---

Pensions Bill

Before I deal with the amendment, I say to the noble Baroness that comments like, ““Honesty is not what he is paid for”” ill becomes her and our debates in this Chamber, particularly when someone is referred to who is not here and who is not able to respond. Also, challenging the Government’s honesty in this is entirely unfair. This amendment would place in the Bill a deadline for implementation of 1 April 2012 for what could be the largest occupational pension scheme in the UK. After Tim Jones was appointed, he took the sensible approach of carrying out a review of the plans that he inherited to satisfy himself that they were deliverable. The review was completed at the end of March and Tim Jones has made it clear that he has a credible set of plans that are consistent with delivery of the scheme from 2012. Following the review, a copy of A Report on the Personal Accounts Delivery Authority’s Plan for Delivery was placed in the Library of the House. Notwithstanding the noble Baroness’s comments, that was an attempt to take stock of where we are and the timeframe for delivery. Our intention has always been to introduce the reforms from 2012 and that is still the case. However, we are still four years away from the go-live date of a complex programme delivering groundbreaking reforms. So clearly we cannot say that there are no uncertainties, risks or events around the corner that may change how we see things. A fixed implementation date, particularly one that is so precise—to the day—for this scheme would allow no flexibility should unforeseen events lead us to reassess our approach to implementation. While we firmly believe that there is no reason why we will change our approach, we do not think that a fixed date would be prudent. This amendment also places a requirement for a report to be laid before Parliament in the event that the implementation date appears to be unachievable. The requirement does not seem to negate the requirement in the amendment to establish the scheme—the noble Lord, Lord Oakeshott, focused on that point. We do not believe that this is necessary, as progress towards implementation will be subject to scrutiny on an ongoing basis and there will be numerous opportunities for stakeholders, including Parliament, to input and review progress. For example, the delivery authority will produce an annual report and accounts setting out its progress over the past year. This will be laid in the Library of the House. In addition, it will produce a business plan, setting out its objectives and priorities for the forthcoming year. Both of these documents will be available on the authority’s website and therefore open to scrutiny by everyone. As part of continued stakeholder engagement, we aim to set out our plans for the employer duty in the autumn before going on to publish draft regulations in the spring of 2009. We will also consult on a draft scheme order and rules in the spring of 2009. I was going to say that I would hope that the noble Baroness is reassured by that response, but from what has happened to date, I doubt whether she is. I say to both the noble Baroness and the noble Lord, Lord Oakeshott, that Tim Jones and Paul Myners have invited opposition Members to discuss the details of their plans. I do not know whether noble Lords have taken that opportunity yet, but I would certainly urge them to do so. Indeed, Paul Myners turned up at a meeting of noble Lords but I think that only the noble Lord, Lord Skelmersdale, was there. It is not helpful to place fine details of the project on the record at this time when procurement has not yet commenced. We must appreciate that there are commercial sensitivities around this. The noble Baroness asked some specific questions about whether we have committed to 1 April as a start date. The answer to that is, no, we have not. As Mike O’Brien said in another place, that may well be the right date to start, but the commitment is in 2012. In any event, from provisions that we have previously discussed, we would see a phased introduction of the auto-enrolment duty which would potentially impact on personal accounts as well. It may well be the right date; it may be the date that it does happen; but we have not committed to it in any way. The noble Baroness asked whether there are project plans. I am sure there are project plans. There will be business plans and the framework agreement between PADA and the DWP will require targets, a plan to be set down and an annual report. This is a major project to change fundamentally the pensions landscape. The enabling savings retirement programme covers the implementation of personal accounts, the introduction of automatic enrolment, the mandatory employer contribution and the communications to support these reforms. Tim Jones’s report sets outs the key stats which PADA needs to undertake before the reforms can be introduced. The first step is going through government approval processes before the procurement process can begin. Part of that is the passing of this legislation. Before these approvals can be obtained the funding strategy needs to be developed. The secondary legislation also needs to be developed and passed. We intend to consult on a draft order, as I said earlier, in the spring of 2009. Subject to approvals, PADA is intending to issue an OJEU advertisement in January 2009 for the main procurement exercise. Estimates that the time suppliers will need to put in place the necessary capabilities to deliver such a scheme are subject to negotiation during the procurement exercise. The suppliers will then need to design, build and test systems before they can be implemented. These are major reforms and it is important that we get them right. However, as we have said repeatedly, it is our intention to introduce the reforms from 2012 and this is still the case. I understand the desire of noble Lords to have as much detailed information as possible but they must understand precisely where we are on this exercise. I would urge them to talk to Paul Myners and Tim Jones and get this directly from those who have the responsibility.