§ 83. Mr. FavellTo ask the Secretary of State for Foreign and Commonwealth Affairs what plans he has to enable increased pensions to be paid to former public servants of the Central African Federation.
§ Mr. Chris PattenThe Governments of Zimbabwe, Zambia, Malawi and the United Kingdom, as joint guarantors of the central African pension fund, have agreed that pension increases averaging 300 per cent. should be paid, with effect from 1 October 1988. The cost of financing these increases is approximately £9 million, which the trustees of the fund would like to see funded in sterling. In response to requests from the three African Governments, I have agreed that the British Government should meet the full cost of the increase.
We are considering what further action is necessary to assist those central African pensioners whose pensions have been particularly eroded by currency depreciation.