TRANSBUS SAFE BUT LITTLE COMFORT IN PENSION FUND

12.00.00am UTC (GMT +0000) Mon 24th May 2004

Sue Doughty has welcomed the news that Transbus, the former Dennis company in Guildford, has been bought by a consortium of Scottish investors. However she said:

"It is good news that a buyer has been found who understands the business. However the new owners are not taking on the final salary scheme which needs a £25m cash injection. This is devastating for employees who had been forced to join the scheme as a condition of employment and for others who joined later and contributed hard earned cash to make up for missing contributions."

Sue Doughty raised this issue in the House on Thursday during the debate on the government's Pension Bill. She said "Although the government has announced a fund to deal with final salary schemes which have collapsed it is totally inadequate. It was cruel to raise the hopes of people who may have lost a lifetime's pension investment and then to only provide and estimated £7,000 for each person."