Moore Disappointed at Equitable Life Defeat

3.48.00pm BST (GMT +0100) Thu 22nd Oct 2009

Borders MP Michael Moore has expressed his anger after a Liberal Democrat motion that called on Ministers to provide compensation to Equitable Life policyholders was defeated by the Government on Wednesday.

The motion, which was defeated by 25 votes, called for Ministers to act on the findings of the unprecedented second report from the Parliamentary Ombudsman into Equitable Life and establish a scheme to compensate those who lost money as a result of Government maladministration.Michael Moore MP: Borders

640 individuals in Mr Moore’s parliamentary constituency of Berwickshire, Roxburgh and Selkirk lost their savings as a result of the collapse of Equitable Life.

Commenting after the debate, Mr Moore said:

‘Given that more than 100 Government MPs had signed a motion expressing support for the measures proposed by the Liberal Democrats before they were debated, it is more than disappointing that so many then chose to put party loyalties ahead of the interests of their constituents when the time came to vote yesterday.

‘The Ombudsman found clear evidence of regulatory failure during her investigation into Equitable Life. The Government must stop ducking this issue, and quickly rectify their failure to compensate the thousands of people who have suffered as a result of maladministration.

‘Policy-holders should not have to wait any longer’.

Notes:

The full text of the defeated Liberal Democrat motion is as follows:

‘That this House notes the Parliamentary Ombudsman has taken the unusual step of using powers under the 1967 Act to present Parliament with a further and final report on Equitable Life; also notes that the Public Administration Select Committee’s Sixth Report, Justice denied? The Government’s response to the Ombudsman’s report on Equitable Life, concluded that the Government response to the Parliamentary Ombudsman’s report was inadequate as a remedy for injustice; recognises the vital role the Ombudsman plays in public life; reaffirms the duty of Parliament to support the office of the Ombudsman; believes the Government should accept the recommendations of the Ombudsman on compensating policyholders who have suffered loss; notes the outcome of the Judicial Review announced on 15th October extending the period for compensation claims back to 1991; welcomes the formation of the All-Party Group on Justice for Equitable Life Policyholders; and notes with regret its necessary formation and the fact that over 30,000 people have already died waiting for a just resolution to this saga.’