§ 9. Dr. Hampsonasked the Secretary of State for the Environment what recent discussion he has had with NALGO about its pay negotiations.
§ Mr. OakesNone, Sir. Representatives of the local government employers and of the staffs' sides are responsible for the negotiation of local government pay and conditions of service.
§ Dr. HampsonWill the Minister say whether there has been a dramatic increase in staff costs since reorganisation? Does he not accept that it is critical to impress on the unions that restraint should be exercised if we are to stop a ratepayers' rebellion in the coming year?
§ Mr. OakesWe warned at the time that there certainly would be an increase in staff costs after reorganisation. We cannot get over that fact. This settlement was within the guidelines laid down by the Government.
§ Mr. George CunninghamWill the Minister accept that the rates of pay that many local government officials are receiving are excessive for the nature of the work they do and that the national Government, who bear a great part of the burden, cannot remain indifferent to this?
§ Mr. OakesI note what my hon. Friend has said, but the national Government do not lay down these pay scales.
§ Mr. CrawfordWill the Minister ensure that NALGO members involved in local government reorganisation in Scotland receive the same financial remuneration as their colleagues received when reorganisation took place in England last year? In doing so, will he take inflation into account?
§ Mr. RaisonCan the Minister tell us the cost of the recent NALGO settlement and say how it will be borne? Can he also say when cash limits for public sector wages will start to apply?
§ Mr. OakesI am advised that the NALGO settlement will cost about £280 million a year. The award was just under 24 per cent. Some restructuring of the pay of certain staff added a further 0.8 per cent. On the second part of his question, the hon. Gentleman will be aware that the Chancellor made his statement only yesterday, and I have no doubt that we shall be discussing this matter with the local authority associations.