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Superannuation Bill

My Lords, I feel I should not reiterate the arguments that I have made already about the necessity of Clause 2. My feeling about this is that after two years of negotiations, any Government would have introduced such a proposal. Therefore, I do not want to push this in any partisan way. I am sorry that the noble Lord, Lord McKenzie, thinks that this has soured the negotiating environment. That is not my impression of the quality of the negotiations between the majority of the unions and the Government on this. We have made real progress and both the unions and the Government have been negotiating with clear commitment to reach a consensual agreement in the circumstances in which we find ourselves. As I described at Second Reading in your Lordships’ House, the caps in this legislation serve several purposes. First, they set out a basis for discussion of reform of the compensation scheme with civil servants and with the trade unions representing them, comparable to best practice in the private sector. Secondly, they provide an interim solution if agreement cannot be reached. Thirdly, they provide a fallback if, following discussions and what we believe to be the conclusion of a new workable compensation scheme with terms improved beyond the caps, we find that we cannot implement it. If we do not have this clause, we shall be in a state of legal uncertainty in which it is possible there might be a judicial challenge. Primary legislation provides much greater legal certainty, which may be important in the event of protracted litigation, where the case might be referred from one court to another. Therefore, I invite the noble Lord to withdraw his opposition.