HC Deb 24 February 1969 vol 778 cc1049-51
2. Mr. Hunt

asked the Secretary of State for Employment and Productivity when she expects to receive the Report from the National Board for Prices and Incomes on bank staff salaries.

The First Secretary of State and Secretary of State for Employment and Productivity (Mrs. Barbara Castle)

I received the Report on 21st February and it will be laid before the House and published on 28th February.

Mr. Hunt

Will the right hon. Lady now admit that her intervention in this matter was a great mistake, particularly as this was the first time a freely-negotiated settlement had been agreed between the banks and their staff representatives? Will she now at least undertake to make a very speedy decision on this Report as soon as possible after it has been published?

Mrs. Castle

The answer to the first part of the supplementary question is "No, Sir". The answer to the second part is "Yes, Sir".

Mr. John Page

When she is considering her attitude to the Report, will the right hon. Lady particularly bear in mind the importance of equal pay in the banking industry?

Mrs. Castle

There is a Question later on the Order Paper on that.

40. Mr. Macdonald

asked the Secretary of State for Employment and Productivity to what extent she took into account evidence about staffing difficulties in banking before referring to the National Board for Prices and Incomes the recent bank pay settlement agreed by employers and employees.

32. Mr. Booth

asked the Secretary of State for Employment and Productivity what consideration was given to the increase in productivity in the banking industry in deciding to refer the salary increases for bank employees to the National Board for Prices and Incomes.

34. Mr. Orme

asked the Secretary of State for Employment and Productivity why she referred the bank pay settlement to the National Board for Prices and Incomes; and what consideration was given to the fact that bank employees under 23 years of age earn under £15 per week when deciding to make the reference.

Mrs. Castle

I referred this settlement to the Board because under incomes policy pay increases of the size involved could be justified only on productivity grounds and the banks were unable to measure the increase in productivity of the staff concerned.

Both the existing pay scales for junior staff and the banks' staffing difficulties were among the reasons for my allowing a 3½ per cent. interim increase pending the Board's report. Not all of those under 23 years of age earn under £15 a week.

Mr. Macdonald

Is my right hon. Friend aware that bank employees are baffled by the fact that their claim is referred, while others arising at a similar time are not, particularly in view of the fact that, because of the staff difficulties which she has admitted, it might have been thought that the criteria applying to staff shortages would apply rather than the normal criteria for the prices and incomes policy?

Mrs. Castle

As I made clear earlier, the Board's report will be published at the end of this week. I suggest that we wait and see how the Board deals with these points.

Dame Irene Ward

Would the right hon. Lady expand on the difference which has been referred to? Is it not a fact that the heads of the nationalised industries are making their applications because of the salary structure of the nationalised industries? If they can do it under a nationalised structure, why cannot everybody do it if they want to?

Mrs. Castle

There again, as the hon. Lady knows, the Board is considering this question. I suggest that we await its report.