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Lib Dems Slam Labours Reckless Pension Plans
March 14, 2006 4:38 PM
The Islington Labour Party caused outrage recently when they proposed raiding the council pension fund to pay for improvements to leaseholders homes.
Lib Dem Council Leader Steve Hitchins has contacted Dave Prentis, General Secretary of Unison to consult him about Labours proposals.
Councils have a responsibility to invest their pension schemes in the most profitable and stable way possible. This requires it to be spread over many types of investment. Labours proposals are considered to be a return to the bad old days of financial irresponsibility that had left the pension fund languishing at a dangerous low.
Steve said
"While the Lib Dems have been putting forward serious proposals to help leaseholders, we are deeply concerned that these plans are irresponsible and playing fast and loose with the pension fund.
"We have succeeded in rebuilding the pension fund after it was left in a mess by the old Labour administration. They are trying to score political points by endangering people's futures."
Ends
Notes to editors
The letter reads as follows.
Dear Dave Prentis
I want to consult you on a matter that could have national policy implications for local authorities across the country. Many Right to Buy leaseholders are incurring larger bills for repair work than they ever envisaged possible and this is caused by the very welcome public investment in social housing. Leaseholders have been complaining about the high costs which they have to pay personally. After writing to the Deputy Prime Minister Islington Council has developed a number of palliative measures to help leaseholders.
As you know we are required by law to charge leaseholders for these works, and could only cap these charges by subsidising them from the rent paid by tenants, which we do not believe would be fair.
The proposals have been called in by the opposition Labour group. One of their alternative proposals involves the council's pension fund and because this is such an important issue I would like your views on the proposal.
The minority Labour Group have suggested that "we actively investigate the possibility of the purchase of part shares of leasehold properties by the council's Pension Fund."
This was discussed by the council on the 7th March and turned down. However the opposition group has urged us to carry out further investigation into using the pension fund in this way.
As General Secretary of Unison I would appreciate your views on this.
Yours sincerely
Councillor Steve Hitchins
Leader Islington Council
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