HC Deb 12 June 1968 vol 766 cc208-9
3. Sir Ian Orr-Ewing

asked the Secretary of State for Defence when he expects to announce the pay increase due, after a two-year standstill, to Her Majesty's Forces on 1st April, 1968.

The Minister of Defence for Administration (Mr. G. W. Reynolds)

I would refer the hon. Gentleman to my right hon. Friend's statement to the House on 30th May.—[Vol. 765, c. 2163–71.]

Sir Ian Orr-Ewing

Is the right hon. Gentleman aware that the Government have a statutory obligation adequately to reward people serving in the Armed Forces and to remunerate them according to the rise in remuneration for comparable work outside and that 3.1 per cent. is still owed to our defence forces? Can he now say when this extra 3.1 per cent. will be paid, an increase for which they have waited more than two years?

Mr. Reynolds

As I am sure the hon. Gentleman realises, there is no statutory obligation of the type he mentioned. The Grigg system was in operation until forces' pay was referred to the Prices and Incomes Board. We have received the full report of the Board and put it into operation, and it provides for the maximum permissible increase under the Government's present incomes policy.

Mr. Maudling

Is it not a fact that people have been serving in the civil and Armed Services for two years now in the belief that they were working on the Grigg formula? Is not this, therefore, a breach of faith with them?

Mr. Reynolds

Considerable doubt was thrown on the Grigg formula by the report of the Prices and Incomes Board some two years ago, and the Government stated at the time that they were looking at this matter. It was announced in November that the whole question of forces' pay was being made a permanent reference to the Prices and Incomes Board. In future, the Board will report about this matter from time to time. I draw attention to the fact that the present report has been accepted in full by the Government and that we are still looking at it.

Rear-Admiral Morgan Giles

Is not the right hon. Gentleman aware that if there was not a statutory obligation there was a clear-cut moral obligation?

Mr. Reynolds

Yes, a moral obligation which was broken in 1962. We have carried it out in full.