Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 4 April 2005.
What discussions he has had with trade unions on public sector pensions.
Last Thursday, I chaired a summit with representatives from relevant public sector unions and Brendan Barber of the TUC on public sector pensions. The meeting was productive: both sides recognised the effect that demographic changes are having on the sustainability of pension schemes, and are committed to finding an agreed long-term solution that is both fair and sustainable. A proper process of discussion and negotiation will take place through the continuation of scheme-specific negotiations, which will be overseen by special sessions of the public services forum.
I congratulate my right hon. Friend on his role in making sure that the Government and the other partners in public sector pensions, which are far too important for decisions to be made on the hoof, returned to meaningful discussions. Meaningful and proper negotiations are surely the right way forward, if we are to modernise public sector pensions in the light of the challenges, which my right hon. Friend has outlined, posed by an increasing elderly population. It is important that we develop a consensus between the work force and the Government, who act sometimes as an employer and sometimes as a regulator. After the election, will my right hon. Friend invite those of his opposite numbers who are still around to join that search for a consensus? This matter should be taken way beyond party politics.
I agree with my hon. Friend on the need for consensus. We seek consensus in that area and in all areas of pensions, as we pointed out in our document, "The Principles for Reform: The National Pensions Debate". It is fair to point out that although the trade unions and their members had a legitimate claim that the negotiation was not a proper negotiation—the Government were saying that some areas were not open to negotiation, which was wrong—we have now made it clear that all areas are open to negotiation. We should make it clear that we will continue with the defined benefit scheme and index-linked pensions, and that no existing staff will be affected until 2013 at the earliest. Those parameters and that reassurance must form part of the political consensus that my hon. Friend rightly seeks.