MPs hit out over Eq Life while Chadwick in Caribbean

MPs today accused the Government of seeking to delay paying compensation to victims of Equitable Life's near collapse.

During a debate in Westminister today, MPs suggested Sir John Chadwick was a poor choice to devise a compensation scheme, due to severe constraints upon his time.

Chadwick is currently honouring a commitment as president of the Court of Appeal of the Cayman Islands.

In its response to Parliamentary Ombudsman Ann Abraham's report on the Equitable Life scandal, the Government said it would create a compensation scheme to help only those worst affected by the loss of their pension fund.

Sir John Chadwick was selected to design a scheme to test eligibility, but recent reports suggest he has barely begun the work, having only met with the Equitable Life board for one hour since the Government announced the scheme in January.

Conservative MP David Davis says the Government is not putting enough pressure on Chadwick to bring the issue to a conclusion.

Daniel Kawczynski MP, co-chairman of the All Party Parliamentary Group for Justice for Equitable Life Policy Holders, shares Davis's concerns.

"Sir John Chadwick has many other tasks before him, in his role as a high court judge," he says.

"I would like to know what support and resources the Government is providing him with, and wonder why they would select someone with so many constraints on their time to complete such an urgent task."

Treasury Minister, Ian Pearson, says most of Chadwick's appointments do not place major constraints on his time, and is confident he is making good progress in designing the scheme. The Government has refused to commit to paying out compensation within 36 months.

John.Bakie@incisivemedia.com