§ Mr. Michael Brown
asked the Chancellor of the Exchequer whether he has any further statement to make about the report of the Megaw inquiry into Civil Service pay.
§ Sir Geoffrey Howe
The unions have been informed that the Government are prepared to enter into negotiations with them with a view to agreeing an ordered pay determination system based on the recommendations of the Megaw report. It is in the nature of an agreement of this kind that both sides have to accept some limitations on their freedom of action and both sides will no doubt seek safeguards from their respective points of view, including in the Government's case safeguards to the public purse and public policy. Nevertheless, the Government are prepared to accept, in principle, the broad approach of the Megaw recommendations and to negotiate on them with goodwill and the intention to succeed.