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Equitable Life

I thank my right hon. Friend for accepting the essentials of the ombudsman's report. The decision was difficult for the Government, but I think they have come to the right conclusion. The apology is right, the acceptance of maladministration is right, the acceptance of injustice is right, and setting up a compensation scheme is right. Nevertheless, why did the Government decide not to adopt the ombudsman's recommendation to set up an independent tribunal, but instead to ask Sir John Chadwick to give further advice? Secondly, will my right hon. Friend explain the phrase ““disproportionate impact””? As I understand it, she is trying to identify a category of policyholders who have suffered a disproportionate impact and saying that only they will come under the rubric of a compensation scheme. Does that not excessively narrow the scope of such compensation in a way that the ombudsman did not recommend?