We have received a number of letters from residents of Swindon writing to me about the Equitable Life scandal. Readers may recall that Equitable Life collapsed a few years ago with a subsequent loss of the savings held on behalf of investors and policy holders. This has caused a great deal of distress to those people who have lost their savings.

Recently, the Parliamentary Ombudsman, Ann Abraham the independent figure responsible for investigating maladministration on the part of Government departments or other public bodiesissued a damning indictment of the Government’s handling of Equitable Life. Her report concludes that there was a series of regulatory failures that led to many policyholders suffering losses and that the Government should make payments to them because of this.

It was our Conservative colleagues in Westminster who forced the Government to extend the Ombudsman’s remit to enable her to undertake this investigation. The outcome of her investigation fully justifies that stance.

The report identifies serial regulatory failures including between 1998 and 2001, when Gordon Brown and the Treasury had responsibility for the regulation of Equitable Life. The report makes it clear that prompt action could have been taken then which would have avoided the hardship that so many people have subsequently suffered.

The Ombudsman makes two recommendations. The first is that the Government should make a public apology for maladministration. The second is that, because policyholders suffered losses due to the maladministration, they should receive payment from the Government. She makes it clear that the next stage is to assess the basis on which payments to policyholders should be calculated and to whom these should be made.

The Ombudsman also makes two important points in respect of the losses, which are reasonable. Firstly, policyholders should not expect to receive payment for the full loss they suffered. Secondly, she accepts that her recommendation could have a significant impact on public finances. Any payments made should, therefore, be consistent with maintaining sound public finances.

We strongly believe that the Government should accept the Ombudsman’s findings and act promptly. It is one of the cornerstones of a democracy that citizens should have confidence in the state. That includes confidence that the regulatory framework Is sound; and that the Government can be held to account for failings. Gordon Brown and the Treasury have, however, sought to block and then delay this report. Conservatives will be putting sustained pressure on the Government to move quickly on this. If the Government fails to act, then we will should the outcome of the next election put us in a position to do so.

Cllr Justin Tomlinson & Robert Buckland

North & South Swindon Conservative Parliamentary Spokesmen

Swindon