HC Deb 22 May 1973 vol 857 cc213-5
31. Mr. Thorpe

asked the Minister of State for Defence what is his policy regarding giving financial assistance to Service personnel prior to their retirement from the Service to enable them to buy their own homes.

Mr. Ian Gilmour

We operate a scheme for all three Services whereby a proportion of the terminal benefits due to those retiring after long service may be advanced free of interest during the last year of service to help meet the deposit and professional fees associated with the purchase of a house. There is a separate advance-of-pay scheme for senior naval ratings with the same object.

Mr. Thorpe

Is the hon. Gentleman aware that the very last words of that answer—that the scheme is available only to senior naval ratings—sums up the situation? Does he accept that people in the Armed Forces are not among the highest-paid in the country? No one can say that they are overpaid. Is he aware that they have a particular problem in that they have to live in Service-provided accommodation and move into their own accommodation on the date of retirement, and that if they have to provide themselves with accommodation this presents them with a particular problem, which is different from that of ordinary civilians? Knowing that the hon. Gentleman wishes to do what he can to help civilian personel, may I ask whether the Government will consider this again to see whether we cannot get a house-purchase scheme going for Service personnel, subsidised if necessary by the Treasury?

Mr. Gilmour

I have great sympathy with what the right hon. Gentleman says. This is a problem which affects all Service men and we should like to extend the present naval scheme and rationalise it among all the Services. But we are short of money. We are considering ways of improving things, but I cannot promise that we will be able to come up with something very drastic in the immediate future.

Sir G. Nabarro

Will my hon. Friend bear in mind that the greatest concentration of scientific manpower in the Services in Britain is at the Royal Radar Establishment at Malvern, where he and his colleagues have resolutely refused to sell tenanted houses to the occupying Service personnel? Will he follow the idiom of the Government in this matter and sell these houses to the serving personnel on the same principle as he sells council houses to sitting tenants?

Mr. Gilmour

We do not sell council houses to sitting tenants in the Services. As I have told my hon. Friend, there are other requirements for houses. If, however, the houses become available and are not wanted by other people, we try to dispose of them as best we can.

Mr. Judd

At a time when the Government have found it possible to find £15 million for the building societies, are they aware that the Opposition would like to see assistance of this kind given to Service families with their special problems and extended to them irrespective of their service and rank?

Mr. Gilmour

Of course, everybody always wants to do a great deal for the Services, but it is worth bearing in mind that the Opposition did not make great progress in this matter when they were in power.

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