Armed Forces: Re-engagement and Morale (Hansard, 25 July 1989)

§ The Minister of State, Department of Trade and Industry (Lord Trefgarne)
My Lords, I am not sure that I accept the assumption behind the noble Lord's Question. Levels of re-engagement and PVR rates are affected by a number of factors, not least the availability of employment opportunities in civilian life. We shall continue to evaluate the new allowances in the future and to make adjustments where appropriate.

§ Lord Mackie of Benshie
My Lords, I thank the Minister for answering my Question. As I understand that he has now been transferred to other spheres, I should like to thank him for giving very detailed and very good Answers in the past in his defence capacity.
However, having said those nice words, perhaps I may ask the Minister whether he is aware that several factors are affecting both re-engagement and morale: the reduction in the number of leave travel warrants, and that especially applies to single people; the change in the allowance for education; the travel to duty from home allowance, which is to be reduced to zero over the next few years; and of course the lack of provision for a North/South posting—a difficulty in common with industry because of the difference in house prices. If this does not show up in the figures, have the Government asked commanding officers about the matter? They will know more about the trends than the figures show. Does he not agree that it is serious when service personnel are apt to consider a rise in pay which is accompanied by a fall in allowances as a bit of a swindle?

§ Lord Trefgarne
My Lords, the allowances package to which the noble Lord referred, which was announced by my right honourable friend in May of last year, was, as they say, Exchequer neutral; that is to say, while some of the allowances were reduced, others were increased. Moreover, although there was some apprehension at the reduction of some of the allowances, as the noble Lord rightly said, there was considerable jubilation at the increase of others.

§ Baroness Strange
My Lords, does my noble friend agree that a happy and contented army is an efficient army and that the reverse also applies?

§ Lord Trefgarne
My Lords, my noble friend is quite correct; a contented army is certainly a much better army. We think that this allowances package has made a number of important improvements which I hope will become apparent to the Armed Forces in the fullness of time. Of course salaries are a different matter. We shall in the near future be receiving the next report of the Armed Forces Pay Review Body.

§ Lord Irving of Dartford
My Lords, is the noble Lord aware that he himself acknowledged in the Estimates debate that there was dissatisfaction about this package deal? We acknowledge that that may not be the only element in the problem. However, in view of the fact that we are already an average of 40 men short in every non-Gurkha battalion and that we cannot get personnel from elsewhere—about which he said we should not be complacent—at what point in the decline will the noble Lord accept that something ought to be done?

§ Lord Trefgarne
My Lords, the noble Lord asked me an entirely hypothetical question. The current shortfall—I accept that there is one—is between 1 and 2 per cent. Historically that is not an alarming figure, but I agree that it is one that we should keep under careful review and try to put right if we can. However, we have not yet reached the alarming proportions suggested by some people.
I accept that some of the measures contained in the recent allowances package caused some apprehension; it was inevitable that they would. However, some of the increases have made the package, as I said, neutral on balance. Therefore, while there will be some losses, there are also some gains. I hope that that fact will be recognised.

§ Lord Mackie of Benshie
My Lords, is the Minister aware that in the Royal Air Force, which of course is a very highly technical service, the problem is particularly severe? Is he also aware that employment opportunities for skilled men are available in industry? Further, will he look into the factors in that respect and also at the trends through consultation with commanding officers?

§ Lord Trefgarne
My Lords, perhaps I may apologise to the noble Lord for not thanking him for his kind words when I answered his first supplementary question. I happily do so now.
The noble Lord is quite right, the RAF is particularly dependent upon very highly skilled personnel. That is especially so in Germany, supporting the front line squadrons that we have there. It is a matter of particular concern, and we shall have to see that it does not reach alarming proportions. Again, as the noble Lord rightly says, men with particular skills, for example computer skills, are much in demand in outside industry, and it is difficult for the Armed Forces to compete directly on pay in such circumstances.