Steve Brine, Prospective Winchester MP responds to Ombudsman report and makes the Tory position crystal clear!
The Parliamentary Ombudsman, Ann Abraham – the independent figure responsible for investigating maladministration on the part of Government departments or other public bodies – has issued a damning indictment of the Government’s handling of Equitable Life.
Her report concludes that there was a series of regulatory failures that led to many policyholders suffering losses and that the Government should make payments to them because of this.
Prospective Conservative MP for Winchester & Chandler’s Ford, Steve Brine says; “I have been contacted by a huge number of prospective constituents since the report and I feel it is important to let everyone know the Conservative position – I don’t think we could be clearer and it is important of-course to remember only the Conservatives can remove Labour from office at the next election!”
The Conservative statement in full: It was the Conservatives who forced the Government to extend the Ombudsman’s remit to enable her to undertake this investigation. The outcome of her investigation fully justifies that stance.
The report identifies serial regulatory failures including between 1998 and 2001, when Gordon Brown and the Treasury had responsibility for the regulation of Equitable Life. The report makes it clear that prompt action could have been taken then which would have avoided the hardship that so many people have subsequently suffered.
The Ombudsman makes two recommendations. The first is that the Government should make a public apology for maladministration. The second is that, because policyholders suffered losses due to the maladministration, they should receive payment from the Government. She makes it clear that the next stage is to assess the basis on which payments to policyholders should be calculated and to whom these should be made. We believe that the Government should accept these recommendations.
The Ombudsman also makes two important points in respect of the losses, which we accept. Firstly, policyholders should not expect to receive payment for the full loss they suffered. Secondly, she accepts that her recommendation could have a significant impact on public finances. Any payments made should, therefore, be consistent with maintaining sound public finances.
We believe that the Government should accept the Ombudsman’s findings and act promptly. Gordon Brown and the Treasury have, however, sought to block and then delay this report. We will be putting sustained pressure on the Government to move quickly on this. If the Government fails to act, then we will.
- LINKS
You can read the full report, "Equitable Life: a decade of regulatory failure" here.
You can visit the "Equitable Members Action Group" website here.