Pension Protection Fund (Risk-based Pension Protection Levy) Regulations 2006

The fact that we are debating these regulations is a tribute to the work of this House in the many hard-fought debates that the noble Lord, Lord Skelmersdale, and I will remember from the then Pensions Bill. One of the key points that we fought there together was that there should be a properly commercially calculated risk-based levy as soon as possible. I pay tribute to the Pension Protection Fund for giving effect to the will of Parliament in this way and for the flexible and pragmatic approach that it has been taking to its duties. We welcome that, and we welcome the way that it is letting firms bring contingent assets into account, which is sensible. Speaking from my experience, I welcome the caution that we have heard the Minister express about guarantees from overseas companies. In my experience, if one is trying to enforce rental guarantees owned by an overseas company where a tenant has gone bust that can be very difficult indeed, and obviously one should proceed with great caution. I declare an interest because the fund in question is a client of my firm. The innovative and imaginative way that the BAE Systems pensions fund has just injected a lot of corporate property into the fund to help fund the pensions deficit is a sensible way forward. The PPF is working sensibly with firms in that way. The key point is that it is only acceptable if steady and measurable progress is being made towards ending pension fund deficits.