§ 18. Mr. Tilneyasked the Secretary of State for Commonwealth Relations how often adjustments are made in the cost of living allowances of members of Her Majesty's Diplomatic Service in Commonwealth countries; whether these are made automatically after a definite period on fixed rise in the cost of living index; and whether the same principle is followed in Commonwealth High Commissions as in British embassies in foreign countries.
§ Mr. Cledwyn HughesAdjustments are made automatically whenever the combined effect of changes in the cost of living index and rate of exchange shows a variation of 10 per cent. or more since the last inspection of the post or the last automatic adjustment; or when a rise of 7½ per cent. has been maintained for six months. This applies 184 to all Diplomatic Service posts in foreign and Commonwealth countries.
§ Mr. TilneyIs the hon. Gentleman aware that in at least one Commonwealth country there is a feeling that the cost of living has risen by over 20 per cent. in the last two years but still there has been no adjustment?
§ Mr. HughesThe procedure for dealing with cost of living variations in Commonwealth countries prior to 1st April, 1964, when this arrangement came into force, was different from that now in force. There was no system of automatic adjustment but each post submitted relevant statistics when it felt that a significant overall rise in local prices had taken place. The figures submitted by the High Commission in New Delhi—presumably India is the country to which the hon. Gentleman is referring—are now being studied, and, if it is agreed that the criteria in force have been met, the allowances for the staff in New Delhi will be adjusted accordingly.