HC Deb 10 April 1963 vol 675 cc1274-5
43. Mr. Lubbock

asked the Secretary of State for War what was the maximum retired pay received by a lieutenant-colonel who retired in 1935; and what is the comparative purchasing power of the amount he now receives, assuming that he is now 77 years old.

Mr. Ramsden

The maximum retired pay received by a lieutenant-colonel who retired in 1935 was £543 a year. With pensions increases he would now be receiving £877 a year. The comparative purchasing power of £877, in relation to the cost of living in 1935, is £331.

Mr. Lubbock

Does not this indicate that these officers have not only failed to participate in the increase in the standard of living enjoyed by the rest of the community, but have dropped behind?

Mr. Ramsden

The hon. Member moved certain Amendments in this sense during the Committee stage of the recent Bill, but, at the suggestion of my hon. Friend the Financial Secretary to the Treasury, the Committee rejected them. I do not think that we can take that debate any further today.

Mr. Paget

Are we not at some time to do something about this gross injustice to a lot of old men who have given valuable service? Are we not to adopt the honest policy of the same retirement pension for the same service, which is the only decent way to do it?

Mr. Ramsden

What this boils down to is the amount of the national resources afforded by the taxpayer which the Government think it right to allot to these various charges. Within the limit of what is thought to be proper and what is available, I believe that our method of successive pensions increase Measures is the proper way of dealing with the situation.

Dame Irene Ward

Why does not my hon. Friend just give the straight answer that the Minister of Defence and the Chief Secretary to the Treasury are having an examination of this, whole matter? Why does not the Army stand up for its own people? If it had done so a little earlier, we would not be in this position today. That is my view of the subject.

Mr. Paget

rose

Dame Irene Ward

May I have an answer?

Mr. Ramsden

With every respect to my hon. Friend, I think that she is oversimplifying the situation.

Mr. Paget

When the hon. Gentleman speaks of continued increases of pensions, does he not appreciate that that does not affect these old gentlemen who gave their services a long time ago, since when money has depreciated? Cannot we allocate something to honesty, which is what it comes to?

Dame Irene Ward

Go on—be honest.

Mr. Ramsden

There must be a limit to the amount of resources which can be allocated to these Service and other pensions, and judgment has to be made as to the proper way of doing it. I think that the present policy is the best that can be done.