HC Deb 19 February 1969 vol 778 cc449-50
13. Sir Knox Cunningham

asked the Secretary of State for defence whether, arising out of the 11 per cent. purchase tax imposed by the German Government, he will reconsider the rates of local overseas allowances made retrospective to March 1968 in the British Army of the Rhine with a view to increasing such rates; and if he will make a statement.

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

No, Sir. The added value tax to which the hon. and learned Member presumably refers was first imposed by the Federal Government of Germany on 1st January, 1968, and its effects on prices in that country were therefore taken into account in the full review of local overseas allowances for officers and men serving with the British Army of the Rhine which took place in May last year.

Sir Knox Cunningham

In view of these kind of measures taken by a foreign country which affect general prices, will the Minister see that a revision of the rates takes place? When are the Government to get a fair deal for Servicemen and their families abroad?

Mr. Reynolds

I thought I had explained in my original Answer that this increase in tax took place on 1st January and that the increase in local overseas allowance in B.A.O.R., which among other things takes account of this extra expenditure, came into effect in May, very soon afterwards.