Williams calls for justice for Brecon's Equitable Life Victims

9.41.04am GMT Mon 2nd Nov 2009

Brecon and Radnorshire MP and Liberal Democrat Shadow Secretary of State for Welsh Affairs Roger Williams has called on the Government to compensate people in Brecon and Radnorshire who lost their savings in the collapse of Equitable Life.

The Liberal Democrats used their opposition debate on Wednesday to highlight the Government's betrayal of former Equitable policyholders, many of whom are elderly people who have had their pension savings slashed due the failure of Equitable Life in 2000.

In July 2008 Parliamentary Ombudsman Ann Abrahams published a report criticising the Government for failing to provide proper regulation and oversight of Equitable in the run up to the firms collapse. Her report called on the Government to fully compensate the victims of the crash. However, the Government has so far only committed to helping those who were 'hardest hit' and has no plans for a full compensation scheme.

In a motion put forward by Liberal Democrat Leader Nick Clegg and Treasury Spokesman Vince Cable, the LibDems called for the Government to abide by the Parliamentary Ombudsman's recommendations and compensate every UK victim, calling the current response 'inadequate'.

Commenting Roger Williams said:

"I have had a number of my constituents write to me in dire need of assistance after loosing huge chunks of their savings in Equitable Life's collapse. The fact is that most of the investors in Equitable were not wealthy investment bankers but ordinary people who were relying on their Equitable policies for the pensions.

"The Government's current response is simply not good enough, they should accept the Parliamentary Ombudsman's recommendations, accept their responsibility for failing to protect Equitable policyholders and accept that all victims, in Brecon, in Wales and in the rest of the UK, are entitled to compensation.

"It is vital that this issue is resolved soon, many of those who lost their pensions and savings in 2000 are older people who cannot wait another nine years to get the compensation they deserve. Already over 30 000 people have died waiting for justice to be done, we cannot allow the government to continue to drag its feet."

NOTES:

The Liberal Democrat motion, which was defeated by just 25 votes, is copied below.

Nick Clegg

Vince Cable

Jeremy Browne

Steve Webb

David Heath

Paul Burstow

EQUITABLE LIFE

That this House notes the Parliamentary Ombudsman has taken the unusual step of using powers under the 1967 Act to present Parliament with a further and final report on Equitable Life; also notes that the Public Administration Select Committee's Sixth Report, Justice denied? The Government's response to the Ombudsman's report on Equitable Life, concluded that the Government response to the Parliamentary Ombudsman's report was inadequate as a remedy for injustice; recognises the vital role the Ombudsman plays in public life; reaffirms the duty of Parliament to support the office of the Ombudsman; believes the Government should accept the recommendations of the Ombudsman on compensating policyholders who have suffered loss; notes the outcome of the Judicial Review announced on 15th October extending the period for compensation claims back to 1991; welcomes the formation of the All-Party Group on Justice for Equitable Life Policyholders; and notes with regret its necessary formation and the fact that over 30,000 people have already died waiting for a just resolution to this saga.