---

Pensions Bill

I am grateful to the noble Baroness, Lady Noakes, for tabling AmendmentNo. 118 and to my noble friend Lady Gibson for tabling Amendments Nos. 122A and 122B, which all relate to investment policy for personal accounts. I shall deal with Amendments Nos. 118 and 122B first. They are similar in that both would require that the objectives of the scheme in relation to investments and charges are set out in the Bill. The December White Paper, Personal Accounts: A New Way to Save, set out a broad overview of the personal accounts scheme objectives, investment expectations and charges structures. As we have just discussed, we will shortly be publishing a response to the White Paper consultation. As we have debated on a number of occasions this evening, the delivery authority will initially be supporting the Government by providing advice and recommendations on the commercial and operational impact of options relating to personal accounts. Consideration of investment choices will form part of this advice. Amendment No. 122A, tabled by my noble friend Lady Gibson, would place a requirement on the delivery authority to develop an investment strategy based on criteria such as industry best practice relating to corporate social responsibility. As the December White Paper sets out, social, environmental and ethical investment represents a small but growing proportion of total UK investment. Given an apparent consumer demand, the Government envisage that personal accounts will include appropriate SEE choices. However, as the White Paper also sets out, investments based on a strategy of corporate social responsibility may, for example, require more supervision and monitoring, which can make them more expensive. I am sure that, in its development of an investment strategy for the personal accounts scheme, the delivery authority will consider all methods of investments, levels of shareholder engagement and industry best practices. Therefore, I hope that noble Lords will agree that it is not appropriate to commit the authority to follow a specific objective—a commitment that would compromise its consideration of all investment methods. Our proposed Bill planned for later this year, subject to the will of Parliament, will provide detail of the personal accounts scheme and give us an opportunity for a full debate. Accordingly, I hope that the noble Baroness will feel able to withdraw her amendment.