HC Deb 24 October 1985 vol 84 cc239-40W
Mr. Bellingham

asked the Paymaster General what new arrangements have been made for the financing of severances among registered dockworkers; and if he will make a statement.

Mr. Peter Bottomley

As a result of discussion with the National Association of Port Employers new arrangements for the funding of severance payments to registered dockworkers in all ports have now been agreed on the following basis:

  • 1. The Government will pay 100 per cent. of the future severance costs until end March 1986, 75 per cent. until end March 1987 and 50 per cent. until end March 1988, all payments related to a maximum of £25,000 per registered dockworker severed. The balance will be paid by the employer concerned.
  • 2. Where an employer de-registers in any port the Government will examine the circumstances with a view to grant-aiding 100 per cent. of the registered dockworker severance costs up to the £25,000 maximum.
  • 3. Interest and capital repayments on the outstanding Government loans to the National Dock Labour Board of £44.5 million will not be sought pending an opportunity to seek Parliamentary approval for the write-off of the loans.

As a condition of this assistance the board has undertaken with the agreement of the employers to service and repay its commercial debt to Barclays Bank (currently about £11.5 million) to a point where by end-March 1990 the Bank releases the Government from its existing contingent liability for this debt.

For this purpose the employers have undertaken to raise £1 million over the rest of the present financial year and £2 million a year thereafter. Separately, the industry has agreed to use a substantial surplus in its pension fund to provide improved pension arrangements with enhancements for early retirement.

Legislative authority for this Government expenditure in ports other than Liverpool and London is provided by section 1 of the Ports (Finance) Act 1985. Financial provision will be sought in a Supplementary Supply Estimate for the labour market services Vote (Class IV, Vote 12). Pending Parliament's approval, the urgent expenditure, estimated at £5 million, will be met by repayable advances from the Contingencies Fund.

My right hon. Friend the Secretary of State for Transport will continue to contribute, but on the same basis as for other ports, to the cost of severances in Liverpool and London.