Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

Mr. Deputy Speaker, I want today to announce the settlement package for the Royal Irish (Home Service) personnel being discharged as a result of the Northern Ireland normalisation process. I want also to mention that we have completed work on a related issue—the reduction in the number of Royal Armoured Corps and infantry bands within the Army, as part of the overall work on the future Army structure. As a further part of that work, the band of the Royal Irish Regiment will be disbanded by 31 March 2008, and the Territorial Army band in Northern Ireland will be renamed the Royal Irish Regiment Band (TA). Full details have been provided to the House in a written ministerial statement today.

The House will recall that on 1 August 2005, the start of the security normalisation process in Northern Ireland was declared. We said then that, should the security situation remain satisfactory, Operation Banner, under which the military provide support to the Police Service of Northern Ireland, will end on 1 August 2007, and that after that there will be no requirement for the three Royal Irish (Home Service) battalions. However, they will be required to support the police in the 2006 marching season.

I want to take this opportunity to pay tribute to these dedicated and brave men and women, who have contributed so much in bringing us to where we are today. We will never forget that more than 200 Royal Irish (Home Service) and Ulster Defence Regiment personnel made the ultimate sacrifice while serving in Northern Ireland. I know that the day of disbandment will be a sad one for the battalions and for each and every member of the Home Service, but we should take the opportunity to look at how far we have come. They should all be rightly proud of the crucial role that they have played in creating the environment for normalisation to begin, and I offer my thanks for their sacrifice and fortitude.

My Department has been working hard to draw up a settlement package for the military personnel in question, and I am now in a position to provide details of it. In addition to the normal armed forces occupational redundancy and resettlement package, full-time personnel will receive a tax-free, flat-rate ex gratia payment of £28,000. Part-time military personnel will receive a tax-free, flat-rate ex gratia payment of £14,000. These payments are in recognition of the impact that disbandment will have on those serving in the Home Service, and are an acknowledgement of the pressures that they will face on re-integrating into the community.

All full-time soldiers will be offered normal redundancy terms, which include a lump sum, tax-free compensation payment and, for many, early payment of pension. They will also have access to a full resettlement service, including training and a job-finding service. Part-time Home Service personnel will benefit from a job-finding resettlement service. There will be a bespoke Royal Irish after-care service to provide continuing support; it will be accessible by all former members of the Ulster Defence Regiment and of the Royal Irish (Home Service), as well as their dependants. Exact details of the after-care service are, however, still being worked on.

I cannot over-emphasise how eager we are for as many Home Service personnel as possible to take the opportunity to continue their career in the armed forces, where they can carry on making a valuable contribution to defence. Consequently, we are offering an alternative taxable engagement bounty of £10,000 to eligible Royal Irish (Home Service) personnel who wish to transfer into, and are accepted into, the general service Army.

The settlement package will be offered to all Royal Irish (Home Service) officers and soldiers still in service on 31 August 2006. The package has been designed to take into account three factors collectively: first, the pressures and restrictions that members of the Royal Irish (Home Service) faced while serving in their local community, and which are likely to continue to affect them in the immediate aftermath of the regiment's disbandment; secondly, the importance of assisting more than 3,000 of our people as they return to civilian life; and finally, the socio-economic difficulties that they may experience as a result of the regiment's disbandment and their former membership of it.

Resettlement will commence from 1 January 2007. Full-time soldiers will finish their service in tranches spread over a longer period. The majority will leave between 1 January and 31 July 2007, although a very small number of personnel will be required until 31 March 2008, by which time the process will be complete.

The package, which goes well beyond statutory entitlements, is well deserved and we hope that it will be well received by Home Service personnel. To put it in context, I give three typical examples. A 22-year-old full-time Home Service private with four years' service would receive a tax-free lump sum payment of about £38,000. A 34-year-old full-time Home Service corporal with 16 years' service would receive a tax-free lump sum payment of about £85,500 and an immediate pension for life. A 43-year-old full-time major with 22 years' service would receive £152,000 and an immediate pension. Overall, the cost of this package to the Ministry of Defence is in the region of £250 million. Everyone will regard this as a very generous package for a unique set of individuals who have made a substantial contribution to the achievement of normalisation in Northern Ireland. Regimental traditions will be preserved by the 1st Battalion the Royal Irish Regiment and by the Territorial Army element, the Royal Irish Rangers, which will remain an integral part of our defence capability.

The normalisation process will also impact on civilian personnel, and a process of consultation will take place with the trade unions on the civilian redundancies, in accordance with our duties under section 188 of the Trades Unions and Labour Relations (Consolidation) Act 1992. Affected civilian staff will be kept informed of progress, but we will not be in a position to make an announcement until later this year.

Consideration is also being given to the formal recognition that should be given to mark the unique circumstances faced by the Royal Irish (Home Service) and its antecedents in providing continuous support to the police in Northern Ireland throughout the counter-terrorism campaign. The regiment has been consulted on that, and its views will be given due weight. I hope to be in a position to make an announcement on the matter later in the year.

I hope that the House will welcome the resettlement package outlined in this statement, and agree with me that it treats the men and women of the Royal Irish (Home Service) fairly and with the dignity and respect that they deserve.

Mark Harper (Shadow Minister, Defence; Forest of Dean, Conservative)

I join the Minister in praising the contribution of the Royal Irish regiment down the years, and especially those components that form the Ulster Defence Regiment. The Opposition recognise the immense sacrifices that they made during their lengthy period of active operations when Northern Ireland was a focus of terrorist violence. Indeed, they have been on operational duty as long as I have been alive.

I am sure that I speak for everyone on both sides of the House when I say how pleased we are with the progress being made towards a just and lasting settlement in Northern Ireland. We hope that the talks succeed, but the ninth report of the Independent Monitoring Commission makes it clear that it is very difficult to predict the nature of the threat to public order. Events in the summer and autumn of 2005 confirm that, and show that the police can be placed in a position where they need reinforcements. They also show the potential for extreme violence, including sectarian violence, to erupt suddenly in the course of rioting, and for that violence to include potentially lethal attacks on the security forces. Therefore, what specific measures does the Minister intend to put in place to ensure that the Army will retain the capacity to react adequately, should the security situation deteriorate? We may hope for the best, but we must plan for the worst.

Given that the Minister has effectively acknowledged that the Army is overstretched, will he reassure the House that the proposed financial arrangements will not act as a disincentive to those wishing to transfer to another regiment? As for the details of the package, we welcome the generous compensation that will be available for our soldiers. They deserve no less.

Finally, I have a question about Army bands. Given the reduction in the number of bands outlined in written statements, is the Minister able to give a commitment on the future of the Corps of Army Music's headquarters at Kneller hall in Twickenham?

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

On the final question, I shall write to the hon. Gentleman and place my reply in the Library of the House. I thank him for his comments on the role of the Royal Irish (Home Service), and am sure that they are shared across the House.

The hon. Gentleman asked about the potential for ongoing disturbances in Northern Ireland. He will know that overall responsibility for security matters rests with the Chief Constable of Northern Ireland, obviously with the support of other agencies, including the British armed forces. There is no question but that the Chief Constable is entirely happy with the proposals, but his expert judgment also plays a role. If the conditions and flavour of the times were different, we would not have begun the progressive normalisation process that is welcomed by everyone. Army resources will of course be available, if required, and that is also part of the understanding with the Chief Constable.

The hon. Gentleman asked about the disincentive to transfer to other regiments. We have put up the £10,000 bounty to encourage those who wish to transfer to do so, as we are eager for that to happen. Those who do transfer will forgo the other part of the settlement, but I do not believe that to be a disincentive. We are keen for people to transfer, and the bounty on offer is substantial. I met members of the Home Service on deployment in Iraq, and some of them were already beginning to think about their future career in the Army. That is to be welcomed, and I thank the hon. Gentleman for his support for the overall package presented today.

Nick Harvey (North Devon, Liberal Democrat)

I thank the Minister for his statement, and for the notice of it that I was given. I echo the words of tribute that have been paid to the very dedicated and decent people who have done such a demanding job in very difficult circumstances. It is right that they should have a generous package, and I welcome the measures that the Minister has announced today.

I took over the role as my party's spokesman on defence only a relatively small number of hours ago, since when just about every piece of briefing that I have read has referred to staff shortages, recruitment and retention difficulties, and overstretch, especially in the light of forthcoming engagements in Afghanistan. I am therefore sure that the Minister will understand my surprise at waking up on my first morning in my new post to find that we were due to discuss redundancy packages for armed forces personnel.

I especially welcome the £10,000 bounty that the Minister has announced to encourage people to stay in the armed services. I am sure that that is the best option. I would welcome an explanation of the practical measures being taken to encourage a positive response, but I applaud that aspect of the package.

Finally, will the Minister remind the House of the military support that will remain in place for the police in Northern Ireland? As has been noted, there were eruptions of violence last summer and autumn. We hope that they will become things of the past, but it would be complacent to assume that they will.

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

I welcome the hon. Gentleman to his new role as the Liberal Democrat defence spokesperson, and no doubt we will cross swords over some of the issues to which he referred tangentially in his remarks.

I appreciate that this is the first day in the job for the hon. Gentleman and I assure him that my statement was not deliberately timed to coincide with that. However, given what he said about the way that we use the Army elsewhere, I think that he may have misunderstood the role of the Home Service. It is able to perform its duties only in Northern Ireland. It was established for that purpose, which has of course come to an end as we make progress towards normalisation.

Many of the people in the Home Service have grown up in a military environment, and have a good understanding of what is required. They are well trained, and many of the skills that they have could be used. They would, of course, need to be retrained to become fully functioning members of the regular Army, but we are offering the £10,000 inducement because we want them to join.

We recognise that those in full-time service face a particular problem, and a sizeable number of them may want to take this career opportunity. However, we will define more closely the eventual long-term Army strength in Northern Ireland, and at present expect it to be in the region of 5,000 personnel. That would mean that those who transfer to the regular Army could still have their homes close to the regimental base, even though they would also serve on deployment like any other soldiers.

The package is based on the normalisation process. The hon. Gentleman may wish to make an early visit to Northern Ireland and avail himself of the briefings about what is going on over there. I am sure that he would benefit greatly from doing so, and we will facilitate that as best we can.

Chris Bryant (PPS (Rt Hon Lord Falconer of Thoroton, Secretary of State), Department for Constitutional Affairs; Rhondda, Labour)

I apologise to my right hon. Friend the Minister for not hearing the beginning of his statement, but I welcome what he has announced. I visited the Royal Irish with the armed forces parliamentary scheme only seven weeks ago, when we were all immensely impressed by the regiment's long history and tradition and by the perceptions of the future that some of the men revealed in conversation with us. They were aware that the decision that has been taken was necessary, and were proud of the fact that they had a role to play in the change that is taking place in Northern Ireland.

Will my right hon. Friend comment on the fact that, although the Army still flies police officers into Crossmaglen, some Army officers think that that may no longer be necessary? When does he hope that it might be possible for a further normalisation of police activities to mean that the intervention of the armed forces is no longer required?

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

I thank my hon. Friend for his welcome for the announcement, and he makes some very valid points. He asked about the transportation of key personnel into what could be deemed to be some of the more sensitive areas of Northern Ireland. It rests with the Chief Constable to come to a conclusion about when that might be changed, but at all times we must make careful judgments. That is how we have handled matters, quite properly, over the years. We are unquestionably moving forward rapidly, but we have a duty of care to our personnel at all times. We will ensure that it is properly done, on the best advice available, and it will come, ultimately, from the Chief Constable.

Patrick Cormack (South Staffordshire, Conservative)

Can the Minister assure the House that everyone who wishes to take the £10,000 will be able to do so?

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

Well, we could have an embarrassment of riches if that happened. I would like to see that happen, but realistically it will not be the case. Given the shortages in the Army, there will be sufficient vacancies, but it is not only a case of people wishing to take the £10,000. We have to ask whether they are suitable or appropriate for transfer. Age and other factors will come into consideration.

Lady Hermon (North Down, UUP)

While I welcome the financial settlements that will enable the courageous men and women of the home battalions of the RIR to leave with dignity, I was bitterly disappointed that the statement made no mention of a fund equivalent to the police fund, which rightly supports the widows and families of police officers who were murdered or maimed by terrorist activity. The Minister knows perfectly well that members of the UDR and, latterly, the RIR have been murdered and maimed alongside RUC personnel in the same terrorist attacks. Will he give me a commitment today, without any hesitation, that the MOD will set up a fund equivalent to the police fund?

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

I well understand the hon. Lady's concern. I mentioned the after-care package in the statement and I am considering the precise elements of the various funds that exist to support those who served in the RUC and the Police Service of Northern Ireland. As the hon. Lady knows better than I, there are several funds, and she mentioned one in particular. I wish to ensure that our after-care package matches that. It may take a different form, because of the different circumstances, but the principles will be the same. That is why I said that the after-care package will be carefully analysed: I do not want to find that we have a discord between two equivalent groups of people who stood together shoulder to shoulder. In many ways, it will best be achieved through the regimental process and letting the Army look after its own. It is the Army family, after all. I take on board the hon. Lady's point, and if the provision does not meet her requirements, I am sure that she will make her views very strongly known.

Ian Paisley (North Antrim, DUP)

I apologise for being a few minutes late due to circumstances over which I had no control.

This is a day of shadows for Northern Ireland, because any lessening of the link with the United Kingdom is always looked on with suspicion by Unionists, who are as determined as ever to remain part of the Union. Moreover, the majority of the people of Northern Ireland for whom I speak do not believe that this is a time at which any of our defences against the terrorists should be removed. However, a decision has been made to do away with the Home Service of the Royal Irish. Does the Minister agree that the sacrifices of the Home Service can never be adequately compensated, especially taking into consideration that the members who lived at home had those homes and their families targeted as a result? The price of their life's blood, which many of them sacrificed, cannot be valued. Therefore, does he agree that the enhancement payments are not an attempt to put a price on the sacrifices made by those gallant men and should not be regarded in that way?

I am sure that the Minister will agree with my colleagues and me that we put to him, the Secretary of State for Defence and the Prime Minister as strong a case as we could, based on comparative equality with payments made to the RUC and to prison officers. I must put on the record our thanks to him, the Secretary of State and the Prime Minister for all their help on the matter, for the way that they listened to the tough talking from the Ulster Members and for doing their best to help us. I am personally glad that the social and economic difficulties that those men have to face in gaining employment in Northern Ireland are recognised by the Government, and we will of course have ongoing talks on those matters.

I thank the Minister especially for his tribute to the sacrifice and fortitude of those men. They deserve all our gratitude. We salute today the memory of the gallant dead of the regiment and the bravery of all who fought the good fight, and we wish their families God's richest blessing.

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

I thank the right hon. Gentleman for his thanks for the way in which we have approached this issue. He is right to say that he and his colleagues made representations, as did Lady Hermon. The views that were expressed helped us to reach a greater appreciation, if that were necessary, of the need to do the correct and proper thing to mark the contributions and sacrifices made by those who served in the regiment and its battalions, and their antecedents.

The right hon. Gentleman is correct to say that the proposals are not about putting a price on sacrifice. We have had to consider a resettlement, knowing that there will be significant difficulties for those who are trying to get back into normal civilian life. We have to set a level, and we now have a substantial package, which is why I gave some examples. I hope that people realise that we are treating the issue seriously. It is a measure of the recognition of the difficulties that some of those brave men and women may face in settling back into civilian life. I hope that the normalisation process will continue apace—we are seeing good progress—because that will help everyone in Northern Ireland get back to normal. That is what the Government want and I know that the right hon. Gentleman and his colleagues want it too.

Jeffrey M Donaldson (Lagan Valley, DUP)

I echo the words of my right hon. Friend Rev. Ian Paisley. Having served in the UDR alongside some of my hon. Friends, it is with great pride that I reflect on the contribution that it has made to securing progress in Northern Ireland and protecting all of the community. We salute the sacrifices that have been made to help us to move towards what we hope will be a lasting peace.

Will the Minister look carefully at the nature and timing of the redundancies? In particular, will he make every effort to ensure that the members, both part-time and full-time, are accommodated when it comes to the timing of their redundancies? Where possible, that should be done on a voluntary basis, and I know that many of the soldiers will be willing to co-operate. I hope that no soldier will be put in the position of being forced to leave if he wishes to remain until the very end. Many of those soldiers, especially the part-time ones, have served in the regiment for more than 35 years. They were there at the beginning, and it is only fair to their honour and dignity that they should be there at the end if that is their wish. I hope that the Minister will find a way to accommodate those part-time and full-time soldiers who wish to remain to end, as well as those who wish to leave earlier on a voluntary basis.

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

I thank the hon. Gentleman for the service he gave as a member of the UDR. He made strong and trenchant points about the role of the UDR and the Royal Irish (Home Service); there is no one better placed to do that. The hon. Gentleman raised issues about the phasing and tranching of the redundancies. Clearly, we have to have some structure. The bulk of the full-timers will go by the earlier date that I indicated in my statement. This has to be managed in a progressive way. We will try to be sensitive to the wishes of individuals at all times, but we have to meet the commitments to try to reduce the numbers as we go forward. In addition, there are operational needs because the 2006 marching season is still to be faced.

The part-timers have made representations to me on this, and Lady Hermon has highlighted the sensitivity of this issue. The difficulty is that if everyone wishes to remain in until the very end, that will not be until 2008 and it is not practicable. I do not think that any other date would make it easier. I will take this matter away and reflect on it, as we have done throughout the process, but I am setting out the difficulties. One of the ways in which we are seeking to address the desire of people to be there when, effectively, the flag comes down, is to have a ceremony, which we are planning for later this year so that the bulk of those affected will still be in service. The final arrangements have not been made and a number of processes remain to be gone through, but we are planning something later in the year. I mentioned this in my statement and will make an announcement in due course. We are trying to be as sensitive as possible and I will take on board the point that has been made.

Mark Francois (Shadow Minister, Treasury; Rayleigh, Conservative)

I echo other Members in paying tribute to the Home Service battalions and to the Ulster Defence Regiment. They did a difficult job very bravely in tough circumstances. I shall ask the Defence Minister a defence-related question. Given the pressure on the regular and Territorial Army and the problems of overstretch, particularly in the infantry, did Ministers consider attempting to re-role these three battalions either as regular soldiers or as Territorial Army battalions, which have traditionally never been involved in the security situation in Northern Ireland? That would have allowed them to continue as formed units and make an active contribution to the defence of the realm. At a time when we have lost far too many infantry battalions, why are we now prepared to stand by and lose three more? It seems to make no sense.

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

It does make sense, but before I retort in my usual way to some of the issues to which the hon. Gentleman pointedly referred, I thank him for his earlier comments. There was a request and issues were raised about the possibility of retaining incremental companies. The Army looked at that possibility and rejected it. It was not rejected as a result of some political overlay. The Army did not believe it to be the appropriate way forward. We have taken best military advice on this.

I point to the £10,000 bounty, which is very considerable. For many of these soldiers, the transition from what they are currently doing to the regular Army would not be difficult. There would have to be retraining, there would be issues associated with full evac and the future Army lay-down in Northern Ireland—a garrison 5,000-strong is planned—would have to be borne in mind. Therefore, there could be many of the elements for which the hon. Gentleman is asking.

Sir Patrick Cormack asked whether everyone who applies will get their wish. That will depend on the factors at the time, but we could effectively have what the hon. Gentleman is asking for if those people make that choice. There is nothing to stop them doing so, and, if they wish, many hundreds could do what the hon. Gentleman wants to see happen.

Ben Wallace (Lancaster & Wyre, Conservative)

I wish to place on record my salute to members of the Royal Irish Regiment, formerly the Ulster Defence Regiment, whom I served alongside in Northern Ireland for a number of years. They were some of the bravest members of the security forces and, unlike many regulars, they went home at the end of their patrols and lived in the community, often in danger. What measures will be put in place to protect individuals who live in very republican communities, often in rural areas, for whom danger will go on after their regiment has been disbanded?

Will any of these people remain in the reserve? The ninth Independent Monitoring Commission report stated that although the situation is heading towards normalisation, it is volatile. If these people remain in the reserve, there would be an asset to take advantage of in the future.

There is also the element of cost. We know that the MOD is strapped for cash and is facing many commitments. What discussions has the Minister had with the Under-Secretary of State for Northern Ireland, his hon. Friend Mr. Woodward? What assistance has he had from that Department, or other Government Departments, to pay the £25 million so that we do not see reductions in armed services elsewhere as a result of this generous offer?

Adam Ingram (Minister of State (Armed Forces), Ministry of Defence; East Kilbride, Strathaven & Lesmahagow, Labour)

I thank the hon. Gentleman for his service in the armed forces and the role that he played as an individual soldier in getting us to this position of normalisation.

We are not strapped for cash. We have had a very significant settlement. The demands are unquestionably great and can grow exponentially at times, but we have to balance resources. We have laid down a considerable package. The Northern Ireland Office went through this process with the conversion of the RUC to the Police Service of Northern Ireland. I cannot remember the total sum involved in that, but it was another considerable package. However, this is a debt of honour to our people and cannot be seen as compensation. To squabble about money would be unseemly. We have done what we believe to be right. It has been well received across Northern Ireland and, if not, I will hear about it from those who currently serve. We have had a flavour of how well it has been received, although there are still some concerns to be addressed.

The protection of those who have gone back to civilian life is a matter for security assessment within Northern Ireland and rests with the Chief Constable. We have always shown our willingness to look after people in that part of the United Kingdom. I do not see that changing.

Several hon. Members:

rose—

Michael Lord (Deputy Speaker)

Order. We must now move on to the next business.