Commonwealth War Graves Commission: Pension Fund

Lord Lancaster of Kimbolton Excerpts

Monday 29th February 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Defence (Mark Lancaster)]

I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing the debate. I must confess that I find myself in a slightly difficult position, because I have no direct responsibility for this issue, for reasons that I will explain. However, I am determined, as ever, to help in any way I can. Although the hon. Gentleman has asked a number of detailed questions, some of which I hope to be able to address this evening, I will of course write to him in due course about any that I am unable to answer, having approached the Commonwealth War Graves Commission on his behalf.

[Mr Keith Simpson (Broadland) (Con)]

I declare an interest as a parliamentary commissioner on the Commonwealth War Graves Commission. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing the debate, which of course was based, quite naturally, largely on submissions from the trade unions. Does my hon. Friend the Minister agree that it is very difficult for him to respond to this debate, because the Commonwealth War Graves Commission is independent and its funding comes not only from Britain but from half a dozen other Commonwealth countries? I have to say that my impression, through my fellow commissioner, the hon. Member for North Durham (Mr Jones), who has been involved in the negotiations, is that the commission has bent over backwards, and in very difficult financial circumstances.

[Mark Lancaster]

Indeed. That is what I was trying very gently to say. None the less, I am keen to help. In fact, the two parliamentary commissioners, sitting on either side of the House, are in many respects much closer to the issue than I am.

The pension arrangements of the commission’s employees are ultimately a matter for the commission’s senior management and for trustees of the scheme. The concerns of the hon. Member for Glasgow South West should, in the first instance, rightly be directed to the commission, which, it must be emphasised, is not even a UK-run organisation, as my right hon. Friend the Member for Broadland (Mr Simpson) said. None the less, I welcome the opportunity to contribute to the debate, not least so that I can pay tribute to the commission for its work before I get on to the issue of pensions.

I am sure that, like me, many hon. Members will have visited one or more of the cemeteries and memorials that are so well cared for by the commission. It is certainly true to say that the commission provides the gold standard in care and that the sites under its care, wherever they may be, are always as well and as lovingly cared for as possible.

[Kirsten Oswald (East Renfrewshire) (SNP)]

Will the Minister give way?

[Mark Lancaster]

I am not going to give way, because I am going to run out of time. The hon. Lady will have to forgive me.

I have been privileged to visit several sites in recent years, including in northern France and on Ascension Island. I have also visited Stanley cemetery in the Falklands, with the hon. Member for North Durham (Mr Jones), and Stanley cemetery in Hong Kong, which is without doubt one of the most striking cemeteries in the world, with its views over Stanley harbour. I often sat there to reflect during my service in Hong Kong.

It would be beneficial to remind ourselves of the origins of the commission. As hon. Members might be aware, it was established by royal charter on 21 May 1917. The provisions were then extended by a supplemental charter on 8 June 1964. In accordance with its royal charter, the commission has the task of commemorating the Commonwealth war dead of the two world wars by making fit provision in perpetuity for their graves and memorials, and of maintaining records of the dead.

The commission ensures that 1.7 million people who died in the two world wars will never be forgotten, and it cares for cemeteries and memorials at 23,000 locations in 154 countries. It is worth pointing out that, within the United Kingdom, it helps us to commemorate more than 300,000 Commonwealth servicemen and women, with their graves numbering 170,000 in more than 13,000 locations across the country.

I would like to take this opportunity to point hon. Members to the commission’s website, which, among other things, details the locations of the more than 140,000 graves that it tends in the UK. People tend to think of the commission in terms of precise ranks of graves in cemeteries on the western front, but there is hardly a town anywhere in the country, let alone a constituency, that does not contain at least one grave tended by the commission.

In this year, when we commemorate the 100th anniversary of the battle of the Somme, it is particularly poignant to remember that those graves and memorials allow us to connect with not just the conflicts of the past, but the people caught up in those conflicts. That reminds us of the cost of such conflicts and of the individuals who paid the ultimate price, and it gives us a very human connection with history.

As I mentioned at the start of my speech, the commission is not a UK-run organisation. Its cost is shared by the member Governments, consisting of Australia, Canada, India, New Zealand, South Africa and the United Kingdom, in proportions based on the number of their graves. That results in the UK contributing almost 80% of the total funding, which was in excess of £47 million in 2015. In addition, the Ministry of Defence provides £1.3 million to the commission for the cost of maintaining 20,000 Boer war graves in South Africa and a further 21,000 non-world war graves around the world.

The commission’s day-to-day operations are overseen by the vice-chairman, Air Chief Marshal Sir Joe French; the high commissioners of member Governments; and eight commissioners drawn from the armed forces, the two largest UK political parties—currently those two commissioners are the hon. Member for North Durham and my right hon. Friend the Member for Broadland—and individuals who bring particular knowledge and experience.

Turning to the issue at hand—the pension fund of employees of the Commonwealth War Graves Commission —I need to be clear that, as an independent Commonwealth body established by royal charter, the commission has no requirement on it to consult Her Majesty’s Government on day-to-day operational matters, including the terms and conditions of its UK workforce. However, as a key stakeholder in the commission, the MOD was consulted on the issue and agreed with the decision to consult about the closure of the scheme.

Formal consultation on commission pensions commenced on 8 June 2015. The commission met the trade unions representing UK employees on five occasions and wrote on a further three occasions, providing detailed responses to alternative proposals that were put forward. I can confirm that all the trade union proposals were costed by the commission’s actuarial advisers, so they were certainly not dismissed out of hand.

The consultation period was extended by two weeks at the request of the trade unions to accommodate annual leave commitments. It closed on 14 September 2015 without agreement being reached. Subsequent to the consultation period, further meetings with the trade unions took place on 23 November and 4 December 2015. Following the consultation, the commission has agreed to the closure of the superannuation scheme with effect from 31 March 2016, and has agreed that members will be automatically enrolled into the commission’s alternative group personal pension scheme with a period of enhanced contributions.

[Chris Stephens]

Will the Minister give way?

[Mark Lancaster]

Of course, but I am running out of time.

[Chris Stephens]

What the Minister says seems to be in direct contradiction with the letter I have from the Leader of the House, which says that no final decision has been made. Can he comment on that?

[Mark Lancaster]

I am happy to clarify that. The members of the scheme will have been notified of the closure, as have the trades unions and trustees. Crucially, I understand that the decision was taken against the background of a 60% increase in the cost of the scheme since 2005, a growing scheme deficit, and a further increase in funding stemming from the 2014 statutory valuation of the scheme. The commission has made it clear that it is unable to meet the additional costs of approximately £1 million a year without a detrimental impact on its core task of commemoration. It is clear that the only way to make such savings would be to place many jobs at risk, as the vast majority of its budget is spent on horticultural labour. As the commission is an organisation funded by six Commonwealth nations, its UK employees represent less than a quarter of its workforce of 1,250. The closure of the superannuation scheme has an impact on approximately 180 of those employees, whose terms and conditions of employment are ultimately a matter for the commission, not the Government.

The Commonwealth War Graves Commission’s funding has been maintained over many years, and this Government have recognised in the House its important and sacred mission. I am sure that hon. Members will join me in commending the commission for its outstanding and vital work. However, I must reiterate that the issue of pensions for the commission’s employees is one for the commission and its trustees rather than the Government. I understand the concerns that have been raised in this debate, and a couple of outstanding questions need to be answered. I am happy to engage with the Commonwealth War Graves Commission on behalf of the hon. Gentleman, and I will write to him in due course.

Question put and agreed to.