§ Mr. McCrindleasked the Secretary of State for Social Services what considerations led to the reciprocal agreement with Portugal dealing only with future pension increases for British pensioners there; how this differs from the reciprocal agreement with Spain; and what would be the additional cost if a full agreement were to be negotiated with Portugal.
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§ Mr. OrmeDifferences between reciprocal agreements with other countries depend on the economic circumstances prevailing at the time they are negotiated, and on other local factors. Considerations of cost made it necessary to provide only for the payment of future pensions increases to pensioners in Portugal, whereas the agreement negotiated with Spain in 1975 provided for pensions payable there to be brought up to the rate payable in the United Kingdom. On the other hand, British pensioners in Portugal will have access to medical treatment in Portugal on the same terms as Portuguese nationals, whereas in Spain contributions to the medical care scheme are necessary to get similar benefit. The direct cost of paying all British pensions in Portugal at the full United Kingdom rate would be about £¼ million.