Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

City: Time to talk

Jeremy Warner
Saturday 08 May 1993 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

HEADS desperately need to be knocked together over the Maxwell pensions debacle. A solution is in sight but nobody in government or anywhere else seems to have the wherewithal or power to make it happen. Pensioners recently wrote to MPs claiming that just pounds 55m - far less than orginally thought - is required to ensure that all entitlements are paid. If that is true then it's ludicrous that the present situation, with liquidators, administrators and the City pitched against each other in increasingly costly and acrimonious litigation, should be allowed to continue.

Most of the banks and other financial institutions that hold stolen Maxwell pension fund assets as security against loans agree that provided liquidators drop all legal claims against them, it should easily be possible to make up the pounds 55m shortfall voluntarily. Some of these assets have appreciated substantially in value since the Maxwell collapse.

For a great number of people, this would seem a highly unsatisfactory solution. It would mean, in effect, that the City has got away with it and that banks would remain largely free to keep assets that rightfully belong to pensioners. Furthermore, it is the duty of liquidators to recover every penny they can. But as things stand, there is a real danger they will fritter everything away in the process. Pensioners may have the moral high ground over entitlement to the assets, but bankers seem to have the better legal position. You can argue the toss until the cows come home, and the only people who gain from it are the lawyers.

Not that the voluntary solution is going to be easy. With both sides so entrenched and so many different and conflicting interests to resolve among those that hold the assets, it is going to be a nightmare of legal and logistical complexity. Sir John Cuckney, appointed last year as the Government's trouble-shooter in the affair, is not the man to do it. He does not have the powers. What is needed is a senior judge or QC backed by all the authority the Government can give him. Above all, some sort of summit needs to be convened - a summit, moreover, not merely for the purpose of debating the issues but to last as long as it takes to reach a settlement.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in