Charles Kennedy: Ombudsman Investigation Needed Into Regulation Of Equitable Life

2.34.28pm GMT Wed 10th Mar 2004

Charles Kennedy, leader of the Liberal Democrats

Charles Kennedy, leader of the Liberal Democrats, today challenged the Prime Minister over the Penrose Report into Equitable Life.

ENDS

Text of PMQ exchange follows:

Rt. Hon. Charles Kennedy MP: Does the Prime Minister agree with Lord Penrose's Report into Equitable Life when he concluded that it wasn't merely reckless company management that lead to the scandal but it was also negligent regulation by the Government itself?

Prime Minister: I agree with Lord Penrose's Report, although he did actually put the majority of the blame at the society itself. But of course the regulatory issues going back over many years is one of the things the report investigated and looked at and of course we stand by the conclusions he drew.

Rt. Hon. Charles Kennedy MP: Mr Speaker, would the Prime Minister accept, however, that the complacent and the misleading response that was given by the Government to his report will come as a very serious disappointment to the million people who have lost so much as a result of this. And it will undermine the faith of millions of others. Now would the Prime Minister give an undertaking today to ask the Parliamentary Ombudsman to establish once and for all whether there was Government maladministration involved in all of this business?

Prime Minister: First of all I understand actually that there has already been a finding that there was not maladministration in respect of one of the cases. But of course the Parliamentary Commissioner has the full powers that they have. However, I have to say to the Right Honourable Gentleman, we haven't been complacent about the response at all - we commissioned a report, we made a statement to the House of Commons about the report and its implications. But the plain and simple question is - can Government actually commit itself to pay compensation to people which would run into billions of pounds - I know he didn't ask it, but a casual observer might of thought he was implying it. And actually I think all parties in this House, recognise it would not be possible to do that. So of course we will carry on doing everything we possibly can, including implementing the Report of Lord Penrose and any other investigations for outside bodies is obviously a matter for them.