§ 5. Mr. Martenasked the Secretary of State for Employment what is now the average wage settlement under phase 3.
§ Mr. BoothAs I have previously explained to the hon. Member, my Department monitors major settlements in terms of their compliance with the Government's pay policy, not their average level. The earnings outturn is reflected in due course, along with other factors, in the monthly index of average earnings. The latest figure, for September, shows a total rise of 1 per cent. since July.
§ Mr. MartenHow far does that answer coincide with the dualised statement by the Chancellor of the Exchequer that settlements should be at 6 per cent., giving rise to increases of 10 per cent.? Is not 10 per cent. now the norm for settlements?
§ Mr. BoothMy answer, if reflected throughout the year, would coincide almost exactly with the initial statement of my right hon. Friend the Chancellor of the Exchequer. But it does not give us that sort of indication, because it covers the period of stage 2 as well as some post-stage 2 settlements.
§ Mr. SilvesterWhat machinery has the Secretary of State set up for testing the validity of productivity deals which are agreed under phase 3?
§ Mr. BoothThe productivity proposals which come forward along with certain wage claims are examined on a case-by-case basis to see whether they achieve the basic aim of being self-financing.