§ Mr. Norman Lamont
asked the Secretary of State for Foreign and Commonwealth Affairs which allowances for diplomats serving overseas are tied to some cost of living indices; and whether he will specify both the relevant indices and the allowances.
§ Mr. Tomlinson
The allowances concerned are local allowances, indirect representational supplement (IRS), accountable indirect representational supplement (AIRS) and entertainment allowance. Local allowance is adjusted, upwards or downwards, in line with changes in the cost of living at the post and variations in the exchange rate. A cost-of-living index is maintained for each post within the framework of the Civil Service National Whitley Council Agreement726W created for certain sensitive sectors of the economy by imports from Japan.