HL Deb 02 May 1957 vol 203 cc252-3

3.7 p.m.

LORD HAILEY

My Lords, I beg to ask the Question which stands in my name on the Order Paper.

[The Question was as follows:

To ask Her Majesty's Government whether, with reference to the statement made in this House on April 19, 1955, by the Secretary of State for Commonwealth Relations, they can now give any indication of the date when the payment of the pensions under the Pensions (India, Pakistan and Burma) Act, 1955, will be transferred to the Treasury of the United Kingdom.]

THE EARL OF HOME

My Lords, in the case of India, the transfer of the payment of pensions to the United Kingdom Treasury took place with effect from April 1, 1955. The Government of Pakistan agreed in principle at the time to a similar transfer of the pensions for which they were responsible. Negotiations on the financial arrangements have been in progress since then, but have not yet been concluded.

The number of pensioners with whom these negotiations are concerned is approximately 1,100. In the meantime, while negotiations are proceeding, the pensioners suffer no material loss through the continued payment of their basic pensions by Pakistan. Pakistan pensioners receive, in just the same degree as Indian pensioners, the pensions increases which have been sanctioned by United Kingdom legislation and which are paid from United Kingdom revenues. The levy of Pakistan income tax on pensions paid by Pakistan may be a source of some slight inconvenience to the pensioners, but arrangements have been made to ensure that it does not also entail any financial loss to them: Her Majesty's Government make good to them any Pakistan income tax that they have to pay, provided, of course, that they take whatever steps are open to them under the Pakistan regulations, to minimise the amount of Pakistan tax which they pay.

Your Lordships will understand that Her Majesty's Government cannot force the pace in any negotiations with another Commonwealth Government. But I can also assure your Lordships that Her Majesty's Government will do everything they can, so far as they are concerned, to bring these negotiations to a successful conclusion as soon as possible.