Pensions scare
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THE FUTURE of 65,000 National Bus Company staff, widows and pensioners is now under threat because of a Government refusal to guarantee their pensions, Shadow Transport Secretary Gwyneth Dunwoody has claimed.
Mrs Dunwoody told the Transport Bill committee that it was "unprecedented" for the Government to refuse to give any protection against cuts in pensions following the privatisation of NBC.
She accused Junior Transport Minister David Mitchell of dashing hopes of maintaining the two existing pensions funds.
In previous privatisation plans, pensions were protected in one form or another, but it appeared to be different in NBC's case. "It may be that NBC pensioners have been earmarked to be the Treasury price for supporting the privatisation plans," she commented.
But Mr Mitchell told the Committee that amendments to guarantee the position were unnecessary.
Future arrangements would in any case be a matter between NBC and potential purchasers and the Government would need to ensure that the interests of staff were fully taken into account.
On the question of accrued pensions, Mr Mitchell said that the rights of pensioners and employees were protected by the rules of the two pensions funds.
Nothing in the Transport Bill would diminish those assets, which, according to the actuaries, were slightly underfunded.
But when NBC was sold off, it would top up the funds to cover all the liabilities or accrued benefits to those who had contributed. The sum paid in would be based on the Government actuaries evaluation.
He pointed out that it would be very strange if the NBC disposal programme contained nothing of a major issue such as pensions.
Although the Government was resisting amendments, Mr Mitchell said he was not suggesting that moral obligations should not be honoured. "Nor am I suggesting that people who have contributed to pension funds should suddenly find that they are entitlted to less than they had thought."
One option open was to close the funds to new entrants, or else keep them open so that successor companies could participate in them, but it was too early to say which option would be the most appropriate.