§ Mr. Campbell-Savoursasked the Secretary of State for Industry whether he will seek to introduce legislation to require the British Steel Corporation to pay severance payments as of right to workers after 1 July 1981.
§ Mr. Michael Marshall[pursuant to his reply, 27 March 1981, c. 447]: No.
§ Mr. Campbell-Savoursasked the Secretary of State for Industry what severance pay has been paid to workers of the British Steel Corporation over the last 12 months and what has been the average sum paid; what projections have been made for severance payments to workers of British Steel Corporation in the next 12 months; and what criteria are used for the calculation of the payments.
§ Mr. Michael Marshall[pursuant to his reply, 27 March 1981, c. 447]: The level of severance payments where a closure takes place is a matter for negotiation between the BSC and representatives of the local workforce. The level of severance payment for each individual usually takes into account the level of weekly earnings, age, length of service and the fact that an early closure is to take place.
No figures are yet available from the BSC about the average level of severance pay over the last 12 months: the latest information was provided in an answer to my hon. Friend the Member for Norfolk, North (Mr. Howell) on 23 March—[Vol. 1, c. 253–54]—and relates to 1979–80. During that year 16,300 redundancies took place, and total redundancy payments, including severance pay, were £69 million.
The BSC estimates that the redundancy and closure costs arising during the financial year 1980–81 will be £350 million and that the total reduction in the work force will be 41,000.
The corporation has made a provision in its cash requirements for 1981–82 to cover redundancy costs of £180 million. It is expected that the work force will be reduced by at least 20,000.
Public expenditure by the central Government in Great Britain £ million at 1980 survey prices 1976–77 1977–78 1978–79 1979–80 1980–81 estimated Current expenditure Social security 16,244 17,089 18,638 19,099 19,768 Defence 9,170 8,979 8,947 9,214 9,651 Health and personal social services 8,232 8,452 8,674 8,669 8,823 Industry, energy, trade and employment 2,509 2,143 2,496 2,629 3,222 Housing 1,886 1,798 1,888 2,076 2,158 Education and science, arts and libraries 1,540 1,416 1,429 1,412 1,468 Agriculture, fisheries, food and forestry 1,274 845 645 709 828