Clause 50
Energy Bill
5:30 pm
Malcolm Wicks (Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform; Croydon North, Labour)
I could say, but I would not convince the hon. Gentleman, because in this case a former Pensions Minister, namely myself, is in charge of the strategy. When the hon. Gentleman was the Liberal Democrat pensions spokesman, the argument never seemed to reassure him, so I doubt whether it would reassure him in this instance.
Of course, there are sometimes significant fluctuations in the value of equities. In the United States, for example, there has been a credit crunch. I should have thought that one of the implications here—it is similar for prudent financial management—is that the trustees and the board that we are establishing would want to consider this matter in due course and ensure two things. First, they would want to see that there is the usual reasonable spread of investments, as in any fund. Secondly, to make a useful comparison, when a person is reaching the age at which they wish to retire they will ensure, wherever possible, that their moneys move into safer havens—I do not mean tax havens—such as bonds and post office or building society accounts. They would have to choose a building society carefully—[Interruption.] Actually, it is not a building society, so I should not have said that. It should have stayed a building society, arguably. Nevertheless, as people move into safer investments on retiring, I assume that 10 years before decommissioning it would be sensible for even safer investments to be made. In that way, trustees would do their best to ensure that all is well with the level of the fund.