HL Deb 30 April 1981 vol 419 cc1271-2
The Earl of Selkirk

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they are aware that only 1 per cent. of all employees in the USA are paid in cash compared with 60 per cent. in the United Kingdom; and whether they are prepared to amend the Truck Acts.

The Minister of State, Department of Employment (The Earl of Gowrie)

My Lords, the Government believe there are a number of advantages in non-cash payment of wages and are aware of international comparisons. The Central Policy Review Staff have prepared a discussion document on the subject which is due to be published in the summer. A copy will be placed in the Library. We will of course carefully consider the future of the Truck Acts in the light of the response to the document.

The Earl of Selkirk

My Lords, am I right in thinking that basically the payment of wages depends upon a statute which was passed in the reign of William IV and that at present £1 billion a week is spent on cash wages? This provides a splendid target for armed robbery. Is it not a very great burden for productive industry to have to carry this expense?

The Earl of Gowrie

My Lords, I agree altogether with my noble friend. My brief tells me that the Truck Acts were passed in Victorian times, but no doubt my noble friend is right that they were passed in the reign of William IV. Nevertheless, they are certainly out-of-date. The difficulty is that there is still a very strong bias in this country towards being paid in cash, but I am glad to be able to tell the House that every year there is a slight decline in the number of people who wish to be paid in cash.

Lord Barnby

My Lords, would the Minister comment on the difference between this country and the United States? As my noble friend has said, the United States is much more advanced in paying wages otherwise than in cash and therefore in avoiding robberies than is the United Kingdom. What relationship does this bear to female emancipation in the United States compared with the backwardness of this country? Whereas we in this Chamber are graced by the presence of many fellow Members who are ladies, in the States there is none in the Senate—or at least only one from the State of Maine.

The Earl of Gowrie

My Lords, I confess to some personal bias in favour of cashless payment and, speaking for myself, I think that it would certainly do more for continued female emancipation than any other piece of legislation that we could devise.

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