'Equitable hitch' sparks cover-up row

THE Government has been accused of stalling publication of the Equitable Life report, which is due to go to the Treasury within weeks.

In a Westminster debate, Treasury Minister Ruth Kelly said the report's legal implications would have to be examined before a decision was taken on when and how much of it would be made public.

But she was accused of trying to bury the potentially embarrassing investigation. Conservative MP Richard Ottaway, who called the debate, said the U-turn would suit the Government if the report highlighted regulatory failure.

Lord Penrose, the judge probing the Equitable disaster, is expected to criticise the Treasury and the Department of Trade and Industry. This raises hopes that policyholders could claim compensation from the Government.

Kelly told parliamentarians: 'I have to emphasise now, so that people don't have unrealistic expectations, that it will take a period of time legally to examine the contents of the report.'

She added: 'It could be that parts of the report would be subject to legal confidentiality restrictions.'