John Robertson (Glasgow, Anniesland) (Lab): I speak as an inexperienced Member of the House who is, furthermore, not a member of the Defence Committee. Although I am a lay person, I can speak with a little knowledge of the armed forces as in June last year I had the opportunity and the honour of visiting Basra with the armed forces parliamentary scheme. We saw at first hand the excellent work of our soldiers who were assisting the local population to rebuild their country and civil society after decades of misrule under Saddam. Everyone who took part in that visit returned united in our admiration for the British troops we met.

It is with those troops in mind that I and, I am sure, other hon. Members approach the Bill. We have a political responsibility to scrutinise Bills carefully, but when considering legislation that will have an impact on the men and women of our armed forces, who are prepared to make the ultimate sacrifice, we have an even greater moral responsibility to do our best for their welfare. In that respect, there is much in the Bill of which we can be proud.

The provisions fit broadly into the socially progressive nature of the Government’s legislative programme and I shall focus on that theme. I have some concerns that should be addressed in Committee, and I shall seek reassurances about them from my hon. Friend the Under-Secretary.
The Bill is rooted in the values of fairness and equality that underpin so much of the Government’s approach. It improves benefits for dependants; for example, widows’ pensions will be increased by 25 per cent., compared with the current scheme, and will be awarded for life. The death-in-service benefit will be four times pensionable pay and there will be provision for registered unmarried partners, including same-sex partners. I wholly agree with that. I am pleased about those provisions, as I have in the past made representations on behalf of constituents whose late partners had served in the forces but, because they had not married, were denied the support to which I firmly believe they were entitled. Widows and widowers in similar circumstances in the future will receive the thanks of a grateful nation.

The severely disabled will also receive better compensation, with lump sum payments available for pain and suffering resulting from injury. The guaranteed income stream will be awarded for more serious injuries where there is a loss of earning capacity. I have only two concerns on that point. First, who will make the decision to award the guaranteed income stream? Secondly, how can we ensure that the process is even-handed? I do not want it to give rise to the sort of complaints that I often receive from people with disabilities. They visit my advice surgeries to ask me to intervene on their behalf so that they can be treated properly by a more sympathetic doctor than the one who originally dealt with their case. In some cases, the doctor does not even examine the patients, but merely talks to them across the desk.

Also to be welcomed is the introduction of common treatment for officers and other ranks. They will now serve the same number of years for a full career pension at the age of 55, with an even accrual rate.

These measures are therefore internally consistent with the contribution to the Government’s commitment to modern, fair and progressive policies. They are also consistent externally with the principles behind other Bills in the Queen’s Speech. The provision for unmarried partners reflects that in the proposed civil partnership Bill. Both Bills show Labour’s commitment to promoting equality and diversity and to challenging unjustified discrimination wherever it exists-something that we heard in the previous speech. Likewise, the commitment to providing security in retirement is reflected in the proposed pensions Bill, which will provide greater protection for those in company pension schemes. The Bill should not be examined in isolation, but seen in the context of a wider agenda of social justice and fairness demonstrated throughout the Government’s legislative programme, forming an holistic approach.

Some of the criticisms of the Bill made by Opposition Members are unjustified. Yes, the proposals are designed to be cost neutral, but that is not evidence of penny pinching by the Government. After all, in 2002 the spending review put in place the largest increase in defence spending for more than 20 years. Defence resources are growing by 1.2 per cent. a year in real terms in the three years until 2005-06. That is a great contrast to the record under the Tories. Following their defence review, UK regular forces fell by 60,000 between 1992 and 1995, including 32,000 redundancies.

Hugh Robertson: We have heard that one at almost every debate since I first entered the House two and a half years ago. I was adjutant to a main battle tank regiment during that exact period. I lived through it. It was the end of the cold war and armies throughout western Europe were decreasing dramatically. Labour Members were pushing the Government hard to make bigger decreases than the Conservative Government made. Everyone was talking about a new world order and a peace dividend. That is the reason for the decrease-the hon. Gentleman knows that perfectly well-and it would be a very good idea if hon. Members on both sides of the House recognised that and stopped trying to make silly party political points.

John Robertson: I thank the hon. Gentleman for that intervention, but the fact is that what I am saying is true. Some 60,000 people were made redundant, in effect, and defence cost studies led to a further loss of 22,500 military personnel from 1995 to 1997. The Tories neglected the armed forces, and Labour is supporting them.

Some issues, however, need to be considered in greater detail, and it is especially important that the House does so because the armed forces are not unionised, so they lack one of the major forums for consultation and representation that could usually be used. Several concerns have already been outlined by the Defence Committee, and I congratulate my hon. Friend the Member for Dunfermline, West (Rachel Squire) for her input-she certainly hit the button. Hon. Members on both sides of the House understand that certain things have to be considered, and my hon. Friend put them in context. I would be grateful to my hon. Friend the Minister if he were to comment on those points.

I am concerned about the decision to raise the preserved pension age-the age until which those who leave before the normal retirement age have to wait before they receive their preserved pension. That is of greater significance for members of the armed forces than for people in other public services, simply because the majority of service personnel retire considerably earlier. In keeping with the principles that I outlined earlier, which the Bill generally upholds, I hope that that point will be considered in greater detail in Committee.

Mr. Caplin: My hon. Friend makes several important and interesting points, especially about the progress of members of our armed forces who leave service early and go on to future jobs and careers. He might be interested to know that recent evidence shows that about nine out of 10 find good employment within six months of leaving.

John Robertson: I thank my hon. Friend for his intervention. Having met some of these soldiers, it does not surprise me that they get employment-I am only surprised that the figure is just nine out of 10.

I would like to hear the Minister’s comments on the structure of the compensation scheme. The Royal British Legion, of which I am also a member, has expressed concern about several elements of the revised compensation package, especially the five-year limit for claims and the change to the burden of proof. It says that imposing a five-year limit on compensation claims would have a substantial negative effect on the ex-service community. Many other hon. Members have said that, so it would be right for the Government to revisit the time scale. Five years is not a long time, especially when we consider the conflicts in which we have put our soldiers, airmen and Navy personnel on the front line.

The legion’s pensions department organised an awareness campaign between 1994 and 1996 that resulted in 150,000 new pension awards. The majority of the claims for injuries and medical conditions were outside the scope of any five-year limit, so hon. Members will understand why the legion wants us to reconsider the time scale. I want to put down statements about our armed forces personnel becoming conscious of suing the Government. The legion helps them to get money that they richly deserve, so we cannot say that they are a compensation-oriented group of people. It is important that we take account of real concerns felt by ex-servicemen and women, and I hope that the Minister will shed further light on the rationale behind the Government’s approach.

The substitution of a balance of probabilities test for a test of reasonable doubt to determine whether an injury or illness is service related will make it much less likely that a claimant will receive a war pension.

Mr. Breed: Does the hon. Gentleman share my worry that given the movement of the burden of proof from the Ministry of Defence to the claimant, and the extraordinary rise of the so-called expert witness-and the cost of such witnesses-people will find it extremely difficult to get to even first base in a disputed claim unless they have substantial funds, access to legal aid or other support?

John Robertson: The hon. Gentleman makes a good point. We must consider cost, and I suspect that bodies such as the Royal British Legion may come into their own in such circumstances. I agree with the sentiment of his question. Can we reasonably expect ex-servicemen and women to provide extensive proof that an injury that occurred several years previously was due to their service? I dislocated my shoulder while playing cricket years ago. If I were a solider who had suffered that injury, I would have to prove that I did it as a soldier, which is unreasonable.
It is unfortunate that several interested parties were given the impression that the change was a result of financial imperatives. I do not believe that, but the new scheme should not automatically follow modern practice, such as the way in which the civil courts reach evidence-based decisions using a balance of probability as standard proof. Our armed forces give exceptional service in exceptional circumstances and they deserve exceptional support.

I shall address several hon. Members’ comments because some were good and others have given rise to questions. My right hon. Friend the Secretary of State talked about transfers to the new pension scheme. The scheme starts in 2005 and people would be able to transfer in by 2007. What will happen to people who have X number of years in the existing system and want to transfer into the new one? Will they be able to buy years in the new scheme, or will they end up with two different pensions? Having read the explanatory notes, I am not sure of the position.
I am very sorry that the hon. Member for Mid-Sussex (Mr. Soames) is not here because I really enjoyed his speech. I do not have a question about it and I do not want to quote him; I just want to say that it was highly entertaining. When he overheard something that I said and gave way to me, I thought that I did well thinking on my feet and asking a question.

The hon. Member for Canterbury (Mr. Brazier), who will, I know, speak later in the debate, mentioned something that came up when I was talking to soldiers in Basra and other areas-house prices. There are those who have been in service for many years and who, because of short-sightedness or whatever one wants to call it, did not invest in housing at an early age. Young people are inclined to forget about such things. As age has crept up on them they have realised that they have to retire soon. We have to make provision to help those people. I am not saying that they should be given extra money, but house prices are a problem for them. It was pointed out to me several times that they are at a financial disadvantage in the housing market. It is a bit like asking a first time buyer nowadays how they can afford to buy a house.

Mr. Brazier: I thank the hon. Gentleman for raising this issue. In the Army in particular, which is by far the largest of our three services, it is almost impossible to own a house if one is being moved every year or two, except towards the end of one’s service. The one factor that partially compensates for that huge disadvantage, which is met in America by a large interest-free loan on leaving the forces, is that British servicemen can trade in part of their immediate pension for an additional lump sum, which goes some way towards the huge cost of a house. In the early departure scheme, that sum will be a great deal smaller.

John Robertson: I thank the hon. Gentleman for that point and for his earlier intervention, which reminded me of this point.

Mr. Caplin: I hope that I can help the House on this point. I do not always want to advertise my speeches, but I made a speech this morning about homelessness and the armed services to the Sir Oswald Stoll Foundation and the ex-services action group. I announced that on 1 April we are to introduce a new system for a continuous stream of interviews through the chain of command about housing requirements, particularly in the Army. The hon. Member for Canterbury (Mr. Brazier) is right: there is an issue about us moving Army personnel too often and not allowing them to settle down, particularly when their partners have a job that helps to support them and their families.

John Robertson: I thank both my hon. Friend and the hon. Gentlemen for their input. That is excellent, but we still have to address the fact that there are soldiers who are about to leave the Army, and who undoubtedly need help. Anybody who has put their life on the line for 20 or 25 years deserves support from us.

The hon. Member for South-East Cornwall (Mr. Breed) said correctly that nothing has been done for 30 years. I return to the point that I made in my intervention on the hon. Member for Mid-Sussex, when I quickly thought on my feet, which is that the Government should have done something by now, and I am referring to all Governments. It is a sad reflection on the Conservatives that they did nothing during 18 years in government. I have heard Opposition Members’ criticism of Ministers, but at least they are trying to do something. Although I support much of what Opposition Members said, in this they must take the responsibility, and their party must explain why it did nothing during that 18 years. It is a party that says that it supports our armed forces more than anybody else. I am sorry, but it does not come out that way.

My hon. Friend the Member for Crawley (Laura Moffatt) made an excellent point about those aged 40 or over who do not have a disability. I spoke to people in the armed forces who are approaching or are slightly above that age, and I have to say that they did not look to me as though they would not get a job when they left. They are extremely resourceful-indeed, more so than some of the people from the poorer areas of Glasgow who come to my surgeries. I respect them very much, and if we suggest that they have a disability because they are over 40 we do them a disservice. However, I accept that we must help people when they leave the armed forces, especially older people, not only by preparing them for employment but in actively helping them to try to get a job. My hon. Friend the Member for Crawley made that point well.

What can I say about the speech of the hon. Member for Ruislip-Northwood (Mr. Wilkinson)? His attack on my right hon. Friend the Secretary of State was outrageous, particularly in a debate in which Members on both sides of the House have made friendly contributions, even those who advised the Government to do more and wanted them to introduce a better package for a soldiers. The contribution of the hon. Member for Ruislip-Northwood added little to the debate, and his attack on unmarried partners, whether of the same or opposite sex, was a disgrace. I thought that hon. Members were above such behaviour, and it is my sincere but sorry belief that he made a grave error. I shall be interested to see how the Opposition spokesman responds to his contribution.

Many of the soldiers to whom I spoke in Basra suggested that there was one way in which they could be compensated. As the hon. Member for Canterbury said, they were taxed unfairly in comparison with American soldiers. If we are going to compensate our soldiers for putting their lives on the line, one small thing that we could do that would not cost the country a lot of money is exempt them from tax while they are fighting for their country. It is not fair that they should have paid tax in Iraq, particularly as soldiers in the larger army to the north were receiving tax exemptions. Such provisions may not sit happily in the Bill, but they are a form of compensation. I have raised this matter before, and I urge the MOD to consider tax exemptions-perhaps not for personnel based in Germany, but certainly for those in Northern Ireland or on active service in Afghanistan, Iraq and Sierra Leone. It is only fair that soldiers who put their lives on the line should receive an immediate financial benefit.
I have expressed some concerns about the Bill, but I do not want to dwell on the difficulties, because I know that my right hon. Friend the Secretary of State and my hon. Friend the Minister will take them into account. The Bill is worthy of vocal support. It will introduce a progressive package that modernises the way in which pensions and compensation for the services are handled. It should be seen in the context of a rising defence budget that will secure the role and reputation of our armed forces, and it will work alongside a range of Bills that promote equality, fairness and decent rewards for those who serve the public so well.

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