Public Sector Pensions

Gordon Banks Excerpts

Thursday 8th December 2011 Commons Chamber

[Mr Bain]

The hon. Gentleman has once again revealed that the Government simply have a plan for cuts and no plan for growth or jobs. A five-point plan for growth and jobs would cut VAT, reduce national insurance and create jobs, which would help pay down the debt and the deficit.

[Gordon Banks (Ochil and South Perthshire) (Lab)]

Does my hon. Friend agree that it is all about priorities and that the Conservative party has the wrong priorities and we have the right ones?

[Mr Bain]

My hon. Friend, who has been involved in setting up and running a business, knows what is needed for job creation in these difficult times.

--- Later in debate ---

[Iain Stewart]

Absolutely. It is just a smoke screen.

It would create an enormous muddle if we had to pull apart the pension contributions, and we have heard absolutely nothing from the Scottish nationalists about how they would do that.

[Gordon Banks]

Although there might not be a pension pot, there is a pot of responsibility.

[Iain Stewart]

I am sorry but I did not catch the hon. Gentleman’s point.

[Gordon Banks]

There is a pot of responsibility. There might not be a pension pot, but there is a pot of responsibility, and it is that responsibility for future pensions that the SNP would have to bear.

[Iain Stewart]

The hon. Gentleman makes a good point.

As well as the nightmare of disaggregating the fund, a range of dynamics would be set in train that would be difficult to forecast. I remember when the Scottish Executive set a pay increase for teachers that was more generous than that given to teachers in England—I think it was back in 2001. That resulted in a significant transfer of teachers wanting to work in Scottish schools because of the more beneficial terms. If we move from a unified pension scheme, we will set in train in those difficulties in accounting for who is responsible for paying what.