BEST Pensions

Part of the debate – in the House of Commons at 2:44 pm on 11 February 2000.

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Photo of Keith Hill Keith Hill Parliamentary Under-Secretary, Department of the Environment, Transport and the Regions 2:44, 11 February 2000

I am grateful to my hon. Friend for that information. Like all the other issues, I shall consider it after the debate and raise it in due course with the trustees.

The trustees take the view, and I understand their reasons, that any final distribution of the settlement must be approved by the courts to ensure that it is recognised as fair and equitable to all categories of potential claimant. That clearly limits the scope for an interim distribution ahead of court approval. It should also be recognised that the trustees face a substantial and significant task in taking forward the necessary arrangements for distributing the benefits to pensioners on an equitable basis. There has been a need to set up a comprehensive database of the 50,000 potential claimants and to establish their entitlements to share in the distribution. Significant issues involving tax liability may apply to specific categories of pensioner. That has required detailed discussions between the Inland Revenue and the trustees.

Having said that, it is a matter of considerable concern to us that there has not been more progress in the distribution of the funds. We have received continuing expressions of anxiety from pensioners about the delays. We have made it clear to the trustees in the strongest terms that we share and understand those anxieties. We have also made clear our concern about the lack of information to pensioners on progress. We recently emphasised to the trustees the need to keep pensioners informed as fully and as frequently as possible. The trustees have responded by issuing the first of what I believe is a series of information bulletins.

The most worrying issue is the delay in getting benefits to pensioners. While we acknowledge that it is clearly the trustees' responsibility to take the matter forward, we have nevertheless discussed with them over recent weeks our growing concern about the delays. We have emphasised the increasing concern that that is causing. Indeed, I spoke to the chairman, Sheila Gleig about our anxiety last week.

My hon. Friend suggested that I should meet the trustees to discuss all those matters. I expect to meet them next week, so I have anticipated his kind suggestion. I shall also bear in mind his suggestion for a joint meeting with interested parliamentary colleagues in future if not at next week's meeting. I shall take the opportunity of the meeting to emphasise our dissatisfaction with the delay and to review with the trustees the scope for taking matters forward at a swifter pace. I shall also raise with them the important points that he made in this debate. I intend to pursue those matters in further regular meetings with the trustees.

However, progress is already being made. I was pleased to tell the House earlier this week that the trustees intend, as my hon. Friend acknowledged, to make initial payments to older pensioners in March and April. Some 8,000 pensioners who were in receipt of pensions before April 1986 will benefit by a total of £18 million in the form of an interim pension enhancement and arrears. Those are the oldest pensioners and, of course, the most in need of early payments. The trustees are also urgently investigating the feasibility of making initial payments to other pensioners as soon as possible. I understand that it is their intention to seek court approval of the distribution of the balance of the settlement by the end of this year which should enable a final distribution early in the new year. I shall certainly examine with the trustees whether it need take that long.

My hon. Friend asked whether there should be a change of solicitors by the trustees. I must make it clear that that must be a matter for the trustees rather than the Government. However, I understand that the trustees are reviewing whether they have sufficient legal resources.

A further sign of progress is that I am informed that papers are shortly to be served by the trustees in respect of interim legal proceedings aimed at determining the eligibility of certain categories of potential beneficiaries.

We must hope that those proceedings, and, indeed, those later in the year to endorse proposals for the final distribution, can be brought to an early and successful conclusion. I am sure that all those who have taken an interest in this issue over the years will wish to avoid any unnecessary legal hurdles being placed in the way of the early distribution of what has been widely recognised as the just and full settlement that we made last summer.

Understandably, my hon. Friend spoke about the major role of his constituent, Frank Wheeler over the years. I pay tribute to Mr. Wheeler's contribution and also to those hon. Members who supported him through his dogged endeavours over so many years.

I did not recognise from earlier discussions, of which I have been aware, the issue of additional legal costs that my hon. Friend mentioned. However, I know that Mr. Wheeler has accepted the sum of £20,000 from the trustees in settlement of his claim for compensation for all his efforts and that the trustees understand that there are no outstanding claims from Mr. Wheeler before them. If, indeed, there are further claims I can suggest only that he puts any new information to the trustees. I am sure that they will consider it on its merits.

My Department paid Mr. Wheeler's costs for advice on the negotiated settlement last summer and for representation at the court hearing then to consider approval of that settlement. I am also informed that he has accepted appointment, as my hon. Friend said, as a representative beneficiary in the interim proceedings. The trustees will meet his costs in that regard.

As the House will acknowledge, we are seeing tangible progress and the first benefits will soon reach a significant number of pensioners. The Government will maintain close contact with the trustees to ensure that they do everything possible to minimise the delays for all concerned and that all eligible pensioners can, before too long, enjoy the benefits to which they are entitled. I assure the House that we shall continue to take the closest interest in the trustees' progress in bringing the fruits of the settlement, which we initiated, to those who have had to wait so long for a just outcome to this prolonged dispute.