Why the bosses must pay for failed Carillion
I WORK for Carillion — or at least the remains of it — and feel disheartened about what has happened because as the Government’s own phrase goes, I and many others ‘did the right thing’. I’ve never claimed a penny from the state in almost 40 years at work and I’ve saved into various pensions, many of which will now be reduced in value. No one should be expected to lose a penny due to the incompetence of company directors. Each time a firm goes bust and a hole is discovered in the pension fund, we are told: ‘There will be an inquiry.’ Regulators are seemingly useless and the so-called gold-plated element of final salary pensions is a myth. This time, the state-owned British Business Bank will step in, which seems to mean millions of taxpayers like me will pick up the tab. The perpetrators, always motivated by greed, should be made to surrender all wealth derived from the failed company, lose any titles they have been granted and be put on minimum wage. I would also suggest community payback, with no prospect of a return to their previous status. However, it seems there is no stigma or disgrace associated with their actions. Mrs May in her inaugural speech outside No 10 pledged to put fairness and opportunity at the heart of everything, but has this been honoured? If she is ousted, like David Cameron, she’ll disappear to continue her life of privilege and leave the rest of us to deal with the aftermath. It will then be left for the next batch of fools to take charge. On it all goes, at the expense of others.
MICHAEL FELL, Shirley, W. Mids. CITY editor Ruth Sutherland hit the nail on the head about private sector pensions (Mail). However, one important fact was missing. In 1997, Gordon Brown stopped the tax relief such funds received on dividend payments from their investments. This has netted the government £5 billion a year since — £100 billion effectively taken out of private sector funds, which far outweighs the reported £17 billion shortfall. In the early Nineties, pension funds took contribution holidays, but after tax relief was stopped, actuarial valuations declared private sector funds did not have enough money to meet their liabilities. Private pensions started to be shut. The collapse in this sector has been created by government and Bank of England policy — no one else.
KEITH JACQUES, Derrington, Staffs.