Pensions Bill

Perhaps it would help if I start by explaining why we have included Clause 22, before tackling the substance of the amendments. This Bill provides for the establishment of the delivery authority with an initial remit that is focused on advising the Secretary of State on the operational and commercial implications of options and on the design of the commercial strategy. We made it clear in the White Paper that we intend to extend the remit of the delivery authority in a second Bill, subject to the will of Parliament, so that it can take responsibility for delivering the scheme of personal accounts. The White Paper also makes it clear that the live running of personal accounts will be managed by a separate body, the personal accounts board. However, we would not wish to pre-empt the will of Parliament by taking for granted its approval of a second pensions Bill. If the second Bill did not command the support of Parliament, we would of course no longer need a delivery authority, so it is sensible that we make provision for it to be wound up. The clause provides for that eventuality. Clause 22 provides the Secretary of State with the power to dissolve the authority if at any time, as the result of the abandonment or modification of any relevant proposals about personal accounts, it appears that it is no longer necessary for the authority to continue to exist. After 2008, if the delivery authority is no longer needed, the Secretary of State must provide for its dissolution. Taking the words of the noble Baroness, we would get rid of a quango if there was no longer any use for it. The clause should not be mistaken for a provision for the winding-up of the authority on completion of its work. It is merely a precautionary measure for use should the proposed second pensions Bill not receive Parliament’s support. The second Bill, which will extend the remit of the delivery authority so that it can deliver the scheme, will contain measures for the dissolution of the delivery authority on completion of its remit. Therefore, requiring the Secretary of State to wind up the delivery authority by 2013, as Amendment No. 134 suggests, is undesirable. Noble Lords will have the chance to scrutinise that further legislation at the appropriate time. The White Paper makes very clear our commitment to delivering personal accounts through a delivery authority, and we do not envisage needing to use this clause. It is included only as a precaution and out of respect for Parliament. I hope that that explanation will enable the noble Baroness to withdraw the amendment.