| Previous Section | Index | Home Page |
Annuities
14. Ms Gisela Stuart (Birmingham, Edgbaston): What plans he has to abolish the vesting requirements on annuities. [73051]
The Minister of State, Department of Social Security (Mr. Stephen Timms): There are no such plans. The Inland Revenue rules require that personal pension and money purchase occupational pension funds must be used to buy an annuity at retirement. The exception is when a personal pension fund is used for income draw-down whereby income is drawn directly from the fund. Although that means that annuity purchase is deferred, an annuity must be purchased by the age of 75.
Ms Stuart: I thank my hon. Friend for that answer. However, annuity rates are at a historical low. The Government should be congratulated on their economic policies, which have brought an end to the boom and bust of the Tory years, but those policies will ensure a continued climate of low returns--although current pensioners should not be discouraged from taking
annuities. Is there a case for examining whether the age for vesting in annuities should be extended beyond75, or for reconsidering easing the draw-down facilities and making the process easier for those over 75?
Mr. Timms: I recognise that many people have been disappointed by the fall in annuity rates, but they have enjoyed the benefits of substantial stock market growth so their funds are bigger than might once have been expected. My hon. Friend is right to draw attention to the Government's success in managing the economy and that can be expected to continue. Inflation is lower and stable so that annuities keep their value better. My hon. Friend is an acknowledged expert on these matters and I am always interested in her ideas, but I cannot see a practical alternative to the present framework. Life offices which provide annuities have a good record of reliability, which is an important point in favour of the existing system.
Mr. Howard Flight (Arundel and South Downs): Will the Minister accept that there is widespread pressure to abolish the obligation to buy an annuity at 75? In addition, will he accept that profits-linked annuities suffer from rules that discourage their usage? Given the enormous increase in the volume of money purchase pensions required, will the Government consider both the ability of the annuity industry to cope and the possibility of increasing the opportunities for draw-downs?
Mr. Timms: It is an important principle that since pensions savings are tax free, they must eventually be converted into an income stream so that tax may be paid on them. Of course, we always keep these matters under review, but, as I said to my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart), the present system is the only practical one available.
Countryside (Access)
3.31 pm
The Minister for the Environment (Mr. Michael Meacher): With permission, Madam Speaker, I should like to make a statement.
In our manifesto, we gave a commitment to give people greater freedom to explore our open countryside, balanced by the needs to protect the environment and to avoid any abuse of greater access. I am pleased to announce to the House today the Government's plan for England and Wales to honour our commitment. A number of documents, including "Framework for Action", will be available in the Vote Office when I have completed the statement.
Securing greater access to open countryside will bring tremendous benefits, and new opportunities for improving people's health--physical and mental. It will enable everybody to experience the wonders of wildlife and beautiful landscapes.
Over the past 50 years, a voluntary approach has delivered relatively little. Despite some commendable initiatives, there is little prospect of much new access being provided voluntarily in future. Even if much more access could be secured by voluntary means, it would not be permanent and the costs would be high. Only a new statutory right will deliver cost-effectively the extent and permanence of access that we seek.
There has been much ill-informed speculation that the Government would not introduce a statutory right of access. I can confirm that we have decided to introduce legislation as soon as parliamentary time allows to provide for a general statutory right of area access coupled with responsibilities for walkers to respect the rights of landowners and managers.
The legislation will include improvements to the rights of way system. The comprehensive package will provide fresh opportunities for walking and other recreational pursuits, while taking the legitimate interests of land managers fully into account.
The new statutory right of access will apply to mountain, moor, heath and down, subject to mapping by the new Countryside Agency and the Countryside Council for Wales, and to registered common land. That amounts to about 4 million acres. The right may be extended to other types of open country, such as some woodland. It will apply to access on foot for open-air recreation.
The Government studied more than 2,000 responses to our consultation document. We talked to a range of organisations, visited key sites and commissioned research into the costs and benefits of different approaches. We are convinced that legislation is the only way to make sure that people will be free in perpetuity to explore open countryside.
However, we accept that there are real concerns about the impact of a new statutory right. Therefore, the statutory right will be subject to proper and reasonable limitations, and there will be codes of practice. It will not apply to developed land, or to agricultural land, except that used for extensive grazing. There is no question of giving people a right to trample over crops, or through other people's gardens. There will be strict restrictions on dogs.
Land may be closed when necessary for health, safety or defence reasons. In addition, the new Countryside Agency, the Countryside Council for Wales and national park authorities will be able to authorise closures or restrictions to protect wildlife or historic interest, or for land management reasons, as long as the landowner can demonstrate that the restriction is necessary.
We attach considerable importance to local agreement being reached whenever possible, and we shall promote local access forums, with all the main interests represented, to advise on the details of any local limitations before the right comes into force. The aim of the forum will be to achieve consensus, but no member of the forum will have a final veto. The forums will be advisory; the decisions will be for the statutory agencies.
In addition, land managers will be able to close land temporarily without prior consent for a number of days each year. We propose to set the annual limit initially at 28 days, primarily for land management purposes, although landowners will also be able to close land for other reasons for up to 12 of the 28 days. If necessary, provision will be made to ensure that access is not restricted unreasonably at peak times.
Let me now deal with rights of way. We want to strengthen and develop the rights of way network to enable it to respond to the changing requirements of recreational use and the needs of land managers. Before concluding the detail of new legislation, we shall consider recommendations from the Countryside Commission and seek further views. There is no question of failing to secure the proper recording and maintenance of rights of way, or of reducing the overall value of the rights of way network.
Experience in Scotland and in Wales has shown that much consensus can also be achieved at national level. Therefore, we propose to ask the Countryside Agency to establish a national access forum in England. In Wales, the Countryside Council for Wales will be asked to consider how best to develop the existing informal arrangements.
It will be clear from my statement so far that the new Countryside Agency will play an important role in implementing the new statutory right, as well as in promoting sustainable rural development and protecting our finest landscapes. I can announce today that Ewen Cameron has been appointed to chair the agency: he has made it clear that he enthusiastically supports the Government's access proposals. We have also appointed Pamela Warhurst, who is currently leader of Calderdale council, as deputy chair. She will play a leading role in the agency's implementation of the access package.
Although there will be some extra costs for local authorities and statutory agencies, for which we shall make provision, we do not expect our legislative proposals to have major financial consequences. Nevertheless, the benefits of the basic statutory right and of the rights of way network will be much enhanced by further expenditure on, for example, the provision of additional routes and readily available information.
| Next Section
| Index | Home Page |