The Cyprus cash airdrop is just another military contingency plan

RAF air-lifted in one million Euros in cash.

A drop in salary took on a whole new meaning for members of the British Armed Forces deployed in Cyprus, when the RAF air-lifted in a million Euros in cash.

The emergency measures were designed to ensure troops don’t run out of cash if cash machines empty, as banks are closed until Thursday in the aftermath of a controversial plan for a one-off levy on savings, which has since been rejected by the Cypriot government.

Is it usual for British service personnel deployed abroad to be paid in local currency, and does the Ministry of Defence (MoD) regularly have to deal with the dramatic local effects of an increasingly destabilised global economy?

An MoD spokesperson said that the way soldiers are paid is up to them. Generally, for European deployments to permanent bases such as in Cyprus or Germany, personnel choose to have the majority of their wages paid into their regular UK bank account, with some “spending money” paid into local accounts in Euros.

In the case of mid-term operating bases, a unique local micro economy can spring up. At Camp Bastion, the pound can be exchanged at a favourable rate with the local currency the afghani, and Bastion shops and food outlets deal seamlessly with Euros, US dollars and pounds.

Locals are encouraged to set up shops and stalls in the camp to sell local craft mementoes and gifts, and are very keen to get their hands on dollars, the de facto universal currency. However, with the Danish military working closely with Afghanis to deliver training, the Euro is catching up in desirability.

For short-term operations like Libya with no in-country base, the MoD makes no local financial arrangements.

With the global economy struggling and the banking system of some countries teetering on the verge of collapse, does the MoD have a regular plan in place to ensure at least the military economy continues to thrive?

“Not really,” says the MoD spokesperson. “It’s the job of the MoD to react to a rapid change in any situation with a contingency plan, and the potential shortage of cash in Cyprus is just another example.”

This blog first appeared here.

Photograph: Getty Images

Berenice Baker is Defence Editor at Strategic Defence Intelligence.

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Jeremy Corbyn's Labour conference speech shows how he's grown

The leader's confident address will have impressed even his fiercest foes. 

It is not just Jeremy Corbyn’s mandate that has been improved by his re-election. The Labour leader’s conference speech was, by some distance, the best he has delivered. He spoke with far greater confidence, clarity and energy than previously. From its self-deprecating opening onwards ("Virgin Trains assure me there are 800 empty seats") we saw a leader improved in almost every respect. 

Even Corbyn’s firecest foes will have found less to take issue with than they may have anticipated. He avoided picking a fight on Trident (unlike last year), delivered his most forceful condemnation of anti-Semitism (“an evil”) and, with the exception of the Iraq war, avoided attacks on New Labour’s record. The video which preceded his arrival, and highlighted achievements from the Blair-Brown years, was another olive branch. But deselection, which Corbyn again refused to denounce, will remain a running sore (MPs alleged that Hillsborough campaigner Sheila Coleman, who introduced Corbyn, is seeking to deselect Louise Ellman and backed the rival TUSC last May).

Corbyn is frequently charged with lacking policies. But his lengthy address contained several new ones: the removal of the cap on council borrowing (allowing an extra 60,000 houses to be built), a ban on arms sales to abusive regimes and an arts pupil premium in every primary school.

On policy, Corbyn frequently resembles Ed Miliband in his more radical moments, unrestrained by Ed Balls and other shadow cabinet members. He promised £500bn of infrastructure investment (spread over a decade with £150bn from the private sector), “a real living wage”, the renationalisation of the railways, rent controls and a ban on zero-hours contracts.

Labour’s greatest divisions are not over policy but rules, strategy and culture. Corbyn’s opponents will charge him with doing far too little to appeal to the unconverted - Conservative voters most of all. But he spoke with greater conviction than before of preparing for a general election (acknowledging that Labour faced an arithmetical “mountain”) and successfully delivered the attack lines he has often shunned.

“Even Theresa May gets it, that people want change,” he said. “That’s why she stood on the steps of Downing Street and talked about the inequalities and burning injustices in today’s Britain. She promised a country: ‘that works not for a privileged few but for every one of us’. But even if she manages to talk the talk, she can’t walk the walk. This isn’t a new government, it’s David Cameron’s government repackaged with progressive slogans but with a new harsh right-wing edge, taking the country backwards and dithering before the historic challenges of Brexit.”

After a second landslide victory, Corbyn is, for now, unassailable. Many MPs, having voted no confidence in him, will never serve on the frontbench. But an increasing number, recognising Corbyn’s immovability, speak once again of seeking to “make it work”. For all the ructions of this summer, Corbyn’s speech will have helped to persuade them that they can.

George Eaton is political editor of the New Statesman.