The requirement of
“with a view to reaching agreement”
is a high hurdle. I cannot remember the phrase the hon. Lady used, but I can say that the requirement is not a tokenism of any kind—it is a genuine commitment. It is in clause 20, so where this is required it is a clear commitment that the Government will have to honour. The second part of her question was about what would happen if an agreement was not reached. I hope that such situations would be rare, but it is clear that if an agreement could not be reached the Government would have to make the final decision, as is absolutely right.
4.30 pm
Amendment 34 gives me the opportunity to discuss the rationale for the inclusion of the provisions in clause 20. On a number of occasions the Government have stated their belief that the package of pension reforms that the Bill helps to implement represents a settlement for a generation—a deal that should last 25 years or more. The provisions in clause 20 are intended to deliver on that promise by putting in place a high bar for any future Government who might wish to amend any of the core elements of the new schemes. The clause also extends these protections to instances where the responsible authority proposes to make retrospective changes that will have significant adverse effects in relation to members of the schemes.
As we have discussed, the clause requires consultation
“with a view to reaching agreement”.
Such a provision goes further than the already thorough consultation requirements set out in clause 19, which we have just discussed. Clause 19 requires consultation on every change to scheme regulations with all interested parties. That consultation must be carried out in good faith and with an open mind. The courts have shown no hesitation in holding the Government to the high standards required by a statutory consultation of the kind required in clause 19.
By making it clear that the consultation under clause 20 should be undertaken
“with a view to reaching agreement”,
the Government are making a legislative commitment about how such consultations should be carried out. The clause requires consultation to be conducted in a manner conducive to reaching an agreement. A Government will also have to report to Parliament on the actions they wish to take, having due regard to the desirability of not making changes to the protected elements. The amendment seeks to go further than that, by making it compulsory for the Government to obtain agreement from members or their representatives before such a change could be made—the very scenario that the hon. Member for North Down (Lady Hermon) just raised. On the very rare occasions that these elements may require amendment, it is important that the Government should consult and work with members to ensure that the best outcomes for all involved can be
achieved. However, it would be entirely wrong for individual trade unions or members to be able to prevent reform should it be in the interest of the vast majority of members.