HL Deb 12 November 1990 vol 523 cc115-6

2.51 p.m.

Lord Hatch of Lusby asked Her Majesty's Government:

What is their attitude to the next wage settlement in the electricity industry.

Lord Cavendish of Furness

My Lords, the wage settlement is a matter for the electricity industry.

Lord Hatch of Lusby

My Lords, that is hardly an answer to the Question. I am asking what is the Government's attitude. Is it not the case that over the previous two years the wage settlement in the electricity industry has been well above the inflation rate? Is the noble Lord aware that it is expected that in the next agreement it will again be well above the inflation rate? Is that not connected directly with the Government's desire to privatise the electricity industry and avoid trouble while that privatisation is being conducted?

Lord Cavendish of Furness

My Lords, with respect, I did answer the Question. This matter is for the electricity industry. Of course general levels of pay are of interest to the Government, but negotiations are squarely a matter for the industry.

Lord Stoddart of Swindon

My Lords, is the Minister aware that as a former employee of the electricity supply industry and having had quite a lot to do with the negotiating process in that industry, in my view wages and salaries in that industry—and I hope the noble Lord will agree with this—are certainly a matter for discussion and decision between the trade unions and the management of that industry?

Lord Cavendish of Furness

My Lords, I defer to the noble Lord's experience in the matter. However, I do not see that that has a bearing on the Government's attitude towards pay and negotiations.

Lord Williams of Elvel

My Lords, is it not the case that the electricity industry is about to be privatised on the market? Is it not the case that it would be extremely damaging in the event of a flotation that there should be any form of industrial dispute? Does the no ale Lord seriously believe that that is not a consideration which the management of the industry bears in mind when settling wages?

Lordl Cavendish of Furness

My Lords, I accept that any dispute is damaging but, as matters stand, it is beyond the Government to take part in those negotiations. It is a matter for the industry.

Lord Hatch of Lusby

My Lords, I am not suggesting that the Government are going to take part in a settlement. I ask again what is the Government's attitude. They have expressed their attitude towards wage settlements in a large number of industries. They have expressed their attitude towards wage settlements generally and have urged settlements to be kept below the level of inflation. What is their attitude towards a settlement in the electricity industry in view of the fact that that is very clearly linked directly to the privatisation of that industry?

Lord Cavendish of Furness

My Lords, I could not have been clearer than I was in my original Answer. The wage settlement is a matter for the electricity industry and, therefore, the Government are distanced from those negotiations.

Lord Bruce of Donington

My Lords, the Question relates to the Government's attitude. Arc we to understand from the noble Lord's reply that the Government have no attitude whatever towards this industry and that this is a matter for the electricity industry?

Lord Cavendish of Furness

My Lords, I note the noble Lord's remark. As I say, the Government have an attitude towards pay negotiations which is well known to the noble Lord.