Penrose Report: Brown Must Respond

2.11.45pm GMT Sat 6th Mar 2004

The Liberal Democrats will attack Chancellor Gordon Brown on Monday for delegating the responsibility of facing Parliament over the report into the Equitable Life affair to a junior minister.

Commenting ahead of Monday's publication of the Penrose Report, Liberal Democrat Shadow Chancellor, Vince Cable MP, said: "Equitable Life is a major scandal and the Penrose report has major implications not just for the 800,000 plus policy holders, but for future confidence in private pensions and the products of life insurers in general."

"The Chancellor's decision to duck his responsibility is unforgivable. In opposition, Gordon Brown personally led attacks on the then government over the Barlow Clowes and BCCI affairs. He knows the issues and should take responsibility."

On the issue of investor compensation, Dr Cable added: "What we need on Monday is a clear explanation of the process by which this issue will now be dealt with, either by the Ombudsman or by a rapid supplementary report by Penrose. I don't think anyone expects a blanket payout to be announced on Monday but there has to be proper process for looking at the compensation issue."