HC Deb 02 March 2004 vol 418 c848W
Sir Nicholas Winterton

To ask the Secretary of State for Work and Pensions what assessment he has made of the effect of the liquidation of Ballast plc, Salford Quays, on the value of the final salary occupational pensions of its former employees. [156683]

Malcolm Wicks

The Government are aware of the situation of the former employees of Ballast plc, but has not made an assessment of the effect the liquidation has had on their occupational pensions. However, we have great sympathy for the uncertainties they, and other people in similar circumstances, are facing in regard to their pensions.

Sir Nicholas Winterton

To ask the Secretary of State for Work and Pensions if he will make representations to the authorities in the Netherlands about the protection of the assets of the occupational pension schemes of former employees of the Dutch construction group Ballast Nedam NV and its liquidated UK subsidiary Ballast plc. [156684]

Malcolm Wicks

The Government recognise the concerns that have been expressed about the financial responsibilities of parent companies and sympathises with the position of all members of pension schemes that may not receive the pension that they expected as a result of employer insolvency. However, the legal obligation to fund a salary-related occupational scheme is with the sponsoring employer of the scheme. The holding company is not responsible for the debts of an insolvent subsidiary because the two companies have separate legal identities. Any political intervention would, therefore, be inappropriate in this case.