Report Throws New Complexion On Equitable Life

12.00.00am GMT Thu 27th Mar 2003

Responding to a report by accountants Burgess Hodgson that there had been a deficit of £1,200 million in the accounts of troubled life assurance firm Equitable Life throughout the 1990s, Vince Cable MP, Liberal Democrat Shadow DTI Secretary, said:

"This report puts a whole new complexion on the Equitable Life scandal, suggesting that the problems are much more deep-seated than we have been lead to believe."

"It is crucial that this new information is investigated fully and promptly by Lord Penrose as part of his current enquiry. If accurate, this report poses yet more questions about the competence of the DTI in its historic role as the regulator of insurance firms."

"This investigation has got to be concluded as quickly as possible. The reduction in payouts by Equitable, and the continuing concern over its future, is bringing real hardship and further worry to countless pensioners."

"If a Government Department is at fault, then these pensioners are due compensation, and it must be paid out as quickly as is practical."

ENDS

Notes to Editors

The report by Burgess Hodgson was commissioned by the Equitable Members Action Group, and was published today.