(c) crown copyright
Catalogue Reference:CAB/128/53/19
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COPY NO
C M ( 7 3 ) 58th
Conclusions
83
CABINET
C O N C L U S I O N S of a M e e t i n g of the Cabinet
h e l d at 10 Downing S t r e e t on
T H U R S D A Y 29 N O V E M B E R 1973
at 10. 30 a m
PRESENT
T h e R t Hon E d w a r d Heath M P Prime Minister The R t H o n S i r A l e c D o u g l a s - H o m e M P
S e c r e t a r y of State f o r F o r e i g n and
Commonwealth Affairs
T h e R t Hon L o r d H a i l s h a m of St M a r y l e b o n e
L o r d Chancellor
The R t Hon Anthony B a r b e r M P
C h a n c e l l o r of the E x c h e q u e r
T h e R t Hon W i l l i a m W h i t e l a w M P
S e c r e t a r y o f State f o r N o r t h e r n I r e l a n d
The R t Hon L o r d C a r r i n g t o n
S e c r e t a r y of State f o r D e f e n c e
T h e R t Hon R o b e r t C a r r M P
S e c r e t a r y o f State f o r the H o m e D e p a r t m e n t
The R t Hon J a m e s P r i o r M P
L o r d P r e s i d e n t of the C o u n c i l
T h e R t Hon S i r K e i t h Joseph M P
S e c r e t a r y o f State f o r S o c i a l S e r v i c e s
The R t H o n G e o f f r e y R i p p o n QC M P
S e c r e t a r y of State f o r the E n v i r o n m e n t
T h e R t Hon M a r g a r e t T h a t c h e r M P
S e c r e t a r y o f State f o r Education and
Science
The R t H o n G o r d o n C a m p b e l l M P
S e c r e t a r y of State f o r Scotland
The R t Hon John D a v i e s M P
C h a n c e l l o r of the Duchy of L a n c a s t e r
The R t H o n P e t e r T h o m a s Q C M P
S e c r e t a r y of State f o r "Wales
The R t Hon M a u r i c e M a c m i l l a n M P
S e c r e t a r y o f State f o r E m p l o y m e n t
The R t H o n Joseph G o d b e r M P
M i n i s t e r of A g r i c u l t u r e , F i s h e r i e s
and F o o d ( I t e m 7 )
The Rt Hon Sir Geoffrey Howe QC M P
M i n i s t e r f o r T r a d e and C o n s u m e r A f f a i r s
The R t Hon L o r d W i n d l e s h a m
L o r d P r i v y Seal
i
ALSO PRESENT
T h e R t Hon F r a n c i s P y m M P
Parliamentary Secretary, Treasury
SECRETARIAT
Sir
Mr
Mr
Mr
Mr
Mr
Mr
Mr
Mr
John Hunt
P D Nalarne ( I t e m 3)
H F T Smith ( I t e m s 1-4)
P B e n n e r ( I t e m s 1 and 4 - 6 )
J A H a m i l t o n ( I t e m 7)
K R Stowe ( I t e m s 5 and 6)
H F E l l i s - R e e s (Item 2)
D Evans ( I t e m 3)
R & S Johnston ( I t e m 7 )
C ONTENTS
Item
Subject
1.
PARLIAMENTARY AFFAIRS
2
FOREIGN AFFAIRS
3
0
Page
1
Middle East
2
O i l Supplies
2
EUROPEAN COMMUNITY AFFAIRS
3
4o
NORTHERN IRELAND
4
5
ROBENS R E P O R T
S
0
Status and Staffing of the H e a l t h and Safety
Organisation
6.
MEMBERS' PAY AND ALLOWANCES
7.
INDUSTRIAL AFFAIRS
T h e C o a l Industry and E l e c t r i c i t y Supply I n d u s t r y
ii
5
7
9
4
PARLIAMENTARY
AFFAIRS
1.
T h e Cabinet w e r e i n f o r m e d of the b u s i n e s s t o be taken
i n the House of C o m m o n s during the f o l l o w i n g w e e k .
I t w a s noted that s o m e Opposition s p e a k e r s w e r e l i k e l y to s e e k
to i m p o r t c r i t i c i s m of S i r John D o n a l d s o n , P r e s i d e n t of the
N a t i o n a l I n d u s t r i a l R e l a t i o n s C o u r t , into the debate about the
c o n s e q u e n c e s of the I n d u s t r i a l R e l a t i o n s A c t w h i c h w a s to take
p l a c e on 4 D e c e m b e r .
It w a s a r g u e d that, to be w i t h i n the
r u l e s of o r d e r , c r i t i c i s m o f a j u d g e s conduct could be m a d e
o n l y in the c o n t e x t of a substantive m o t i o n c a l l i n g f o r his
r e m o v a l f r o m o f f i c e ; and the L o r d P r e s i d e n t should c o n f i r m
i n f o r m a l l y with the S p e a k e r whether he intended
the debate
on 4 D e c e m b e r to be conducted on this b a s i s .
If s o , i t m i g h t
b e useful to s e e k an o c c a s i o n - p o s s i b l y during the questions
f o l l o w i n g the b u s i n e s s s t a t e m e n t t o be m a d e l a t e r in. the day ­
t o c l a r i f y the p o s i t i o n to M e m b e r s .
s
T h e Cabinet w e r e i n f o r m e d that the M i n i s t e r s p r i n c i p a l l y
c o n c e r n e d would s h o r t l y be c o n s i d e r i n g the l i n e to b e adopted
b y the G o v e r n m e n t s p o k e s m e n in the d e b a t e on i m m i g r a t i o n
which w a s to take p l a c e on 5 D e c e m b e r on the b a s i s of a M o t i o n
f o r the adjournment; and that the c o n c l u s i o n s r e a c h e d would be
r e p o r t e d to the C a b i n e t at t h e i r next m e e t i n g .
It was a g r e e d
that a r r a n g e m e n t s should b e made f o r the s c o p e of the d e b a t e
to b e extended so as to enable r a c e r e l a t i o n s t o be c o v e r e d a l s o .
1
slice. ;Y
'FOREIGN
AFFAIRS
Middle E a s t
Previous
Reference:
C M ( 7 3 ) 56th
Conclusions,
Minute 2
2.
THE F O R E I G N A N D C O M M O N W E A L T H S E C R E T A R Y said
that the outcome of the A r a b Summit recently held in A l g i e r s
had been reasonably satisfactory.
The delegates had avoided
inflamatory statements and it w a s of particular importance that
they had not sought to tie the hands of President Sadat of Egypt in
the forthcoming negotiations with I s r a e l .
On the negative side,
however, they had recognised the Palestine Liberation
Organisation as the sole representative of the Palestinian people,
this decision would be unacceptable to King Hussein of Jordan
and might make it difficult for him to attend the peace negotiations.
The Cabinet ­
1.
Took note of the statement by the F o r e i g n
and Commonwealth S e c r e t a r y
Oil Supplies
Previous
Reference:
C M ( 7 3 ) 57th
Conclusions,
Minute 6
T H E S E C R E T A R Y O F S T A T E F O R D E F E N C E said that the
previous evening he had had a private conversation with
Sheikh Yamani, the Saudi A r a b i a n Minister of P e t r o l e u m .
Sheikh Yamani had professed to have sought an opportunity without
the presence of his " h a r d - l i n e A l g e r i a n colleague to a s s u r e the
Government of Saudi A r a b i a ' s friendly intentions towards the
United Kingdom and the European Economic Community ( E E C ) in
g e n e r a l ; though his Government considered that the Dutch would
have to give further proof of amendment before the e m b a r g o on
oil supplies to Holland could b e lifted.
Sheikh Y a m a n i had said
that his Government had no w i s h to see the United Kingdom suffer
f r o m lack of oil supplies; their quota would be punctually fulfilled
and his Government would ensure that the oil allotted to the United
Kingdom was not diverted e l s e w h e r e .
There could however be no
question of total production being increased until there was some
p r o g r e s s towards a settlement with I s r a e l ; and if the United
Kingdom sought to increase their quota of Saudi A r a b i a n oil, it
could only be at the expense of other European c u s t o m e r s .
Sheikh Yamani had indicated that his Government might be disposed
to treat the E E C a s a special case if the Community w e r e to take
economic action against I s r a e l .
On being informed that such an
arrangement was tantamount to blackmail and w a s most unlikely to
prove acceptable to the governments concerned, he had gone on to
suggest that the E E C might seek w a y s to help the A r a b nations,
though he appeared to have no specific project i n mind.
From
what Sheikh Yamani had said it seemed clear that he would not be
willing to go as far as this in his conversations with m e m b e r s of
the Government in the presence of his A l g e r i a n colleague; and
there might be advantage in exploring the question further with the
Saudi A r a b i a n A m b a s s a d o r .
11
The Cabinet ­
2.
Took note of the statement by the S e c r e t a r y
of State for Defence.
EUROPEAN
COMMUNITY
AFFAIRS
3.
T H E C H A N C E L L O R O F T H E D U C H Y O F L A N C A S T E R said
that i m p o r t a n t m e e t i n g s of the Council of M i n i s t e r s ( F o r e i g n
A f f a i r s ) and the C o u n c i l of M i n i s t e r s ( F i n a n c e ) would take p l a c e
in B r u s s e l s on 3/4 D e c e m b e r 1973.
The C o u n c i l of F o r e i g n M i n i s t e r s would c o n s i d e r p r o p o s a l s f o r the
e s t a b l i s h m e n t of a R e g i o n a l D e v e l o p m e n t Fund.
W e should s e e k
to m a k e a s much p r o g r e s s as p o s s i b l e on the k e y i s s u e s of the
s i z e o f the Fund and the d i s t r i b u t i o n of s h a r e s a m o n g s t xnember
s t a t e s ; but it w a s unlikely that the m e e t i n g would r e a c h final
agreement.
It might b e n e c e s s a r y for the Copenhagen S u m m i t
M e e t i n g on 14/15 D e c e m b e r to l a y down g e n e r a l g u i d e l i n e s .
The
C o u n c i l would a l s o be d i s c u s s i n g the C o m m i s s i o n mandate f o r
t r a d e negotiations with Spain and I s r a e l .
W e wanted to g e t b e t t e r
t e r m s in c e r t a i n s e c t o r s w h e r e there w e r e i m p l i c a t i o n s f o r the
c o s t of food in the United K i n g d o m ,
W e w o u l d a l s o be s e e k i n g
the C o u n c i l s a g r e e m e n t to maintaining our c u r r e n t t a r i f f
a r r a n g e m e n t s with the M e d i t e r r a n e a n c o u n t r i e s if, as now s e e m e d
i n e v i t a b l e , new a g r e e m e n t s could not b e in f o r c e b y then.
The
C o u n c i l of F i n a n c e M i n i s t e r s would be d i s c u s s i n g p r o p o s a l s fox*
a second stage of E c o n o m i c and M o n e t a r y Union and f o r C o m m u n i t y
a c t i o n a g a i n s t inflation, w h e r e w e w o u l d be p r e s s i n g f o r a c t i o n in
the t a r i f f f i e l d a i m e d i n p a r t i c u l a r at e a s i n g the p r e s s u r e on the
p r i c e of f o o d .
But it w a s unlikely that t a r i f f a c t i o n could h a v e
m o r e than a m a r g i n a l r e a l e f f e c t on food p r i c e s g e n e r a l l y .
T h e Cabinet T o o k note with a p p r o v a l of the s t a t e m e n t b y the
C h a n c e l l o r of the Duchy of L a n c a s t e r ,
NORTHERN
IRELAND
Previous
Reference:
C M ( 7 3 ) 57th
Conclusions,
Minute 4
4.
THE S E C R E T A R Y OF S T A T E F O R N O R T H E R N I R E L A N D
s a i d that the p o l i t i c a l trend w a s on the w h o l e f a v o u r a b l e .
The
f a c t that the E x e c u t i v e D e s i g n a t e had b e e n f o r m e d w a s a t t r a c t i n g
i n c r e a s i n g support f o r the e f f o r t s of the m o d e r a t e p o l i t i c i a n s to
co-operate.
But in r e s p o n s e t o the a l l i a n c e of the m o d e r a t e
f o r c e s , the e x t r e m i s t s on both s i d e s were, intent on causing
trouble.
T h e e x t e n s i v e h i - j a c k i n g of v e h i c l e s b y the P r o v i s i o n a l
W i n g of the I r i s h R e p u b l i c a n A r m y during the p a s t w e e k was
e s s e n t i a l l y a p r o p a g a n d a e x e r c i s e and the c a s u a l t i e s had b e e n f e w .
T h e r e a c t i o n of P r o t e s t a n t e x t r e m i s t s was d e m o n s t r a t e d by the
w a y in which they had d i s r u p t e d the m o s t r e c e n t m e e t i n g of the
Assembly.
T h e t r i p a r t i t e talks with r e p r e s e n t a t i v e s of the
I r i s h G o v e r n m e n t and m e m b e r s of the E x e c u t i v e D e s i g n a t e w o u l d
b e held the f o l l o w i n g w e e k .
The Cabinet T o o k note of the s t a t e m e n t b y the S e c r e t a r y of
State f o r N o r t h e r n I r e l a n d .
0
4
5
T h e Cabinet had b e f o r e t h e m a m e m o r a n d u m by the S e c r e t a r y
of State f o r the H o m e D e p a r t m e n t ( C P ( 7 3 ) 129) about the status of the
p r o p o s e d Health and Safety C o m m i s s i o n ( H S C ) .
0
T H E H O M E S E C R E T A R Y s a i d that the H o m e and S o c i a l A f f a i r s
C o m m i t t e e had concluded that the question whether the H S C , which
w a s to be set up under l e g i s l a t i o n g i v i n g e f f e c t to the r e c o m m e n d a ­
tions of the R o b e n s R e p o r t , should o r should not have C r o w n status
and b e staffed by c i v i l s e r v a n t s r a i s e d i s s u e s of sufficient i m p o r t a n c e
to w a r r a n t c o n s i d e r a t i o n by the C a b i n e t .
In p r i n c i p l e the C o m m i t t e e
had on b a l a n c e f a v o u r e d C r o w n status, which s e e m e d m o r e
a p p r o p r i a t e f o r a body with i m p o r t a n t e n f o r c e m e n t functions.
T h e r e w e r e h o w e v e r s o m e v e r y difficult staffing p r o b l e m s .
Many of the staff s e r v i n g the HSC would c o m e f r o m the D e p a r t m e n t
of E m p l o y m e n t , which had r e c e n t l y also b e e n affected by the
e s t a b l i s h m e n t of the M a n p o w e r S e r v i c e s C o m m i s s i o n ( M S G ) .
T h i s was a n o n - C r o w n body and the consequential change in status
had caused much d i s q u i e t amongst the staff affected.
The n e w
c o n t r a c t s of s e r v i c e had not y e t been s i g n e d and, if another body
which the staff w o u l d r e g a r d as c l o s e l y c o m p a r a b l e w a r e set up and
a c c o r d e d C r o w n status, t h e r e was s o m e f e a r that they m i g h t not be
s i g n e d at a l l .
T h e r e s u l t would be that i t would not be p o s s i b l e t o
a c h i e v e the o b j e c t i v e o f e s t a b l i s h i n g the M S C by 1 January 1974.
On
the o t h e r hand, the N a t i o n a l Staff S i d e , w h i l e p r e p a r e d to a c q u i e s c e
in the e s t a b l i s h m e n t of the MSC as a n o n - C r o w n body, had r e p r e s e n t e d
v e r y s t r o n g l y that the HSC had d i f f e r e n t functions and should h a v e
C r o w n status; and they and the staff f r o m o t h e r D e p a r t m e n t s who
w e r e l i a b l e to be t r a n s f e r r e d to the HSC would g r e a t l y r e s e n t a
d e c i s i o n denying the C o m m i s s i o n this status m e r e l y in o r d e r to
appease those who w e r e due to be t r a n s f e r r e d to the M S C .
In d i s c u s s i o n , it w a s a r g u e d that, b e a r i n g in m i n d that the HSC
would use i t s p o w e r s of e n f o r c e m e n t only as a l a s t r e s o r t , i t w a s
in p r i n c i p l e p r e f e r a b l e that it should not be a Csown b o d y .
It was
an u n d e r l y i n g p r i n c i p l e that the HSC should be an independent
e x e c u t i v e body, in the running of which a m a j o r p a r t would be
p l a y e d by the two s i d e s of i n d u s t r y .
T h i s approach s e e m e d
i n c o m p a t i b l e with C r o w n status, which would in p r a c t i c e r e s u l t
in the C o m m i s s i o n b e c o m i n g l i t t l e m o r e than an a d v i s o r y b o d y .
T h i s would be a s e r i o u s b l o w to the o b j e c t i v e of t r i p a r t i t e c o - o p e r a t i o n .
A s r e g a r d s staffing, the position w a s that t h r e e - q u a r t e r s of the
2 , 500 staff r e q u i r e d by the HSC would c o m e f r o m the D e p a r t m e n t
of E m p l o y m e n t , which w a s a l s o the s o u r c e of the 14, 000 staff n e e d e d
by the M S C .
A v e r y s e r i o u s situation would a r i s e if this l a t t e r
n u m e r o u s group of staff d e c l i n e d t o sign the n e w c o n t r a c t s .
M o r e o v e r , i t w a s doubtful w h e t h e r the N a t i o n a l Staff Side would
in the l a s t r e s o r t r e s i s t the denial of C r o w n status to the H S C .
T h e i r m a i n anxiety w a s that i t m i g h t set a p r e c e d e n t f o r the f u r t h e r
h i v i n g off of c i v i l s e r v a n t s ; but in fact t h e r e s e e m e d to be no further
i m m e d i a t e s c o p e f o r action on t h e s e l i n e s and t h e r e f o r e i t should b e
p o s s i b l e to a l l a y t h e i r anxiety.
F u r t h e r m o r e , m o s t of the
p r o f e s s i o n a l staff due to be t r a n s f e r r e d t o the HSC f a v o u r e d
a C o m m i s s i o n o r g a n i s e d on a t w o - t i e r b a s i s ; and the H o m e
and S o c i a l A f f a i r s C o m m i t t e e had a g r e e d that t h i s would n o t
b e c o m p a t i b l e with C r o w n s t a t u s .
On the other hand, i t was a r g u e d that on the point of p r i n c i p l e
i t w a s d e s i r a b l e that a body with i m p o r t a n t e n f o r c e m e n t functions ­
which would i n c l u d e the p o w e r t o p r o s e c u t e - should be p u b l i c l y
a n s w e r a b l e i n the w a y that could m o s t a p p r o p r i a t e l y be s e c u r e d
b y C r o w n status.
T h e N a t i o n a l Staff Side w e r e p r e p a r e d , though
r e l u c t a n t l y , to a c c e p t that the d e c i s i o n not t o g i v e the MSG C r o w n
status could not b e r e v e r s e d n o w that the r e l e v a n t l e g i s l a t i o n w a s
on the Statute B o o k ; but they f e l t v e r y s t r o n g l y that d i f f e r e n t
c o n s i d e r a t i o n s a p p l i e d to the H S C ,
In the i n t e r e s t of good l o n g ­
t e r m staff r e l a t i o n s , i t w a s d e s i r a b l e to g i v e h e e d to t h e i r v i e w .
In further d i s c u s s i o n i t was s u g g e s t e d that n o m a j o r i s s u e of p r i n c i p l e
w a s in f a c t i n v o l v e d , and that the d e t e r m i n i n g f a c t o r should be staff
relations.
On the l a t t e r , i t s e e m e d r e a s o n a b l e to e x p e c t the
N a t i o n a l Staff Side to p e r s u a d e the D e p a r t m e n t a l i n t e r e s t s c o n c e r n e d
to a c c e p t the conclusions r e a c h e d at n a t i o n a l l e v e l .
It was,
h o w e v e r , p o i n t e d out that the C o n s e r v a t i v e P a r t y had f o r long
a c c e p t e d in p r i n c i p l e the d e s i r a b i l i t y of r e d u c i n g the range of
functions p e r f o r m e d c e n t r a l l y in the i n t e r e s t of s e l f - r e g u l a t i o n
at the p e r i p h e r y ; and although i t w a s not c l e a r why an HSC which
d i d not have C r o w n status would in p r a c t i c e b e unable to c a r r y out
e x e c u t i v e w o r k , i t would be d e s i r a b l e to c o n s i d e r the point further
and p e r h a p s t o consult the C o n f e d e r a t i o n of B r i t i s h I n d u s t r y and
T r a d e s Union C o n g r e s s ,
T H E P R I M E M I N I S T E R , summing up the d i s c u s s i o n , said that
the d i s c u s s i o n had thrown up a n u m b e r of i m p o r t a n t i s s u e s on
which further w o r k w a s needed b e f o r e a d e c i s i o n could be r e a c h e d .
T h e staffing p r o b l e m s in p a r t i c u l a r n e e d e d c a r e f u l thought: the
r e c e n t d i f f i c u l t i e s in the G o v e r n m e n t s r e l a t i o n s h i p with staff w e r e
showing signs of e a s i n g and i t w o u l d be unfortunate to do anything
which would i m p e r i l this i m p r o v e m e n t .
T h e C a b i n e t a g r e e d £hat
i t would be u n d e s i r a b l e f o r the HSC to d e c l i n e into no m o r e than
an a d v i s o r y b o d y ; but i t w a s not c l e a r why this m u s t f o l l o w f r o m
i t s being g i v e n C r o w n status.
On this m a t t e r a l s o further thought
was needed.
T h e M i n i s t e r s c o n c e r n e d , t o g e t h e r with
S i r W i l l i a m A r m s t r o n g , the H e a d o f the H o m e C i v i l S e r v i c e ,
should a c c o r d i n g l y e x a m i n e t h e s e m a t t e r s f u r t h e r and r e p o r t
the outcome t o h i m .
1.
T o o k n o t e , with a p p r o v a l , of the P r i m e M i n i s t e r s summing up of t h e i r d i s c u s s i o n . 2.
I n v i t e d the H o m e S e c r e t a r y , in consultation
with the S e c r e t a r y of State f o r E m p l o y m e n t , the
L o r d P r i v y S e a l and the other M i n i s t e r s c o n c e r n e d
and with S i r W i l l i a m A r m s t r o n g , the H e a d of the H o m e
C i v i l Services, to c o n s i d e r f u r t h e r the i s s u e s r e f e r r e d
t o in the P r i m e M i n i s t e r s summing up and to r e p o r t
t h e i r conclusions to M m .
6,
T h e Cabinet c o n s i d e r e d a m e m o r a n d u m by the L o r d P r e s i d e n t
of the C o u n c i l ( C P ( 7 3 ) 130) about M e m b e r s pay and a l l o w a n c e s .
1
T H E L O R D P R E S I D E N T O F T H E C O U N C I L said that he and the L o r d
P r i v y S e a l had been under c o n s i d e r a b l e p r e s s u r e f r o m M e m b e r s of
both H o u s e s f o r s o m e i n c r e a s e to b e m a d e in the c u r r e n t l e v e l s of
M e m b e r s pay and a l l o w a n c e s and in the P e e r s daily e x p e n s e s
allowance.
It s e e m e d t o be g e n e r a l l y a c c e p t e d in the House of
C o m m o n s that M e m b e r s b a s i c s a l a r i e s could not be i n c r e a s e d
in advance of a f u r t h e r r e p o r t by the R e v i e w B o d y which would
n o r m a l l y conduct only one enquiry during any P a r l i a m e n t of n o r m a l
length; but the p r e s s u r e f o r i n c r e a s e s in the a l l o w a n c e s , which in
the c a s e of the House of L o r d s e x p e n s e a l l o w a n c e w a s r e l a t e d to
actual e x p e n s e s i n c u r r e d , w a s m o r e substantial.
H e did n o t think
i t would be a c c e p t a b l e to m a k e any i n c r e a s e in the P e e r s a l l o w a n c e
in i s o l a t i o n .
T h e a l t e r n a t i v e s s e e m e d to b e e i t h e r to take no action
o r t o i n c r e a s e the P e e r s expense a l l o w a n c e and the M e m b e r s '
secretarial allowance.
T h e r e w e r e o b v i o u s p r o b l e m s of t i m i n g
and p r e s e n t a t i o n i n v o l v e d in the l a t t e r c o u r s e .
He had thought it
n e c e s s a r y to a l e r t h i s c o l l e a g u e s to t h e s e d i f f i c u l t i e s and, subject
to t h e i r v i e w s , s u g g e s t e d that the n e x t step should be f o r a s m a l l
g r o u p of the M i n i s t e r s c o n c e r n e d to c o n s i d e r the m a t t e r f u r t h e r in
all i t s a s p e c t s .
1
5
1
c
1
1
T H E P R I M E M I N I S T E R , summing up a b r i e f d i s c u s s i o n , said that
the Cabinet a g r e e d that the L o r d P r e s i d e n t s p r o p o s a l s should be
c o n s i d e r e d in d e t a i l by the M i n i s t e r i a l C o m m i t t e e on C o u n t e r I n f l a t i o n a r y M e a s u r e s , with p a r t i c u l a r reference t o t h e i r r e l a t i o n s M p
to P h a s e 3; t o the p o s s i b l e danger i n v o l v e d in making any changes
without r e f e r e n c e t o the R e v i e w B o d y ; and to t i m i n g , b e a r i n g in mind
the obvious o b j e c t i o n s t o a g r e e i n g any i n c r e a s e s until the c u r r e n t
m a j o r i n d u s t r i a l pay c l a i m s had been s e t t l e d .
1.
T o o k n o t e , with a p p r o v a l , of the P r i m e
M i n i s t e r ' s s u m m i n g up of t h e i r d i s c u s s i o n ,
2,
I n v i t e d the L o r d P r e s i d e n t o f the C o u n c i l ,
in consultation with the L o r d P r i v y S e a l , to a r r a n g e
f o r h i s p r o p o s a l s t o be c o n s i d e r e d b y the
M i n i s t e r i a l C o m m i t t e e on C o u n t e r - I n f l a t i o n a r y
Measures,
8
?
T h e Cabinet c o n s i d e r e d a m e m o r a n d u m by the S e c r e t a r y of
State f o r E m p l o y m e n t ( C P ( 7 3 ) 131) on the handling of the c o a l m i n e r s
and p o w e r e n g i n e e r s d i s p u t e s ,
a
8
8
T H E P R I M E M I N I S T E R r e p o r t e d £hat on the p r e v i o u s day he and other
c o l l e a g u e s had m e t the E x e c u t i v e of the N a t i o n a l Union of
Mineworkers (NUM),
T h e r e had b e e n a tiseful and r e s t r a i n e d
d i s c u s s i o n in a r e l a t i v e l y g o o d a t m o s p h e r e .
H e and his c o l l e a g u e s
had g i v e n the E x e c u t i v e a b r o a d s u r v e y o f w o r l d and national e c o n o m i c
problems.
T h e y had s t r e s s e d that the future of the c o a l m i n i n g
industry in this country w a s a s s u r e d , but had m a d e c l e a r that t h e r e
could b e no question of the G o v e r n m e n t departing f r o m the p r o v i s i o n s
of Stage 3 of the -counter-inflationary p o l i c y .
They had a l s o pointed
out that the o f f e r which the N a t i o n a l C o a l B o a r d ( N C B ) had m a d e to
the m i n e r s , within the p r o v i s i o n s of the P a y and P r i c e s C o d e , w a s
v e r y f a v o u r a b l e ; and had quoted f i g u r e s to show that its acceptance
would p l a c e the m i n e r s in a m o r e advantageous position c o m p a r e d
with other i n d u s t r i a l w o r k e r s than they had been under p r e v i o u s
settlements.
T h e rate of w a s t a g e f r o m the industry owed as much
to d i s c o n t e n t with i n d u s t r i a l u n r e s t as to o t h e r f a c t o r s .
It w a s
disappointing that the E x e c u t i v e had subsequently, b y a substantial
m a j o r i t y , d e c i d e d against an i m m e d i a t e b a l l o t of t h e i r m e m b e r s on
the N C B o f f e r ; but t h e r e w e r e signs that the arguments advanced by
h i m and h i s c o l l e a g u e s had made a genuine i m p a c t on at l e a s t the
m o r e m o d e r a t e m e m b e r s of the E x e c u t i v e , and that this m i g h t b e a r
fruit in due c o u r s e ,
In the m e a n t i m e , the m o s t p r e s s i n g n e e d w a s
to c o n v i n c e the m i n e r s that the G o v e r n m e n t w a s not p r e p a r e d to go
beyond the p r o v i s i o n s o f Stage 3.
H e p r o p o s e d to m a k e a statement
in the H o u s e of C o m m o n s that afternoon on the outcome of the t a l k s .
T H E S E C R E T A R Y O F S T A T E F O R E M P L O Y M E N T , r e p o r t i n g on the
e l e c t r i c a l p o w e r e n g i n e e r s dispute, said that the P a y B o a r d w a s
making an u r g e n t r e - e x a m i n a t i o n of the application o f the P a y Code
to o u t - o f - h o u r s w o r k i n g .
He had t h e r e f o r e d e c i d e d against m e e t i n g
the E l e c t r i c a l P o w e r E n g i n e e r s A s s o c i a t i o n f o r the t i m e b e i n g .
In
the m e a n t i m e the E l e c t r i c i t y Council should be u r g e d to take a m o r e
active p a r t in negotiations than they had done h i t h e r t o .
1
In d i s c u s s i o n it w a s a g r e e d that the a r g u m e n t s used b y M i n i s t e r s in
the t a l k s with the N U M should continue to be p r o p a g a t e d continuously
and v i g o r o u s l y : i n f o r m a l b r i e f i n g of n e w s p a p e r e d i t o r s had b e e n
particularly effective,
A b r i e f i n g note s u m m a r i s i n g these
arguments should be p r e p a r e d giving s p e c i a l e m p h a s i s t o a
c o m p a r i s o n of the p r e s e n t w a g e o f f e r with the situation b e f o r e
and a f t e r the W i l b e r f o r c e I n q u i r y .
D u r i n g further d i s c u s s i o n i t was stated that although the l o s s of
c o a l production had b e e n l e s s than at f i r s t f e a r e d , c o a l and o i l
s t o c k s continued t o f a l l and the c r i t i c a l l e v e l f o r maintaining
u n i n t e r r u p t e d supplies of e l e c t r i c i t y m i g h t be r e a c h e d in F e b r u a r y .
I t w a s e s s e n t i a l t h e r e f o r e to c o n s i d e r what further m e a s u r e s m i g h t
b e adopted to p r o l o n g the endurance of p r i m a r y fuel s t o c k s , including
the definition of an o p t i m u m b a l a n c e b e t w e e n the use of c o a l and o i l
for electricity generation.
T H E P R I M E M I N I S T E R , summing up the d i s c u s s i o n , said that public
opinion must b e sustained in its v i e w that the o f f e r to the c o a l m i n e r s
was final.
The S e c r e t a r y of State f o r E m p l o y m e n t should c i r c u l a t e
a b r i e f i n g note to M i n i s t e r s based on the a r g u m e n t s u s e d in the
p r e v i o u s d a y ' s d i s c u s s i o n with the N U M .
The L o r d P r e s i d e n t
o f the Council should c i r c u l a t e a p a p e r f o r the Cabinet to d i s c u s s
at t h e i r next m e e t i n g on further m e a s u r e s which m i g h t be taken to
e c o n o m i s e in the use of f u e l .
The Cabinet ­
1.
T o o k n o t e , with a p p r o v a l , of the P r i m e M i n i s t e r s s u m m i n g up of t h e i r d i s c u s s i o n , 2.
I n v i t e d the S e c r e t a r y of State f o r E m p l o y m e n t
to c i r c u l a t e a b r i e f i n g note to M i n i s t e r s on m i n e r s
pay.
1
3.
I n v i t e d the L o r d P r e s i d e n t of the Council to
c i r c u l a t e a p a p e r on what f u r t h e r m e a s u r e s m i g h t
b e taken t o e c o n o m i s e in the use o f fuel.