Armed Forces Pay

Stewart Malcolm McDonald Excerpts

Wednesday 1st November 2017 Commons Chamber

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

I thank the shadow Secretary of State for bringing the motion before the House.

In the short time that I have been the Defence spokesperson for my party, it has become abundantly clear that the Secretary of State—who, unfortunately, is leaving us at this moment—is not so much running a Department as presiding over a shambles with, I believe, the fourth-biggest spend in Whitehall. You have to hand it to Ministers, Madam Deputy Speaker, because it takes some brass neck to come to this House time and time again and seek to portray this team as in command of its ship, when the reality is that when you lift that thin veil, the chaos and the haemorrhaging of money is there for all to see, and it is like nothing I have seen in the two and a half years that I have been a Member of this House.

On the issue of pay and the broader issue of terms and conditions, I wish to bring the House’s attention to a piece of work that will be led by my hon. Friend the Member for Glasgow North West (Carol Monaghan)—a commission set up by my party to review what offer we think should be made to members of the armed forces. That will look in detail at the issues of pay, pensions, a trade union or representative body—which was mentioned today and in a previous debate this week—and, of course, housing and homes for veterans and their families.

On the pay cap, it should be noted that the Scottish Government were the first Government anywhere in the UK to commit to lifting the 1% pay cap right across the public sector. We believe that it is the very least that workers in uniform—be they nurses, police officers or those who protect us in the armed services—truly deserve. The pay freeze—which, as has been mentioned, is in reality a cut to their wages—is one of the many, many components making up the crisis in recruitment and retention. Inflation has pushed the cost of living up for everyone, meaning that their take-home salary is being stretched like never before. For too many, there is too much month at the end of their money.

Let me just adumbrate for Ministers, with inflation sitting at 3%, what that means. If your base pay is £21,000 you receive £21,210 after your 1% rise. When you account for inflation, Madam Deputy Speaker, it leads to a real wage loss of £420. So how Ministers and Government Back Benchers can come to this House and participate in the inevitable crescendo of backslapping and chest thumping, claiming to be the party that backs the armed forces—no doubt we have a couple of hours of that to go—is beyond me. I would be embarrassed to defend this Government’s record on armed forces pay.

Having outlined—[Interruption.] I shall come to the nuclear deterrent; I am glad that the Whip, the hon. Member for Burton (Andrew Griffiths), mentions it from a sedentary position. Having outlined, as many speakers no doubt will, the bravery and sacrifice that those in our armed forces display, and what they are asked to live with, it would take some nerve to do anything other than support the Opposition motion and offer my party’s support for it. But there is a deeper, more fundamental issue that we cannot ignore, and that is how this Government and previous Governments have chosen to spend money defending the nation, which brings me to the Government Whip’s point.

There are certainly many arguments against Trident, and I have had very honest disagreement with those who support Trident. The cost is certainly one argument against it. The drain that the cost puts on our ability to defend ourselves is, I believe, unsustainable, and more and more people in the defence community are realising that.

Let us put that cost in context. The Government’s own figure for Trident is £31 billion, so if we take a starter Army officer’s salary of £26,000, it equates to over 1.1 million new staff officers. Clearly we do not need that many, but when the picture is laid out in those terms, against a backdrop of a recruitment crisis, broken manifesto pledges on the size of the army, and forces numbers at their lowest since King George III was on the throne—since Arthur Onslow was the Speaker of the House of Commons—it puts the draining cost of Trident on our conventional capabilities into some perspective. And that is before we even get to the £100 million of efficiency savings that commanders have been asked to make in addition to cuts to already threadbare budgets for training, for maintenance, for accommodation and for travel.

I want to return to those numbers: 82,000 was the commitment made by the Conservatives in their manifesto. It was their pledge, not mine, and it was not one number—

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Before the hon. Gentleman completely leaves Trident behind, is he aware that the Defence Committee recently took evidence from a group of senior academics who told us that it would be wrong to assume now that North Korea is incapable of reaching the United Kingdom with a thermonuclear warhead? In other words, they think that the North Koreans are already there, or extremely close to it. Given the unstable nature of the North Korean regime, is not that a very strong argument for retaining our own independent nuclear deterrent to deter whatever those in Pyongyang might think?

[Stewart Malcolm McDonald]

No, because it is obviously not deterring anyone, given what the right hon. Gentleman has just said.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Perhaps I can offer some information about deterrence. Some of the real, tangible threats that we face, for example in Iraq and Afghanistan, have been faced by people such as my brother, who is a reservist, so not even a regular member of the armed forces—some Members of the House know him. Investing in the people at the frontline is more important than Trident, which is sitting in Faslane and doing nothing but gathering dust.

[Stewart Malcolm McDonald]

My hon. Friend makes an important point. I am trying to resist having a debate on Trident and to stick to the issue at hand. Of course the right hon. Member for Rayleigh and Wickford (Mr Francois) can quote academics who are in favour of Trident, just as Members on my side of the debate can quote academics who are against it. We would be more than happy to debate another motion on that.

The Conservative party’s manifesto set out a commitment to 82,000 for the size of the Army, and not one number below that. We know that the Government have failed to meet that commitment, as the number has fallen to 78,010, which is a shortfall of 3,990 fully trained troops. As if that was not bad enough, just five months ago, when pressed on the numbers at the Royal United Services Institute’s land warfare conference, the Secretary of State had nothing to offer in response but obfuscation, which is deeply concerning when we consider how that prejudices our ability to field a short-notice, war-fighting division of 40,000 troops, which is seen as absolutely critical by our allies.

On recruitment, the Government clearly do not see the issue with their reputation as an employer. They have increased spending on advertising by 50%, yet the numbers keep sinking.

[Sir Mike Penning (Hemel Hempstead) (Con)]

I am listening intently to the hon. Gentleman, and I praise the work that his hon. Friend’s brother does in the Army Reserve. We are one Army and all the same, whether reservists or full-time regulars. That is how it was when I served and how it always should be. One area where we are desperately short and struggling to recruit is the Scottish infantry regiments, which is unusual. Has he any idea why people in Scotland do not want to join the infantry? Might it be that they are frightened they would be dragged out of the British Army and into an independent Scottish Army?

[Stewart Malcolm McDonald]

I am up for a debate on Trident or independence. I do have some respect for the right hon. Gentleman, and I pay tribute to him for his service. I recall him appearing before the Transport Committee when he was a Minister, so I know that he is a thoughtful Member of the House. To answer his question bluntly, no, the threat of independence is not what is putting off potential recruits. If he stays for the rest of the debate and listens to what other Members have to say, he will realise that there are serious things that are putting people off. I say that not because I want to have a bun fight across the Chamber, but because we want to see that sorted. Even if Scotland became independent tomorrow, it would still be in our interests for England to have a strong Army. I am not interested in having a constitutional bun fight, but I will allow him to intervene again.

[Sir Mike Penning]

That is not my intention either. I was the Armed Forces Minister before my hon. Friend the hon. Member for Milton Keynes North (Mark Lancaster) took over the role—he is doing a fantastic job, because he has much more experience in the Army than I ever had. The point I was trying to make is that the English regiments have always been augmented by Scottish troops, particularly in the infantry—the corps are full of Scots and Welsh, but particularly Scots—but now the Scottish infantry regiments will be augmented by English recruits. I have no problem with that, but it is interesting, and it is not just about pay; it is very often about the package. I will stay for the debate and I will speak, probably for about seven minutes.

[Stewart Malcolm McDonald]

The right hon. Gentleman makes an interesting point, and I look forward, as always, to hearing his contribution. To be fair to Members on the Opposition Benches, I do not think that anyone has said that this is just about pay. In fact, we had a very thorough debate earlier this week on flexible working, when many other issues were also addressed. I see that his colleague, the hon. Member for Burton, is nodding in agreement. [Interruption.] I understand what the motion is about. He is shouting from a sedentary position, but if he allows me to make a little more progress, perhaps he will hear what else I have to say on what might be stopping Scottish people joining the armed forces.

Colonel Kemp, who took command of UK forces in Afghanistan in 2003, has criticised the Government’s reliance on outsourcing with Capita, which in 2012 took over regular and reservist Army recruitment in a contract valued at around £44 million over 10 years. That seemed to cause a bit of a bun fight across the two Front Benches. I ask Government Members, and the Government Whip, the hon. Member for Burton, who seems determined to shout me down at every turn, why will they not heed the advice of a report part-authored by one of their own colleagues, the right hon. Member for Rayleigh and Wickford, which recommended in July this year that the Government should accelerate work on an alternative to the Capita contract? That thoughtful recommendation, which we support, was set out in a report part-authored by a Government Member.

I want briefly to mention pensions, because that is another area. I note that the right hon. Member for Hemel Hempstead (Sir Mike Penning) has now left the Chamber, having asked me to talk about other areas, which is a shame. It is well known that the Ministry of Defence is working on a new joiners offer, which I would like to hear more about. On pensions, I would be grateful if the Minister confirmed that the Ministry is working on new joiners’ offer arrangements. If so, how does that square with the promise, given a few years ago, that pension arrangements were safe for 25 years? Will any new scheme apply only to those joining after a particular date, or will the cut be retrospectively applied to those currently serving?

[Mark Lancaster]

The clue is in the title. It is called a new joiners’ offer.

[Stewart Malcolm McDonald]

I am glad that the Minister has cleared that up for me.

[Martin Docherty-Hughes]

There is clearly a lack of consensus across the House, at least between the Government Benches and these Benches. Would the armed forces of the United Kingdom of Great Britain and Northern Ireland not be better served by consensus, as we see in countries such as Denmark, where there is trade union representation for members of the armed forces, and where pay, housing and health are part of a consensual approach, and not just by Government but by those serving, through their trade union membership?

[Stewart Malcolm McDonald]

My hon. Friend makes a thoughtful point, and I noted Government Members shaking their heads in disagreement. In the Netherlands they have not just one trade union, but four. I do not see what the Government would have to fear from a trade union, or certainly from a body similar to the Police Federation, which could stand up for members of the armed forces when discussing these matters.

In conclusion, when all these issues are considered in the round, added to the huge number of issues faced by armed forces and veterans families, I hope that the chest thumping and backslapping that we normally see in such debates will give way to something of a lento and a decrescendo, so that a sober reflection is what drives Members in their contributions and voting this afternoon. The Ministry of Defence must urgently bring back some decency and honour to the way it treats our armed forces and veterans communities.

Defence—proper defence—cannot be bought on the cheap. That is as true of equipment and platforms as it is of the people we ask to defend us every single day. A career in the forces should be something not only that people are proud to pursue, but that the Government can offer with pride, but they cannot do so seriously if they continue to preside over wage cuts for those who protect us every day.

--- Later in debate ---

[Mr Paul J. Sweeney (Glasgow North East) (Lab/Co-op)]

Madam Deputy Speaker, thank you for the opportunity to speak in this debate.

I reflect on the values and standards that I was taught in the service. A fundamental one was the notion that credible leadership is derived from serving others and serving the interests particularly of those we lead. This House could demonstrate its leadership and its credibility in the leadership of our armed forces by ensuring that our service personnel have the adequate remuneration that reflects the nature of their service and dedication to our country. Only 33% of service personnel are satisfied with the basic rate of pay, so it is clear that there is dissatisfaction. It is a rather ill-observed point that, just because pay is not the primary driver of someone’s behaviour and career development, it is not important and not worthy of discussion in this House. It is, in fact, very worthy of discussion in this House, and I repudiate those sentiments utterly.

It has been mentioned that the X factor of incremental pay reflects the antisocial nature of the career of regular forces and that it makes up for the fall-off and restraint on pay. But it does not; only a quarter of the personnel surveyed think that it is sufficient compensation for the disruption it causes in their lives. A key thing to bear in mind is that the X factor is not much of an X factor at all.

An interesting observation about service pay that has been made across the House is that service in the armed forces provides a great opportunity for career development, particularly for young people. One of the great advantages of joining the armed forces is that the lower increment for minimum wage does not apply. It would be great if the Scottish National party could reflect that sentiment in ensuring that we continue to extend the opportunity to serve in our armed forces to 16 and 17-year-olds.

[Stewart Malcolm McDonald]

I think the hon. Gentleman is referring to a recent debate on policy change at my party’s conference. I am sure he will note when he gets to his feet that I argued against that change in policy.

[Mr Sweeney]

It is reassuring indeed that the SNP spokesperson on defence matters continues to uphold the principle that young people should be allowed to join the armed forces and develop their careers in the service. That is most welcome.

Consider a serviceperson on the lowest basic rate of pay. When on 24-hour deployments—on exercise or operations—their basic pay could actually go down to a notional value of £2 an hour. Is that really the value of our armed forces when they are dedicated to that extent? Any plans to remove the increments associated with overseas service are totally unacceptable. We should bear that in mind when we consider appropriate rates of pay for our armed forces. We talk about the great opportunity that a career in the service provides, particularly for skills development, apprenticeships and trade opportunities.

--- Later in debate ---

[Stewart Malcolm McDonald]

Specifically on pensions, the MOD’s continuous attitude survey shows that dissatisfaction with the package was at 38% in 2013, but is now at 52%. Why?

[Mr Ellwood]

I take from the continuous attitude survey that, yes, we have to recognise the concerns about pay and indeed about pensions—such concerns are felt on both sides of the House—but the biggest concerns are the long periods of separation and the pressures on family life. That is exactly why we are introducing the armed forces people programme, which will alleviate the pressure on families caused by separation. We are providing a new joiners’ offer and a new accommodation offer, and we are also looking at a new enterprise approach, which will allow highly capable people in the private sector to slide across into the armed forces. There is also the flexible engagement model that we debated in the Chamber on Monday.

As the Minister for the Armed Forces said, and this has been reiterated by Members on both sides of the House, we must recognise how different it is to wear the uniform in today’s context. It is becoming tougher to recruit because we have full employment, and it is becoming difficult to retain because of the challenges and competition we have in public life. Unlike the Opposition spokesman, the hon. Member for Caerphilly (Wayne David)—who perhaps teased my hon. Friend the Minister for the Armed Forces in denying him the ability to intervene—we recognise those different circumstances, and we are trying to get people to step forward.

The conduct of war itself has changed. What we expect to ask of our brave service personnel is also different. That is the context of the debate, and that is reflected perhaps in the recruitment and retention challenges that have been echoed across the House.