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Equitable Life

We intend to find a resolution with our scheme as quickly as possible, but we also need to get it right. My hon. Friend the Member for Leeds, North-East mentioned the recent approach proposed by Sir John, which he intends to operate, and the issues to be addressed. My hon. Friend and others said that Sir John should be able to consider all cases raised by the ombudsman, and not just those that the Government agree with. We have cogent reasons for accepting only those cases of maladministration and injustice set out in our response. However, we had equally cogent reasons for departing from others, and it would be irrational to ask Sir John to consider those. It is important that we get this process under way as quickly as possible where we have accepted maladministration and injustices. For those cases, we want Sir John to get on with the scheme. We all agree that this is a complex matter. The ombudsman accepted that any scheme would take a considerable time—two and a half years, she said—but we are not setting a time limit. We need Sir John to do the work, but we share everybody's concern that the scheme pay out as swiftly as possible. The hon. Member for Fareham (Mr. Hoban) asked about progress. Sir John has established his office and appointed its key staff, and has met and corresponded with Equitable Life. I do not have to hand the number of times, if any, he has met it since the first meeting. However, I shall write to the hon. Gentleman with that information. Sir John has established a website through which interested parties can keep informed of his work. Equitable Life has now provided him with records about policyholders. He has issued his document setting out his proposed approach and the issues to be addressed. He has asked interested parties to comment on those proposals by 17 July. That is quite a tight time scale, but we are trying to get the scheme under way as quickly as possible. If any hon. Members wish to comment on his proposed approach and issues, they should get that information to him. The hon. Member for Taunton (Mr. Browne) said that Sir John has few resources available, but actually he is assisted by a team of office staff, ranging from counsel to administrative support and a private secretary, and the team has recently been joined by the expert actuarial services of Towers Perrin—that answers another point made by the hon. Member for Fareham. As the Economic Secretary has stated, our preference is not for a means test, and we are certainly not asking Sir John to advise us on whether there should be one. However, we shall consider Sir John's advice if, when he has finished the process, he comes to a different conclusion. We are giving him a wide remit to consider how we can deliver the desired outcome. It is regrettable that the parliamentary ombudsman felt it necessary to lay her further report recording her view that the injustices that she found will not be remedied. We have the greatest respect for the office of the ombudsman, and where we departed from her findings in the main report, we did so only after very careful consideration. When she announced the Government's response in January, the then Chief Secretary explained that there is no easy solution to the problems at Equitable Life and the faults that were found. She also made it clear that the Government believe that their response to the ombudsman's report is the right one. I agree with that. The new help for policyholders announced is fair to them and to taxpayers. The need to resolve this matter is acknowledged on both sides of the House, including by hon. Members today. I restate the Government's commitment to introduce their ex gratia payment scheme as quickly as possible.