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We're a banana republic now

From Dr Michael Martin-Smith, Hull, East Yorkshire

The Government must, as an absolute minimum, agree to honour the pension interim dynamisation factors already announced (2003/4, 7.2 per cent; 2004/5, 6.1 per cent; and 2005/6, 7.3 per cent) even if it breaks its agreement to base these to achieved profits.

Failure to keep to its side of the deal will render all future attempts to reach agreements with us futile.

Failure to honour an agreement arrived at by mutual negotiation is the hallmark of a banana republic and should be rewarded by a period in opposition. My decision to retire next year will cause me fewer regrets than I would have thought possible.

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