Proceeding contribution from Vincent Cable (Liberal Democrat) in the House of Commons on Wednesday, 21 October 2009. It occurred during Opposition day on Equitable Life.
Equitable Life
Indeed. Since the Government have declared themselves to be racing us in order to get there faster than the proponents of this motion, speed is no longer the issue. They have told us that they will speed up, at long last, but fairness will become the issue. The issue will be whether the Government accept Sir John Chadwick’s findings when they appear. We will come to that. Let me finish my reference to the ombudsman’s response. Following the official response, the ombudsman has been involved in a very tart correspondence with the Chief Secretary. It is worth quoting one or two of the exchanges. The Chief Secretary spoke in this House on 21 July in reply to an urgent question. In response, the ombudsman wrote a letter that has subsequently been published. She stated:""I noted what you said in the House on 21 July, and did not recognise it as a true representation of my position. That said, this is not the first time that the Government has misrepresented my position in order to defend its own and I suspect it will not be the last."" We should be under no illusions about what the ombudsman thinks about the way in which the Government are handling the matter. It is not just about the ombudsman. We have had two excellent reports from the Select Committee on Public Administration—"Justice delayed" and "Justice denied"—which are well summed up by the phrase that the Government’s position was""shabby, constitutionally dubious and procedurally improper"." We now come to the last stage of the process, the judicial review that concluded recently. The action group for the policyholders deserves an enormous amount of credit not just for briefing Members but for keeping alive an issue that could easily have died if it had not been driven so forcefully and with such conviction. The group took the judicial review option, at their own expense, to challenge the legality of the Government’s response to the ombudsman’s report. The key point in this takes us back to the fundamentals of why we have an ombudsman. The purpose of the ombudsman was to remove the need for judicial reviews of Government decisions, or the need for people to spend large amounts of their own money challenging Government rulings in court. The review should never have been necessary, but it was sought by the action group, and it is worth reflecting on its key findings. The judicial review concluded that the Government’s position "lacked cogency", and that the Government unlawfully rejected the finding that maladministration caused injustice. It specifically instructed the Government to assess claims going back to 1990—quite a major advance in concrete terms. However, as the Chief Secretary pointed out in his statement yesterday, the review concluded that the matter had to go back to Parliament, so that the question of how the compensation process would work could be resolved. It is therefore up to us, as Members of Parliament, to decide how the compensation process happens. Should it happen in the way that the Government have suggested, through Sir John Chadwick’s inquiry, or does it need an independent tribunal process? I am sure that the Government agree that, for practical reasons, there is no need to go back to square one. Sir John Chadwick has done a lot of work, so surely we do not want to put that in the bin and start doing something else. Of course we do not want to do that. The practical position is that the very useful work done by Sir John Chadwick forms the platform on which we can build a resolution to the problem. That work need not be ditched, because it can now be taken over by an independent process. It can be continued with absolute confidence that the findings that are reached will be honoured, because those findings are impartial and independent. In contrast, we have no confidence at all that the Government will not simply disregard a conclusion produced by Sir John Chadwick that is inconvenient to them. The evidence for that is the fact that, for the past nine years, the Government have continually dragged their feet on every action that would have brought justice for our constituents.
Secondary information
- Type
- Proceeding contribution
- Reference
- 497 c924-5
- Session
- 2008-09
- Chamber / Committee
- House of Commons chamber
- Subjects
- Compensation Insurance companies Equitable Life Assurance Society Maladministration Parliamentary Commissioner for Administration Regulation Government responses Equitable Life Ex-gratia Payment Scheme Review Ex gratia payments
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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