MacGregor guarantees BR pension fund is safe

WORRIED PENSIONERS were given a 'cast-iron' guarantee yesterday by John MacGregor, the Secretary of State for Transport, that the pounds 8bn British Rail pension fund would not be raided by the Treasury as part of the semi-privatisation of the railways.

John Prescott, Labour's transport spokesman, cast doubt on the assurance, saying: 'It is either a major U-turn by the Government or a deception of the worst kind.' But a Government source said it was 'a cast-iron guarantee'.

Mr MacGregor was given police protection in Swindon on Friday because of the anger among BR pensioners over the alleged threat to the fund. But he assured MPs yesterday: 'I can give a complete assurance in no way would we countenance the BR pension fund being used for purposes other than paying BR pensions.'

There had been fears that half of the pension fund would be taken by the Treasury, along with money from the pension funds of other privatised utilities, including some of the pounds 8bn in the Post Office fund and part of the pounds 12bn in British Coal's fund.

Mr MacGregor called on Mr Prescott to join with him in 'trying to stop these mischievous scare stories . . . which I met at Swindon on Friday. It is totally unfair on the pensioners and I hope it will now stop'.

Mr Prescott, who warned it could become the 'greatest rail robbery of all time', said later he would be pressing a Labour amendment to underpin the protection of the pension fund. It will be debated on 23 March, during the Committee Stage of the Bill to allow BR services to allow private companies to run passenger services on franchises and to sell off the freight business.

The pension groups for the other utilities now facing privatisation will be seeking similar guarantees. Mr Prescott met Post Office pensioners last night at the Commons.