Equitable Life (Payments) Bill

The short debate that we have had has covered a set of specific issues, largely arising from the Government's conclusions in the spending review about how to compensate those suffering injustice following maladministration by insurance and financial regulators in the case of Equitable Life. I am glad that we have had the opportunity to talk about the independence of the payment scheme. We have been able to hold the Government's feet to the fire on whether it will match the ombudsman's model. I am glad that the Minister said that he would welcome further comments from her on the design of the compensation scheme. It will be interesting to see whether she endorses it as being the fair and transparent scheme that many Members have pledged to deliver. We have also discussed the appeals procedure and the timing of payments. In response to the second ombudsman's report, the former Chief Secretary to the Treasury, my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), offered an apology for the past failings of the regulators. That is an important point, which is separate from the question of whether the regulators can be held fully or only partly responsible for the losses incurred by the maverick actions of Equitable Life's management during the 1980s and early 1990s. I am sorry that, at least during this debate, Ministers have not also expressed regret, clearly and on the record, for the part that their party played during the 1980s in failing adequately to establish a regulatory system to prevent the vast bulk of the Equitable Life problems from arising in the first place. I know that it was a long time ago and that none of the current Ministers were in any way responsible, but I think it would have been a helpful gesture to draw a line under the failings that had occurred in the past. After all, Lord Penrose concluded in his inquiry report that Ministers in the late 1980s"““did not regard the subject””" of updating life insurance regulation"““as a high priority for legislation.””" He noted that"““the Government's objective was to deregulate, to reduce regulatory burdens on business, to avoid interference in private companies, and to let market forces prevail.””"