CBI on OAPs
Sir: Following the rhetoric in your editorial 'Mr Fowler weakens' (26 October) there is a need to set the record straight.
In our response to the Green Paper proposals on pensions we stressed that our members shared the Government's con- cern about the prospective cost of state pensions in the next century, and the need to avoid pension promises that in the event might prove unsustainable. Our members also agree that the advance funding of pensions and a greater personal stake in industry should be encouraged. As Mr Tony Newton, Minister of State for Social Security and Disabled, emphasised in his speech to our Pensions Conference on 17 October, there is much common ground shared by the CBI and the Government regarding pension reforms. But as he admitted there are also differences.
CBI members believe that the Green Paper proposals would cause great damage in terms of increased business costs and loss of competitiveness, inadequate pen- sion provision and instability. They believe that there is a much better way to achieve the objectives that they share with govern- ment, without this damage. Modifying detailed Serps rules would effectively con- tain the cost of state pensions. In addition, simplifying contracting-out arrangements and relaxing Inland Revenue rules would encourage more private pension funds and increased personal pensions.
These recommendations are some of the positive and constructive suggestions that the CBI has put forward for public discus- sion. We are pleased that the Government is considering such approaches and believe that they can meet the aim of the Green Paper which was to establish the best way ahead.
Terence Beckett
Director-General, Confederation of British Industry, Centre Point, 103 New Oxford Street, London WC1
Previous page
