Written question asked by Nicholas Winterton (Conservative) on Monday, 23 February 2004, in the House of Commons. It was due for an answer on Tuesday, 2 March 2004. It was answered by Malcolm Wicks (Labour) on Tuesday, 2 March 2004 on behalf of the Department for Work and Pensions.

Dept for Work and Pensions

Question: 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.

Answer: 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.

Secondary information