§ Mr. Neil Thorne
To ask the Secretary of State for Defence if he will make it his policy to preserve the pay and conditions of retired officers filling service appointments as re-employed officers, after the introduction of cost of living allowance on 1 January 1988.
§ Mr. Sainsbury
Foreign service allowance is being replaced by the cost of living addition (COLA) which came into effect on 9 January 1986. COLA is being introduced progressively worldwide as individual countries are inspected under the allowances procedure. The COLA agreement applies to all UK-based civilians serving overseas and it is not within the power of my Department to exempt any of our staff from the terms of this agreement.