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It is a pleasure to speak under your chairmanship, Sir Christopher. I begin by paying tribute to the hon. Member for Luton South (Rachel Hopkins) for securing the debate. We all agree on the admiration that we have for the extraordinary work of the Commonwealth War Graves Commission—I see it in my own constituency in Plymouth—and its desire to ensure that those who do such an important job with dedication and dignity are treated fairly, in keeping with the values of the organisation. I certainly share that commitment.
I welcome, too, the opportunity to shed light on an institution whose work is often unsung, and I am grateful for a chance to provide some clarity on an issue on which I suspect there has been a degree of misunderstanding. My friend the hon. Member for Luton South does not want to talk about Brexit and I desperately share that ambition, but the reality is that it has had an impact on this situation, and I will outline that. I want to work with her going forward. I believe that she has a meeting with the Secretary of State tomorrow, so this is not a closed door. I will lay out the position as it stands, but I think that we should continue to work together to see what we can do to ensure that these people are looked after.
As we know, the commission was set up more than a century ago to honour in perpetuity the memory of 1.7 million people who died in the two world wars. In total, it oversees cemeteries and memorials at some 23,000 locations in 154 countries. In the United Kingdom alone, the commission maintains graves and memorials in approximately 13,000 locations. Last year, I was fortunate enough to attend the Commonwealth War Graves Commission cemetery at Arnhem. It is the final resting place of some 1,700 Commonwealth soldiers who lost their lives during Operation Market Garden. The serenity of that peaceful place, with its row on row of perfectly maintained and meticulously ordered white headstones, is particularly suited to the contemplation of service and sacrifice, and it continues to provide solace and consolation to all those whose relatives lie there. It is no wonder, because for more than 100 years horticulturalists and architects have laboured together to develop these cemeteries into something more, into great gardens of remembrance. As a former soldier, I find it humbling to think that there, as in all war grave cemeteries, no distinction is made for rank, race or creed; everyone is treated the same. It is a powerful reminder of our nation’s moral responsibility to ensure the legacy of every person who has given their life to keep us safe.
Today, our particular focus has been on the 30 UK nationals with UK-based contracts who work in Belgium and France alongside 550 staff. We are proud of those skilled British gardeners and want them to continue doing their excellent work, but, as with all UK citizens who work overseas, the end of the transition period from exiting the European Union and the end of free movement of labour have meant the introduction of new arrangements to ensure that they can continue working there after 1 January next year. That meant that they were faced with two stark choices: to remain in the EU on local terms, identical to those of their French and Belgian colleagues, or to return to the UK.
An additional complication has been that these staff enjoy certain unique advantages thanks to a set of historical anomalies. Not only do they not pay income tax in the UK or in their host nation, but they receive an allowance in recognition of the fact that they may be required to move anywhere in the world as part of their duties. Inevitably, once they have become permanently located, these arrangements will be brought into line with those for their counterparts. They would then have to pay local tax and lose their allowances. Although that is not a pay cut in the traditional sense, it does represent a significant reduction in their overall remuneration package. Consequently, the commission has been at pains to ensure that its employees are not disadvantaged. It offered employees a tax repayment of £30,000 and agreed to fund removal expenses where required. That was assessed as equivalent to 18 to 24 months of current benefits and will be paid in one lump sum to ensure that tax-free status.
I am pleased that, following a meeting with unions last week, the commission has further decided to help those remaining in the EU by making an additional one-off payment of up to €10,000, which, for the majority, will cover housing costs for the next 12 months. Should they decide to move house, the commission will also pay up to €5,000 to cover costs. Those choosing to return to Britain have also been offered equivalent employment with the commission here in the UK.
The hon. Member for Luton South asked specifically about union negotiations. Initial conversations between the CWGC and three UK trade unions took place in October, with detailed proposals to individuals in November, alongside collective briefing and discussions with those affected. It is certainly a matter of regret that employees were not given more time to make their decision, and I have no desire to minimise how tough these relatively sudden decisions will have been for them to make. That said, it should also be acknowledged that matters have been complicated by the absence of a clearly defined host nation policy on residency status. In the end, a balance had to be struck between ensuring enough certainty for any arrangements to be legally compliant while also giving personnel sufficient time to consider their options. Staff were asked to make their decisions before 8 December so that their payments could be processed before the start of the French and Belgian tax years, which, unlike the UK’s, run from 1 January to 31 December.
The hon. Member also asked whether the Ministry of Defence will intervene, but it is important to remember that although the Secretary of State is an ex-officio chair of the commission by virtue of the fact that the UK is the largest financial contributor to the Commonwealth War Graves Commission, ultimately the commission is independent, with its own commissioners and director general having direct responsibility for their personnel. Those affected by the changes are not MOD employees, so it would be inappropriate for the Department to intervene in this instance, but I believe my right hon. Friend the Defence Secretary is meeting the hon. Member tomorrow to continue these discussions.
We certainly agree that it would have been preferable for CWGC staff to have been informed earlier; we do not dispute that. However, all 30 employees have now confirmed their options, with 21 remaining in Europe, seven returning to the UK and two retiring. I hope that the commission’s increased offer last week will be welcomed. Those individuals now have the clarity needed to move forward, while our country has the certainty of knowing that the vital work of the Commonwealth War Graves Commission in preserving the memory of the fallen will continue come what may.
Question put and agreed to.