Pensions Bill

Sandra Osborne: I am aware that other Members wish to speak, so I shall keep my contribution short. I am absolutely delighted to support the amendment, which introduces yet another excellent measure by the Labour Government.

There has been quite a lot of humour in today's debate, some of which has been uncharacteristic. In the previous debate, there was quite a lot of emotion. I spoke emotionally, and I make no apology for doing so. I may have laid it on a bit thick, however, as one of my colleagues said to me today, "Don't worry about today's debate, Sandra. All you need do is burst into tears and you'll get anything you want." That remark may have been slightly sexist, but perhaps I did lay it on a bit thick.

Yet again, I want to highlight the case of the United Engineering Forgings workers. Before I do so, I want to pay tribute to their campaign, which they have carried out for almost three years. I first brought their case to the attention of the House in an Adjournment debate in Westminster Hall almost three years ago. Since that time, they have travelled the length and breadth of the country almost weekly, attending debates here, and holding marches, rallies and even an overnight vigil in Parliament square in the middle of winter—I thank Members who spoke to them at that time. They have picketed the headquarters of Prudential, met the chief executive, and taken part in television and radio interviews. Of course, they have had several meetings with Ministers, for which I am very grateful. Willie Riggins may not yet qualify as a national figure, but he is a familiar figure to my right hon. and hon. Friends, as they have seen him in so many places and at so many different times. It has been my pleasure, as well as my duty, to play a small part in that campaign.

After a time, the UEF workers came together with other workers, including those of Allied Steel and Wire, who had lost their pensions. It is a textbook case of how collective action can work. From the rank and file to trade union leaders, to Back-Bench Labour and other MPs and Ministers, everyone could immediately see the injustice of the situation. The question was: what could be done about it? I know that the Government have taken some time to find out what could be done about it—it is a very complicated issue—but I am glad that they have done so. The only problem is that, at the moment, the Government amendment does not fully answer the questions as to exactly what will be done.

UEF went into administration in June 2001, with a shortfall in its pension fund of £12 million. There were six UEF sites throughout the UK, and more than 1,000 workers. Some of the sites were sold off, but the Ayr site was taken over by a Swedish company, with no final salary scheme. The bottom line is that the UEF pension scheme is being wound up, and all will substantially lose their pensions. No matter what the circumstances are—whether a company goes into administration, receivership or insolvency—employees will either lose their pensions or not, and all cases should be dealt with equally on that basis.

The Secretary of State has promised substantial help—those were his words—but we are all now left wondering what he means by "substantial". The pension protection fund will provide 90 per cent. compensation, and that will be clear to current pension fund members as soon as the Bill is passed. But those who have already lost out were led to believe that their pensions were 100 per cent. safe. While I very much welcome the Government assistance, it is still incredible that that can happen without anyone accepting actual liability. Everyone who has been affected still cannot believe that that can happen and that there is nothing illegal about it.

As has been stated many times, occupational pensions are part of the remuneration package agreed by employers and their employees. The majority shareholder of UEF was PPMV—an investment arm of Prudential. I eventually received an apology from the Prudential's group chief executive, Mr. Jonathan Bloomer, on the way in which the UEF situation was handled, while obviously not accepting liability.

As stated earlier, we met Mr. Bloomer twice. He offered us tea and sympathy but refused to redress the shortfall in the pension fund. That was scant consolation to my constituents who have lost their pensions, especially as we read continually about the big fat bonuses—and packages if they leave their employment—that Mr. Bloomer and others of his ilk receive. Perhaps now, Mr. Bloomer and others will accept their responsibility in this area not only to the workers but to restore confidence in pensions. They have resisted previously, possibly on the grounds of liability, but making a contribution to this fund would not make them liable, and I call on them to do so.

The UEF case is only too familiar to Members of the House, as I have outlined it previously, but I want an assurance from Ministers that the UEF workers will be accepted as part of the equation for the assistance being made available, and that both they and I will have the opportunity of input to the discussions that will take place shortly.

I also want to take the opportunity to speak for those who are not members of trade unions because their company did not have a recognised trade union: for example, workers of the Dexion group. Many of those were at managerial level and worked in companies that have never recognised trade unions. I suspect that they very much regret that now. If there is one lesson from this, it is that every worker should join a trade union.

One of the worries about the Government's amendment, because it is an enabling amendment, is that it tends to raise more questions than it answers. We urgently need those answers. I am happy that the Minister has outlined a set process that the Government will follow to bring forward those answers, with a time scale. I hope that the Secretary of State has not done inadvertently what he always said that he would not do—to raise false hopes among the workers. For those of us who have campaigned on this issue, last Friday's announcement was like manna from heaven. Of course it raised expectations—it was bound to do so—and it is perfectly reasonable that people want to know the scope of the assistance available. We all understand how complicated the situation is, but we cannot leave people in limbo with no indication of how it will work. I hope that the Minister's road map to resolve the situation is much more successful and has a quicker effect than the other road map about which we heard on a point of order earlier.

The Secretary of State has said time and again that a pension promised should be a pension delivered. We have seen a great step forward today in delivering that promise in a situation of great injustice. I very much welcome that, and I congratulate the Secretary of State on it. I said in the previous debate that if anyone could do something about this matter, it was the Secretary of State, and I thank him very much.