§ The Prime Minister
The Tenth Report of the Review Body on Top Salaries was published on 30th June as Cmnd. 7253. The Government wish to thank Lord Boyle and all members of the Review Body for their work in producing this report.
The report deals with the second major review since the Review Body was appointed in 1971 of the four groups within their standing terms of reference—the senior grades of the higher Civil Service, senior officers in the Armed Forces, the judiciary, and the chairmen and members of nationalised industry boards. For all groups the Review Body recommend the salaries that are appropriate at 1st April 1978. The Review Body recognises, however, that against the background of the continuing need for restraint, staging of the increases resulting from the recommended levels may be necessary; it recommends that the full recommended levels, brought up to date by the normal review process in the intervening period, should be achieved by not 98W later than 1st April 1980. It turther recommends that the full recommended levels should be introduced immediately for pensions purposes.
The increases recommended by the Review Body are on average 31 per cent. above those recommended in its Sixth Report as appropriate at 1st January 1975. However, these salary levels were not implemented for chairmen and members of nationalised industry boards and have been implemented in part only for the other three groups. The increases now recommended by the Review Body over salaries currently in payment are on average 35 per cent. This would correct over the period to 1st April 1980 the anomalies which have lasted for up to six and a half years.
The Government accept that the salary levels recommended by the Review Body are appropriate. They have decided that these salaries should be introduced by stages beginning on 1st January 1978 with the remaining stages being paid on 1st April 1979 and 1st April 1980. The Government will consider at a later date the Review Body's further recommendation that the proposed rates of pay should be brought up to date by the normal review process during the staging period. The recommended salaries will be adopted in full for pensions purposes from 1st April 1978.
The Review Body makes no recommendation about what payment should be made in the current round in the event of staging. The Government have decided, therefore, that all four groups should receive an increase of 10 per cent. from 1st January 1978; this will entail, in some cases, an adjustment to the increase previously given to chairmen and members of nationalised industry boards.
§ Mr. Gwilym Roberts
asked the Prime Minister what study he has made of the Top Salaries Review Body report on the pay of chairmen of public corporations; if he will now give an assurance that the Government have no intention of increasing these top salaries; and if he will discuss with the CBI similar restraint in the private sector.
§ The Prime Minister
I refer my hon. Friend to the reply which I gave earlier 99W today to my hon. Friend the Member for Bradford, North (Mr. Ford).