The Thatcher Cabinet Files - part I by SpoiltVictorian Twitterfeed

SECRET

THIS D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C

MAJESTY'S

C $ 7 9 ) 1st

GOVERNMENT

COPY

NO.

Conclusions CABINET

CONCLUSIONS

of a M e e t i n g of the

Cabinet

h e l d a t 10 D o w n i n g S t r e e t o n

T H U R S D A Y 10 M A Y

1979

a t 10. 30 a m

P R E S E N T

The Rt Hon Margaret Thatcher Prime

Minister

The R I t Hon William Whitelaw M P

The Rt Hon L o r d Hail sham

S e c r e t a r y of State f o r t h e H o m e D e p a r t m e n t

L o r d Chancellor

The Rt H o n L o r d C a r r i n g t o n

The Rt Hon Sir Geoffrey Howe Q C

S e c r e t a r y of State f o r F o r e i g n a n d

C h a n c e l l o r of the

Commonwealth

Exchequer

Affairs

m The Rt Hon Sir K e i t h J o s e p h S e c r e t a r y of State for

T h e Rt Hon F r a n c i s P y m

S e c r e t a r y of State for

Industry

The Rt Hon L o r d S o a m e s

The Rt Hon James P r i o r

L o r d P r e s i d e n t of t h e C o u n c i l

S e c r e t a r y of State for

The Rt H o n S i r Ian G i l m o u r

The Rt Hon Peter Walker

Lord P r i v y Seal

Defence MP

Employment

M i n i s t e r of A g r i c u l t u r e ,

MP Fisheries

and F o o d ThejRt H o n M i c h a e l H e s e l t i n e

The Rt Hon George Younger

S e c r e t a r y of S t a t e f o r t h e E n v i r o n m e n t ThejRt H o n N i c h o l a s E d w a r d s S e c r e t a r y of S t a t e f o r

S e c r e t a r y of State for

The Rt Hon Humphrey Atkins

Wales

ThelRt Hon P a t r i c k J e n k i n

Scotland MP

S e c r e t a r y of State for N o r t h e r n

Ireland

T h e R t H o n N o r m a n St J o h n - S t e v a s

S e c r e t a r y of State for S o c i a l S e r v i c e s

C h a n c e l l o r of the D u c h y of

The R t Hon J o h n Nott

T h e Rt Hon David Ho well

S e c r e t a r y of State for

Trade

S e c r e t a r y of State for

SECRET

Lancaster MP

Energy

SECRET

"he R t H o n M a r k C a r l i s l e M P e c r e t a r y of State f o r E d u c a t i o n a n d

T h e R t H o n J o h n B i f f en M P

Chief Secretary, Treasury

ci ence

The Rt Hon Angus Paymaster THE FOLLOWING The R t R o n N o r m a n F o w l e r

Maude

General

M P

WERE ALSO

PRESENT

The Rt Hon Michael Jopling M P

/linister of T r a n s p o r t

Parliamentary Secretary,

Treasury

SECRETARIAT Sir J o h n Hunt Sir Clive Rose

( I t e m s 2 a n d 3)

M r M D M F r a n k l i n ( J t e m s 2 a n d 3) Mr

P L e C h e m i n a n t ( I t e m 1)

P J Harrop

P M o u n t f i e l d ( I t e m 1)

( I t e m s 4 a n d 5)

M r D E R F a u l k n e r ( I t e m s 4 a n d 5) C O N T E N T S -tern

Subj e c t

G O V E R N M E N T BUSINESS

FOREIGN AFFAIRS

Page 1

Rhodesia

Namibia

COMMUNITY AFFAIRS

T H E QUEENS SPEECH ON T H E OPENING O F PARLIAMENT

C 0

SECRET

CONFIDENTIAL

IVERNMENT IJINESS

T H E PRIME MINISTER

s a i d that,

s i n c e this was the

first

f o r m a l Cabinet m e e t i n g of the new A d m i n i s t r a t i o n , i t would

a p p r o p r i a t e to t a k e n o t e o f a n d r e c o r d t h e c o n c l u s i o n s r e a c h e d a t a n i n f o r m a l m e e t i n g o f C a b i n e t M i n i s t e r s 0.1 8 The Prime points as

May.

M i n i s t e r then s u m m e d up a b r i e f d i s c u s s i o n on t h e s e

follows:

Police pay.

Edmund-Davies

T h e r a t e s of p a y r e c o m m e n d e d by the

C o m m i t t e e for implementation on

1 N o v e m b e r 1979 w o u l d b e p a i d i n f u l l f r o m 1 M a y . d e c i s i o n had been c o m m u n i c a t e d to the P o l i c e and had been announced the p r e v i o u s

day.

This

Federations,

The

Government

w o u l d p a y i t s u s u a l p r o p o r t i o n o f t h e a d d i t i o n a l c o s t to t h e l o c a l authorities t h r o u g h specific grants and the R a t e Grant. other b.

Support

T h i s s h o u l d not be r e g a r d e d a s a p r e c e d e n t f o r

any

groupa. A r m e d F o r c e s pay.

T h e full m i l i t a r y

salary

r e c o m m e n d e d i n the eighth r e p o r t of the A r m e d F o r c e s B o d y s h o u l d be p a i d i n f u l l f r o m 1 A p r i l 1979.

The

r e c o g n i s e d that t h i s m i g h t m e a n a b r i e f p e r i o d of between the r a t e s for B r i g a d i e r s Generals.

PayReviev

Cabinet

overlap

and the r a t e s for

Major

T h i s was i n e v i t a b l e u n t i l a d e c i s i o n had been

o n the r e p o r t of the T o p S a l a r i e s

Review Body.

on S e r v i c e d o c t o r s and dentists was u n c l e a r :

and she

r e s o l v e i t i n d i s c u s s i o n with the C h a n c e l l o r of the the S e c r e t a r y of State for D e f e n c e for Social S e r v i c e s ,

would

Exchequer,

a n d the S e c r e t a r y of State

i m m e d i a t e l y after

T h e c a s h l i m i t for the Defence

taken

The position

the C a b i n e t

meeting.

Budget i n 1979-80 would

i n c r e a s e d to a l l o w f o r t h e c o s t o f t h e n e w m i l i t a r y

salary.

T h e C a b i n e t noted that the S e c r e t a r y of State for D e f e n c e bring forward separately additional proposals i m p r o v e m e n t s i n S e r v i c e benefits, members c.

i n c l u d i n g a bounty

of the T e r r i t o r i a l A r m y V o l u n t e e r

Devolution.

minor

for

Reserve.

T h e S e c r e t a r y of State for S c o t l a n d a n d

the C h a n c e l l o r of the D u c h y of L a n c a s t e r

would bring

a paper on Devolution for c o n s i d e r a t i o n by the H o m e C o m m i t t e e at a n e a r l y d.

would

for v a r i o u s

forward Affairs

stage.

Reduction in Government

circulars.

T h e Cabinet

i t s e l f a t a r g e t of r e d u c i n g t h e i s s u e of G o v e r n m e n t

set

circulars

to l o c a l a u t h o r i t i e s (both l o c a l g o v e r n m e n t a n d h e a l t h authorities) by t w o - t h i r d s .

A l l such c i r c u l a r s should contain

a n e s t i m a t e of the c o s t i n m a n p o w e r a n d i n m o n e y . affecting l o c a l government

CONFIDENTIAL

Circulars

s h o u l d be c l e a r e d i n a d v a n c e

with

CONFIDENTIAL

the D e p a r t m e n t of the E n v i r o n m e n t a n d the e s t i m a t e s of s h o u l d be a g r e e d with the T r e a s u r y .

Any circulars

cost

affecting

S c o t l a n d o r W a l e s s h o u l d a l s o be c l e a r e d w i t h the S c o t t i s h and W e l s h Offices

as a p p r o p r i a t e .

She h a d a r r a n g e d for

H e a d o f t h e C i v i l S e r v i c e to m o n i t o r p r o g r e s s have an initial report i n four weeks' e.

a n d to l e t h e r

time.

Controls over local government.

T h e S e c r e t a r y of

Ste-te f o r t h e E n v i r o n m e n t , i n c o n s u l t a t i o n w i t h t h e of State for Scotland, W a l e s , and Science,

Social Services,

a n d the M i n i s t e r of T r a n s p o r t ,

Secretaries

and Education

s h o u l d c a r r y out

an e a r l y r e v i e w of statutory c o n t r o l s by c e n t r a l over local government,

the

Government

w i t h a v i e w to e a r l y l e g i s l a t i v e a c t i o n

to r e d u c e t h e m . f.

F r e e z e on C i v i l Service manpower.

an immediate freeze period.

T h e r e would

o n r e c r u i t m e n t to t h e C i v i l S e r v i c e f o r

T h e C a b i n e t r e c o g n i s e d that t h e r e w o u l d h a v e to be

c e r t a i n e x c e p t i o n s f r o m the f r e e z e i n s p e c i f i c a r e a s ,

with the

a p p r o v a l of the D e p a r t m e n t a l M i n i s t e r s c o n c e r n e d .

During

this period,

M i n i s t e r s would undertake an urgent

examination

of f u n c t i o n s to s e c u r e r e d u c t i o n s i n C i v i l S e r v i c e

manpower.

T h e L o r d P r e s i d e n t of the C o u n c i l would b r i n g f o r w a r d to the Cabinet urgently proposals g.

to t h i s e n d .

Comparability Commission.

T h e Cabinet would

need

to c o n s i d e r u r g e n t l y the f u t u r e r o l e of the S t a n d i n g C o m m i s s i o n on C o m p a r a b i l i t y e s t a b l i s h e d by the p r e v i o u s She would a r r a n g e for a paper

Government.

to b e p r e p a r e d a s

background

to t h i s d i s c u s s i o n . h.

Price Commission.

would bring forward

a paper

T h e S e c r e t a r y of State for about the f u t u r e of t h e

Trade

Price

C o m m i s s i o n to t h e M i n i s t e r i a l C o m m i t t e e o n E c o n o m i c Strategy the following i.

week.

P a y negotiations

- nationalised industries.

Responsible

M i n i s t e r s s h o u l d s t a n d b a c k so f a r a s p o s s i b l e f r o m negotiations,

and should take responsibility for

to the n a t i o n a l i s e d b o a r d s with colleagues j.

guidance

concerned in bilateral consultation

most closely concerned.

R e d u c t i o n of waste.

Service manpower mentioned,

pay

giving

In a d d i t i o n to the f r e e z e

a n d the r e d u c t i o n of c i r c u l a r s

on C i v i l

already

a l l M i n i s t e r s i n c h a r g e of D e p a r t m e n t s

should

m a k e i t t h e i r p e r s o n a l r e s p o n s i b i l i t y to p u r s u e t h e p r o m o t i o n of efficiency a n d the e l i m i n a t i o n of waste i n t h e i r and t h r o u g h the r e d u c t i o n of qua s i - a u t o n o m o u s 2 CONFIDENTIAL

Department

non-governmental

CONFIDENTIAL

organisations

for which they w e r e r e s p o n s i b l e .

This

c a m p a i g n would be a s s i s t e d by the a p p o i n t m e n t of S i r D e r e k R a y n e r to a d v i s e h e r o n t h e s e m a t t e r s . M i n i s t e r s i n charge of D e p a r t m e n t s

should send her

All progress

r e p o r t s b y 7 J u n e r e c o r d i n g t h e a c t i o n t a k e n u p to t h a t p o i n t and p r o p o s a l s f o r m u l a t e d for achieving The Cabinet

economies.

T o o k note with a p p r o v a l of t h i s s u m m i n g up of t h e i r d i s c u s s i o n by the P r i m e M i n i s t e r , M i n i s t e r s c o n c e r n e d to b e g u i d e d

3 CONFIDENTIAL

and i n v i t e d the accordingly.

CONFIDENTIAL

T H E FOREIGN AND

COMMONWEALTH SECRETARY

e a r l y d e c i s i o n s w o u l d be r e q u i r e d o n R h o d e s i a , circulating a paper Oversea

for

e a r l y c o n s i d e r a t i o n by the Defence

Policy Committee.

colleagues weekend,

He would t e seeing his Mr

o n 16 M a y a n d t h e r e w o u l d b e a n e e d f o r a d e b a t e

The Government

was

not i n doubt:

FOREIGN AND

s objective,

but we

m i n i m u m d a m a g e to o u r o t h e r

as set out i n the

should a i m to a c h i e v e it with the

interests.

COMMONWEALTH SECRETARY

s a i d that the

situation i n N a m i b i a had taken a t u r n for the w o r s e . A f r i c a n G o v e r n m e n t had rejected the United Nations supervised

coming Vance,

should be a v a i l a b l e

THE

and

L o r d B o y d s r e p o r t o n the e l e c t i o n s i n R h o d e s i a

in Parliament. Manifesto,

Community

at a n i n f o r m a l m e e t i n g i n F r a n c e d u r i n g the and the U n i t e d States S e c r e t a r y of State,

21 a n d 22 M a y .

s a i d that

and he would

elections,

but the d o o r

was

T h e South proposal

for

not e n t i r e l y c l o s e d and o u r

a i m s h o u l d be to t r y to k e e p n e g o t i a t i o n s

going.

The

Government

w e r e c o m m i t t e d not to a c c e p t e c o n o m i c s a n c t i o n s a g a i n s t S o u t h A f r i c a , but we

s h o u l d do a l l we c o u l d to a v o i d g e t t i n g i n t o a p o s i t i o n w h e r e

had to veto alone.

of the five m e m b e r

Contact G r o u p about the handling of this

The Cabinet

w e r e i n close touch with the other

members problem.

Took note.

UNITY

T H E FOREIGN AND

COMMONWEALTH SECRETARY

it was l i k e l y that the E u r o p e a n E c o n o m i c C o m m u n i t y ( E E C )

said would

be m o d e r a t e l y q u i e s c e n t u n t i l after the e l e c t i o n s i n I t a l y o n 3 J u n e a n d t h e d i r e c t e l e c t i o n s to t h e E u r o p e a n P a r l i a m e n t o n 7-10 J u n e . H i s f o r t h c o m i n g m e e t i n g with the other E E C F o r e i g n M i n i s t e r s e n a b l e h i m to e x p l a i n t h e G o v e r n m e n t

would

s g e n e r a l a p p r o a c h to the

Community. In a b r i e f d i s c u s s i o n t h e f o l l o w i n g p o i n t s w e r e m a d e a.

足

T h e v i s i t o f C h a n c e l l o r S c h m i d t w o u l d b e u s e d to

underline the G o v e r n m e n t

s E u r o p e a n c o m m i t m e n t but to

s t r e s s t h a t i f we w e r e to c a r r y p u b l i c o p i n i o n o n t h i s

should need G e r m a n help over our legitimate interests fisheries,

the C o m m u n i t y Budget

Agricultural

and the

Common

Policy.

CONFIDENTIAL

A n i n f o r m a l m e e t i n g of A g r i c u l t u r e M i n i s t e r s

early足

next week would a l l o w the M i n i s t e r of A g r i c u l t u r e ,

Fisheries

a n d F o o d to s o u n d o u t t h e a t t i t u d e o f h i s c o l l e a g u e s

towards

the f o r t h c o m i n g n e g o t i a t i o n s o n a g r i c u l t u r a l p r i c e s . a c t i v i t i e s of h i s p r e d e c e s s o r

The

h a d c r e a t e d a d i s p o s i t i o n to l i n e

up against the U n i t e d K i n g d o m . c.

T h e C h a n c e l l o r of the E x c h e q u e r

would be

developing

the B r i t i s h c a s e o n the C o m m u n i t y B u d g e t at t h e C o u n c i l of M i n i s t e r s ( F i n a n c e ) o n 14 M a y . d.

D u r i n g the E l e c t i o n c a m p a i g n the G o v e r n m e n t

c o m m i t t e d i t s e l f f i r m l y to s e c u r i n g a s a t i s f a c t o r y

had

settlement

on the C o m m o n F i s h e r i e s P o l i c y a n d t h i s h a d h e l p e d to several

seats i n Scotland.

members

win

T h e way i n which the o r i g i n a l

of the C o m m u n i t y h a d r u s h e d t h r o u g h the

F i s h e r i e s P o l i c y before our a c c e s s i o n had been as o u r C o m m u n i t y p a r t n e r s n o w r e c o g n i s e d .

Common

disgraceful,

T h e M i n i s t e r of

A g r i c u l t u r e and h i s M i n i s t e r of State would be sounding out opinion within the C o m m u n i t y and w e r e hopeful that a solution c o u l d be speedily found. as m u c h i n p u b l i c ,

the Scottish f i s h e r y i n d u s t r y

that an e x c l u s i v e 5 0 - m i l e zone was

sensible

W h i l e they h a d not a d m i t t e d recognised

not n e g o t i a b l e .

Moreover,

i t w a s p o i n t e d o u t t h a t t h e p o r t o f L o w e s t o f t t o o k 80 p e r o f i t s c a t c h w i t h i n 50 m i l e s o f o t h e r c o u n t r i e s O n the other h a n d i t was

cent

coastlines.

e s s e n t i a l for u s to h a v e

exclusive

c o n t r o l o v e r w h a t h a p p e n e d w i t h i n 50 m i l e s o f t h e U n i t e d coast.

Kingdom

T h e G o v e r n m e n t n e e d e l to s e t t l e t h i s v i t a l i s s u e

b e f o r e t h e a c c e s s i o n of S p a i n to t h e C o m m u n i t y . The Cabinet

Took note.

5 CONFIDENTIAL

CONFIDENTIAL

QUEEN'S SCH

OPENING PARLIAMENT

The Cabinet had before them a m e m o r a n d u m

S e c r e t a r y ( C ( 7 9 ) 1),

to w h i c h w a s

by the

a t t a c h e d a draft of T h e

Home

Queen's

S p e e c h o n the O p e n i n g of

Parliament.

THE HOME SECRETARY

s a i d that the draft h a d b e e n p r e p a r e d

T h e Queen's Speeches was

and F u t u r e L e g i s l a t i o n C o m m i t t e e (QL)

b a s e d on the a s s u m p t i o n that the S e s s i o n w o u l d

the a u t u m n of 1980.

statements of a s p i r a t i o n s .

had m a d e a number them,

continue until

It w a s i n t e n d e d t o b e a n a c t i o n - o r i e n t e d

c o n c e n t r a d n g o n what the G o v e r n m e n t w o u l d d o , making general

of s u g g e s t i o n s ;

Ministers

Q L h a d d o n e t h e i r b e s t to

c o m m i t m e n t s a n d to k e e p t h e l e n g t h o f t h e S p e e c h w i t h i n The references

Speech

as d i s t i n c t f r o m

Departmental

but i t was i m p o r t a n t to a v o i d g i v i n g a n y u n n e c e s s a r y

limits.

by and

to o v e r s e a s a i d , t o t h e P r i c e

a n d to S c o t l a n d a n d W a l e s r a i s e d m a t t e r s r e q u i r i n g

meet

financial

acceptable

Commission

further

consideration. In d i s c u s s i o n ,

it was

Strategic A r m s

s u g g e s t e d that m e n t i o n s h o u l d be m a d e of the

L i m i t a t i o n T a l k s on which the United

Government were anxious for our h a d not h c w e v e r Government's outcome.

support.

been p a r t y to the negotiations

supporters

in Parliament

O n the other hand,

States

T h e United Kingdom and m a n y of the

w o u l d be o p p o s e d to the

to o m i t a l l r e f e r e n c e

might

prejudice

the c o - o p e r a t i o n of the U n i t e d States with u s o n c e r t a i n o t h e r It w a s a g r e e d t h a t a r e f e r e n c e t o t h e p r o g r e s s o f d i s a r m a m e n t be i n c l u d e d ,

but d r a f t e d i n s u i t a b l y g e n e r a l

O n o v e r s e a s aid, it was

matters. should

terms.

suggested that the sentence

should

a m e n d e d to t a k e a c c o u n t o f t h e c h a n g e s w h i c h w e r e n e e d e d i n t h e size and shape of the p r o g r a m m e

a n d to a v o i d g i v i n g t h e i m p r e s s i o n

that e x p e n d i t u r e w o u l d r e m a i n at i t s p r e s e n t l e v e l . of o m i t t i n g the s e n t e n c e o r o f r e d r a f t i n g i t i n a w a y a i d w o u l d be l i m i t e d w o u l d c a u s e u n n e c e s s a r y developing countries.

reference

The

alternative

suggesting

that

c o n c e r n i n the

should therefore

be r e t a i n e d

the s e n t e n c e s h o u l d be r e d r a f t e d to a v o i d a n y i m p r e s s i o n that

but

current

e x p e n d i t u r e l e v e l s w o u l d n e c e s s a r i l y be m a i n t a i n e d ^ . In f u r t h e r d i s c u s s i o n i t w a s

a r g u e d that the r e f e r e n c e

on t r a d e u n i o n s should be i n t e r m s

n o r m a l consultations with the i n t e r e s t s c o n c e r n e d . should not be g i v e n ,

however,

to l e g i s l a t i o n

consistent with the c o m p l e t i o n of The impression

that such d i s c u s s i o n s would

deflect

the G o v e r n m e n t f r o m i n t r o d u c i n g l e g i s l a t i o n that was n e e d e d . w o r d s " a t the e a r l i e s t o p p o r t u n i t y " s h o u l d a c c o r d i n g l y be It w a s p o i n t e d o u t t h a t t h e r e w a s n o r e f e r e n c e industry.

to r e g i o n a l a i d

A l t h o u g h t h e r e should be no suggestion that

w o u l d b e m a i n t a i n e d at a p a r t i c u l a r l e v e l , c o m m i t m e n t to r e g i o n a l p o l i c y ,

the

The

omitted. for

expenditure

Government's

as i n d i c a t e d i n the M a n i f e s t o

and

6 CONFIDENTIAL

CONFIDENTIAL

d u r i n g the E l e c t i o n c a m p a i g n ,

s h o u l d b e r e f l e c t e d in. t h e S p e e c h .

L e g i s l a t i o n o n t h e P r i c e C o m m i s s i o n w o u l d b e c o n s i d e r e d at a m e e t i n g of M i n i s t e r s ; be o m i t t e d .

the s e n t e n c e r e f e r r i n g to i t s h o u l d

References

be i n s i m i l a r t e r m s . procedure

therefore

should be i n c l u d e d i n T h e Q u e e n ' s

to t h e r e p e a l o f b o t h t h e S c o t l a n d A c t a n d t h e W a l e s A c t , The reference

should a v o i d any s u g g e s t i o n that s e p a r a t e S e l e c t

Department.

Speech

and

to c h a n g e s i n H o u s e o f

s h o u l d be a p p o i n t e d t o s c r u t i n i s e t h e w o r k of e a c h

future

should Commons

Committees

Government

T h e t i m i n g of a n y d e b a t e o n p r o c e d u r e

w o u l d n e e d to

be c a r e f u l l y c o n s i d e r e d a n d a n e a r l y d e b a t e s h o u l d not be

promised

i n the S p e e c h . A number THE

of d r a f t i n g a m e n d m e n t s

P R I M E MINISTER,

agreed.

s u m m i n g up the d i s c u s s i o n ,

Cabinet approved the draft Speech, a g r e e d a n d to f u r t h e r

were

subject to the

s a i d that the

amendments

c o n s i d e r a t i o n by the M i n i s t e r s c o n c e r n e d of

the points outstanding f r o m the d i s c u s s i o n . The Cabinet T o o k note,

with a p p r o v a l ,

s u m m i n g up of their

of the P r i m e

Ministers

discussion.

7 CONFIDENTIAL

CONFIDENTIAL

LECTIVE

PONSIBILITY

the u s u a l d o c u m e n t g i v i n g g u i d a n c e to M i n i s t e r s o n p r o c e d u r a l

T H E PRIME MINISTER

matters.

s a i d that she w o u l d be c i r c u l a t i n g

T h e r e w e r e a few p o i n t s to w h i c h she wouxd be

the attention of M i n i s t e r s Government

specifically.

drawing

It w a s i m p o r t a n t t h a t t h e

should work as a t e a m f r o m the v e r y outset.

be n e c e s s a r y to m a i n t a i n the s t r i c t e s t s t a n d a r d s Cabinet and between m e m b e r s

of the Cabinet.

T h e p r i n c i p l e of

collective responsibility must prevail absolutely and should the office.

would

of confidence i n

M i n i s t e r s maintained confidence among

outlast

themselves,

so t h e y h a d a r i g h t t o e x p e c t t h e s a m e c o n f i d e n c e t o e x t e n d b e t w e e n M i n i s t e r s and their senior o f f i c i a l s . deliberate

open Government,

W h a t e v e r w e r e done

about

t h e r e m u s t be no u n a u t h o r i s e d l e a k i n g

of confidential i n f o r m a t i o n . The Cabinet T o o k note,

with approval,

of the P r i m e

Minister's

statement.

Cabinet

Office

10 M a y 1979

CONFIDENTIAL

j l J

CONFIDENTIAL

IS D O C U M E N T I S T H E P R O P E R T Y

C(79)

O F H E R BRITANNIC

M A J E S T Y ' S G O V E R N M E N T

C O P Y

(Jo

8 M a y 1979

C A B I N E T

T H E Q U E E N T

S P E E C H

O N T H E OPENING

O F

P A R L I A M E N T M e m o r a n d u m b y the S e c r e t a r y Home

Department

I attach a draft for The Queen's

i n the f o r m

(QL).

our Manifesto

The draft takes

s e s s i o n r u n n i n g u n t i l J u l y or i n the p r o g r a m m e

s e s s i o n of that length, expenditure.

on which we

refers

i n the f i e l d s

be e x p e c t e d 3.

to state

b. '

major

hot

introduced

policy issues,

for

on which we

shall

so far as we felt able

Overseas

to d o soj

which I should draw

16.-17),

or on

Speech

Address.

c o n f i r m a t i o n of o u r p o l i c y . a i d (page 2, l i n o s

to p u b l i c

p o i n t s n o t i n c l u d e d i n the o n the

where

we could justify at this stage,

d u r i n g the Debate matters

of Q L ,

they i m p l i e d c o m m i t m e n t s

Where appropriate,

as needing

w h o h a v e c o n t r i b u t e d to the

Ministers who are not members

suggestions

be made

reflected

in a

of l e g i s l a t i o n ,

should be

relations,

of o u r colleagues

which we did not consider

whether

progress

to the c o n s t r a i n t s o n p u b l i c

a n d to c e r t a i n o t h e r

to t h o s e

There are three

colleagues

Oh the m a i n

our position.

grounds of length. c a n of c o u r s e

Parliament and Future

It c o n c e n t r a t e s

which Q L considered

have not, it has u s u a l l y been because expenditure

s Speeches

c a n e x p e c t to m a k e

of defence a n d f o r e i g n

I a m grateful their

to s o m e i m p o r t a n t i t e m s

including departmental

have adopted

1980;

but with due regard

It a l s o

d u r i n g the f i r s t s e s s i o n ;

draft,

o n the O p e n i n g

as its starting point and assumes

October

mentioned i n the Manifesto, example

Speech

in which it has been agreed by The Queen

Legislation Committee

items

of State f o r the

to the a t t e n t i o n of They

m y

are:足

o n w h i c h wo should

establish

o u r p o l i c y i s to take a n e w d i r e c t i o n w h i c h should be i n the

Speech.

T h e future of tke P r i c e

light of the S e c r e t a r y M i n i s t e r of 7 M a y ;

Commiseion

of State f o r T r a d e ' s and

(page 3, l i n e s minute

to t h e

10-12) i n the Prime

CONFIDENTIAL

Scotland and Wales

satisfied with what is comparisons

(page 4,

lines

10-16),

Are

said about Scotland and Wales,

w h i c h a r e l i k e l y to b e m a d e

between Jie

the

Cabinet

and

the

two

paragraphs ? 5,

S u b j e c t to the r e s o l u t i o n o f t h e s e

to a p p r o v e

the d r a f t a t t a c h e d to t h i s

three

points,

memorandum.

W*W.

Home

Office

8 May

1979

I invite m y

colleagues

CONFIDENTIAL

QUEEN * S S P E E C H ON T H E O P E N I N G O F P A R L I A M E N T

My L o r d s a n d M e m b e r s

look

forward

on a S t a t e

o f t h e House

with great pleasure

Visit

forward

My G o v e r n m e n t

meeting

will

and t o s t r e n g t h e n

steps

deterrent.

are based.

They w i l l A t t h e same

as w i t h

They w i l l test

mutual and balanced

improve

development

time

i n July.

Kenya

this I

also

o f t h e Commonwealth of

Heads

August.

the security

They w i l l

immediately

at the levels

they w i l l

seek

the nation

restore

of t h e i r

and there足

civilian

of B r i t a i n s 1

friendly

Union and the countries

nuclear

and constructive

of Eastern Europe,

f o r a comprehensive

conclusion, and to achieve reductions

their a full

strong

States.

i n Central

commitment

and constructive

and enlargement,

o f Member

improvements

t o Denmark

maintain the effectiveness

force

affirm

They i n t e n d t o p l a y

China.

ban to a successful

policies

on the occasion

work t o b r i n g t h e n e g o t i a t i o n s

My G o v e r n m e n t

Visits

Botswana a n d Zambia

servicemen

relations w i t h the Soviet as w e l l

State

the President

our contribution to the North A t l a n t i c Alliance

maintain the pay of

counterparts.

to receiving

i n Lusaka a t the beginning

take

which our defences after

Malawi,

to being present

Government

Commons

i n June and t o paying

month and t o T a n z a n i a , look

progress

i n the

Europe.

t o the European Community. part

i n i t s

and i n the co-ordination They w i l l

nuclear

s e e k t o make

t o t h e Common A g r i c u l t u r a l P o l i c y

CONFIDENTIAL

of the

foreign

significant

i n the interests

the U n i t e d Kingdom a n d o f the community as a whole, 1

further

and they

both will

CONFIDENTIAL

work

f o r a n agreement

account

of the need

fishermen. resource

to conserve

They w i l l

transfers

development the

o n a Common F i s h e r i e s

press

stocks

and the interests

for a fairer

pattern

i n the European Economic

of the European Monetary

question

P o l i c y which

takes of our

of budgetary and

Community.

System and w i l l

They

welcome

consider

afresh

the p a r t i c i p a t i o n of the U n i t e d Kingdom i n i t s

various

aspects.

My G o v e r n m e n t

confirm

United Nations. just

effort

about

a lasting

people

will

of that

My G o v e r n m e n t

the

will

Estimates

My L o r d s

an active

between

part

based

and the

i n the peaceful

and

nations.

t o end the- c o n f l i c t

i n Rhodesia

on the democratic

co-operate

settlement the

wishes

and to

bring

of the

i n endeavours

i n the Middle

to achieve

just

E a s t a n d t o b r i n g peace

an effective

for the public

a n d Members will

programme

of trade

with,

and a i d t o ,

Commons

service

o f t h e House

give

region.

nations.]

t h e House

My G o v e r n m e n t inflation

fully

undertake

developing

Members

b e made

t o t h e Commonwealth

country.

the peoples

[They w i l l

play

disputes

settlement

and comprehensive all

commitment

They w i l l

settlements

Every

their

priority

through the p u r s u i t of

will

be l a i d

before you.

Commons

i n economic

policy

f i r m monetary 2

CONFIDENTIAL

controlling

and f i s c a l

policies.

CONFIDENTIAL

reducing the burden of d i r e c t the p u b l i c restore

sector

incentives,

taxation and r e s t r i c t i n g the

on the n a t i o n ' s encourage

resources

efficiency

they w i l l

and create

claims

start

a climate

to i n which

the commerce basis

and industry c a n f l o u r i s h .

for investment,

My G o v e r n m e n t duties

productivity

intend to achieve

of the trade

before the

i n the a f f a i r s

shop,

My G o v e r n m e n t

will

amend l e g i s l a t i o n

restrict proposals

be b r o u g h t

opportunities

through the purchase

My G o v e r n m e n t

will

which the c r e a t i o n i reduce

also

brought

f o r p r o m o t i n g more [A measure

will

effective be i n t r o d u c e d

Commission.]

t o amend t h e I n d u s t r y A c t 1 9 7 5 a n d t o

of public

Board.

ownership

Other

by providing participate

shares.

stimulate

the development

o f new j o b s

benefit

industrial

responsible

ballots.

of the p u b l i c and employees t o

the administrative

id t h e y w i l l xation,

the extent

encourage

t o amend t h e l a w o n p i c k e t i n g a n d

to the Price

forward

secure

between the r i g h t s and

of the National Enterprise

f o r members

lay a

employment.

Legislation will

for postal

pricing policies.

relating

reduce

They w i l l

opportunity

publish proposals

the a c t i v i t i e s will

balance

will

p a r t i c i p a t i o n of the great majority

and to provide

competition and f a i r

Proposals w i l l

a fair

of t h e i r unions.

you a t the e a r l i e s t

closed

and increased

u n i o n movement.

pay b a r g a i n i n g and the w i d e r members

I n t h i s way t h e y

so h e a v i l y

small

depends.

businesses Means w i l l

burdens which are placed upon

f r o m my G o v e r n m e n t ' s

relations

and related

general

employment

CONFIDENTIAL

on be

them,

policies

legislation.

sought

CONFIDENTIAL

Legislation will

be i n t r o d u c e d t o amend company l a w .

My M i n i s t e r s w i l l the to

seek

food-processing compete

on f a i r

secure

that

and d i s t r i b u t i v e terms

a n d t o make

U n i t e d Kingdom a g r i c u l t u r e and i n d u s t r i e s have their

full

the

opportunities

c o n t r i b u t i o n to the

economy.

In Northern Ireland, security

my G o v e r n m e n t w i l l

a n d t o promote

They w i l l

seek

way of r e s t o r i n g

Northern

I r e l a n d more

You w i l l

be i n v i t e d t o a p p r o v e

control

over

and a l l - P a r t y d i s c u s s i o n s w i l l

criminal

My M i n i s t e r s will

give

seek

an early

[will

active

welfare

the repeal

the

to the people

Province.

of the Scotland Act 1978, the devolution

b e i n t r o d u c e d t o make

justice

peace and

own a f f a i r s .

be h e l d a b o u t

and criminal

propose

their

the repeal

Measures w i l l

procedure

to restore

the s o c i a l and economic

an acceptable

from Westminster.

strive

reforms

power to

i n Scotland.

of t h e Wales

support to the maintenance

s t a r t w i t h Welsh broadcasting

Act 1978.

of the Welsh on the f o u r t h

They]

language

and w i l l

television

channel.

My G o v e r n m e n t parts

of the U n i t e d Kingdom.

service

and w i l l

effectively. look

are committed t o r e i n f o r c i n g

forward

take

steps

They w i l l to receiving

They w i l l t o ensure

improve

respect

give

that

full

f o r the law i n a l l support to the

the law i s enforced

police

and strengthen the p r i s o n system and

the recommendations

CONFIDENTIAL

the Committee

Inquiry

CONFIDENTIAL

into

the P r i s o n Services

proposals courts

will

i n the U n i t e d Kingdom.

be b r o u g h t

forward

i n England and Wales

Members

o f t h e House

their

o f Commons w i l l

s c r u t i n y of the work

My G o v e r n m e n t

will

for local

which w i l l

give

a Tenants

Charter.

Legislation will government, direct

The

quality

be i n t r o d u c e d

on housing which w i l l tenants

include

to buy t h e i r

to council

homes, a n d

tenants

be l a i d

before

you for

t o promote

greater

efficiency

under encouraging

of the a c t i v i t i e s

i n local

local

authority

organisations.

to re-organise

their

the i r freedom t o take

be m a i n t a i n e d a n d i m p r o v e d .

schools

up places

b e made

to ensure

system.

Proposals

will

a t independent that

parents

schools

be p u t f o r w a r d

assistance

to less

attendance

at certain non-maintained

well

authorities

on comprehensive

account when c h i l d r e n a r e a l l o c a t e d appeals

relate

also

regulation

of education w i l l

provision w i l l

opportunity

Departments.

i n t r o d u c e d t o remove t h e c o m p u l s i o n o n l o c a l Wales

and juveniles.

lettings.

including

labour

an early

and r e s p o n s i b i l i t i e s will

of the

offenders

p a r t i c u l a r l y as they

measures

Proposals

short-term private

be g i v e n

a u t h o r i t y a n d new t o w n

new r i g h t s

the powers

t o young

o f Government

introduce

provisions

strengthen

i n relation

d i s c u s s a n d amend t h e i r p r o c e d u r e s ,

Legislative

off parents

whose

wishes

for

and to

there

CONFIDENTIAL

into

is a

local

providing

c h i l d r e n would benefit

schools.

restore

Legislative

are taken

and that

will

i n England and

lines

schools.

A B i l l

from

CONFIDENTIAL

Government

proposals

will

safeguard

our national

war pensions

and other

increased

i n November,

and l e g i s l a t i o n

t h e payment

to simplify

Health

Service

b e made those do

the social

work

to improve

Commission.

t o make u s e o f

They

will

the resources

Ways

security

resources

i n the l i g h t

provide

will

system. ,

i n the National the report

make p r o p o s a l s of private

medicine

enable to

so.

changes

will

A Bill

be i n t r o d u c e d

i n the control

Proposals

will

be b r o u g h t

be i n t r o d u c e d

Broadcasting Authority, strict

A measure of

the use of

will

be i n t r o d u c e d

the operations

forward

buildings and

benefits

to pensioners.

bring

of h i s t o r i c

security will

and w i l l

a Christmas bonus

by the Royal

Measures

social

and i t s administration,

who w i s h

the arts

heritage

Pensions,

My M i n i s t e r s w i l l

support

treasures.

sought

artistic

for

continue

safeguards)

will

the O f f i c i a l

present

A Bill

t o amend t h e l a w o n n a t i o n a l i t y

immigration.

before

you f o r the future

to extend

which w i l l

the l i f e be g i v e n

for the fourth

be i n t r o d u c e d Secrets

a n d t o make

broadcasting.

Independent

responsibility

television

to replace

the

channel.

the provisions

A c t 1911 w i t h p r o v i s i o n s

(subject

section

appropriate

to the

time.

will

be b r o u g h t

forward

t o amend t h e l a w o f 6

CONFIDENTIAL

contempt

court.

CONFIDENTIAL

My M i n i s t e r s w i l l tion

justice

Other measures

My L o r d s I pray

take

to improve

and to promote

will

a n d Members

that

steps

be l a i d

the blessing

reform

the quality of

the general

the administra足 law.

before you.

t h e House

of Almighty

Commons G o d may r e s t

CONFIDENTIAL

upon your

counsels.

CONFIDENTIAL

HIS D O C U M E N T IS T H E P R O P E R T Y

C(79)

O F

H E R BRITANNIC

M A J E S T Y ' S G O V E R N M E N T

11 M a y

C O P Y

1979

CABINET

THE Q U E E N S S P E E C H O N T H E OPENING O F Note by the S e c r e t a r y

I attach for

of the

P A R L I A M E N T

Cabinet

the i n f o r m a t i o n of the C a b i n e t a c o p y of T h e

Queen's

Speech

the O p e n i n g of P a r l i a m e n t i n the f o r m i n w h i c h i t h a s b e e n a p p r o v e d The

Queen.

Signed

Cabinet 11 M a y

Office

1979

CONFIDENTIAL

J O H N

HUNT

CONFIDENTIAL

T H E Q U E E R S S P E E C H O N T H E OPENING O F P A R L I A M E N T M y L o r d s and Members of the House of Commons I look forward with great pleasure to r e c e i v i n g the P r e s i d e n t of K e n y a on a State V i s i t i n June aad to paying State V i s i t s to Denmark this month and to Tanzania, Malawi, Botswana and Z a m b i a i n J u l y .

I also look forward to being

present on the occasion of thj Commonwealth Heads of Government meeting i n Lusaka at the beginning of August. My Government w i l l take steps to i m p r o v e the s e c u r i t y of the nation and to strengthen our contribution to the N o r t h Atlantic A l l i a n c e on which our defences are based.

They will i m m e d i a t e l y r e s t o r e and thereafter maintain the pay of

servicemen at the levels of their c i v i l i a n counterparts. effectiveness of B r i t a i n ' s nuclear deterrent.

T h e y w i l l maintain the

A t the same time they w i l l work

for greater stability i n E a s t - W e s t r e l a t i o n s . They welcome the fact that p r o g r e s s i s being made towards r e a l m e a s u r e s of a r m s control and intend to play their p a r t i n this w o r k . M y Government affirm their strong commitment to the E u r o p e a n Community. They intend to play a ÂŁill and constructive p a r t i n i t s further development and enlargements and i n the c o - o r d i n a t i o n o f the foreign p o l i c i e s of M e m b e r States, ley will seek to make significant improvements i n the operation of the C o m m o n P o l i c y i n the i n t e r e s t s both of the United Kingdom and of the lumty as a whole, and they w i l l work f o r an agreement on a C o m m o n f i s h e r i e s P o l i c y which takes account of the need to c o n s e r v e stocks and the interests of c u r

fishermen.

T h e y w i l l p r e s s for a f a i r e r pattern of budgetary

and resource transfers i n the European E c o n o m i c Community.

T h e y welcome

the development of the European Monetary System and w i l l consider afresh the question of the participation of the United Kingdom i n i t s v a r i o u s aspects. M y Government confirm their commitment to the Commonwealth and the United Nations.

They -will play an active p a r t i n the peaceful and just settlements of

dispute a between nations.

M y M i n i s t e r s w i l l have r e g a r d to the need for trade

with, and aid to, the developing countries.

CONFIDENTIAL E v e r y effort udlX be made to end tike conflict i n Rhodesia a n d to b r i n g about a lasting settlement based on toe democratic wishes of the people of that country* M y Government will fully co-operate i n endeavours to achieve a just a n d comprehensive settlement i n the M i d d l e E a s t and to b r i n g peace to a l l the peoples of the region. Members of the House o f Commons Estimates for the public s e r v i c e w i l l be l a i d before y o u . M y L o r d s and Members of the House of C o m m o n s M y Government w i l l give p r i o r i t y i n economic p o l i c y to controlling inflation through the pursuit of f i r m monetary and f i s c a l p o l i c i e s .

B y reducing the burden I

of direct taxation and r e s t r i c t i n g the c l a i m s of the public sector o n the nation's resources they w i l l start to r e s t o r e incentives, encourage efficiency and c r e a t e a climate i n which c o m m e r c e and i n d u s t r y can f l o u r i s h .

In tins way they w i l l

lay a secure basis for investment, productivity and i n c r e a s e d employment i n a l l parts of the United Kingdom. M y Government intend to achieve a f a i r balance between the rights and duties of the trade union movement.

T h e y w i l l encourage responsible p a y bargaining

and the wider participation of the great m a j o r i t y of m e m b e r s i n the affairs of their unions.

Legislation w i l l be brought before y o u to amend the law on

picketing and the closed shop, and to provide for financial a i d fox postal ballots. M y Government will publish proposals for m o r e effective competition and f a i r pricing policies. Proposals w i l l be brought forward to amend the Industry A c t 1975 and to r e s t r i c t the activities of the National E n t e r p r i s e B o a r d .

Other proposals w i l l

reduce the extent of nationalised and state ownership and i n c r e a s e competition by providing offers of sale, including opportunities for employees to participate where appropriate.

-2足

CONFIDENTIAL,

M y Government w i l l stimulate the development of s m a l l businesses on which the creation of new jobs so heavily depends.

M e a n s w i l l be sought to reduce

the administrative burdens which a r e p l a c e d upon them, and they w i l l a l s o benefit from m y Government's general p o l i c i e s on taxation, i n d u s t r i a l relations and related employment l e g i s l a t i o n . Legislation will be introduced to amend company law. My Ministers will seek to secure that United Kingdom a g r i c u l t u r e and the food足 processing and distributive industries have a n opportunity to compete on f a i r terms and to make their full contribution to the economy. In Northern Ireland, m y Government w i l l s t r i v e to r e s t o r e peace and s e c u r i t y and to promote the s o c i a l and economic welfare of the P r o v i n c e .

They will

seek an acceptable way of r e s t o r i n g to the people of Northern Ireland m o r e control over their own affairs. M y Ministers w i l l propose the r e p e a l of the Scotland A c t 1978, and a l l - P a r t y discussions will be held about the devolution of power f r o m "Westminster. Measures will be introduced to m a k e r e f o r m s to c r i m i n a l p r o c e d u r e a n d c r i m i n a l justice i n Scotland. M y Ministers w i l l propose the r e p e a l of the Wales A c t 1978,

T h e y w i l l give

active support to the maintenance of the W e l s h language and w i l l seek a n e a r l y start with Welsh broadcasting on the fourth television channel i n Wales. M y Government a r e committed to reinforcing r e s p e c t for the law i n a l l parts of the United Kingdom.

They w i l l give full support to the p o l i c e s e r v i c e and

will take steps to ensure mat the law i s enforced m o r e effectively.

They will

support and improve the p r i s o n system and look forward to r e c e i v i n g the recommendations of the Committee of Inquiry into the P r i s o n S e r v i c e s i n the United Kingdom.

Legislative proposals w i l l be brought forward to strengthen

the powers of the courts i n England and Wales i n relation to young offenders and juveniles.

3足

CONFIDENTIAL

Members of the House of Commrmff w i l l bo given an opportunity to discus a and amend their procedures, p a r t i c u l a r l y as they r e l a t e to their s c r u t i n y of the work of Government. My Government w i l l introduce m e a s u r e s on housing which w i l l include provisions for l o c a l authority and new town tenants to have the right to buy their homes, a Tenants' C h a r t e r for those who a r e l o c a l authority, new town and housing association tenants, and p r o v i s i o n s to encourage s h o r t - t e r m p r i v a t e lettiags. Legislation will be introduced to promote greater efficiency i n l o c a l government, j^frvffwg regulation of the activities of l o c a l authority d i r e c t labour organi satiens. The quality of education wiU be maintained and i m p r o v e d .

L e g i s l a t i o n w i l l be

introduced to remove the compulsion on l o c a l authorities i n England and Wales to reorganise their schools on comprehensive l i n e s ; and t h e i r freedom to take up places at independent schools w i l l be r e s t o r e d .

L e g i s l a t i o n w i l l be

introduced to ensure that p a r e n t s ' wishes a r e taken into account i n the choice of schools SOT their children and that m e r e i s a l o c a l appeals s y s t e m ; i t w i l l also make p r o v i s i o n for assistance to l e s s well off parents whose c h i l d r e n would benefit f r o m attendance at c e r t a i n non-maintained s c h o o l s , My Government will continue to support the a r t s and w i l l bring forward proposals to safeguard o u r national heritage of h i s t o r i c buildings and a r t i s t i c treasures. Pensions, war pensions and other s o c i a l s e c u r i t y benefits w i l l be i n c r e a s e d i n November, and legislation w i l l be introduced to p r o v i d e for the payment of a Christmas bonus to pensioners.

Ways w i l l be sought to s i m p l i f y the operation

of the social security s y s t e m . M y Ministers will work to i m p r o v e fee use of r e s o u r c e s i n the National Health Service and to simplify its administration.

A B i l l w i l l be introduced to

facilitate the wider use of private m e d i c a l c a r e .

-4足

CONFIDENTIAL

Measures will be introduced to emend the law on nationality and to m a k e changes i n the control of i m m i g r a t i o n .

Proposals will be brought before you for the future of broadcasting.

A Bill

will be introduced to extend the l i f e of the Independent Broadcasting A u t h o r i t y ,

which will be given responsibility (subject to s t r i c t safeguards) for the fourth

television channel.

A measure will be introduced to r e p l a c e the p r o v i s i o n s of section 2 of the

Official Secrets A c t 19U with p r o v i s i o n s appropriate to the present

time.

A B i l l will be brought forward to amend the law of contempt of c o u r t .

M y Ministers w i l l take steps to i m p r o v e the quality of the administration of

justice and to promote r e f o r m of the general l a w .

Other measures w i l l be l a i d before y o u .

M y L o r d s and M e m b e r s of the H o u s e of C o m m o n s

I pray that the blessing of A l m i g h t y G o d m a y r e s t upon your c o u n s e l s .

CONFIDENTIAL

D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C

MAJESTY'S

C(79)3

G O V E R N M E N T

C O P Y

N O .

11 M a y 1 9 7 9

CABINET

STANDING COMMISSION O N P A Y

C O M P A R A B I L I T Y

M e m o r a n d u m by the C h a n c e l l o r of the E x c h e q u e r the S e c r e t a r y of State for

T h e G o v e r n m e n t n e e d q u i c k l y to d e t e r m i n e

Standing C o m m i s s i o n on P a y C o m p a r a b i l i t y , and i n r e l a t i o n to one o r two

notably that of the p a y of 2.

their attitude towards

both generally

continued existence and the w o r k w i t h w h i c h it was Administration,

and

Employment

as regards

charged by the

outstanding

teachers.

W e a t t a c h at A n n e x A

a n o t e fey o f f i c i a l s

w h i c h sets out the b a s i s

established, its membership under

chairmanship of P r o f e s s o r

Clegg,

negotiations,

which the C o m m i s s i o n w a s to be,

the its

the cases

which had been,

the

or were

about

r e f e r r e d to i t . It s e e m s t o u s t h a t t h e r e i s l i t t l e c h o i c e b u t t o a c c e p t t h e e x i s t e n c e

the C l e g g C o m m i s s i o n f o r the p u r p o s e of already been f o r m a l l y r e f e r r e d to i t . arrangements

dealing with those cases

If the G o v e r n m e n t

which have already been made,

which

have

w e r e to c a n c e l

the

the i m p o r t a n t a n d so

recently

troublesome cases of e m p l o y e e s i n l o c a l a u t h o r i t i e s a n d the H e a l t h

Service,

including nurses,

would inevitably be reopened,

basis for f r e s h negotiations 4.

s h a l l a l l w a n t to r e s e r v e

the C o m m i s s i o n u n t i l we

and there i s no

can review

judgment on the l o n g e r - t e r m

future

the r e s u l t s of i t s i m m e d i a t e

work.

this b a s i s , t h e r e a r e t h r e e f u r t h e r q u e s t i o n s to be a.

New references:

further references

alternative

w h i c h w o u l d a v o i d a great d e a l of t r o u b l e .

the d e c i s i o n whether

o r not to a d m i t

rests with the Government.

some potential demands

two r e l a t i v e l y m i n o r c a s e s , Waterways

B o a r d staff,

effectively been agreed

any

The fact that the

Election prevented

anyway.

There

are,

local authority craftsmen and

w h i c h might well be added, between

CONFIDENTIAL

however,

British

since this had

the parties and only the t i m i n g of

formal reference.

considered:

C o m m i s s i o n already has work which w i l l occupy it until the end 1979 m a y d e t e r

could also add

the

teachers,

CONFIDENTIAL

as p a r t of the i n h e r i t a n c e of i m m e d i a t e w i s h e d to c h o o s e were otherwise

current negotiations,

t h i s way of d e a l i n g w i t h t h e m , satisfactory.

Looking ahead,

the one

is needed b.

Terms

of r e f e r e n c e

and membership:

the t e r m s

are less than satisfactory,

varied

reference were

but they

w i t h the r e l e v a n t p a r t i e s a n d a n a t t e m p t to c h a n g e t h e m

r i s k reopening the basic negotiations For

and

B u t no d e c i s i o n on t h i s

yet.

of c a s e s a l r e a d y r e f e r r e d agreed

staff.

which

important

additional case on w h i c h we m i g h t be p r e s s e d i s the l a r g e group of l o c a l authority w h i t e - c o l l a r

and on t e r m s

similar reasons,

the existing m e m b e r s h i p ,

with the

employees

w o u l d t h i n k i t a m i s t a k e to i n t e r f e r e but w o u l d p r o p o s e

to k e e p

of strengthening the C o m m i s s i o n w i t h one o r two p a r t i c u l a r l y to give s t r o n g e r

open the

additional

r e p r e s e n t a t i o n of p r i v a t e

would

affected. with option members,

sector

management. c.

Evidence:

the G o v e r n m e n t

general and particular evidence done

so.

evidence,

Officials have,

i s f r e e to g i v e a n d p u b l i s h

to the C o m m i s s i o n ,

however,

been working on possible

and we attach at A n n e x B a draft w h i c h h a s been

i n f o r m a l l y to P r o f e s s o r

Clegg.

This

covers

and demand considerations. however,

forward,

and doing

would see

and mere

emphasis

S u b j e c t to a m e n d m e n t s

great m e r i t i n putting general

so p u b l i c l y .

The

yet

general

shown

important points

we w o u l d want the C o m m i s s i o n to t a k e i n t o a c c o u n t . presentation could be i m p r o v e d ,

both

but has not

which

existing

g i v e n to

supply

on these

lines,

evidence

do not t h i n k i t w o u l d p r o v e to

an e m b a r r a s s i n g c o m m i t m e n t i f subsequently we found the of the C o m m i s s i o n ' s w o r k u n s a t i s f a c t o r y .

(We

u n d e r s t a n d that

Confederation

of B r i t i s h I n d u s t r y p l a n to put g e n e r a l

Commission,

and that its general tenor

p a r a l l e l to t h a t o f t h e d r a f t G o v e r n m e n t

evidence

and coverage is evidence.

the

closely

)

CONCLUSIONS 5,

We invite our colleagues a.

agree:

that the Standing C o m m i s s i o n on P a y

be a l l o w e d to c o m p l e t e

the work

charged on the b a s i s p r e v i o u s l y b.

That general Government

the C o m m i s s i o n a n d p u b l i s h e d as

CONFIDENTIAL

should been

arranged. evidence

should be

soon as convenient,

a m e n d e d v e r s i o n of the draft p r e p a r e d by

Comparability

with which it has already

officials.

submitted in a

results

suitably

CONFIDENTIAL

That the references

between

to the C o m m i s s i o n a l r e a d y

the p a r t i e s for l o c a l a u t h o r i t y c r a f t s m e n a n d

Waterways

B o a r d staff ( p a r a g r a p h

4a.

above) should now be

subject to the M i n i s t e r s c o n c e r n e d b e i n g t e r m s of r e f e r e n c e ;

satisfied with the

and that the q u e s t i o n of r e f e r r i n g

should be d e c i d e d o n i t s m e r i t s i n the l i g h t of the M i n i s t e r i a l d i s c u s s i o n s of that

Treasury

Chambers

11 M a y 1 9 7 9

3 CONFIDENTIAL

agreed British

subject.

made specifi

teachers

separate

CONFIDENTIAL ANNEX A

THE S T A N D I N G C O M M I S S I O N ON P A Y C O M P A R A B I L I T Y

This note

describes

the o r i g i n s , membership and terms

reference

the Standing Commission on Pay C o m p a r a b i l i t y .

Origins 2M

The C o m m i s s i o n was e s t a b l i s h e d a s p a r t

r e p r e s e n t i n g manual workers ancillaries

and ambulancemen.

considerations: service

first,

individual

further belief

bodies

three

to develop

firmly

certain public established i n a

to other

groups; and

ad hoc e n q u i r i e s by a "client bias")

general

terms

the references guidance

the general

reference

made

terms

comparability studies

Mr C a l l a g h a n s s t a t e m e n t 1

to i t ) .

to the Commission: the i n i t i a l

t o t h e House

reference i n

Nevertherless

as a s o l u t i o n i n p u b l i c s e r v i c e

Standing Commission; and the l e t t e r s of

separate

and seek

are devised

b y M r C a l l a g h a n o n 16 J a n u a r y w h e n h e i n d i c a t e d t h e G o v e r n m e n t ' s consider

main

framework.

document w h i c h c o n t a i n s

f o r each of

sources of

Service

General

i s no s i n g l e

the p a r t i e s

already

to avoid

systematic

the Standing Commission ( s p e c i f i c

with are

tend

a p p r a i s a l of

t o be extended

i t w o u l d be b e s t

experience

with 4 unions

Government was g u i d e d b y ' t w o

that outside

would have

and r e l a t i v e l y

Terms o f R e f e r e n c e There

cases,

that

(which on p a s t

develop a single

The p r e v i o u s

the b e l i e f

a negotiation

authorities, National Health

pay c l a i m s , based on c o m p a r a b i l i t y ,

number o f the

i n local

agreement there

statement

willingness

pay settlements;

on 7 March announcing the s e t t i n g up of the of

appointment

sent

to the i n d i v i d u a l

members

the Standing Commission.

The k e y p a s s a g e

f r o m t h e 16 J a n u a r y

statement

足

"Some p u b l i c s e r v i c e g r o u p s a l r e a d y m a k e u s e o f c o m p a r i s o n s w i t h r e w a r d s p a i d to employees i n t h e p r i v a t e s e c t o r i n t h e i r n e g o t i a t i o n s . The G o v e r n m e n t w i l l b e r e a d y t o s e e i n some a d d i t i o n a l a r e a s o f t h e p u b l i c s e c t o r , other t h a n those engaged i n t r a d i n g , where t h e r e i s a d i f f e r e n t set of n e g o t i a t i o n s , a g r e a t e r r o l e f o r c o m p a r a b i l i t y i n d e t e r m i n i n g p a y . The g u i d i n g p r i n c i p l e s h o u l d b e t h e a c h i e v e m e n t o f c o m p a r a b l e p a y f o r comparable work and comparable e f f o r t . Where t h e e m p l o y e r s a n d t h e u n i o n s c o n c e r n e d make a r e q u e s t , t h e r e f o r e , t h e G o v e r n m e n t w i l l b e p r e p a r e d t o agree to an i n v e s t i g a t i o n i n t o t h e p o s s i b i l i t y o f e s t a b l i s h i n g , f o r p a r t i 足 c u l a r groups of w o r k e r s , a c c e p t a b l e forms of c o m p a r i s o n w i t h terms and conditions f o r other comparable w o r k . "

CONFIDENTIAL I

CONFIDENTIAL

The k e y p a s s a g e

from

the statement

7 March i s

足

" I n my s p e e c h t o t h e H o u s e o n 16 J a n u a r y I c o m m e n t e d o n t h e p r e s e n t m e t h o d o f f i x i n g p a y a n d c o n d i t i o n s i n some a r e a s o f t h e p u b l i c s e r v i e ; and e x p r e s s e d t h e G o v e r n m e n t ' s r e a d i n e s s t o see a g r e a t e r r o l e f o r measuring t h e i r pay and conditions by making comparisons w i t h pay for c o m p a r a b l e w o r k a n d e f f o r t i n o t h e r o c c u p a t i o n s where b o t h s i d e s so r e q u e s t . . . T h e G o v e r n m e n t h a v e a r e s p o n s i b i l i t y b o t h t o b e f a i r t o pub' s e r v i c e employees and to a v o i d arrangements which c o u l d i n themselves prove i n f l a t i o n a r y . C o m p a r a b i l i t y s t u d i e s m u s t t h e r e f o r e b e made i n a s y s t e m a t i c a n d t h o r o u g h m a n n e r , t a k i n g a l l r e l e v a n t f a c t o r s i n t o accom A S t a n d i n g C o m m i s s i o n o n P a y C o m p a r a b i l i t y i s a c c o r d i n g l y b e i n g s e t up t h e G o v e r n m e n t t o e x a m i n e t h e t e r m s a n d c o n d i t i o n s o f e m p l o y m e n t o f pai c u l a r g r o u p s o f w o r k e r s r e f e r r e d t o i t b y t h e G o v e r n m e n t , i n agreement t h e e m p l o y e r s a n d u n i o n s c o n c e r n e d , a n d t o r e p o r t i n e a c h c a s e o n the b i l i t y o f e s t a b l i s h i n g a c c e p t a b l e b a s e s o f c o m p a r i s o n , i n c l u d i n g compai w i t h terms and c o n d i t i o n s f o r other comparable work and of maintaining appropriate internal r e l a t i v i t i e s . A n y f u r t h e r r o l e f o r t h e Commissio e a c h c a s e w i l l b e a m a t t e r f o r a g r e e m e n t b e t w e e n t h e G o v e r n m e n t a n d thi parties."

The l e t t e r s

repeated,

appointment

but did not further

sent

amplify

t h e members

the main points

t h e S t a n d i n g Commissi i n M r C a l l a g h a n ' s two

statements.

Mr Callaghan also

manning

levels,

criteria

confirmed

Commons,

o n 2 0 F e b r u a r y tfc

job s e c u r i t y and i n f l a t i o n - p r o o f

pensions

w o u l d b e among thi

to be t a k e n i n t o

i n t h e House

account

i n comparability

, The S t a n d i n g C o m m i s s i o n i s n o t f r e e - s t a n d i n g

made

clear

cases

i n h i s statement

7 March that

to the Commission, i n agreement

i t

studies.

from Government.

i s f o r t h e Government

with the p a r t i e s .

access

w i t h o u t Government

approval:

making

awards u n l e s s

i s asked f o r i n the terms

case.

The C o m m i s s i o n r e p o r t s

Terms 9. to

of Reference Nine

separate

this

ambulancemen;

i s no rightt

reference

i n each

t h e Commissi of

a specii

case.

They

service

are: local

workers

have

already

been

refefl

a u t h o r i t y m a n u a l s ; NHS a n c i l l

3 1

u n i v e r s i t y m a n u a l s ; u n i v e r s i t y t e c h n i c i a n s ; n u r s e s ; m a n u a l ai'

workers;

professions

cases

these

t o reft

Cases

of p u b l i c

the Standing Commission.

There

i s no q u e s t i o n o f

to the Government

Individual

groups

and there

M r Calli

supplementary

to medicine;

the unions and employers

and ambulance

concerned

CONFIDENTIAL

opted

officers.

f o r the Commission'

CONFIDENTIAL

recommend a c t u a l p a y l e v e l s and t h e e m p l o y e r s , the r e s u l t s .

In addition there

staff;

These

groups were:

for the f i r s t

local

those

to recommend a c t u a l p a y l e v e l s . this p o i n t though the d r a f t teachers prior

and t h e i r

to the E l e c t i o n d i d n o t seek

British

i n colleges

The t e r m s

the f o u r

of r e f e r e n c e

Government

original clients

and u n i v e r s i t y m a n u a l s ) these

groups

(local

dissenting)

of m a k i n g u s e o f

comparisons;

implementation of would accept

however a l w a y s

envisaged

elaborate

into

three

Service

PRU s y s t e m ) .

Commission w i l l

be a b l e

to c o n c e n t r a t e more

and Welsh

school足

immediately

i e the

negotiation.

differ

"terms

b u t those

agreed

where

parts;

the p a r t i e s of

t o move

on p r o v i d i n g r e l e v a n t

agreed

and conditions

a study of comparisons; cases

separate

The

and the

both sides

preferred,

The p r e s e n t m e m b e r s h i p o f

said

C l e g g hopes

they

I t was

the findings

negotiations

(as i n the that the

away f r o m a n a w a r d f u n c t i o n a n d

data to the p a r t i e s .

Professor

Mr P e t e r

Hugh C l e g g

the Standing Commission i s

(Chairman)

Gibson

(Professor of I n d u s t r i a l R e l a t i o n s , Warwick U n i v e r s i t y ) (ex-Director

CONFIDENTIAL

for

Membership 11.

for

the f e a s i b i l i t y

as a p a y award.

i s known t h a t P r o f e s s o r

progressively

The t e x t

the comparability process.

In the e a r l i e s t

the Commission s h o u l d be u s e d as t h e b a s i s Civil

the Commission^ studies

that,

had not reached

on pay l e v e l s ,

groups

the carrying out of

the comparisons.

t h e outcome

i n

education i n S c o t l a n d .

had agreed

as the b a s i c model.

They r e f e r r e d

c a n be d i v i d e d

Board

a u t h o r i t y m a n u a l s , NHS a n c i l l a r i e s , a m b u l a n c e m e n

comparable work" b u t d i d n o t f u r t h e r envisaged process

various

c a n be r e g a r d e d

i s at Appendix

teachers

which the E n g l i s h

recommendations

f o r these

the

Waterway

groups

C o m m i s s i o n ^ work was s e e n b y them as a b a s i s f o r f u r t h e r

10.

Government

i n c l u d e d a s k i n g the Standing Commission

of reference

(with

accepting

t o b e made b e f o r e

(England and Wales);

groups

future)

t o t h e Commission b u t where

Discussion with the other

terms

employers

the previous

authority craftsmen;

schoolteachers

two o f

committed to

for actual references

i n s t i t u t i o n s i n S c o t l a n d ; and teachers

The o f f e r

where

which included a reference

university teachers;

central

are s i x groups

was n o t r e a c h e d i n t i m e

Election.

(not n e c e s s a r i l y i n the

t h e u n i o n s and the Government were

had a p p r o v e d p a y o f f e r s agreement

on t h i s o c c a s i o n

of P e r s o n n e l , BP O i l L t d )

CONFIDENTIAL

Sir

(ex-Chairman

William Ryland

the"Post

Mr H a r r y U r w i n

(TGWU)

Sir

(ex-Secretary General service Staff Side)

Leslie

Professor

Williams

(Professor of P o l i t i c a l Nottingham University)

Joan M i t c h e l l

Office)

the

Civil

Economy,

Machinery 12.

The S t a n d i n g C o m m i s s i o n i s s e r v e d

Economics Salaries

(who a l s o Review

Bodies)

Pay Research U n i t . the

practice

Evidence 13.

with

and draw also

the Review

uses

on the s t a f f outside

Doctors

the Office and D e n t i s t s

and e x p e r t i s e

consultants

Manpower

a n d Top

t h e C i v i l Ser

as n e c e s s a r y ,

a s i s also

Bodies.

( i n c l u d i n g where

to the Commission,

become p u b l i c . evidence

t h e Armed F o r c e s ,

the Commission

A l l parties

evidence

service

by the Staff

among

appropriate

the Government)

and i t must be assumed

The C o m m i s s i o n have

indicated

that

the p a r t i e s .

CONFIDENTIAL

are free

that

any such

they

welcome

t o sub

e v i d e n c e may exchange

CONFIDENTIAL

APPENDIX 1 ERMS OF R E F E R E N C E F O R L O C A L A U T H O R I T Y M A N U A L S , E T C

'he G o v e r n m e n t w i s h e s

i n the p u b l i c services

:xercises urther

talks

to t h i s

nvestigation, workers

end.

other

Che f i r s t

negotiators

to consider

and the Government

The G o v e r n m e n t

will

bases

comparison,

comparable groups

and to r e p o r t

work,

will

on the p o s s i b i l i t y of

and of m a i n t a i n i n g appropriate

t o be i n v e s t i g a t e d

will

other

ii.

the appropriate

sections

on the r e s o u r c e s

iv.

o n how s u c h

required

make s u g g e s t i o n s

the r e l e v a n t

be l o c a l

comparisons

collective

agreements;

v. the

following trade

relativities workers,

workers.

comparisons

and i d e n t i f y

comparisons

w i t h terms relevant

and conditions

comparators;

s h o u l d be c a r r i e d o u t and

to the agreement

o n how t h e r e s u l t s

c a n be embodied

i . t o i v . make r e c o m m e n d a t i o n s

t h e Government

s h o u l d b e made

available

w i t h i n the local authorities/NHS/universities

and conditions

Support Grant to enable

internal

足

unions have u n d e r t a k e n t o a c c e p t .

authorities

establishin

and conditions

a u t h o r i t y manual

a s t o how t h e c o m p a r i s o n s

consult the p a r t i e s

f o r c a r r y i n g them o u t ;

negotiators

terms

form

t h e economy,

make s u g g e s t i o n s

i i i .

should

independent

and c o n d i t i o n s

i n c l u d i n g comparison w i t h terms

in p a r t i c u l a r t h e i n v e s t i g a t i o n

assess

be i n i t i a t i n g

the terms

NHS a n c i l l a r i e s , a m b u l a n c e m e n a n d u n i v e r s i t y m a n u a l

comparability

now e s t a b l i s h a n

a S t a n d i n g Commission, t o examine

i n the p u b l i c services

acceptable for

to encourage

undertakes

the

CONFIDENTIAL

the

relevant

w h i c h the Government and I n t h e case

to provide

them t o implement

i n the

i t s share

the of

recommendation.

local

the Rate

STANDING

COMMISSION

GOVERNMENT

I The

Commission It

may

and to

the

The

the

some

general

these

asked,

out

the

from

time

wish

task

i t s

the

i n

submit

each

pay

i n

task,

for

example,

the

Paragraphs

which

work.

l i g h t i n

9-17

believes levels

pay

for

the

i t s

the

and of

absence

r a t i o n a l

set

RELEVANT IN

Workers

i n

the

the at

best such

the

etermination broadly i

for

level

madequate.

i t .

m a t e r i a l ,

i n

r e l a t i o n

These whin

consistent

comparable

examine

Subject

f e a s i b i l i t y ,

Government cases

p a r t i e s

the

out to

3-8

beloiv'

believes

the

concerned,

four

ALL

and

recommend

which

that

work

r e f e r r e d

which

p u b l i c

money,

r e s u l t

i n

requirements produces

effort outside

enjoyed the

tax

and

pay by

p u b l i c

the when

asked

for

can

rate

need

b i l l rates too

p u b l i c

the

be the

must of

p o i n t

payer.

pay

elabora,!' system

service

doing

s e r v i c e s .

permanent

to i n

absence

determined.

and

the

workers

for

reasonable

met

the

from

groups

that

d e t e r m i n i n g

both

n e i t h e r be

for

need

payer

meets

means

best

wage

r e s u l t s ,

service

can

rates

those

which

i s

other

f a i r

b a s i s

response

market

the i n

there

i s

f a i r

and

pay

t e s t

produces

The

w i t h

w i l l

s e r v i c e s

concerned

t h e i r

a l s o

c o m p a r a b i l i t y

from

l e v e l

r e l e v a n t

This

CASES

market

which

w i l l out

may

groups

Commission's

i t

are

s t u d i e s .

f i r s t

f e a s i 足

set

Commission

c o n s i d e r a t i o n s

the

' *

p u b l i c

group.

value a

such

group

r e s u l t i n g of

evidence

Approach

system

workers

stances

o u t p u ^ a g a i n s t

the

made

background

pay.

d i s c i p l i n e d

view

that

Standing

c o m p a r a b i l i t y

r e l a t i o n

relevant

non-trading

-Of^a^marketable. In

other

w i l l

some

the

use

the

references

Paragraphs

the

below

are

case

study.

The

f i r s t

p a r t i c u l a r

approach.

agreement

Comparability

evidence

c o m p a r a b i l i t y

CONSIDERATIONS

The

general

work

considerations

recommend

with

Government

t h i s

comparability

aspects

i t .

GENERAL' EVIDENCE

references.

Commissions

carry

i t s

may

COMPARABILITY

i t s

supplemented

then

levels

s t a r t s

Government

b i l i t y

i t

i n d i v i d u a l

offers

Government

s a t i s f i e c i r c u m 足 given should

^nor pay

workers

comparnhle

work

The

most

s a t i s f a c t o r y

g e n e r a l l y

that

the

range of

i t s

pay

l e v e l s

pay

the

are

a t t r a c t

l o c a l

range

pay

the

o f

c o n s e q u e n t i a l

s e c t o r

and

(This

paper

a " r e s u l t i n g

below).

9-12

' comparison t u r e ,

and

However, grades

i t

indeed

necessary

use

involves

i d e n t i f y i n g

and

seeking

then

s a t i s f a c t o r y p r e c i s e ,

t h i s

It.JLs

Earnings pay.

The

for

concept

l e v e l of

approach

tlie

w i t h

of the

i n

that .a

c r u c i a l the

h o l d i n g

place

c o m p a r a b i l i t y

jobs,

would

paragraph

method

defend

i n

the

not

most The

probably r e s u l t

pay

the

h o l d

strm

benchmark f i x i n g

inte

i d e n t i f i e d

make

T h i s up

job

VThilst

not

I n d e x

are

p u b l i c

cost

b r i n g be

the

one

impose

ser

tax i s

which

r e l a t i v e

about

Avers]

service

d i s t r i b u t i o n

p o s i t i o n

p u b l i c

provides

p r i n c i p l e

would

pay

r e s u l t s

the

earnings

approach,

paragraphs

determining

the

r i s k

comparators.

i t s

shortcomings.

proxy.

l i n k of

cir

upwards

comparison.

because

f i x e d

move

f a c t o r s .

reasonable

s i n g l e

w i t h

cannot

s i m i l a r

a p p r o p r i a t e

Government

comparable

economy.

mentioned

the

j o b - f o r - j o b

number

w h i c h

servici] tbi

p r i v a t e

i n

e x t e r n a l

dealt

pe:

undue

j u s t i f y

the to

of i n

f a c t o r i a l

comparison,

satisfae^e-r-y has

w i t h

provides

determining

enabling

f o r e i g n

f a c t o r s

jobs

some t i m e s - a r g u e d

This

for

s a l i e n t

j o b - f o r - j o b

grades

s u f f i c i e n t can

i n

supply

technique

have

may

range

labour

comparators

technique

the

rates

us;

tvrin

may

til

important

which

publhth

the

v a r i e t y

there

whole

a l l

remainder

comparator

hot

s u f f i c i e n t the

the

p u b l i c

are

f a c t o r s ,

the

for

there

lower

occupations,

the

technique

would

c r i t e r i o n -or

that

comparators

Where

for

apply

w i l l

otherwise

q u e s t i o n

a l l

be-found,

r e l a t i v i t i e s .

the

i t

the

that

t h a t

avoid

the

middle

low

i t .

those

the

a t t r a c t

market

can

and

they

share out

i t

far

w i t h

concerned on

t h a t

from

found

not

p r o v i d e d

can

h i g h

i s

c a r r i e s

focusing,

tendency

labour

seeking

may

workers

comparators

comparators;

claims

r e t u r n s

the

b r i n g

comparison

system.

f a i r .

l e v e l s

i n c l u d i n g among

are

f a i r

stances, of

such

a v a i l a b l e

r e s u l t s

j o b - f o r - j o b

reassure

r e s u l t s

p r o p o r t i o n

the

for

p r o d u c i n g

unable

rigorous

b a s i s

d i s c i p l i n e

p r e s e n t i n g

necessary

dangers

technique

of a

j '] 0

payer

qui

i s

the

damagi"

jdity

the

nomic

developments.

relative t

ng -xod

levels

operative

pay

date

most

representative,

groups pay.

Constant

-analogues -s h o u l d tci

whose

pay

i s

change

however,

index

surveys

l e s s

r e a l permits

i n

l i n e

w i t h

o b j e c t i o n

up-date

c a r r i e d

hand,

out

over

short

some

months

before

and..ju idest . s e l e c t i o n

analogues.

not

and

not

i s

based that

closed

care

"to

Comparisions

important

forming

other

i s

employers

most

jobs

a d j u s t

i t

outside

also

i s ,

the

analogues,

should

and

service

appropriate

i d e n t i f i c a t i o n

sizes

a b i l i t y

recommendations.)

selection

best

i t s

(There

i n d i c a t e d

J o b - f o r - j o b

the

p u b l i c

different

*ut

i n

the

comparators.

movement

Conducting

i m p a i r i n g

C o m p a r a b i l i t y ,

p o s i t i o n

t h e i r

the

economy,

i t

should

weighted avoid

chain, needed

be-sought

determined

s o l e l y

each on

"the - g r o u p s

c o m p a r a b i l i t y

i t

t h a t

the

of ^employers

the

l a r g e s t .

i e

i s

the

means

extent

two

analogues and

take

J T h i ^

account

comparisons,

score,

undue

towards

p r o v i d i n g

t h i s

take

much

c i r c u l a r

outside

too

important

for

It more

the

o t h e r ' s

d e s i r a b l e

i n - t h e - p u b l i c

o f

that

s e r v i c e s

methods.

it api b, t i ot

[7l

The

assessment

the

ideritified

pay,

bonuses,

service

[o^cheap the

overtime,

free

c a r s ) . hours

thmetically. xsfaction, ccept

the

analogues

( i n c l u d i n g

of p e n s i o n s ,

meals, T o t a l

work,

Other

features

i n

l i a b i l i t y

important

forms and

loans,

o b t a i n the to

and

aspects

and

employment

the

jobs

(basic of

free i n

k i n d

足

measured ( r e s p o n s i b i l i t y ,

hours,

w i l l i n g n e s s

-quantify.

and

p r o v i s i o n

b e n e f i t s

-easy-to

each

c o n d i t i o n s

p r o v i s i o n

can

u n s o c i a l

remuneration

leave,

the

comparable

irre " l e s s of

other

money

them

work

received

annual

t e r m s of

-and i n c o n v e n i e n c e )

nevertheless,

a l l

amount

rewards

scales)

s u b s i d i s e d

r e q u i r e d

i n c l u d e

r e c e i p t s ,

s e c u r i t y ,

change

should

l e v e l

incremental

hours

work

o v e r a l l

should

"They be

includec

8 .

S i m i l a r

paragraphs

considerations

should

f a c t o r i a l

apply

to far

those as

i s

o u t l i n e d

i n

p r a c t i c a b l e

the i n

two

the

preceding

case

comparisions

c B

CONSIDERATIONS

Labour 9

Market A

be *'

economy, -

l e v e l

which

e f f e c t i v e l y would they

set

a to

l e v e l

workers

concerned.

not

i s

may

t h i s

they

h i g h .

are

the It

manning

i n

place

i n

are

the

What

i s

relevant

f l u c t u a t i o n s

any

g e n e r a l l y

r e q u i r e d , length

c o n d i t i o n s

the

i s

T h e r e ma

job

i n

the

p u b l i c

set

other

servij 1

too high, -

employers

market.

too

Wider

the

h i g h

the f o r

f o r

the

job preventirl

expressed

i t s

I m p l i c a t i o n s NEDC i n

-.!!!

relative

resources,

Government

"Some

paying

1977

December

q u a l i f i c a t i o n s

the

whether

"job.

shortage

for

necessary being

l e v e l

n a t i o n ' s

presented

the

type

o v e r - q u a l i f i e d

-The

lov.'.

not

a v a i l a b l e - s u p p l y

labour

the

l a b o u r .

the

docs

the

occupation

have

compared,

i n

regard

p u b l i c

concerned

service i s

too i

comparative

measure

comparabili r

shortage/surplus p o s i t i o n

complement

jobs

too

s e t t i n g

awards

are

e x p l a n a t i o n

i n

i s

the

e s t a b l i s h e d

waste

for

f o r

_ I f

the

who

was

question

necessary

i n

report

which

t h e r e f o r e

l e v e l s

leader-

rates

e s t a b l i s h e d

may

- o r - e T f o r t .

LEVELS

occupation

o f f e r e d

taken

leap-frogging

p o s s i b l e

being

large

-qualified

score

Another

that

PAY

service

a v a i l a b l e

must

a t t r a c t e d

Strategy"

should

would

use. of

pay

market

pay

p u b l i c

labour

too

the

t h e i r

i f

This

—the-optimum

RECOMMENDING

i n

care

keep

S i m i l a r l y ,

There

case

c h a i n

. I n d u s t r i a l

pre-empt

off

that

becoming

sought

concern

labour

shortage

i n

not

i n d i c a t e

general

Considerations

shortage

n e c e s s a r i l y

RELEVANT

due

but of are

i f

labour for

i n

p u b l i c

comparable

sudden

the

c o m p a r a b i l i t y

work.

expansion

r e l a t i v e

supply

time

there

must

not

t r u l y

comparable

study,

sei-vice

compared

Obviously c o n t r a c t i o n

p o s i t i o n

some

that

i s

w i t h

there

remains

presumption and

therefore,

may

the out

pay

reassessment

the

re)

the be

tempo]"

l i n e

and/or i s

for

other

c a l l e d

w l

numbers of

£ f^ 0

In for

local

c e r t a i n

labour

Jisiderably

the

for

markets

r e f l e c t i n g

circumstances ^ e l u s i o n s

employment operate

many

n a t i o n a l

Price

a t

exercise

rates, of

there pay

d i f f e r e n t

comparison

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