§ 5. Mr. Dubsasked the Chancellor of the Exchequer whether he will make the present arbitration arrangements for Civil Service pay binding on both parties.
§ The Minister of State, Treasury (Mr. Barney Hayhoe)No. As agreed last July, this year's arbitration on Civil Service pay is on the basis that the Government reserve the right if necessary to ask the House to approve setting aside the award on the ground of overriding national policy. For the longer term, arrangements will be considered in the light of the Megaw inquiry into Civil Service pay, which is due to report this summer.
§ Mr. DubsWill the Minister say whether this year's Civil Service pay settlement is to be subject to cash limits? Will he further tell the House on what basis he would reject an arbitration settlement?
§ Mr. HayhoeWe gave an undertaking last year that this year's negotiations and Civil Service pay settlement would be on the basis of there not being a predetermined cash limit, and that assurance holds. With regard to the judgment that the Government will make in the light of the arbitration award, we will wait to see what it is.