§ Mr. Bruce-Gardyneasked the Secretary of State for Employment (1) if he will specify the provision or provisions in counter-inflation legislation currently in force which prohibit the conclusion of pay settlements involving the payment of a sum by the employees into a discretionary fund for distribution to employees at the discretion of the employer on termination of such legislation;
(2) if he will specify the provision or provisions in counter-inflation legislation currently in force which prohibit the conclusion of pay settlements involving a loan of additional wages forgone from a group of employees to their employer, such loan being repayable with interest on termination of such legislation.
§ Mr. Chichester-ClarkThe Pay Board is empowered by Section 7(2) in Part II of the Counter-Inflation Act 1973 to restrict any kind of remuneration for a period when Part II of the Act is in force.
By virtue of paragraph 1(1) of Schedule 3, the expression "remuneration" may be defined by the order or notice by which the restriction is made.
44WWhere it is made illegal to pay remuneration it is also illegal, under Section 7(6), for the employer to enter into any agreement or arrangement to compensate for the remuneration which it is illegal to pay.
The Counter-Inflation (Validity of Transactions) Order 1973, made under paragraph 3 of Schedule 3, prescribes that contracts to pay remuneration restricted by order or notice under Section 7 remain invalid, so far as they relate to the excess, after expiry of Part II and provides that the offences provisions of the Act shall continue to apply to the implementation of the contract as if Section 7 was still in force.