Rupert Jones in The Guardian 10th Jan, 2008

http://www.guardian.co.uk/business/2008/jan/10/eu.economy

“EU pressure on Brown over Equitable row.
Gordon Brown has been chided by the president of the European parliament?over the British government's failure to respond to a highly critical?report demanding compensation for Equitable Life policyholders.???

It emerged today that Hans-Gert Poettering wrote personally to the prime?minister to express his concern about the lack of a formal response to the?European parliament report, which received the backing of an overwhelming?majority of MEPs in June last year.???

Campaigners said Brown risks a fresh row with his European counterparts?because it is understood that Poettering is still awaiting a reply to his?letter, even though it was sent on December 5 and concluded: "I look?forward to hearing from you as soon as possible." The letter was passed to?the Treasury, which intends to respond to it during the next few days.???Equitable Life shut its doors to new customers in 2000 and later repeatedly?slashed the value of a million policyholders' investments after it lost a?legal battle involving guaranteed annuity rates, sold as part of pension?plans.???In 2006, the European parliament launched a formal investigation into the?British government's role in what went wrong.

A committee of inquiry?produced a report which called on Britain to set up a compensation scheme?for policyholders who lost money, and contained recommendations aimed at?ensuring that such a scandal could never happen again. MEPs voted by 602 to?13 to approve the report.???But campaigners have been frustrated by the government's refusal to issue a?response, and Poettering wrote to the prime minister to say that the report?"requires explicitly the government of the United Kingdom and the?regulatory and supervisory bodies ... to ensure that the conclusion and?recommendations of the inquiry are acted upon."???He added: "I understand, however, that the European parliament has, as yet,?received no response to this request and that your government has stated in?the press that it will await the outcome of a separate national?[parliamentary] ombudsman procedure before responding ...

Given the date by?which the ombudsman is scheduled to report, the parliament finds itself?faced with the prospect of having to wait more than a year between its?resolution and any formal response from the government most concerned by?it.???"I would like to ask you to look into this issue and act in a way which?will ensure that the authority of the parliament and of its right of?inquiry enshrined in the EC Treaty do not risk being prejudiced by the?lasting lack of a formal response by the British government."???

UK MEP Diana Wallis said it was "immoral and illegal" for the government to?leave so many Equitable policyholders without a remedy, while the Equitable?Members Action Group claimed ministers had shown "flagrant contempt".

The Treasury said it was unable to say very much until the completion of the?parliamentary ombudsman's report into the debacle, due later this year.