§ 18. Mr. Scott-Hopkinsasked the Secretary of State for War what are the criteria on which decisions are taken by the Army Pensions Office regarding commutation of pensions of Army personnel; and whether he will set up an advisory panel of business experts, on the lines of the Board of Trade Advisory Committee, to guide him in making his decisions.
§ Mr. ProfumoThe Army Pensions Office is required to establish, on behalf of the Army Council, whether it would be to a pensioner's distinct and permanent advantage to commute part of his pension. I do not consider it necessary to set up an advisory panel of business experts to help it in its inquiries.
§ Mr. Scott-HopkinsIs it not rather extraordinary that my right hon. Friend should take it upon himself to decide whether a business venture is a good one or not, particularly in view of the fact that whether a retired person is allowed or is not allowed to commute his pension means an enormous amount to him? Will he not consider appointing a business expert to advise him in what is purely a business matter?
§ Mr. ProfumoI appreciate my hon. Friend's interest and the point which he makes, but I do not want to make the matter any more complicated or more costly. If my hon. Friend has a case in mind, I will gladly look into it. By and large, I think it is my responsibility to see that people who retire from the Army with a pension should not be able to commute the pension for something they want at the time unless it really will be to their advantage. I still feel that I have a responsibility at the War Office to a man who has given long service to try to give him the best possible advice. I am not convinced that our long-standing system really ought to be changed.
§ Mr. Scott-HopkinsIf the question is whether it is to the man's advantage or not to commute the pension, why does my right hon. Friend insist that he is the right person to decide? Would it not be better to have business people who really know what they are talking about to advise him?
§ Mr. ProfumoI must disabuse my hon. Friend of any thought that I advise on these things myself; I have some very competent advisers, and I should not take it on myself. We consult business interests when the matters are business matters, but only a very small proportion of those who want to commute their pensions wish to do so for business reasons, and I really must take everything into consideration. I will gladly look at the matter again if my hon. Friend wishes. but I do not believe that there is a case for changing the present system.