HC Deb 12 June 1979 vol 968 cc212-4
3. Mr. Stephen Ross

asked the Secretary of State for Defence what steps he intends taking to rectify anomalies in pension provision for Service men who retired during 1977.

The Under-Secretary of State for Defence (Mr. Keith-Speed)

The anomalies arise from the incomes policies of the previous Administration, and affect not only the Armed Forces but a wide range of other public service pensioners. Consequently, it is likely that any remedies would be complex and have significant repercussions on public expenditure. I shall, however, carefully examine this issue, but cannot hold out any hope of early remedial action.

Mr. Ross

Judging by the remarks made by Government spokesmen when in opposition, does the Minister accept that many people, particularly those in the Forces who retired in 1977, were hoping for a rather more forthcoming answer than that? Can the Minister give us some indication of the timing of the review and when those who retired from the Forces in 1977, who incidentally were suffering losses of over 30 per cent., can expect to have some remission of that loss?

Mr. Speed

No, Sir, I cannot because we cannot consider the Armed Forces in isolation. There are many thousands of people involved in the public service sector. This is a very complex situation largely arising from the statutory policy of the Labour Government. They created the problem. We are doing our best to sort it out as quickly as possible.

Mr. Viggers

Does the Minister accept that a grossly unfair situation has arisen as a result of the strict pay policies of the previous Government and that on a long-term basis the right answer is to create a floor and to say that no one who retired with a certain number of years' service at a certain rank should be paid less than that floor?

Mr. Speed

That is certainly one of the options that we shall be looking at. There are a number of possible solutions to this problem and I ask the House to be patient until we have examined all the options, bearing in mind that it applies to the whole of the public service and not just to the Armed Forces.

Dr. Summerskill

In view of the welcome decision, revealed to me in a parliamentary answer today, that the entitle- ment, generally, of Service women will be brought into line with that of Service men, will the Minister assure us that the gross discrimination against women in terms of pensions, on the ground of sex, will be urgently reconsidered and their position brought into line with that of Service men?

Mr. Speed

That, with respect, is another question, but I certainly hope that there will not be gross discrimination in this way.

Mr. Duffy

May I congratulate the Under-Secretary on his ministerial debut at Question Time, and may I extend to him most sincere good wishes in the discharge of what, after all, is a privilege, and a precious task, namely, the representation in Parliament of the Royal Navy? Will the Minister confirm that there has been no want of willingness to rectify these anomalies and acknowledge that, because of the repercussive effects on the public sector which he has described, it is most difficult to find a practical and acceptable solution?

Mr. Speed

I thank the hon. Gentleman for those very kind remarks, which I appreciate. It is a privilege to represent the senior Service in this House. The second part of the question is complicated. We have got to look at all the people concerned and not one particular section. That is why it will take time.