Oral Answers to Questions

Grahame Morris Excerpts

Monday 31st January 2011 Commons Chamber

[Mr Robathan]

If I may gently prod the hon. Gentleman, he has it the wrong way round: RPI is more likely to produce a higher pension than CPI, which is not what he said. As I pointed out to the right hon. Member for Delyn (Mr Hanson), there was no upgrading of pensions at all in April 2010 because RPI was negative in 2009, and that is the way things are. It was a hard decision, but we believe that it is in the best interests of the country and of the armed forces as a whole.

[Grahame M. Morris (Easington) (Lab)]

15. What estimate his Department has made of the cost to the public purse of returning British troops from Germany (a) between 2010 and 2015 and (b) between 2015 and 2020; and if he will make a statement.

[The Minister for the Armed Forces (Nick Harvey)]

The strategic defence and security review stated the Government’s aim to withdraw all forces from Germany by 2020. That objective is now being taken forward within a wider basing study aimed at making the best possible use of the defence estate. The basing study will take into account a range of factors, including cost, and is expected to report in the spring. Any costs incurred as a result of rebasing should be offset by the savings made in the longer term. While on a day-to-day basis it is more expensive to base troops in Germany than in the UK, this policy is not primarily about saving money. It is about enhancing our operational effectiveness and welfare.

[Grahame M. Morris]

I thank the Minister for that answer, but how much will the UK Government need to pay the German Government in compensation or reparations when our bases are vacated by British troops and handed back to German control?

[Nick Harvey]

The Government may need to pay redundancy costs to locally employed civilians, depending on circumstances, and costs might also be incurred in buying out any contractual obligations. However, the UK Government are not obliged to compensate either the Federal German Government or local communities for the impact of the British Army leaving Germany. The net injection to the German economy is around £700 million a year, so the hon. Gentleman might like to reflect on whether that might be better injected into the British economy.