HC Deb 25 January 1954 vol 522 cc206-8W
Mr. H. Wilson

asked the President of the Board of Trade if he will publish in the Official Report a statement showing the proposals drawn up by the Raw Cotton Commission for compensation of displaced staff.

3. Mr. P. Thorneycroft

Yes. The scheme of compensation for the staff of the Raw Cotton Commission discharged as a result of the Government's action in changing the arrangements for the importation of cotton is on the following lines:

1. The provision will be of two kinds:

  1. (a) Gratuity
  2. (b) Additional contributions to pension scheme for staff over the age of 40.

Gratuity

  1. (a) the persons eligible will be those who:—
    1. (i) were in the Commission's service on 3rd July, 1952, and cease to be employed by the Commission as a direct result of the Government's action in changing arrangements for the importation of cotton, and
    2. (ii) have at least three years' continuous service by the date of termination of service or hold a permanent established appointment under a formal letter of appointment.
  2. (b) The amount to be paid will be:—
    1. (i) for monthly paid staff, a lump sum of two months' salary for the first complete year of service with the Commission plus one month's salary for each additional complete year's service with the Commission;
    2. (ii) for weekly paid staff, a lump sum of two weeks' wages for the first complete year of service with the Commission plus one week's wages for each additional complete year's service with the Commission.
    3. (c) The gratuity would not be subject to Income Tax.

Additional Contributions to Pension Scheme

  1. (a) The persons eligible will be those who
    1. (i) qualify for gratuity under paragraph 2, and
    2. (ii) are within the existing pension scheme, and
      3. 208
    3. (iii) elect to remain within the pension scheme following their discharge from the Commission's service, and
    4. (iv) have served at least one complete year with the Commission since reaching the age of 40 years.
  2. (b) Compensation for loss or diminution of pension will be made by payment to the Assurance Society by the Commission of an additional contribution in respect of each member of the staff eligible under paragraph 3 (a) for the purchase of an annuity or endowment policy. The amount of the additional contribution will be the contribution for the last year of service multiplied by the number of complete years' service with the Commission above the age of 40 not exceeding the number of years to be served by him before reaching 65 years of age (60 for women) or 10 years whichever shall be the less.