Letter: Pension fund concern

Sir: In her article 'Set up as a soft target' (11 May) Clare Dobie does less than justice to the response of the National Association of Pension Funds (NAPF) to the recent budget change to the way dividends are taxed.

Not only did we write personally to Norman Lamont and Peter Lilley - as well as to 60 MPs - before the second reading of the Finance Bill (as a result of which the issues were raised during the debate in the House). We also decided to mount an intensive lobbying campaign throughout the committee stage of the Bill and to make detailed budget submissions in advance of the Autumn Budget further emphasising our concerns about the reduction in tax credits for pension funds.

We have made it abundantly clear, and will continue to do so, that any reduction would reduce the attractiveness of UK equities for pension funds, undermine their

financial position and prejudice their ability to provide adequate pensions.

Yours faithfully,

RON AMY

Chairman

The National Associaton of

Pension Funds

London, SW1

13 May