§ 4. Mr. Wrigglesworthasked the Minister for the Civil Service if the Government will accept the principle of fair comparison on the basis of pay research for the settlement of Civil Service pay in the forthcoming round of negotiations; and how this will be affected by cash limits.
§ Mr. ChannonThe Government will reconcile pay research with the system of cash limits. When the pay research evidence for the non-industrial Civil Service is available, but before the negotiations have been concluded, we propose to determine a single cash limited provision for Civil Service pay awards in 1980–81.
§ Mr. WrigglesworthWill the Minister confirm that the cash limit that has been put on the Civil Service for pay is 14 per cent., as has been leaked in documents to the newspapers from Treasury civil servants? If that is the case, and the Pay Research Unit comes up with figures of 17 per cent. or 18 per cent. as suggested in the press, will he tell the House how many further cuts in manpower or services there will be in order to match the figures?
§ Mr. ChannonI cannot confirm that figure. No cash limit has been set for Civil Service pay. I have explained that that has yet to be settled. It will be settled in the light of evidence supplied, and therefore the rest of the hon. Member's question is purely hypothetical.
§ Mr. Bruce-GardyneWill not my hon. Friend agree that the hon. Member's question highlights the folly of these comparability exercises which lead inevitably to redundancies that might not otherwise occur or be necessary had the trade unions involved been encouraged to negotiate direct with their employers on the basis of ability to pay?
§ Mr. ChannonAs a general principle, that must be right. Civil Service pay rises have been worked out in this way for the past 25 years. My hon. Friend will recall what the Conservative election manifesto said about reconciling pay research with cash limits. I did not write that part of the manifesto, but I am trying to implement it.