Equitable Life (Payments) Bill

Baroness Primarolo Excerpts

Wednesday 10th November 2010 Commons Chamber

[Chris Leslie]

I beg to move amendment 5, page 1, line 7, at end insert—

‘(2D) The Treasury shall lay before Parliament details of the timings and planned dates for payments of compensation to which this section applies, no later than three months after commencement of this Act.’.

[The Second Deputy Chairman of Ways and Means (Dawn Primarolo)]

With this it will be convenient to discuss amendment 8, in page 1, line 7, at end insert—

‘(2A) After determining the total amount of the payments that the Treasury is to authorise under subsection (2) and the persons to whom those payments are to be made, the Treasury must secure—

(a) that each of those persons is paid the full amount due to that person in a single payment, and

(b) that the single payment is made as soon as practicable.’.

--- Later in debate ---

[Mr Hoban]

My right hon. Friend pre-empts a point that I was going to refer to in the clause stand part debate. He gives me an opportunity to say now that the payments will be free of tax.

[The Second Deputy Chairman]

Order. There has been a very expansive debate so far, so there will not be a clause stand part debate. If the Minister wants to say anything, I would encourage him to say it now.

[Mr Hoban]

You are right, Ms Primarolo, we have had an extensive debate, so I will ensure that I now have my notes to hand for the clause stand part debate. I should clarify the treatment of the payments under the tax and benefits system. They will not be treated as income for tax purposes, and will not be taken into account in the calculation of tax credits, which is a benefit for policyholders. In terms of benefits, they will be treated as capital rather than income, and given the beneficial nature of the treatment of capital in the benefits system, that helps policyholders. We have sought in the design of the scheme, through measures such as the tax and benefits treatment, to maximise the value so that policyholders will receive the full amount.

--- Later in debate ---

[Mr Marcus Jones]

Will the hon. Gentleman explain the inactivity on the matter while his party was in government, particularly during the demise of the Icelandic banking industry, when his Government bailed out many investors who were affected by that at the drop of a hat?

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before the hon. Member for Nottingham East (Chris Leslie) answers, may I remind the House that this is Third Reading and that it is timed, which means that it will conclude at three minutes past 5? Members who have sat through the debate this afternoon and who wish to speak on Third Reading might not get the opportunity to do so. I shall call Mr Leslie back to the Dispatch Box to respond to the intervention, but perhaps everybody in the Chamber could bear my point in mind.

[Chris Leslie]

Indeed, Madam Deputy Speaker. It is certainly incumbent on us all to be brief as far as we can. I have set out the position as I see it. I know that Government Members will disagree, but I do not wish to impugn their intentions. I was simply seeking to point out that they are held to a pledge that not all Members are held to and that they will be judged on that.

We are not minded to oppose the legislation this evening. This is a necessary paving Bill, but we accept that the devil will be in the detail and we await the further scrutiny of the measures that will come subsequently.