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| Version 2 | Version 3 |
|---|---|
| Harman warning on Goodwin pension | Harman warning on Goodwin pension |
| (about 1 hour later) | |
| Harriet Harman has said former Royal Bank of Scotland (RBS) chief Sir Fred Goodwin should not "count on" keeping his full £650,000 a year pension. | Harriet Harman has said former Royal Bank of Scotland (RBS) chief Sir Fred Goodwin should not "count on" keeping his full £650,000 a year pension. |
| The deputy Labour leader described the pension settlement - agreed by the RBS board - as "money for nothing". | The deputy Labour leader described the pension settlement - agreed by the RBS board - as "money for nothing". |
| The sum was unacceptable in "the court of public opinion," she told the BBC, and the government "would step in". | The sum was unacceptable in "the court of public opinion," she told the BBC, and the government "would step in". |
| All three political parties have attacked the pension payment after RBS made a record loss of £24bn. | All three political parties have attacked the pension payment after RBS made a record loss of £24bn. |
| The former RBS chief executive has refused to give up some of the money - worth a total of £16m - voluntarily, despite pressure from Gordon Brown, saying the pension package was approved by ministers in October before he left the bank. | The former RBS chief executive has refused to give up some of the money - worth a total of £16m - voluntarily, despite pressure from Gordon Brown, saying the pension package was approved by ministers in October before he left the bank. |
| It is not enforceable in the court of public opinion and that that is where the government steps in Harriet Harman | It is not enforceable in the court of public opinion and that that is where the government steps in Harriet Harman |
| Ms Harman said Sir Fred, 50, should agree to waive some of the cash, saying this was the most "honourable" thing to do. | Ms Harman said Sir Fred, 50, should agree to waive some of the cash, saying this was the most "honourable" thing to do. |
| "Sir Fred Goodwin should not count on being £650,000 a year better off because it is not going to happen," she told BBC One's Andrew Marr show. | "Sir Fred Goodwin should not count on being £650,000 a year better off because it is not going to happen," she told BBC One's Andrew Marr show. |
| Ministers have said they would be prepared to take legal action and other unspecified measures to recover some of the money, saying the pay-out is inconsistent with the disastrous state that Sir Fred left the bank in. | |
| 'Not acceptable' | 'Not acceptable' |
| Ms Harman declined to say how the government would achieve this but made it clear it would not tolerate the award as it stands. | |
| "The prime minister has said that it is not acceptable and therefore it will not be accepted," she added. | "The prime minister has said that it is not acceptable and therefore it will not be accepted," she added. |
| "And it might be enforceable in a court of law, this contract, but it is not enforceable in the court of public opinion and that is where the government steps in." | "And it might be enforceable in a court of law, this contract, but it is not enforceable in the court of public opinion and that is where the government steps in." |
| Her comments followed a similar warning from Business Secretary Lord Mandelson who said Sir Fred was "personally responsible" for bringing RBS to the brink of collapse and did not deserve such rewards after such a "terrible misjudgement". | Her comments followed a similar warning from Business Secretary Lord Mandelson who said Sir Fred was "personally responsible" for bringing RBS to the brink of collapse and did not deserve such rewards after such a "terrible misjudgement". |
| In a letter published on Thursday, Sir Fred argued that Treasury Minister Lord Myners had approved the pension payment after the banker had made other "financial gestures" such as waiving the right to severance pay and some share options. | In a letter published on Thursday, Sir Fred argued that Treasury Minister Lord Myners had approved the pension payment after the banker had made other "financial gestures" such as waiving the right to severance pay and some share options. |
| But Lord Myners said he had not realised at the time that the pension agreement was not contractually binding on the RBS board and could later be altered. | But Lord Myners said he had not realised at the time that the pension agreement was not contractually binding on the RBS board and could later be altered. |
| Ministers also question why Sir Fred should be taking his full pension when he is currently only 50. | Ministers also question why Sir Fred should be taking his full pension when he is currently only 50. |
| "I can't see how it is a pension because he is not retired," Ms Harman said. "It is money for nothing. It is a severance payment." | "I can't see how it is a pension because he is not retired," Ms Harman said. "It is money for nothing. It is a severance payment." |
| 'Incompetence' | 'Incompetence' |
| The Conservatives have described the pension settlement as "obscene" and said the government's handling of the issue raised huge issues about its competence. | The Conservatives have described the pension settlement as "obscene" and said the government's handling of the issue raised huge issues about its competence. |
| If our ministers are competent, how on earth did they ever get themselves into this mess? Chris Grayling,shadow home secretary | If our ministers are competent, how on earth did they ever get themselves into this mess? Chris Grayling,shadow home secretary |
| "The government did this deal last October," shadow home secretary Chris Grayling told Sky News. | "The government did this deal last October," shadow home secretary Chris Grayling told Sky News. |
| "The government appears to have known what was happening. It is now turning round beating its breast saying, deary me, Fred Goodwin has ended up with a pension bigger than we wanted. | "The government appears to have known what was happening. It is now turning round beating its breast saying, deary me, Fred Goodwin has ended up with a pension bigger than we wanted. |
| "Actually if our ministers are competent, how on earth did they ever get themselves into this mess?" | "Actually if our ministers are competent, how on earth did they ever get themselves into this mess?" |
| The Lib Dems have urged the government to step in to block the pension deal. | The Lib Dems have urged the government to step in to block the pension deal. |
| The government pumped billions into RBS in October to keep it afloat and currently owns a stake of more than 70% in the bank. | The government pumped billions into RBS in October to keep it afloat and currently owns a stake of more than 70% in the bank. |
| RBS has warned that it will have to cut thousands of jobs in the next few years. | RBS has warned that it will have to cut thousands of jobs in the next few years. |