HC Deb 26 March 1979 vol 965 cc62-3W
Mr. Sproat

asked the Secretary of State for Defence whether the exchange rate of £ sterling to deutschemarks for purposes of paying British Forces stationed in West Germany has been changed this month from 4.15 DM to 3.75 DM to the £1 sterling; whether this in effect means a cut of approximately 10 per cent. in the pay of forces stationed in West Germany; and if he will make a statement.

Dr. Gilbert

The forces fixed rate of exchange (FFR) was adjusted on 1 March 1979. I am sending the hon. Member copies of the tables of LOA rates for the main British Forces areas which were substantially increased from that date. The increases, which have their parallels in the other areas of Germany, were set at levels which secure that Service personnel whose drawings of pay in Germany are at average levels have the value of their pay and LOA in local currency maintained. Those drawing above the average will lose slightly and those drawing less than the average will gain slightly.