part of the work programme of the economic policy committee over the next six months.