HC Deb 14 February 1972 vol 831 cc31-2
36 and 37. Mr. Peel

asked the Secretary of State for Foreign and Commonwealth Affairs (1) in view of the fact that, owing to the terms of the United Kingdom and Federation of Malaya Public Officers Agreement, 1959, the Government of Malaysia have reduced the pensions they awarded and pay in Singapore to retired expatriate officers recruited by the British Government who served on the Malayan Establishment in Malaya and Singapore before those countries were independent, if he will undertake that the shortfall in their pensions will be made good to these pensioners;

(2) owing to the Public Officers Agreement 1963, between the United Kingdom and Singapore, the dependants of retired expatriate officers whom the British Government recruited for service on the Malayan Establishment and who are still contributing to the Singapore Widows and Orphans Pensions Scheme will be paid outside Singapore smaller benefits than those due to them under the scheme in accordance with their current contributions, if he will undertake that the shortfall in benefits will be made good to the dependants concrened.

Mr. Wood

As there is no shortfall in the sterling value of these pensions, the question of Her Majesty's Government making compensatory payments does not arise.

Mr. Peel

As the officers concerned had their pensions reduced by about 14 per cent. because the British Government signed the agreement with Malaysia and subsequently devalued the pound, does not my right hon. Friend feel that the Government have a moral responsibility to make up the deficit if the Malaysian Government will not?

Mr. Wood

The Public Officers Agreement with the Malaysian Government ties all pensions paid externally to the rate of exchange prevailing at the date of the agreement. That means that anyone living in Malaysia or Britain receives a pension as before in the same sterling terms. The difficulty arises with people living in Singapore. Neither the previous Government nor the present Government have ever undertaken to make special arrangements to protect all pensioners from the effect of devaluation, and I cannot do so.