While serving in the 9th Parachute Squadron, Royal Engineers, he witnessed the Argentine bombing of RFA Sir Galahad and he was later diagnosed with post-traumatic stress disorder (PTSD).
For a while, he received treatment from Combat Stress, but one day a charity welfare officer turned up on his doorstep and he was discharged.
Mr Hales later requested a discharge report but did not receive one.
Combat Stress has issued a statement saying it "unreservedly apologised" to Mr Hales and Mr Ellwood told the Commons that the charity had “got it wrong” in its treatment of the veteran.
Mr Hales’s MP, Chris Davies, described to colleagues how he had been dealing with his case over a three-year period:
"Just before Armistice Day I was sitting in Newport, which is a two-hour drive from my constituency, on a grass verge sitting outside Combat Stress where he has a conflict and an issue with, in a most undignified manner because there I was sitting next to a gentleman who has served this country and was on hunger strike because of complaints he had held.
"They were very justified complaints," he added.
Mr Ellwood intervened, saying: “Combat Stress does an amazing job.
"But in providing support for our armed forces, occasionally people fall through the gaps and we must make sure that doesn't happen.”