HC Deb 20 February 1978 vol 944 cc525-6W
Mr. Arthur Lewis

asked the Secretary of State for Employment (1) whether an employer who pays a good timekeeping bonus, attendance allowance, lunch and meal allowances and telephone allowance to his workers is within the 10 per cent. guidelines; and how he obtains details and information of such payments for the purpose of enforcement, especially where Government contracts are concerned;

(2) whether a company director who pays himself and his workers goods in place of cash, such as spirits and cigars, is within the 10 per cent. guideline; and how he monitors such payments;

(3) whether an employer will be able to grant his worker or himself a house, fully furnished and all the costs of upkeep of same on the same basis as now enjoyed by certain Ministers of the Crown without contravening the 10 per cent. guidelines;

(4) whether the practice of employers making tax-free loans to their employees for car purchases, housing, holidays, payment of road and rail fares and expenses in getting to and from their homes and place of employment, falls within the Government 10 per cent. guidelines policy; and how he keeps a check on such payments;

(5) whether an employer who pays tool and clothing allowance to his workers will be breaking the 10 per cent. guidelines; and how he monitors and enforces such restrictions on these payments.

Mr. Harold Walker

It is for those concerned with pay determination to decide their own priorities, but the overall cost of any settlement should include the cost of any additional fringe benefits and be within the guidelines set out in Cmnd. 6882. There is systematic monitoring of major settlements by my Department, and other settlements are subject to checking in a variety of ways including applications for price increases and Government assistance. In addition, information may reach my Department from a wide range of sources including informal contacts with negotiators, published information or queries raised by hon. Members or members of the public. In all cases my Department follows up possible breaches of the policy.

Mr. Arthur Lewis

asked the Secretary of State for Employment whether the Government's policy of 10 per cent. guidelines and the blacklisting of firms will apply where firms make payments in kind to their employees such as cars, car allowances and upkeep costs, housing and rent allowances, holiday and travel expenses and annual Christmas bonuses.

Mr. Harold Walker

The pay guidelines are concerned with the cost of settlements in the current round, and I would refer my hon. Friend to the reply I gave today to his further Questions about their application to the introduction of any additional fringe benefits. The Government's policy on discretionary action is set out in paragraph 16 of Cmnd. 6882.