§ Mr. Arthur Lewisasked the Secretary of State for Trade why the Government have refused to sanction the Sun Alliance new wage agreement on the grounds, in part, that it is introducing a non-contributory pension scheme; and how this is contrary to the Government's 10 per cent. guideline, in view of the non-contributory pension schemes for the Civil Service.
§ Mr. DellSun Alliance's recent pay agreement provides for a total increase in earnings of 13 per cent., 3 per cent. of which represents a waiver of contributions to a pension scheme. It is this change from a contributory to a non-contributory scheme that, in the Government's view, takes the settlement beyond the pay guidelines. The Government have no objection to non-contributory pension schemes as such, many of which have existed for years in both the public and private sectors.