Armed Forces Commissioner Bill (Fourth sitting) Debate

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Department: Ministry of Defence
Mark Francois Portrait Mr Francois
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I entirely take the hon. Lady’s point, for which I thank her. There are a number of wider issues—one of them is education, and particularly special educational needs—and I will touch on those in the clause stand part debate, if it pleases the Chair. The hon. Lady may recall that I gave the Minister a pretty fair heads-up about that on Tuesday. I tabled the amendment so that we could raise the specific issue of pensions, which is a concern for armed forces personnel, rather than discussing it under clause stand part.

To drive that point home before I conclude my remarks, Larisa Brown, the excellent defence editor of The Times, has just published an article online entitled, “Call to spare troops’ loved ones from inheritance tax trap.” Its subheading is: “Death in service payments for unmarried members of the armed forces who die off-duty will be subjected to the levy under plans announced in the budget”. In answer to the hon. Lady’s question, this is very much a live issue as of about 14 minutes ago.

Luke Akehurst Portrait Luke Akehurst (North Durham) (Lab)
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Will the right hon. Gentleman give way?

Amanda Martin Portrait Amanda Martin (Portsmouth North) (Lab)
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Will the right hon. Gentleman give way?

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Mark Francois Portrait Mr Francois
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I will try to be brief. This amendment in no way precludes the raising of any of the other issues that the hon. Lady mentioned. It does not say, for instance, that the commissioner can look only at pensions—not at all. However, it does specifically make it clear that the commissioner is empowered to look at pensions, because they kick in, by definition, when armed forces personnel leave the service. Some people might try to argue that pensions are not a general service welfare issue because personnel are no longer serving, but they very much are—not least because, as the Minister will know, they very much affect retention. They might also affect recruitment slightly, but pensions are certainly very important in retention. Sometimes they are the overwhelming reason that people stay in the service, depending on their personal financial circumstances.

I see the hon. Lady’s point, but all this is doing is making it very clear, beyond peradventure, that the Armed Forces Commissioner’s remit would extend to pensions. I admit that it also gave us an opportunity to raise this very important issue, which the Forces Pension Society raised with me a little while ago. When I met its representatives, they were genuinely worried about this, and my amendment was an opportunity to put the issue on the table and on the Government’s radar, as it were. That is what I was seeking to achieve.

Luke Akehurst Portrait Luke Akehurst
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On one level, I congratulate the right hon. Gentleman for finding an opportunity to raise this issue in the context of the Bill Committee. It is one for which I have a huge amount of sympathy, as I represent a constituency with a large number of retired service personnel. On the other hand, it is a little cheeky to use a Bill Committee to raise a substantive policy issue that could have been raised on the Floor of the House—perhaps in Defence questions.

Mark Francois Portrait Mr Francois
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Is this another brief intervention?

Luke Akehurst Portrait Luke Akehurst
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I am sorry—I will be as brief as I can. I am getting used to being brief. What led the right hon. Gentleman to suspect that this issue might be in any way excluded? I hope the Minister will clarify that the Bill is designed to be permissive and broad, and to allow the commissioner to define what a general welfare issue might be. I do not think there is any attempt to exclude—

Mark Francois Portrait Mr Francois
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I thank the hon. Gentleman for his very pithy intervention. He pays me a back-handed compliment. How outrageous that His Majesty’s Opposition should try to raise a difficult issue in the middle of a Bill Committee; if I were to go back through the annals of Hansard down the centuries, I am sure there would be some precedent for that.

This was a timely opportunity, if I can put it like that, to table the issue. There is a consultation coming up, and I suspect, looking at his face, that the Minister was not really au fait with this issue—I am not being rude to him—but he is now, and I will be very interested to hear what he has to say.

The key point here is that death in service benefits have traditionally been payable if someone dies while in the armed forces or in the service of the Crown, whether or not they were on active service. A person who died back at home with their family would still qualify for the money. Under the armed forces pension scheme, they would still qualify if they had a regular partner. Under the Bill, however, because we are now dealing with the inheritance tax rules, unless the individual is married or in a civil partnership the exemptions do not apply. That is the critical point. I suspect the Ministry of Defence had not picked up on it. The Forces Pension Society, which exists for exactly this kind of eventuality, has done what it says on the tin and raised an issue that could materially affect armed forces pensions. In some ways, I am acting as their factotum this afternoon in tabling the issue.

Mark Francois Portrait Mr Francois
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I think it is. Those who have left the service, are by definition no longer subject to service law; they are subject to the laws of the country like any other civilians, as that is what they have become, albeit they are civilians with the special status of being a veteran, which we should respect. But they are no longer serving in His Majesty’s armed forces. The amendment would allow the commissioner to expand their remit little bit in order to look at pension-related issues, which are something that armed forces personnel regard as part of their general service welfare. When they are taking that stick or twist decision, weighing up the pluses and minuses of whether to stay or leave—particularly if they have been in the service for some years and have accumulated a reasonable pension pot—that is definitely something that they will take into account.

Luke Akehurst Portrait Luke Akehurst
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Will the right hon. Gentleman give way?

Mark Francois Portrait Mr Francois
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In a moment. My hon. Friend the Member for Spelthorne is a former commanding officer of the Scots Guards, and he knows the challenge that all commanding officers face in retaining personnel, particularly experienced personnel. It is part of that stick or twist decision, which is why we believe that the Armed Forces Commissioner should be able to look at it. The amendment would remove any doubt that they had the ability to do that, while—to come back to the point made by hon. Member for Broxtowe—in no way precluding their being able to look at anything else.

Luke Akehurst Portrait Luke Akehurst
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I thank the right hon. Gentleman for giving way. I will try to be more pithy this time. I thought there was a separate proposal for a veterans’ commissioner. Should not matters that affect former service personnel after the point when technically they have ceased to serve, or their families if they are deceased, sit in the purview of a veterans’ commissioner, not the Armed Forces Commissioner?

Mark Francois Portrait Mr Francois
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The hon. Gentleman anticipates me, because if he looks down the list of amendments, he will see that new clause 2 talks specifically about veterans’ commissioners. Perhaps at that point he might want to intervene on me again, as long as it does not mean Mr Betts misses his train.

I hope that I have made my point. I shall be interested to hear what other Members in the Committee think, and particularly what the Minister’s view is.

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Lincoln Jopp Portrait Lincoln Jopp
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Members of the Committee will be aware that line 35 on page 2 defines a general welfare matter using its own terms; it says that a general welfare matter is a matter to do with welfare. Thinking back to when we all did English GCSE—or O-level, in the case of some of us—we know that using terms to define themselves is a bit self-defeating, because they do not really define anything. I assume that is deliberate, and maybe the Minister will tell us so. The provision is incredibly broadly drawn and gives the commissioner very free reign as to what they consider a welfare matter to be, with one or two exclusions that the Minister mentioned earlier.

I think that is important, because I keep being told, and I have read in the explanatory notes, that this is all inspired by the German model. When I ask what is so great about the German model, I read that it is because German members of the armed forces are really happy with it. On Tuesday, General Gregory said that to do their job effectively, the armed forces commissioner needs a clear and deep view of defence outputs. People being happy with a part of the bureaucracy is not a defence output. The only one that trumps everything else is the ability to deliver legal, lethal force. In summary, the armed forces need to be able to kill lots of people.

Luke Akehurst Portrait Luke Akehurst
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Would the hon. Gentleman not concede that morale is important to being able to deliver lethal force, and that this kind of system, which enables welfare issues to be addressed, might contribute to higher morale? In the event of combat, such morale could mean that troops perform better.

Lincoln Jopp Portrait Lincoln Jopp
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I thank the hon. Member for his intervention—it is almost as if he read my speech. I was going to stay on my German theme and say that one person who interpreted that general definition of welfare was another German: General Erwin Rommel. He said that the best form of welfare is better training, because more training means fewer widows.

Although the Bill and the Minister attempt to draw the line between operations abroad and welfare at home, those things rub up against each other. For example, the Ministry of Defence has targets for nights out of bed. How much time can personnel be expected to spend away without their service becoming too detrimental to their family life? Equally, it has these things that sound wonderful—I thought it was to do with hairspray—called harmony guidelines. In fact, they are to do with how long the armed forces can send people away for without a specified dwell time in between for them to recuperate.

From a welfare point of view, it is perfectly possible that the Armed Forces Commissioner could focus solely on whether a commanding officer, a unit, a brigade, a ship’s captain or whatever was meeting the nights out of bed guidelines or the harmony guidelines. But the captain of that ship or the commanding officer of that unit might well think, as Rommel did, that more training was better in the long run for the welfare of their personnel. I would be grateful for a response from the Minister on that point.

My other concern is much more strategic: by having an Armed Forces Commissioner with these extended powers and the ability to report to Parliament, we put a spotlight on one aspect of militarism, potentially to the detriment of other aspects of it, such as the defence output of killing lots of people. That is important because the Minister for the Armed Forces, as well as the defence board, will be making strategic balance-of-investment decisions between things such as buying a lot more jets and getting damp-proof courses for quarters.

Look at the figures in the House of Commons Defence Committee report into service accommodation, which was published yesterday. If the Minister and the Secretary of State for Defence were minded to rectify the parlous state of some parts of the defence estate, that alone would use up every single penny of the, I think, £2.6 billion extra that the Chancellor has found to increase the defence budget.

I alert the Minister to the fact that over time, the instigation of this parliamentary-level scrutiny of one aspect of the make-up of defence may well strategically shift us away from the defence output of lethality. It is a reductio argument, but we could have a fully manned armed forces with everyone giving 100% scores on the continuous attitude survey, great pensions and fantastic pay, but they cannot win a war. Clearly, that is not where we want to get to. We have to put in place measures and judgments that mean that the Armed Forces Commissioner, and the instigation and extension of their powers, does not undermine the military chain of command or the capacity to fight.