HC Deb 13 December 1967 vol 756 cc397-9
3. Mr. G. Campbell

asked the Secretary of State for Defence what action he is taking to alleviate the drop in purchasing power abroad of the pay and allowances of members of the Forces who are serving in areas where devaluation has had that effect.

25. Rear-Admiral Morgan Giles

asked the Secretary of State for Defence what arrangements he has made to increase the local allowances payable to the Forces following the devaluation of the £ sterling.

28. Mr. Powell

asked the Secretary of State for Defence in the light of devaluation, on what principles the pay and allowances of Great Britain's forces in foreign currency will be determined.

45. Mr. Allason

asked the Secretary of State for Defence what increases in local overseas allowance he is making to meet the effects of devaluation.

69. Sir E. Errington

asked the Secretary of State for Defence what steps he is taking to deal with the effect of devaluation for service personnel in Germany, in view of the decrease in the rate of exchange for deutschmarks from 11.15 to the £ sterling to 9.6 to the £ sterling.

The Under-Secretary of State for Defence for the Army (Mr. James Boyden)

I would refer the right hon. and hon. Members to the statement made on this subject by my hon. Friend the Minister of Defence for Administration in the defence debate on Monday, 27th November, to which I have nothing at present to add.

Mr. Campbell

Will the Minister ensure that no member of Her Majesty's Forces concerned loses financially in the period since devaluation, remembering that in the statement to which the hon. Gentleman referred it was said that the new allowances would not be backdated?

Mr. Boyden

The present situation is that an interim arrangement has been made and that personnel overseas are receiving the equivalent— in Deutschmarks, or whatever the currency might be— to what they would have been getting before devaluation; and at present this is working well.

Rear-Admiral Morgan Giles

Why does it take so long to do this simple arithmetical calculation? Will the hon. Gentleman assure the House that Servicemen will not be an exception to the Prime Minister's dictum that the £ in one's pocket has not been devalued?

Mr. Boyden

I am glad to note that the hon. and gallant Gentleman would find the calculation such a simple one. In fact, it is very complicated. Indeed, it is worldwide, but I assure him that it is being revised and dealt with energetically and very carefully indeed.

Mr. Powell

Can the hon. Gentleman give a forecast of when approximately it is expected that an announcement on this subject will be made to the Forces? Will he give an assurance that, at whatever level the new allowances are fixed, there will be no question in any case of clawing back anything done or paid during the interim period?

Mr. Boyden

The answer is "Yes" in respect of the right hon. Gentleman's second question about clawing back. The answer to the first part is, "As soon as possible." I am sure that he would not want me to prophesy here and now about the taking of steps in this matter. However, I assure him that it will be done as speedily as possible.

Mr. Allason

Will this principle also apply to Service pensioners living overseas? Why, for example, should Indian Army pensioners who are living overseas have their pensions devalued?

Mr. Boyden

I would require notice of that question.