Clause 2 - Membership of the Regulator
Pensions Bill
10:45 pm
Mr Nigel Waterson (Eastbourne, Conservative)
I am grateful to the Minister for that comprehensive explanation of most of the points that I raised. I remain deeply suspicious of the Treasury, but he has reassured me that this particular provision relating to Treasury approval is common and routine.
I accept the Minister's arguments about the role of the Secretary of State and keeping the regulator at arm's length. It is just that we do not agree philosophically on the meaning of keeping the regulator at arm's length. However, for the moment I shall not press those amendments.
I see the point about flexibility regarding the membership of the board, but I think that the industry would be surprised if—other things being equal—there would not normally be at least one representative of an active pension scheme on the board giving their day-to-day experience from that perspective. I can put it no higher.
I thought that I was careful in moving the amendment to say that it was not necessarily a bad thing for people to be reappointed. I was trying to puzzle out, through the Minister, what provision said that they could not be appointed again and what provision we were trying to tackle. I am neutral on whether reappointment is a good thing. It depends entirely on the individual.
I was slightly puzzled about compensation and the removal of existing members at short notice when their skills are no longer required. I should like to draw an assurance from the Minister—a nod of the head would do—that we are not talking about people being removed for incompetence, inability or non-attendance; that we are talking about those who had a legitimate expectation of continuing for a period; that people would be appointed in the first instance for a set period that would possibly be renewable and then, for reasons that were outwith their own
inadequacy or incompetence, would be compensated. There is nodding of heads, so I shall quit while I am ahead.
On the secondment of staff, I was just trying to ascertain that there would not be great shoals of double agents, as it were, coming in from the DWP or the Treasury, trying to subvert the independence and rigour of the new regulator. The Minister assures us that that practice has produced value on both sides when used in respect of OPRA and I am happy to accept that. On the basis of those explanations I am happy not to press these amendments to a Division. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 2 ordered to stand part of the Bill.