Sir Phillip Green told to ‘do the right thing’ by MP and use his own money to plug BHS pensions black hole
Select committee chairman Iain Wright says the pensions regulator and Sir Philip's advisers are like punch-drunk fighters
BILLIONAIRE Sir Philip Green should get his cheque book out and sort out the BHS pensions deficit, a parliamentary committee chairman has said.
Iain Wright, who heads the business, innovations and skills select committee, says the former owner of the collapsed high street chain has done nothing to fix it since promising to “sort it” two months ago.
He said MPs are determined to put pressure on Sir Philip to deal with the pensions black hole.
But he admitted they had few formal powers to plug the gap, which is now thought to be at around £700million.
Mr Wright’s comments on BBC Radio 4’s Today Programme come almost two months after Sir Philip was grilled by MPs.
“Philip Green came before our committee and said he would sort out the pension scheme, but there has been very little progress since then. If he wanted to sort this … he would be getting his cheque book out and sorting it now,” Mr Wright said.
Since his appearance in front of select committees in Parliament the reputation of the shamed former BHS boss has taken a battering.
And officials at the Cabinet Office are looking at whether the Topshop tycoon should be stripped of his knighthood.
The billionaire was slammed for taking large sums out of BHS before flogging it to three-time bankrupt Dominic Chappell for just £1.
Sir Philip may still be liable for bailing out the pension deficit because regulators have powers to pursue former owners.
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It is believed he and his wife Tina have a combined wealth of £4.3billion.
The pension scheme was in surplus when Sir Philip bought BHS in 2000 but by the time the chain collapsed it had a deficit of £571million.
Sir Philip and other shareholders took more than £400million in dividends from the business but he has told MPs he ploughed more than £400million of investment into BHS.
reports that instead of paying back the full amount of the pensions’ deficit, Sir Philip’s starting point could be the £350million it would cost the Pension Protection Fund to partly compensate members of the scheme.
Mr Wright said there is now a standoff between Sir Philip’s advisers and the pensions regulator.
“The pensions regulator is in early discussions with Sir Philip’s people.
"They are circling around each other like punch-drunk fighters around the ring without landing a decisive blow.
“Philip Green needs to do the right thing.
“The responsibility for BHS, including the enormous pension scheme deficit, lies with Philip Green.
“It’s up to him. He has got the responsibility to sort it out,” he added.
