§ Mr. David YoungTo ask the Secretary of State for Defence if he will ensure that Gurkha soldiers serving in the British Army receive the same pay, pensions, family accommodation and other terms and conditions of service as soldiers in the British Army. [4777]
§ Mr. SoamesA full review of questions relating to Gurkha conditions of service is currently being undertaken by my Department, including questions relating to their pay, family accommodation and other related matters. The review, which has been prompted by the imminent withdrawal from Hong Kong, is examining the existing arrangements with a view to making them more appropriate to the move of the Gurkha home base from Hong Kong to the United Kingdom. All Gurka terms and conditions of service are underpinned by the 1947 tri-partite agreement signed by the Governments of India, Nepal and the United Kingdom, and will continue to be governed by these arrangements. In essence, the rates of pay and pension are based on those paid to the Indian army as stated in the agreement. British Gurkhas do, however, receive a substantial addition to their basic pay which takes into account the cost of living in their duty station.
Gurkha pensions, while not part of the same review, are, as a matter of routine, reviewed annually. One of the factors taken into account is the rate of inflation in Nepal; another is the rates of pension paid to Indian army Gurkhas as governed by the tri-partite agreement. British Gurkha pensions were increased by 15 per cent. in 1996.