§ LORD BEECHINGasked Her Majesty's Government:
Whether they will make a statement on ministerial control of the terms of pension schemes for the staff of nationalised industries.
TIIE LORD PRIVY SEAL (EARL JELLICOE)Yes, my Lords. Under existing legislation, the boards of the nationalised industries are required to secure Ministerial approval for the terms of pension schemes for their staff. The Government have decided that this requirement can be removed. The boards are responsible commercial undertakings;384WA there is no statutory obligation to secure Ministerial approval in determining the pay and other conditions of service of their staff, and there are no longer good reasons for statutory control of their superannuation terms, subject to the conditions required for the tax approval of pension schemes generally.
Where control can be removed by subordinate legislation, the necessary instruments will be laid before Parliament as soon as possible. In some cases, the requirement can be removed only by primary legislation; this will be presented to Parliament in due course. Until the legislation is passed, the terms of the pension schemes in question will remain under Ministerial control.
Similar action will be taken towards a number of other bodies in the public sector which do not depend for their income mainly on public funds.
The Government will continue to control the pension terms of members, as distinct from staff, of the boards of nationalised industries, and certain other public sector bodies, who are appointed by Ministers. The removal of control from the staff pension schemes will in no way affect the pensions of employees of the industries who retired before the industries were nationalised, and who were in central or local government service.
House adjourned at twenty-two minutes past one o'clock, a.m.