Brown Cannot Duck Responsibility Over Equitable Life Losers

1.45.30pm GMT Tue 24th Feb 2004

Liberal Democrat Shadow Chancellor Dr. Vincent Cable today urged the Government to publish the long-awaited report investigating the collapse of Equitable Life in full.

The report by Lord Penrose, commissioned over two years ago, was given to the Treasury before Christmas but is expected to be published this week, over two months after those criticised were given a preview. Equitable Life policy-holders, roughly 900,000 in total, have made significant losses over and above those following from falls in the stock market. If the Penrose report now shows a clear failure in the Government's regulation of Equitable Life, Gordon Brown must refer the matter to the Ombudsman or back to Lord Penrose to recommend compensation.

Dr Cable said: "There will be strong pressures from policy holders for compensation."

"The failure of Equitable Life is important not only for policy holders. More widely investor confidence has been dented and the Government's role as regulator is tarnished. That is why the government has to be totally frank in publishing the conclusions."

"A key issue, if serious negligence is involved, there will be demands for compensation from the policy holders. Gordon Brow when in opposition was militant in demanding compensation for victims of regulatory failure in the past as with BCCI and earlier Barlow Clowes."

"If serious negligence is involved is for there must be a proper process for looking at the compensation issue either through a further Ombudsman's reference and/or a short follow up report by Penrose."