HC Deb 31 May 1961 vol 641 cc231-3
19. Mr. Mayhew

asked the Secretary of State for War what changes he has now made in the overseas allowances of United Kingdom forces in Germany.

Mr. Profumo

Consequent upon the revaluation of the Deutschmark I have decided to revise the rates of allowance for Service men in the British Army of the Rhine. The additional amounts payable will range from 3d. to 2s. a day for other ranks and 9d. to 2s. 9d. a day for officers and will be effective from 6th March, 1961, the date of revaluation.

Mr. Mayhew

Can the right hon. Gentleman give an assurance that this involves no loss either to other ranks or to officers? Why has it taken this rather long time to make this adjustment? Revaluation was on 5th March.

Mr. Profumo

Yes. I should like the chance to explain to the House how this was done. I am not trying to avoid the question, but it is more complicated than the hon. Gentleman makes out. This took a long time because, by long custom and tradition going back as far as the Labour Government, the way in which we try to make up the purchasing power of British soldiers when serving abroad is by local overseas allowances. We have had to revalue local overseas allowances.

A soldier does not only spend his money in Germany, but a certain amount in the N.A.A.F.I. and a certain amount on leave. We have had to see that the amount of the soldier's purchasing power spent in Germany is brought up to date so that he does not suffer anything by revaluation of the Deutschmark. This has been done by local overseas allowances. In the case of single soldiers, a special allowance was made, so that they should not lose.

Mr. P. Williams

What is the extra financial commitment falling on the United Kingdom?

Mr. Profumo

I could not say that without notice, but it must be worth while. We could not possibly let the soldiers suffer.

Mr. Chetwynd

Will the right hon. Gentleman consider making these payments retrospective? Why is it that one private soldier gets only 3d. a day while another gets 2s.? Is it discrimination against National Service men who are already hard-up?

Mr. Profumo

The payments will be retrospective to 6th March, when the Deutschmark was revalued. This is a very complicated matter. If you, Mr. Speaker, will agree, I will publish in the OFFICIAL REPORT the actual scales so that the House can understand them better.

Mr. G. Brown

Does the right hon. Gentleman intend to convey that he took a decision on this matter—welcome as it was—without having any estimate of the cost involved to the taxpayer? If he did, is not that rather unusual? If he did not, may we be let into the secret?

Mr. Profumo

I never said that. I could not answer the right hon. Gentleman

LOCAL OVERSEAS ALLOWANCE
BRITISH FORCES IN GERMANY (EXCLUDING BERLIN)
EFFECT OF REVALUATION OF DEUTCHSMARK
Category Rank Daily Rates
Present Rate New Rate Increase
s. d. s. d. s. d.
Single Accommodated General Officer Nil 1 9 1 9
Brigadier Nil 1 6 1 6
Colonel or Lieutenant-Colonel Nil 1 3 1 3
Major, Captain or Subaltern Nil 1 0 1 0
W.O. I Nil 9 9
W.O. II or Staff Sergeant Nil 7 7
Sergeant Nil 5 5
Corporal and below Nil 3 3
Married Unaccompanied Accommodated. General Officer 6 9 7 9 1 0
Brigadier 6 7 7 6 11
Colonel or Lieutenant-Colonel 6 5 7 3 10
Major, Captain or Subaltern 6 3 7 0 9
W.O. I 3 6 3 9 3
W.O. II or Staff Sergeant 3 4 3 7 3
Sergeant 3 2 3 5 3
Corporal and below 3 0 3 3 3
Married Accompanied Accommodated (in Quarters). General Officer 11 0 12 3 1 3
Brigadier 10 0 11 3 1 3
Colonel or Lieutenant-Colonel 9 0 10 3 1 3
Major, Captain or Subaltern 8 0 9 3 1 3
W.O. I 6 6 7 3 9
W.O. II or Staff Sergeant 6 0 6 9 9
Sergeant 5 6 6 3 9
Corporal and below 3 3 4 0 9
Married Accompanied Un-accommodated (in Private Accommodation). General Officer 14 9 16 9 2 0
Brigadier 13 6 15 6 2 0
Colonel or Lieutenant-Colonel 12 3 14 3 2 0
Major, Captain or Subaltern 11 0 13 0 2 0
W.O. I 10 0 11 3 1 3
W.O. II or Staff Sergeant 9 3 10 6 1 3
Sergeant 8 6 9 9 1 3
Corporal and below 6 0 7 3 1 3
Married Accompanied Un-accommodated (in Hotels). Officers 30 0 32 9 2 9
Other Ranks 25 0 27 0 2 0
The total extra cost for the Army in B.A.O.R. for 1961–62 is about £500,000 on Local Overseas Allowance.
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