§ Mr. StewartTo ask the Secretary of State for Scotland what representations he has received concerning the application of schedule 1 to the Banking and Financial Dealings Act 1971 to Scotland; and what reply he has given. [13815]
§ Mr. Michael Forsyth[holding answer 7 March 1996]: Forty-eight letters have been received from members of the Banking Insurance and Finance Union asking for the Government's support in seeking dialogue between BIFU and the Committee of Scottish Clearing Bankers with a view to reversing the decision by the Scottish clearing banks to harmonise their bank holidays with those in England and Wales.
Replies to these letters have made it clear that the banks took their decision for business reasons, after taking their own legal advice. They did not consult the Scottish Office about their decision, nor were they obliged to do so. The days on which banks decide to close or open is a matter for them.
The statutory bank holidays in Scotland remain those set out in schedule 1 to the Banking and Financial Dealings Act 1971 or proclaimed each year under that Act. The legislation does not expressly require the banks, or any other employer, to close on bank holidays. Its general effect is to provide certain financial safeguards for banks who do not transact business on those days. The Government have noted the decision of the Scottish clearing banks, and although we have no present plans to change the legislation on bank holidays, we will continue to keep the position under review.
Bank holidays, like all other pay and conditions issues, are a contractual matter for agreement between employers and employees. The law does not give any statutory rights to time off, or extra pay, on bank holidays. The initiative lies entirely with the banks and their decision is not one in which the Government can intervene.