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Pensions Bill

What we are not yet happy about is the model which suggests that open schemes with ongoing liabilities would be protected by a third party. We are not sufficiently confident about the extent of that cover, and that is not to impugn BrightonRock or any particular entity. The Pension Protection Fund is not seeking to hold a monopoly position, but it is a fairly new institution that is building confidence with people in the pensions arena, and it should be entitled to do so. I also return to the point that in a model such as BrightonRock—the noble Lord, Lord James, indicated in his contribution that he was speaking more generally, but others would allow that there is a risk of cherry-picking—we would really need to understand exactly how secure the covenants were, particularly as some of the entities involved are not UK-based. In one particular case, it is regulated out of Malta. That is where we are, but I stress to the noble Baroness that the powers are in place should there be a view to use them.