| The beginning of the end for private pensions was on | | | | market so probably quite a lot of the stock market fall |
| 17th March 1998. | | | | is attributable to Brown. |
| This was the date that Gordon Brown had his first full | | | | This ruination of our Pension Funds is very tragic not |
| budget as Chancellor. | | | | just for those who in later life will find that their |
| He entitled his speech New Ambitions for Britain but he | | | | pensions are much reduced or those who are now |
| made some rather dramatic changes which have | | | | claiming these much reduced pensions. Pension funds |
| come back to haunt him and will do so I have no doubt | | | | used to be reliable long term investors and ones who |
| for the rest of his life. | | | | would invest in floatations and new businesses such |
| I would rename that day as the "The day I plundered | | | | as start ups. |
| the pension of the ordinary working man" because that | | | | There was a time before Browns meddling where the |
| it is exactly what Gordon Brown did. | | | | pension funds were long term investors in British |
| At a stroke he eliminated the ability of pension funds to | | | | Industry and would take a long term view in their |
| reclaim Advance Corporation Tax on their dividend | | | | investing and with that comes safety, security and |
| income. | | | | prudence. |
| Gordon Brown did not only set in place a dramatic fall | | | | In the House of Commons recently when David |
| in the income and thereby the value of pension funds | | | | Cameron challenged Gordon Brown in Prime Minister's |
| he also helped lay the foundations of the fall in the UK | | | | Question time, Gordon Brown denied, yet again, that he |
| stock market through out 2001,2002 and 2003. | | | | had any part in the decline of private pensions in Britain. |
| His actions of hitting the tax credit and therefore | | | | He pointed out that the pension industry as a whole |
| reducing the income of the pension funds also made it | | | | was in surplus before the stock market fall and you |
| more difficult for them to stay solvent and his actions | | | | can not blame him for any deficit. |
| undoubtedly did not help the collapse of the ill fated | | | | He makes very little sense and yet again he refuses |
| Equitable Life. | | | | to take one jot of responsibility for his own actions. |
| But the results of his actions go further than this as | | | | Documents released on 30th March 2007 under the |
| many with profit pension funds such as NPI (National | | | | Freedom of Information Act from Her Majesty's |
| Provident Institution) came out of the equity market | | | | Treasury show that Internal Treasury forecasts, |
| completely. So once you have various big players | | | | advised that the changes would "cause a shortfall in |
| coming out of the market never ever to return are | | | | existing assets of up to £75 billion" and that |
| you then surprised that the Stock Market went down. | | | | "employers would have to contribute about an extra |
| Whilst NPI were under pressure to safeguard their | | | | £10 billion a year for the next 10 to 15 years to get |
| policy holders in the long term this decision is a disaster | | | | pension scheme funding back on track". The |
| for people with pension funds with NPI. | | | | documents that were sent to the Chancellor before he |
| NPI has been taken over by the Pearl and I quote | | | | did away with the dividend tax credit in 1997 also |
| from one of their recent publications. "Since 2000 | | | | advised that the worst effected victims would be the |
| investment returns have been poor and as a result | | | | poorest members of society. |
| asset share values have been reduced. As a result of | | | | This is the man who cannot see a speck of saw dust |
| the significant falls in the stock market from 2000 | | | | in his eye but he sure can see a 6 foot plank in every |
| through to 2003, National Provident Life Ltd sold almost | | | | body else's. So as he says it can not be his fault as it |
| all of its equity investments in order to safeguard their | | | | is the markets fault but what he forgets or perhaps |
| ability to pay the guaranteed amounts promised on | | | | does not know is that the pension industry has,in the |
| policies. Since that time, the fund has mostly invested in | | | | past,survived much harder stock exchange crashes. |
| fixed interest investments". | | | | I think that what he knows about pensions can be |
| The point of all this is that funds grow by reinvesting | | | | printed on the back of a postage stamp or a pin head. |
| the dividend income and Gordon Brown reduced that | | | | Plainly he is a total financial disaster who blusters his |
| income in 1998 by a very large amount. | | | | way in an argument but you can not fool all of the |
| If he had not done so all the pension finds would have | | | | people all of the time and this is I think is one of his |
| been in a much stronger position. Indeed they would | | | | greatest mistakes that will haunt him for the rest of his |
| have had far more funds to invest in the equity stock | | | | life. |