HC Deb 28 April 1958 vol 587 cc12-4W
Mr. Llewellyn

asked the Secretary to the Treasury whether he will make a statement about the position of established civil servants who become redundant because of the closure or substantial reduction of defence establishments under the policy announced in the White Paper on Defence of 16th April, 1957.

Mr. Simon

Yes. To meet the exceptional circumstances certain new arrangements will be introduced at a very early date. These include provision, within the framework of the existing Superannuation Acts, for payments to be made in certain circumstances to established civil servants who become redundant in this way at their place of work and leave the Service. So far as industrial employees are concerned, the arrangements have, subject to certain reservations, been the subject of a recent agreement on the Joint Co-ordinating Committee for Government Industrial Establishments. The text of the agreement is reproduced below.

The arrangements will also apply, as appropriate, to non-industrial civil servants in the defence and supply establishments concerned.


The problem of established industrial employees who become redundant because of closure or substantial reduction of defence establishments in accordance with the White Paper of 16th April, 1957 In the present exceptional circumstances it is felt that some adaptation of the normal arrangements is desirable for established industrial employees who become redundant because of closure or substantial reduction of defence establishments. It is accordingly agreed that arrangements on the following lines shall be adopted:—

  1. (a) Employees under the age of 60 who can be placed in other Government establishments locally will be so posted. E.g., the 9-mile limit might be regarded as reasonable daily travelling distance.
  2. (b) Those under 60 whose services are needed elsewhere in the public interest will be required to transfer in accordance with their obligations under paragraph 9 (a) of the Scheme of Establishment of Government Industrial Employees (reproduced at end of document).
  3. (c) Employees who have passed their sixtieth birthday will remain eligible for vacancies that may exist locally under (a) above, but employing Departments will have to be satisfied as to the suitability of the employee. In the absence of such vacancies they will normally be retired.
  4. (d) Employees between ages 50 and 60 who have a minimum of 10 years' reckonable service can retire voluntarily, their accrued pension and lump sum becoming payable on their reaching the age of 60.
  5. (e) Any employee, other than those over 60, whose case is not met under (a) to (d) above and who expresses a desire to remain 14 in the Service will be found alternative employment, if possible, and will of course be liable to the conditions of paragraph 9 (a) of the Scheme of Establishment. If in any such case alternative employment cannot be offered full abolition of office terms will be given.
  6. (f) In all cases where the employee is not covered by (a) to (c) above, or does not wish to be dealt with under (d) or (e), the Official Side agree that he shall be absolved from paragraph 9 (a). Such an employee will forgo any annual pension for which he might otherwise have been eligible. He will, however, be paid forthwith a lump sum consisting of three-eightieths of pensionable pay averaged over the last 3 years for each year of reckonable service, subject to a minimum of 3 years' reckonable service.

These arrangements will apply to employees in post at 16th April, 1957, who were or become redundant on or after that date in the circumstances described in this agreement.

Paragraph 9 (a) of the Scheme of Establishment says:— 9 (a). Any established employee shall be liable to be transferred to work in any Government establishment in the United Kingdom or overseas. If an employee refuses to accept a transfer his or her reasons for so doing will be considered by the Department, and if they appear to be unreasonable the employee will be so informed and may be discharged or may be offered alternative employment in an unestablished capacity.