EQUITABLE LIFE RESPONSE IS SHAMEFULLY OVERDUE - ÖPIK

4.53.38pm GMT Thu 15th Jan 2009

Lembit Öpik, Liberal Democrat MP for Montgomeryshire, today welcomed the statement from the Minister for the Treasury in response to the Ombudsman's report published in July 2008 on the collapse of Equitable Life.

The Government will be setting up a scheme to make ex-gratia payments to those who have been disproportionately affected. It is not yet clear who will benefit from this compensation scheme.

Commenting on the decision, Lembit said:

"I have been contacted by a number of Montgomeryshire residents who have been adversely affected by the collapse of Equitable Life in 2000. This statement has been a long time coming and it is shameful that the Government has erred from allowing a debate on this issue.

"Around 30,000 Equitable Life policyholders have died since the events of 2000 having not seen justice - including individuals in Montgomeryshire. This only serves to highlight the shameful delay of the Government's consideration of these issues.

"While happy to bail out failing banks, the Government seems reluctant to compensate policyholders for failures made by the DTI, the Government Actuary and the FSA. This just doesn't seem consistent.

"I urge the Government to expedite the creation of this compensation scheme, which remains very much rough around the edges, and I will continue to monitor its implementation."