§ 13. Mr. Goodhartasked the Secretary of State for Defence what discussions he 1354 has had about the rate of local overseas allowance to be paid to the Armed Forces in Germany; and what changes in the rates will be made in the next year.
§ Mr. MulleyNone. I refer the hon. Member to the answer I gave the hon. Member for Gosport (Mr. Viggers) on 30th June, in which I announced that there will be no change in existing rates of local overseas allowance before 1st April 1979 except where adjustments are made necessary by movements in exchange rates. Whether the allowance is changed thereafter will depend on decisions to be taken in the light of a review to be held in the early part of next year.
§ Mr. GoodhartDoes the Secretary of State recall that exactly two months ago he told me that he hoped that a new system for assessing the levels of local overseas allowance would emerge? How far has he got with those discussions with the Treasury?
§ Mr. MulleyIt is because there are difficulties in reaching a satisfactory alternative that we need more time. I think that the present system of extending the moratorium, at least until April of next year, and possibly beyond, until we are satisfied that we have a better arrangement is the best way of proceeding, because there is uncertainty in the Rhine Army and in the RAF in Germany. If possible, I want to allay that by making this statement now.
§ Mr. ViggersWill the Secretary of State explain why the foreign service allowance for civil servants, some of whom get London weighting for working in Gibraltar, has gone up by so much over the past two years while the local overseas allowance has remained the same?
§ Mr. MulleyThe foreign service allowance is not, of course, my responsibility, but I understand that in Germany the local overseas allowance is in excess of the FSA.