6. Member Debate under Standing Order 11.21(iv): Allied Steel and Wire Pensions

Part of the debate – in the Senedd at 4:18 pm on 23 January 2019.

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Photo of David Lloyd David Lloyd Plaid Cymru 4:18, 23 January 2019

It's a pleasure to take part in this debate, although I wish this debate wasn't necessary. Some of us have been Members of this National Assembly for a very long time—since day one, in fact—as was my former Plaid Cymru colleague Owen John Thomas, who was strident in his support for the Allied Steel and Wire pension campaigners all along.

In 2003—that's 16 years ago—Plaid Cymru secured a minority party debate in Tŷ Hywel— remember; we were in the old building then—on the scandal of what had happened to pensions of Allied Steel and Wire. He said, in that debate:

'This is a perfect opportunity for this Labour Government to demonstrate its determination to give workers a fair deal. It was Tory legislation, introduced by Margaret Thatcher, that caused this mess by introducing rules that allow companies to pay off all other creditors before honouring their pension commitments when the company was wound up.'

That was a long time ago and we're still here. The Government-backed pension security scheme was a significant achievement at the time, and this legislation was apparently a progressive change by a Labour Government. It has not turned out that way, and, for years, the Blair and Brown Governments did absolutely nothing to correct the injustices faced by those in the financial assistance scheme. In fact, Baroness Ros Altmann left the Labour Party because of this issue in 2007, which she called 'a scandal'. There was only marginal improvement in the financial assistance scheme after the Government at the time was taken to court, after appealing after being found guilty by the ombudsman of misleading pensioners. The previous Labour Government's treatment of pensioners was not a strong mark of credit for them. The campaign for plain English slammed the Government at the time for its duplicity. The Conservatives came to power in 2010 with the expectation that they would correct the problems in the law when the financial assistance scheme was set up. In fact, they did nothing but offer sympathy. They appointed Baroness Altmann to be a pensions Minister, but would not provide restitution to this campaign and others in the financial assistance scheme. The worrying thing is that this current UK Government has not done anything to ensure the long-term health of private pensions. 

The Allied Steel and Wire campaigners are not demanding extras; they simply want fairness. They want their pre-1997 contributions inflation-proofed. They want those in the financial assistance scheme to be treated with the same level of fairness and protection as those in the pension protection fund, and a removal of payment caps and restitution so that they can have what was taken from them returned. As others have said—. We've had some pretty powerful contributions this afternoon: Bethan, great in opening the debate; Andrew R.T. and Mick, tremendous. There are still powerful emotions out there about this, and, as Bethan said, quoting many down the years, a pension contribution is not a bonus at the end of work, it is a deferred part of someone's salary; to take it is theft.

Plaid Cymru's been fighting for justice for these workers and others for years, as we've heard. Those were the comments of Owen John Thomas in 2003. He was still at it in 2007, and I quote—in a debate then, Owen John, still around:

'The UK Government must make changes to the Financial Assistance Scheme so that former ASW workers receive what they would have been entitled to. There is a terrible injustice particularly for those who are under 50 but may have worked up to 35 years at the steelworks, but will miss out on any financial assistance.'

That was 12 years ago. That, in itself, was five years after this issue first arose, and Allied Steel and Wire, a huge factory, only a stone's throw from here—. What can we do about it? Diolch yn fawr.