4-11-03

Government must avoid Equitable cover-up – Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, today warned the Government against censoring parts of the report into the mismanagement of Equitable Life.

Speaking during a parliamentary debate, Mr Barrett warned the Government that removing parts of the upcoming report of the Penrose Inquiry on grounds of 'commercial confidentiality' could damage rather than save the Government's reputation.

In a statement, John Barrett said:

"The decision of the Parliamentary Ombudsman not to award compensation to Equitable policyholders was a major disappointment.  It seems clear to me that during the mismanagement of Equitable Life, the Government was at best negligent and at worst, reckless.

"The hopes of tens of thousands of policyholders are now pinned on the inquiry of Lord Penrose, whose report is expected to be critical of the Department for Trade & Industry as well as the Treasury.  The Government would be ill judged to blank out any parts of the report for so called commercial confidentiality. The anger of policyholders now will be nothing compared to their emotions if there are any signs of a Government cover up.

"In the longer term, the shear number of investigations undertaken into Equitable Life should show to the Government the need for real reform over how financial services complaints are made and dealt with."

ENDS