§ Mr. Tinnasked the Minister of Overseas Development whether he will make a statement about pensions payable to 344W officials previously in the employment of the Government of the People's Republic of Southern Yemen or its predecessors.
§ Mr. PrenticeIn the negotiations in Geneva in November, 1967, relating to Independence for South Arabia (Cmnd. 3504), agreement was reached, amongst other things, on the provision of aid by the British Government to the Peoples Republic of Southern Yemen for an interim period of six months ending 31st May, 1968, on the understanding that the Southern Yemen Government would continue to discharge certain financial commitments, including the payment of public service retiring benefits to expatriate officers.
It was also agreed that after independence there would be further negotiations on the provision of aid and on public service liabilities. During these subsequent negotiations it had been hoped to reach an agreement with the Southern Yemen Government, similar to that contained in the Public Officers' Agreements concluded with other countries on their achieving Independence, by which the Southern Yemen Government would guarantee to safeguard the security of pensions and other retiring benefits.
Both parties honoured the agreement for the interim period but, as my hon. Friend the then Under Secretary of State for Foreign Affairs informed the House on 13th May, 1968, no agreement was reached relating to the period after 31st May. The Southern Yemen Government subsequently informed us in August that it was their intention not to pay any further terminal benefits due after 31st May. Her Majesty's Government very much regretted this decision by the Southern Yemen Government.
Without in any way regarding the Southern Yemen Government as being relieved of their responsibilities in this matter, Her Majesty's Government decided that they should take steps to ensure that expatriate pensioners should receive their proper dues without interruption. I therefore arranged for the payment to them of ex-gratia loan advances equivalent to the amounts which should have been paid by the Southern Yemen Government. These loan advances—which will be recoverable from the pensioners only if and when the Southern 345W Yemen Government resume their responsibilities retrospectively—have been paid only to expatriate pensioners and not to pensioners previously of South Arabian status who must look to the Southern Yemen Government for redress.
I estimate that the net cost of paying these loan advances in the current financial year will be about £240,000 and a Supplementary Estimate will be presented in due course. Meanwhile advances are being sought as necessary from the Civil Contingencies Fund.—[Vol. 764, c. 182–3.]