HC Deb 17 July 1968 vol 768 cc241-3W
Mr. Gardner

asked the Secretary of State for Employment and Productivity what is the present levels of the Redundancy Fund.

Mr. Hattersley

The Redundancy Payments Act provides that the aggregate amount outstanding in respect of advances from the National Loans Fund may not exceed£8 million unless a higher figure (not exceeding£20 million) has been approved by Parliament. The House approved an increase in the borrowing limit to£12 million in July, 1967 and to£15 million in April, 1968. The Fund's borrowing has now reached£14 million.

My right hon. Friend the Chancellor of the Exchequer announced in his Budget speech an increase in employers' contributions to the Fund from l0d. to 1s. a week for men and from 5d. to 6d. a week for women with effect from 2nd September, 1968 and a draft Order to that effect was laid on 13th May, 1968. This would have raised the weekly income from the present£690,000 to£835,000. However, weekly payments are now averaging about£900,000 and it is clear that a further increase in contributions is necessary to keep the Fund in balance and repay the debt to the National Loans Fund. My right hon. Friend has therefore withdrawn the draft Order laid in May and replaced it by a new draft Order laid yesterday which increases contributions to 1s. 3d. (men) and 7d. (women) with effect from 2nd September. This increase will produce an income of rather more than£1 million a week.

In addition, in order to safeguard the Fund, it is necessary to increase the borrowing limit further. My right hon. Friend has therefore also laid a draft Order revoking the Order made last April and increasing the borrowing limit to £20 million for a period of two years.

The Government recognise the importance of ensuring that the cost of the Redundancy Payments Scheme is effectively related to its objectives and is keeping the operation of the Act under review. A research project on a substantial scale is being instituted.

RAILWAY SERVICE
Amounts of increases
Occupations (Men 20 years and over) Standard weekly rates of wages at 5th October, 1965 6th March, 1967 8th July, 1968 Standard weekly rates of wages at 12th July, 1968
S. S. S. S.
Group 1 … … 218 8 10 236
Group 2 … … 226 8 10 244
Group 3 … … 231 8 10 249
Group 4 … … 238 8 10 256
Group 5 … … 245 9 10 264
Group 6 … … 254 9 8 271
Group 7 … … 259 9 8 276
Group 8 … … 267 9 8 284
Group 9 … … 274 10 9 293
Group 10 … … 288 10 9 307
Group 11 … … 300 11 9 320
Group 12 … … 304 11 9 324
Group 13 … … 323 11 10 344
Group 14 … … 339 12 11 362

Notes:
(a) Workers employed in the London area receive an additional weekly amount of 6s.
(b) Mileage payments are made to locomotive drivers, secondmen and guards.
(c) Permanent way labourers, lengthmen and relayers, sub-gangers, patrolmen and gangers are paid an additional 5s. a week above the group rate applicable to their grade when employed at London main line termini.
GROUPING OF OCCUPATIONS
The grouping of occupations for conciliation staff employed in the traffic, goods and cartage, carriage and wagon, footplate, locomotive shed, permanent way and signal and telecommunications departments is as follows:
Group 1—Porter, crossing keeper, engine cleaner (with less than 3 years' adult service or until prescribed number of firing turns have been worked representing one year), shedman, carriage serviceman, permanent way labourer, handyman.
Group 2—Station lampman, train attendant, road motor attendant, leading goods porter, oiler and greaser, oil gas maker's assistant, lengthman and relayer (1st year).
Group 3—Leading porter, signal lampman, timekeeper, leading shedman, carriage washing machine attendant, stores issuer, lengthman and relayer (2nd year), storesman, engine cleaner (after 3 years' and under 5 years' adult service, but with less than prescribed number of firing turns representing one year).
Group 4—Senior porter, checker, craneman, capstanman, mobile crane driver (up to 5 tons), tractor shunter driver, engine cleaner (after 5 years' adult service but with less than the prescribed number of firing turns representing one year), shed engineman's mate, senior shedman, lengthman and relayer (3rd year), assistant technician (class 3).
Group 5—Excess luggage collector, interpreter, leading luggage room attendant, ticket collector, guard (1st year), mobile crane driver (over 5 tons and up to 8 tons), storekeeper, timekeeper (NC), foreman's assistant (class 3), oil gas maker, machine operator (group 1), assistant lineman (ETM), inspector's timekeeper's assistant, fireman (1st year), engine cleaner (after prescribed number of firing turns have been worked representing one year).
Group 6—Shunter, mobile crane driver (over 8 tons), hydraulic engineman, shed chargeman (category "C"), locomotive shed shunter, sub-ganger, patrolman, chainman, inspector's timekeeper (class 2), assistant technician (class 2), senior checker.
Group 7—Signalman (class 4), guard (2nd year), train ticket collector, motor driver (below 18 tons), foreman's assistant (class 2), chargeman engine cleaner, electric train examiner, relaying sub-ganger, inspector's timekeeper (class 1), machine operator (group 2), assistant technician (class 1), assistant overhead traction lineman, fireman (2nd year).