(c) crown copyright
Catalogue Reference:CAB/128/58/5
Image Reference:0001
THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS
' GOVERNME
COPY NO
C C ( 7 6 ) 5th
Conclusions
85
CABINET
C O N C L U S I O N S of a M e e t i n g of t h e C a b i n e t
h e l d at 10 Downing S t r e e t on
T H U R S D A Y 12 F E B R U A R Y 1976
a t 10.15 a m
PRESENT
T h e R t Hon H a r o l d W i l s o n M P
P r i m e Minister
The Rt Hon E d w a r d Short M P
L o r d P r e s i d e n t of t h e C o u n c i l
The Rt Hon J a m e s Callaghan M P
S e c r e t a r y of S t a t e for F o r e i g n a n d
Commonwealth Affairs
The Rt Hon L o r d E l w y n - J o n e s
Lord Chancellor
T h e R t Hon R o y J e n k i n s M P
S e c r e t a r y of S t a t e f o r t h e H o m e
Department
T h e R t Hon D e n i s H e a l e y M P
C h a n c e l l o r of t h e E x c h e q u e r
The Rt Hon M i c h a e l F o o t M P
S e c r e t a r y of S t a t e f o r E m p l o y m e n t
T h e R t Hon A n t h o n y W e d g w o o d B e n n M P
S e c r e t a r y of S t a t e f o r E n e r g y
T h e R t Hon S h i r l e y W i l l i a m s M P
S e c r e t a r y of S t a t e f o r P r i c e s a n d
Consumer Protection
T h e R t Hon B a r b a r a C a s t l e M P
S e c r e t a r y of S t a t e f o r S o c i a l S e r v i c e s
T h e R t Hon E r i c V a r l e y M P
S e c r e t a r y of S t a t e f o r I n d u s t r y
T h e R t Hon P e t e r S h o r e M P
S e c r e t a r y of S t a t e f o r T r a d e
The Rt Hon Roy M a s o n M P
S e c r e t a r y of S t a t e f o r D e f e n c e
The R t Hon W i l l i a m R o s s M P
S e c r e t a r y of S t a t e f o r S c o t l a n d
T h e R t Hon J o h n M o r r i s Q C M P
S e c r e t a r y of S t a t e f o r W a l e s
"^He R t H o n M e r l y n R e e s M P
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
The Rt Hon F r e d P e a r t 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
^ h e R t Hon H a r o l d L e v e r M P
C h a n c e l l o r of t h e D u c h y of L a n c a s t e r
T h e R t Hon L o r d S h e p h e r d
Lord P r i v y Seal
The Rt Hon F r e d Mulley M P
S e c r e t a r y of S t a t e f o r E d u c a t i o n a n d S c i e n c e
The Rt Hon Reginald P r e n t i c e M P
M i n i s t e r for O v e r s e a s D e v e l o p m e n t
The Rt Hon R o b e r t Mellish M P
Parliamentary Secretary, Treasury
The Rt Hon J o h n Silkin M P
Minister for Planning and Local
Government
SECRETARIAT
Sir
Mr
Mr
Mr
Mr
Mr
Mr
Mr
Mr
John Hunt
G R D e n m a n ( I t e m s 1, 2 a n d 6)
J A Hamilton ( I t e m s 3 and 4)
T F B r e n c h l e y ( I t e m 2)
W I M c l n d o e ( I t e m 5)
E J G S m i t h ( I t e m s 1, 2 a n d 6)
A D G o r d o n - B r o w n ( I t e m 1)
A M M a c p h e r s o n ( I t e m 3)
C J F a r r o w (Item 4)
CONTENTS
ftem
1.
Subject
PARLIAMENTARY AFFAIRS
Royal C o m m i s s i o n on the Legal Profession
2.
Page
1
1
FOREIGN AFFAIRS
V i s i t of t h e F e d e r a l G e r m a n C h a n c e l l o r
2
Iceland
2
Falkland Islands
4
3.
EMPLOYMENT MEASURES
5
4.
F U E L BILLS
8
5
THE C I V I L S E R V I C E
%
P o l i t i c a l A c t i v i t i e s and a P o s t - e n t r y Union Shop
6.
DIRECT ELECTIONS T O THE EUROPEAN ASSEMBLY
10
13
PARLIAMENTARY
AFFAIRS
1.
T h e C a b i n e t w e r e i n f o r m e d of t h e b u s i n e s s t o b e t a k e n i n
t h e H o u s e of C o m m o n s d u r i n g t h e f o l l o w i n g w e e k .
In d i s c u s s i o n
of t h e p r e v i o u s d a y ' s v o t e o n t h e s a l a r y of t h e S e c r e t a r y of S t a t e
for I n d u s t r y , it w a s noted t h a t a Motion w a s t o bo put down
i n s t r u c t i n g t h e C l e r k of t h e H o u s e t o p u b l i s h t h e l i s t s of m e m b e r s
who h a d p a r t i c i p a t e d in the voided vote; and that c o n s i d e r a t i o n
w o u l d b e g i v e n t o p o s s i b l e m e a n s of p r e v e n t i n g c r o w d i n g a r o u n d
the lobbies during divisions.
Royal C o m m i s s i o n
& the Legal
Profession
T H E P R I M E MINISTER i n f o r m e d the C a b i n e t t h a t , following
d i s c u s s i o n w i t h t h e 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 of t h e p r o p o s a l s
f o r a R o y a l C o m m i s s i o n on t h e l e g a l p r o f e s s i o n w h i c h h a d b e e n p u t
f o r w a r d b y M r J a c k A s h l e y M P and o t h e r s , h e w o u l d b e a n n o u n c i n g
in t h e H o u s e t h a t a f t e r n o o n t h a t a R o y a l C o m m i s s i o n w a s t o b e
established.
The B a r Council and the Law Society had the p r e v i o u s
day issued a joint statement that they would welcome the
o p p o r t u n i t y t o p a r t i c i p a t e i n s u c h an i n q u i r y .
The Royal
C o m m i s s i o n would cover England and W a l e s ; the question what
action m i g h t be a p p r o p r i a t e in Scotland w a s u n d e r c o n s i d e r a t i o n .
0
The Cabinet Took note.
1
. FOREIGN
AFFAIRS
V i s i t of t h e
Federal German
Chancellor
2.
THE P R I M E MINISTER said that h e and the F o r e i g n and
Commonwealth Secretary had m e t the F e d e r a l G e r m a n Chancellor,
H e r r Schmidt, and F o r e i g n Minister, H e r r G e n s c h e r , at C h e q u e r s
the previous weekend.
T h e y h a d h a d a s e r i e s of u s e f u l
discussions.
In g e n e r a l i t a p p e a r e d t h a t H e r r S c h m i d t w a s
anxious to h a v e m e e t i n g s like t h i s to b a l a n c e the r e g u l a r F r a n c o G e r m a n c o n s u l t a t i o n s and t o show that he c o n s i d e r e d A n g l o - G e r m a n
relations as equally important.
H e r r Schmidt had now a m u c h
b e t t e r o p i n i o n - w h i c h h e h a d e x p r e s s e d p u b l i c l y - of B r i t a i n ' s
economic prospects.
T h e r e h a d b e e n a l o n g d i s c u s s i o n on
e c o n o m i c a f f a i r s , p a r t i c u l a r l y on s t r u c t u r a l u n e m p l o y m e n t .
The
v i e w s of t h e t w o G o v e r n m e n t s w e r e s i m i l a r o n m a n y a s p e c t s , b u t
t h e y d i v e r g e d on t w o .
The G e r m a n s had a l a r g e coal s u r p l u s and
were tlosing pits.
H e r r Schmidt had attacked r a i l monopolies a s
inefficient and supported road h a u l i e r s as efficient; it h a d been
m a d e plain that we did not s h a r e t h i s a n a l y s i s .
On I c e l a n d H e r r S c h m i d t w a s w o r r i e d a b o u t t h e e f f e c t s of t h e
d i s p u t e on t h e N o r t h A t l a n t i c T r e a t y O r g a n i s a t i o n ( N A T O ) , b u t b e
h a d e x p l a i n e d t h e d i s t a n c e w e w e r e p r e p a r e d t o go t o r e a c h a
c o m p r o m i s e and that we w e r e r e a d y to a c c e p t m e d i a t i o n .
H e r r Schmidt would not h i m s e l f a c t a s a m e d i a t o r , and had
s u g g e s t e d u s i n g a g a i n t h e good o f f i c e s of D r L u n s , t h e S e c r e t a r y
G e n e r a l of N A T O ,
The P r i m e Minister had r a i s e d the question
of o f f s e t p a y m e n t s a g a i n s t t h e c o s t of o u r f o r c e s i n G e r m a n y .
H e r r S c h m i d t h a d s h o w n s i g n s of w i s h i n g t o b e h e l p f u l b u t c o u l d
n o t c o m m i t h i m s e l f a t m i s s t a g e i n v i e w of h i s f o r t h c o m i n g
election.
O n t h e T i n d e m a n e R e p o r t on E u r o p e a n U n i o n , b o t h
s i d e s had a g r e e d t h a t the E u r o p e a n Council in A p r i l should have
a g e n e r a l d i s c u s s i o n only, with s u b s t a n t i v e d i s c u s s i o n being
d e f e r r e d u n t i l a f u r t h e r m e e t i n g of t h e E u r o p e a n C o u n c i l l a t e r
in the y e a r .
The Cabinet ­
1.
T o o k n o t e of t h e s t a t e m e n t b y t h e
P r i m e Minister.
and
?*Oviou
8
Hrence:
£ (76) 4th
^elusions
C
THE FOREIGN AND COMMONWEALTH SECRETARY said that
o n t h e p r e v i o u s d a y h e a n d t h e M i n i s t e r of A g r i c u l t u r e h a d h a d a
d i s c u s s i o n w i t h t h e S e c r e t a r y G e n e r a l of t h e N o r t h A t l a n t i c
T r e a t y Organisation (NATO), Dr L u n s , and had then brought h i m
o v e r to talk to t h e P r i m e M i n i s t e r .
D r Luns w a s by now convinced
of t h e i n c o r r i g i b i l i t y of t h e I c e l a n d e r s , b u t w a s n e v e r t h e l e s s
n a t u r a l l y m o r e c o n c e r n e d with the N A T O a s p e c t s than with the
f i s h i n g a s p e c t s of t h e p r o b l e m .
Six points had b e e n put to D r L u n s
2
for h i m t o convey to the I c e l a n d e r s in a f u r t h e r effort to
demonstrate our reasonableness.
T h e s e w e r e ; t h e i d e a of a
s h o r t - t e r m a g r e e m e n t to which the I c e l a n d e r s h a d r e c e n t l y t u r n e d
w o u l d b e a c c e p t a b l e t o u s ; on c a t c h w e t h o u g h t t h a t t h e t i m e h a d
c o m e for Iceland to put f o r w a r d f i g u r e s for d i s c u s s i o n ; we w e r e
p r e p a r e d t o c o n d u c t s e c r e t n e g o t i a t i o n s if t h a t w a s w h a t t h e
I c e l a n d e r s wanted; we w e r e willing to w i t h d r a w o u r t r a w l e r s a
c e r t a i n d i s t a n c e o f f s h o r e a s p a r t of a s e t t l e m e n t ; if a n a g r e e m e n t
could be r e a c h e d we w e r e r e a d y t o k e e p i t s e c r e t for a p e r i o d
w h i c h w o u l d a l l o w f o r w i t h d r a w a l of o u r f r i g a t e s f o l l o w e d b y a
4 8 h o u r i n t e r v a l p r i o r t o t h e a n n o u n c e m e n t of t h e a g r e e m e n t ;
m e a n w h i l e , we w o u l d w e l c o m e N A T O o b s e r v e r s o n b o a r d o u r
s h i p s off I c e l a n d s o t h a t t h e y c o u l d s e e f o r t h e m s e l v e s w h e r e t h e
r e s p o n s i b i l i t y l a y for i n c i d e n t s .
D r LuntJ h a d t e l e p h o n e d t h e I c e l a n d i c F o r e i g n M i n i s t e r ,
M r A g u s t s s o n , after the meeting and h a d told h i m that he would
h a v e points t o put to h i m through the Icelandic A m b a s s a d o r to
N A T O , w h o m he would b e seeing on h i s r e t u r n t o B r u s s e l s t o d a y .
D e s p i t e t h e r e a s o n a b l e n e s s of t h e s e p o i n t s , D r L u n a s h a r e d o u r
p e s s i m i s m a b o u t t h e c h a n c e s of a s e t t l e m e n t .
The fact was that
if t h e I c e l a n d i c P r i m e M i n i s t e r , M r H a l l g r i m s s o n , h a d t o m a k e a
choice between breaking up his coalition and ceasing to be P r i m e
M i n i s t e r on t h e o n e h a n d o r b r e a k i n g off r e l a t i o n s w i t h t h e U n i t e d
K i n g d o m on the o t h e r , he would p r e f e r the l a t t e r .
In d i s c u s s i o n t h e f o l l o w i n g p o i n t s w e r e m a d e ­
a.
T h e r e w a s a n e l e m e n t of p r o p a g a n d a i n t h e
I c e l a n d i c G o v e r n m e n t s u s e of t h e i r s c i e n t i s t s
r e c o m m e n d a t i o n of a cod c a t c h of 2 3 0 , 0 0 0 t o n n e s in 1976;
a figure as low as this would have s e r i o u s u n e m p l o y m e n t
c o n s e q u e n c e s for the Icelandic fishing i n d u s t r y and it w a s
c l e a r t h a t t h e y w e r e w i l l i n g t o b a s e t h e i r p o l i c y on a f i g u r e
of 2 6 5 , 0 0 0 t o n n e s .
We h a d o f f e r e d t o l e t t h e I c e l a n d e r s
decide what the total allowable catch should b e and w e r e
w i l l i n g t o a c c e p t a s o u r s h a r e 2 8 p e r c e n t of t h i s f i g u r e ,
s u b j e c t t o m a x i m u m and m i n i m u m t o n n a g e f i g u r e s .
If
t h e I c e l a n d e r s c h o s e 2 6 5 , 000 t o n n e s , 2 8 p e r c e n t w o u l d
fall b e t w e e n t h e m a x i m u m and m i n i m u m t o n n a g e s we h a d
proposed.
We w e r e a l s o r e a d y t o c o n s i d e r o t h e r
c o n s e r v a t i o n m e a s u r e s s u c h a s t h e s i z e of m e s h ,
1
b.
The Icelandic gunboats continued to show a v e r y
aggressive attitude.
T h e r e w a s a r e a l d a n g e r of a s h i p
being lost.
T o c o v e r t h e 41 t r a w l e r s n o w o n s t a t i o n w e
h a d a l a r g e d e f e n c e f o r c e : a t p r e s e n t t h i s c o n s i s t e d of t h r e e
f r i g a t e s , a R o y a l F l e e t A u x i l i a r y , a R o y a l F l e e t tug and t w o
c i v i l i a n d e f e n c e t u g s w i t h a t h i r d on i t s w a y t h e r e t o j o i n t h e m .
3
SECRET
c.
T h e i m p l i c a t i o n s of o u r p o l i c y f o r N A T O m u s t
continue to be kept in m i n d .
T h e s u g g e s t i o n for NATO
o b s e r v e r s was a valuable one and should h e l p t o counter
I c e l a n d i c p r o p a g a n d a a c c o u n t s of i n c i d e n t s o n t h e f i s h i n g
grounds.
The Cabinet ­
2.
T o o k n o t e of t h e s t a t e m e n t b y t h e 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 a n d of t h e p o i n t s
m a d e in d i s c u s s i o n .
THE FOREIGN AND COMMONWEALTH SECRETARY said that
the situation was a worrying one.
On h e a r i n g t h a t t h e A r g e n t i n e
F o r e i g n M i n i s t e r , S e n o r Q u i j a n o , w a s t o b e i n N e w Y o r k on
11 F e b r u a r y , h e h a d s e n t t h e P a r l i a m e n t a r y U n d e r S e c r e t a r y of
State for F o r e i g n and Commonwealth A f f a i r s , M r R o w l a n d s , to
talk to h i m , with a brief aimed at defusing the emotional situation
c r e a t e d b y t h e r e c e n t a t t e m p t of an A r g e n t i n e d e s t r o y e r t o a r r e s t
the R o y a l R e s e a r c h Ship Shackle t o n .
Mr Rowlands would ask
w h a t p r o p o s a l s t h e A r g e n t i n e s h a d r e g a r d i n g t a l k s on s o v e r e i g n t y
and would t e l l t h e m that we w e r e r e a d y to defend t h e F a l k l a n d
I s l a n d s i n t h e f a c e of an A r g e n t i n e a t t a c k .
N e v e r t h e l e s s , we
m u s t o u r s e l v e s r e c o g n i s e t h a t d e f e n c e of t h e F a l k l a n d I s l a n d s
would b e a difficult t a s k and that a situation could a r i s e which would
involve a national humiliation.
He h a d a s k e d for a m i l i t a r y
a p p r e c i a t i o n t o b e p r e p a r e d and w h e n i t w a s r e a d y h e w o u l d b e
p u t t i n g in a p a p e r t o C a b i n e t .
It w o u l d b e n e c e s s a r y f o r C a b i n e t
to decide whether the Falkland Islands w e r e r e a l l y to be defended
or not.
T h e I s l a n d e r s t h e m s e l v e s n u m b e r e d o n l y s o m e 2 , 000 a n d
w e r e t o t a l l y d e p e n d e n t o n u s for t h e i r d e f e n c e .
THE SECRETARY OF STATE FOR D E F E N C E said that he w e l c o m e d
the p r o p o s a l that Cabinet should study this p r o b l e m .
Even to send
a f r i g a t e t o t h e F a l k l a n d I s l a n d s w o u l d t a k e 15-J d a y s a t p r e s e n t w h e n
the n e a r e s t frigate w a s at T r i n i d a d .
A p r o b l e m would a r i s e when
the RRS Shackleton wanted to leave P o r t Stanley.
E v e n if a f r i g a t e
had b e e n sent t h e r e it would be no m a t c h for an A r g e n t i n e d e s t r o y e r .
Indeed, A r g e n t i n a could deploy m o r e than one d e s t r o y e r .
They
h a d a g o o d n a v y a n d if i t w e r e a l l p u t t o u s e i t c o u l d o n l y b e c o u n t e r e d
by a m a j o r t a s k f o r c e including an a i r c r a f t c a r r i e r .
B e c a u s e of
i n a d e q u a t e l a n d i n g f a c i l i t i e s , t h e r e w a s n o p o s s i b i l i t y of r e i n f o r c i n g
t h e F a l k l a n d I s l a n d s by a i r .
The Cabinet ­
3.
T o o k n o t e of t h e s t a t e m e n t s b y t h e 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 a n d t h e S e c r e t a r y of
State for D e f e n c e .
3.
THE PRIME MINISTER said that the Ministerial C o m m i t t e e
on E c o n o m i c S t r a t e g y ( M E S ) h a d d i s c u s s e d a t s o m e l e n g t h e a r l i e r
i n t h e w e e k p r o p o s a l s b y t h e C h a n c e l l o r of t h e E x c h e q u e r f o r a
f u r t h e r p a c k a g e of m e a s u r e s t o a l l e v i a t e u n e m p l o y m e n t .
These
p r o p o s a l s h a d r e c e i v e d a w i d e m e a s u r e of s u p p o r t i n M E S , a n d
h e w a s n o w i n v i t i n g t h e C h a n c e l l o r of t h e E x c h e q u e r t o i n f o r m t h e
C a b i n e t of t h e m e a s u r e s b e f o r e t h e y w e r e a n n o u n c e d i n P a r l i a m e n t
that afternoon.
THE CHANCELLOR OF THE EXCHEQUER said that the package
of m e a s u r e s h e w o u l d b e a n n o u n c i n g t h a t a f t e r n o o n i n v o l v e d a t o t a l
g r o s s e x p e n d i t u r e of £ 2 2 0 m i l l i o n , £137 m i l l i o n of w h i c h w o u l d b e
spent in 1976-77.
His proposals w e r e grouped under the t h r e e
h e a d i n g s of m a n p o w e r and t r a i n i n g , c o n s t r u c t i o n , a n d i n d u s t r y .
Under the first heading £55 million would be spent over t h r e e y e a r s
t o c r e a t e 3 0 - 3 5 , 000 e x t r a t r a i n i n g p l a c e s i n i n d u s t r y .
This
i n c l u d e d t h e p r o v i s i o n of £ 5 m i l l i o n t o f i n a n c e a s c h e m e f o r
n o n - c r a f t o p e r a t i v e training in the e n g i n e e r i n g i n d u s t r y which
M r Hugh Scanlon had been advocating.
The T e m p o r a r y
E m p l o y m e n t Subsidy S c h e m e w a s to be extended, f i r s t by
i n c r e a s i n g t h e m a x i m u m p e r i o d of e n t i t l e m e n t f r o m 6 m o n t h s t o
12 m o n t h s , a n d s e c o n d l y b y r e d u c i n g t h e m i n i m u m s i z e of a
q u a l i f y i n g r e d u n d a n c y f r o m 25 t o 10 w o r k e r s .
The total gross
c o s t of t h e s e e x t e n s i o n s w o u l d b e a b o u t £16 m i l l i o n .
It w a s n o t
p r o p o s e d t o i n c r e a s e t h e a m o u n t of t h e s u b s i d y b e c a u s e t h e
m a r g i n a l c o s t t o t h e E x c h e q u e r of t h e e x t r a 2 0 , 000 w o r k e r s t h a t
m i g h t t h e r e b y be brought within the s c h e m e would b e n e a r l y £ 5 0
a h e a d , and the offsetting savings w e r e likely to b e m u c h l e s s
than this.
M o r e o v e r , t h e n e t effect on t h e public s e c t o r b o r r o w i n g
r e q u i r e m e n t could be a s high a s £ 3 0 m i l l i o n .
He p r o p o s e d to
e x t e n d t h e S c h o o l L e a v e r S u b s i d y S c h e m e t o c o v e r C h r i s t m a s 1975
s c h o o l l e a v e r s a t a c o s t of a b o u t £5 m i l l i o n .
He also proposed to
i n c r e a s e t h e funds a l l o c a t e d t o t h e j o b c r e a t i o n s c h e m e w h i c h
produced j o b s quickly and did not displace other w o r k e r s .
The
Manpower S e r v i c e s Commission wanted to be a s s u r e d that the
s c h e m e w o u l d n o t , f o r l a c k of f u n d s , h a v e t o t a p e r off d u r i n g t h e
winter when t h e r e might be a g r e a t need for it,
He would
therefore be allocating a further £30 million to create t e m p o r a r y
employment under the scheme.
T h e a s s i s t a n c e he p r o p o s e d for
i n d u s t r y w o u l d a m o u n t t o an a d d i t i o n a l £ 5 5 m i l l i o n t o n e w i n d u s t r y
s c h e m e s u n d e r t h e I n d u s t r i a l Investment
P r o g r a m m e , which would
h e l p t o s e c u r e t h e r e - e q u i p m e n t a n d r e s t r u c t u r i n g of i m p o r t a n t
s e c t i o n s of t h e c o u n t r y ' s m a n u f a c t u r i n g b a s e .
£1 million would
b e a l l o c a t e d t o t h e D e v e l o p m e n t C o m m i s s i o n f o r t h e b u i l d i n g of
m o r e s m a l l f a c t o r i e s in r u r a l a r e a s ; and the National E n t e r p r i s e
B o a r d would be placing o r d e r s for s t a n d a r d m a c h i n e t o o l s to the
v a l u e of £ 5 m i l l i o n f o r f u t u r e d i s p o s a l a t c o m m e r c i a l r a t e s .
F i n a l l y , i n r e s p e c t of t h e c o n s t r u c t i o n i n d u s t r y , h e w a s a l l o c a t i n g
5
£ 5 0 m i l l i o n t o b e s p e n t on h o u s i n g i m p r o v e m e n t w o r k .
£6 million
of t h i s w o u l d b e s p e n t i n S c o t l a n d a n d £ 4 m i l l i o n i n W a l e s .
Housing i m p r o v e m e n t w a s l a b o u r - i n t e n s i v e , and would m a k e a
v a l u a b l e s o c i a l and p o l i t i c a l i m p a c t .
In a d d i t i o n t o a l l t h e s e
p r o p o s a l s , he intended to allocate £ 8 m i l l i o n for c o r r e s p o n d i n g
m e a s u r e s in N o r t h e r n Ireland,
He w o u l d a l s o b e m a k i n g s o m e
r e f e r e n c e in h i s s t a t e m e n t to consultations b e t w e e n h i m s e l f and
t h e S e c r e t a r y of S t a t e f o r E d u c a t i o n a n d S c i e n c e a b o u t w a y s i n
which l o c a l education a u t h o r i t i e s m i g h t be e n c o u r a g e d to m a k e
training p l a c e s available in further education colleges and o t h e r
e s t a b l i s h m e n t s f o r u n e m p l o y e d y o u n g p e o p l e i n t h e 16-19 a g e g r o u p .
T h e t o t a l g r o s s e f f e c t of t h e p a c k a g e h e w o u l d b e a n n o u n c i n g w o u l d
b e t o p r o v i d e s o m e 140, 000 j o b s ; b u t b e c a u s e of t h e d i s p l a c e m e n t
e f f e c t -vhich t h i s a d d i t i o n a l e m p l o y m e n t w o u l d h a v e c n t h e l a b o u r
m a r k e t , t h e n e t a d d i t i o n w o u l d a m o u n t t o s o m e 70, COO j o b s .
T h e c o s t cf t h e p a c k a g e w o u l d be v e r y m u c h g r e a t e r t h a n e i t h e r
of t h e t w o p r e v i o u s p a c k a g e s , and h e b e l i e v e d t h a t i t w o u l d b e
w e l c o m e d by t h e T r a d e s Union C o n g r e s s who w e r e p a r t i c u l a r l y
anxious that additional industrial training places should be made
a v a i l a b l e and t h a t a s s i s t a n c e s h o u l d b e g i v e n t o t h e c o n s t r u c t i o n
industry.
T h e e f f e c t of t h e p a c k a g e on t h e b a l a n c e of p a y m e n t s
w o u l d b e t o l e r a b l e , b u t i t w o u l d a b s o r b a s u b s t a n t i a l p o r t i o n of t h e
c o n t i n g e n c y r e s e r v e f o r 1 9 7 6 - 7 7 : a n d of t h e t o t a l c o n t i n g e n c y
r e s e r v e of £ 9 0 0 m i l l i o n f o r 1 9 7 6 - 7 7 w e l l o v e r h a l f h a d b e e n
e a r m a r k e d a l r e a d y and s e v e r e r e s t r a i n t s would h a v e to be applied
to any further c l a i m s .
In d i s c u s s i o n , i t w a s a r g u e d t h a t t h e p r o p o s a l s n o w t o b e a n n o u n c e d
ought f i r s t to have been c o n s i d e r e d in detail by the Cabinet.
It
w a s d i f f i c u l t f o r M i n i s t e r s w h o w e r e n o t m e m b e r s of M E S t o
d i s c o v e r t h e d e t a i l s of p r o p o s a l s b e i n g d i s c u s s e d , t h o u g h t h e y
might have a substantial interest.
F o r e x a m p l e , the intention
to allocate £ 5 0 million to h e l p the c o n s t r u c t i o n i n d u s t r y r a i s e d
the question whether all this money should be devoted to housing
improvement.
T h e r e were other construction projects, equally
l a b o u r - i n t e n s i v e and socially valuable, on which the G o v e r n m e n t
c o u l d b e s p e n d i n g m o n e y , f o r e x a m p l e , t h e i m p r o v e m e n t of f i r e
p r e v e n t i o n m e a s u r e s i n o l d p e o p l e e h o m e s , m a n y of w h i c h w e r e
g r a v e l y at r i s k in t h i s connection.
It w a s s u g g e s t e d t h a t t h e
C h a n c e l l o r of t h e E x c h e q u e r s h o u l d n o t r e s t r i c t t h e e x p e n d i t u r e
of £ 5 0 m i l l i o n f o r t h e c o n s t r u c t i o n i n d u s t r y t o t h e p a r t i c u l a r t a s k
of h o u s i n g i m p r o v e m e n t , b u t s h o u l d a l l o w t h e m o n e y t o b e a p p l i e d
to l a b o u r intensive building s c h e m e s on i m p r o v e m e n t s which the
Government considered to be socially d e s i r a b l e .
T h i s would give
M i n i s t e r s who had not yet been able to study the package the
opportunity to put f o r w a r d b i d s for building w o r k which t h e y
c o n s i d e r e d to be i m p o r t a n t .
If t h i s c o u l d n o t b e d o n e , i t w a s
a r g u e d t h a t a n y l a t e r a l l o c a t i o n of f u n d s f o r c o n s t r u c t i o n s h o u l d b e
1
6
applied to a r e a s other than housing.
Moreover there was a strong
c a s e for doubling the a m o u n t that w a s t o be m a d e a v a i l a b l e to a s s i s t
t h e c o n s t r u c t i o n i n d u s t r y i n v i e w of t h e h i g h l e v e l of u n e m p l o y m e n t t o
which it w a s subject, p a r t i c u l a r l y in such a r e a s a s M e r s e y s i d e and
Glasgow.
It w a s p o i n t e d o u t , h o w e v e r , t h a t t h e c o n c e r n o v e r t h e r e c e n t
u n e m p l o y m e n t f i g u r e s had placed the G o v e r n m e n t u n d e r intense
p r e s s u r e to take speedy action; indeed an u n d e r t a k i n g t o this effect
h a d b e e n g i v e n d u r i n g t h e u n e m p l o y m e n t d e b a t e i n t h e H o u s e of
C o m m o n s o n 29 J a n u a r y .
T h i s h a d m a d e it n e c e s s a r y f o r t h e
M i n i s t e r s p r i m a r i l y c o n c e r n e d to m o v e quickly.
The central
p r o b l e m w a s t o i n c r e a s e t h e l e v e l of a d d i t i o n a l e x p e n d i t u r e w i t h o u t
placing in j e o p a r d y the d e c i s i o n s which had a l r e a d y b e e n taken to
r e s t r a i n public expenditure.
This suggested that expenditure to
a l l e v i a t e u n e m p l o y m e n t s h o u l d b e c o n c e n t r a t e d o n a l i m i t e d n u m b e r of
effective m e a s u r e s r a t h e r than being thinly s p r e a d o v e r m a n y
programmes.
It w a s t h e c o n s i d e r e d v i e w of M E S t h a t t h e p a c k a g e
was well-balanced, and relevant to the employment situation and to
t h e w i d e r n e e d s of t h e e c o n o m y .
F u r t h e r m o r e , t h e C h a n c e l l o r of
t h e E x c h e q u e r h a d t o r e t a i n s o m e f r e e d o m of m a n o e u v r e i n t h e
p r e p a r a t i o n of h i s B u d g e t p r o p o s a l s a n d i t w o u l d a l s o b e w i s e t o k e e p
s o m e m e a s u r e s i n r e s e r v e in c a s e i t b e c a m e n e c e s s a r y t o i n t r o d u c e
a n o t h e r u n e m p l o y m e n t package l a t e r in the y e a r ,
THE PRIME MINISTER, summing up the d i s c u s s i o n , said that
b e c a u s e of t h e t i m e t a b l e p r o m i s e d b y t h e G o v e r n m e n t , t h e M i n i s t e r s
p r i m a r i l y c o n c e r n e d had b e e n obliged t o p r o d u c e a n u n e m p l o y m e n t
package urgently.
A l t h o u g h s o m e m e m b e r s of t h e C a b i n e t h a d
r e s e r v a t i o n s a b o u t t h e p r o c e d u r e w h i c h t h i s d e g r e e of u r g e n c y
entailed, the Cabinet a g r e e d generally that the m e a s u r e s which the
C h a n c e l l o r of t h e E x c h e q u e r w o u l d b e a n n o u n c i n g t h a t a f t e r n o o n w e r e
an effective and well-balanced r e s p o n s e .
The Cabinet T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e
s u m m i n g u p of t h e i r d i s c u s s i o n .
7
Minister's
! FTJEl,
"ILLS
I
4,
T h e C a b i n e t c o n s i d e r e d a m e m o r a n d u m b y t h e S e c r e t a r y of
S t a t e f o r E n e r g y (C(76) 11) c o n t a i n i n g p r o p o s a l s f o r m e a s u r e s t o d e a l
w i t h t h e d a n g e r of d i s c o n n e c t i o n of g a s a n d e l e c t r i c i t y s u p p l i e s t o old
p e o p l e a s a r e s u l t of i n c r e a s e s i n f u e l p r i c e s .
j
T H E S E C R E T A R Y OF STATE F O R E N E R G Y said t h a t with the
d o u b l i n g of p r i c e s of f u e l i n t w o y e a r s a n d t h e d i f f i c u l t e c o n o m i c
c o n d i t i o n s t h e r e w a s a n i n c r e a s e d l i k e l i h o o d of p e o p l e b e i n g f a c e d
w i t h d i s c o n n e c t i o n of g a s a n d e l e c t r i c i t y s u p p l i e s b e c a u s e of t h e i r
inability t o pay the b i l l s .
The p r o b l e m was p a r t i c u l a r l y s e r i o u s in
t h e c a s e of p e n s i o n e r s .
They w e r e p r o n e to h y p o t h e r m i a and
b e c a u s e they valued t h e i r independence might not avail t h e m s e l v e s
of t h e a s s i s t a n c e w h i c h w a s a v a i l a b l e .
T h e r e was an additional
d i f f i c u l t y i n t h a t t h e y w e r e a g e n e r a t i o n w i t h a v e r y h i g h s e n s e of
responsibility and w e r e liable to take Government publicity about the
n e e d f o r f u e l e c o n o m y t o t h e p o i n t of d a m a g i n g t h e i r h e a l t h .
There
were a l r e a d y a r r a n g e m e n t s whereby the gas and electricity i n d u s t r i e s ,
h a v i n g e x t e n d e d c r e d i t f o r a t l e a s t f i v e o r s i x w e e k s f r o m t h e d a t e of
a n a c c o u n t , a n d g i v e n w a r n i n g of t h e riskB of d i s c o n n e c t i o n , s u s p e n d e d
1
s u c h a c t i o n f o r 14 d a y s f o r p e o p l e a p p a r e n t l y s u f f e r i n g g e n u i n e
h a r d s h i p and r e f e r r e d t h e m to the Supplementary Benefits
Commission.
The relevant agencies then considered whether
financial h e l p could b e given o r other a r r a n g e m e n t s m a d e to d e a l with
existing debts and to avoid further debt a r i s i n g .
Various easy
p a y m e n t s c h e m e s and s o m e p r e - p a y m e n t m e t e r s w e r e a v a i l a b l e t o
h e l p p e o p l e t o k e e p u p with t h e i r p a y m e n t s s u b s e q u e n t l y .
However,
while v e r y few in n u m b e r , c a s e s continued t o b e r e p o r t e d which
through human e r r o r appeared to have slipped through the safety net.
He c o n s i d e r e d that f u r t h e r action w a s n e c e s s a r y and had c o n s u l t e d t h e
c h a i r m e n of t h e E l e c t r i c i t y C o u n c i l , t h e A r e a E l e c t r i c i t y B o a r d s a n d
t h e B r i t i s h G a s C o r p o r a t i o n on t h e p o s s i b i l i t y of a t e m p o r a r y
s u s p e n s i o n of d i s c o n n e c t i o n f o r h o u s e h o l d s c o n s i s t i n g s o l e l y of
pensioners.
T h e y had e x p r e s s e d c o n c e r n t h a t such a c o u r s e could
lead t o a g r e a t i n c r e a s e in feckless b e h a v i o u r .
To meet their
c o n c e r n h e p r o p o s e d that the s u s p e n s i o n should l a s t only until t h e end
of M a y .
It w o u l d a l s o b e l i m i t e d s t r i c t l y t o h o u s e h o l d s c o n s i s t i n g of
s t a t e p e n s i o n e r s living on t h e i r own and not including a n y o t h e r
income e a r n e r .
On t h i s b a s i s t h e i n d u s t r i e s w o u l d b e u n e a s y b u t
would b e willing t o apply the policy.
It w a s v e r y d i f f i c u l t t o e s t i m a t e
what the cost might b e .
T h e f i g u r e of £ 6 m i l l i o n i n h i s m e m o r a n d u m
w a s a m a x i m u m t h e o r e t i c a l possibility which he did not r e g a r d a s at
all likely.
It w o u l d b e h i s o b j e c t i v e t o m a k e t h e i n d u s t r i e s c a r r y t h e
costs themselves.
As a second m e a s u r e he proposed t o establish an
i n f o r m a l r e v i e w w i t h t h e i n d u s t r i e s u n d e r t h e c h a i r m a n s h i p of t h e
P a r l i a m e n t a r y U n d e r S e c r e t a r y of S t a t e , L o r d L o v e l l - D a v i s , of t h e
m e t h o d s of p a y m e n t b y g a s a n d e l e c t r i c i t y c o n s u m e r s .
The l a r g e
i n c r e a s e s in p r i c e s made such a review appropriate.
In r e a c h i n g
c o n c l u s i o n s t h e y w o u l d b e a b l e t o t a k e a c c o u n t of p r a c t i c e i n o t h e r
8
countries.
H e w o u l d l i k e t o m a k e a l o w k e y a n n o u n c e m e n t of t h e s e
m e a s u r e s t o P a r l i a m e n t o n 16 F e b r u a r y : a r e p o r t w a s b e i n g p u b l i s h e d
t h a t d a y explaining why it w a s not p o s s i b l e t o a s s i s t p o o r e r c o n s u m e r s
b y a r e a r r a n g e m e n t of t h e t a r i f f s of t h e f u e l i n d u s t r i e s .
If t h i s
r e p o r t w e r e n o t a c c o m p a n i e d b y s o m e p o s i t i v e m e a s u r e s it w o u l d
c r e a t e an unfortunate i m p r e s s i o n .
In d i s c u s s i o n i t w a s a r g u e d t h a t i t w o u l d b e w h o l l y i n a p p r o p r i a t e t o
m a k e a n a n n o u n c e m e n t of t h e s e m e a s u r e s a t t h e p r e s e n t t i m e .
No
opportunity had b e e n given t o consult t h e Scottish B o a r d s about the
e f f e c t of t h e p r o p o s a l s i n t h a t c o u n t r y .
Moreover, the Scottish
National P a r t y was mounting a nation-wide political campaign based
o n a n e x a g g e r a t e d a s s e s s m e n t of t h e r i s k s of h y p o t h e r m i a a n d t h e
m e a s u r e s p r o p o s e d w o u l d b e w i d e l y i n t e r p r e t e d a s a c o n f i r m a t i o n of
their propaganda.
On t h e o t h e r h a n d , i t w a s p o i n t e d o u t t h a t if t h e
G o v e r n m e n t took no a c t i o n i t would c o n t i n u e t o r e c e i v e b a d p u b l i c i t y
e v e n t h o u g h t h e s c a l e of t h e p r o b l e m w a s i n f a c t v e r y s m a l l .
It w a s
however suggested that the statement should be a m e n d e d so a s to give
c r e d i t both to the positive action which had a l r e a d y been t a k e n b y the
supply i n d u s t r i e s and by the Supplementary Benefits C o m m i s s i o n .
C a r e would a l s o be n e e d e d in the p r e s e n t a t i o n t o avoid a n y i m p r e s s i o n
of d u p l i c a t i o n w i t h t h e i n q u i r y b y t h e N a t i o n a l C o n s u m e r C o u n c i l i n t o
t h e i m p a c t of h i g h e r f u e l b i l l s w h i c h h a d b e e n e s t a b l i s h e d i n D e c e m b e r .
THE PRIME MINISTER, summing up the discussion, said that the
C a b i n e t s u p p o r t e d t h e t w o p r o p o s a l s b y t h e S e c r e t a r y of S t a t e f o r
E n e r g y and a g r e e d that t h e y should b e announced in P a r l i a m e n t on
16 F e b r u a r y ,
T h e S e c r e t a r y of S t a t e f o r E n e r g y s h o u l d h o w e v e r
r e v i s e t h e t e r m s of t h e s t a t e m e n t t o t a k e a c c o u n t of t h e p o i n t s m a d e
in d i s c u s s i o n and in p a r t i c u l a r t o e n s u r e t h a t the position in Scotland
was satisfactorily covered.
The Cabinet L
T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e
M i n i s t e r ' s s u m m i n g u p of t h e i r d i s c u s s i o n .
2.
A g r e e d t h e p r o p o s a l s i n C(76) 11.
3.
I n v i t e d t h e S e c r e t a r y of S t a t e f o r E n e r g y t o
r e v i s e his draft statement in consultation with the
S e c r e t a r i e s of S t a t e f o r S c o t l a n d , N o r t h e r n I r e l a n d ,
P r i c e s and C o n s u m e r Protection, and .
Social S e r v i c e s and to make an announcement to
P a r l i a m e n t o n 16 F e b r u a r y ,
9
5,
The Cabinet considered m e m o r a n d a by the Lord P r i v y Seal
(C(76) 9 a n d 10) a b o u t t h e r e s t r i c t i o n s o n t h e p o l i t i c a l a c t i v i t i e s of
c i v i l s e r v a n t s a n d t h e a p p l i c a t i o n of t h e c l o s e d s h o p p r i n c i p l e t o t h e
Civil Service.
THE LORD PRIVY SEAL said that the p r e s e n t r u l e s g o v e r n i n g the
p o l i t i c a l a c t i v i t i e s of c i v i l s e r v a n t s w e r e b a s e d o n t h e r e p o r t of t h e
M a s t e r m a n C o m m i t t e e i n 1949 a n d w e r e i n t r o d u c e d i n a W h i t e P a p e r
published in M a r c h 1953. They divided t h e Civil S e r v i c e into t h r e e
g r o u p s : the "politically f r e e " (all i n d u s t r i a l and non-office g r a d e s ) ;
t h e " i n t e r m e d i a t e " (up t o E x e c u t i v e O f f i c e r l e v e l ) ; a n d t h e " r e s t r i c t e d "
(Executive Officer and above).
T h e r e had been increasing p r e s s u r e
f r o m a l l t h e C i v i l S e r v i c e u n i o n s f o r a r e l a x a t i o n of t h e s e r e s t r i c t i o n s
on the b a s i s that any civil servant should be allowed to engage in
political a c t i v i t i e s provided that the D e p a r t m e n t c o n c e r n e d judged, in
a n y p a r t i c u l a r c a s e , t h a t t h i s would n o t r u n c o u n t e r t o t h e public
interest.
In a l e t t e r dated 9 S e p t e m b e r t h e L o r d P r i v y S e a l h a d
i n v i t e d t h e v i e w s of h i s c o l l e a g u e s o n a n u m b e r of p o s s i b l e o p t i o n s f o r
n e g o t i a t i o n w i t h t h e Staff S i d e ; h e h i m s e l f h a d f a v o u r e d a p r o p o s a l t o
extend the " i n t e r m e d i a t e " group t o include the g r a d e s i m m e d i a t e l y
below Principal level.
T h e r e p l i e s of h i s c o l l e a g u e s , h o w e v e r , h a d
s h o w n a w i d e m e a s u r e of d i s a g r e e m e n t o v e r h o w f a r t h e p r e s e n t
r e s t r i c t i o n s should be r e l a x e d .
Following the refusal by the Royal
C o m m i s s i o n on S t a n d a r d s of C o n d u c t i n P u b l i c Life t o c o n s i d e r a
s u b m i s s i o n o n t h i s q u e s t i o n f r o m t h e N a t i o n a l Staff S i d e t h e l a t t e r h a d
f o r m a l l y r e q u e s t e d t h a t a n i n d e p e n d e n t c o m m i t t e e of i n q u i r y b e
appointed.
T h e r e c e n t p u b l i c c r i t i c i s m of t h e C i v i l S e r v i c e a n d t h e
p r o s p e c t of a r e t r e n c h m e n t of staff n u m b e r s m a d e It t h e m o r e
i m p o r t a n t that a positive r e s p o n s e should be m a d e to t h i s r e q u e s t .
M o r e o v e r , w h e n t h e P r i m e M i n i s t e r h a d i n f o r m e d t h e L e a d e r of t h e
O p p o s i t i o n of t h e l i m i t e d r e l a x a t i o n of t h e r e s t r i c t i o n s w h i c h t h e
O f f i c i a l S i d e h a d t e n t a t i v e l y o f f e r e d t o t h e Staff S i d e , s h e h a d
indicated t h a t t h e Opposition would not a c c e p t even this r e l a x a t i o n
w i t h o u t , a t a n y r a t e , a n i m p a r t i a l a n d o p e n e x a m i n a t i o n of t h e i s s u e s
involved.
H i s f i r s t m e m o r a n d u m (C(76) 9) t h e r e f o r e p r o p o s e d that a n
i n d e p e n d e n t c o m m i t t e e of i n q u i ry s h o u l d b e s e t u p a l o n g t h e l i n e s of
t h e M a s t e r m a n C o m m i t t e e w h l f h r e p o r t e d in
I949.
T h e q u e s t i o n of t h e p o s t - e n t r y union s h o p r a i s e d i n h i s s e c o n d
m e m o r a n d u m (C(76) 10) w a s m i r e d i f f i c u l t .
The p r e s s u r e s for this
had c o m e chiefly f r o m the CIv:I and Public S e r v i c e s A s s o c i a t i o n
(CPSA), whose National E x e c u t i v e would b e c o n s i d e r i n g s t r o n g
r e s o l u t i o n s i n s u p p o r t of t h e c l o s e d s h o p p r i n c i p l e a t i t s m e e t i n g i n
mid-March,
Although t h e r e w a s no r e a l unanimity a m o n g s t the other
unions on t h e subject, t h e y w e r e a l l anxious t o s e c u r e the e l i m i n a t i o n
of " f r e e r i d e r s " a n d t o m a x i m i s e t h e p a y m e n t of c o n t r i b u t i o n s t o t h e i r
funds.
T h e p r o b l e m s p o s e d lor t h e C i v i l S e r v i c e b y t h e c l o s e d s h o p
p r i n c i p l e i n c l u d e d b o t h t h e p o t e n t i a l c o n f l i c t of l o y a l t i e s a n d t h e
i m p l i c a t i o n s for civil s e r v a n t s who m i g h t r e f u s e to join a u n i o n .
Since h o w e v e r it w a s the G o v e r n m e n t s legislation which had opened
t h e w a y t o Staff S i d e p r e s s u r e on t h i s f r o n t , it w o u l d b e d i f f i c u l t t o
r e j e c t t h e p r i n c i p l e of a c l o s e d s h o p f r o m t h e o u t s e t o r t o r e f u s e t o
n e g o t i a t e on i t .
He b e l i e v e d , t h e r e f o r e , that t h e b e s t c o u r s e would
b e t o o p e n t h e s u b j e c t t o p u b l i c d e b a t e i n t h e s a m e w a y a s t h e i s s u e of
political activities.
H3 h a d r e a s o n t o t h i n k t h a t h a v i n g s h o w n i n i t i a l
h o s t i l i t y t o t h i s c o u r s e of a c t i o n , t h e C P S A w o u l d c o m e t o a c q u i e s c e
in it.
B u t i t w o u l d be i m p o r t a n t that a d e c i s i o n t o r e f e r t h e m a t t e r t o
a n i n d e p e n d e n t c o m m i t t e e of i n q u i r y s h o u l d b e a n n o u n c e d b e f o r e t h e
C P S A ' s N a t i o n a l E x e c u t i v e m e e t i n g In m i d - M a r c h ,
He had considered
w h e t h e r the two i s s u e s should bo d e a l t with by t h e s a m e o r b y
s e p a r a t e c o m m i t t e e s of i n q u i r y : h e h i m s e l f f a v o u r e d a s i n g l e
c o m m i t t e e b o t h b e c a u s e of t h e m a n p o w e r a n d c o s t i m p l i c a t i o n s a n d
b e c a u s e h e b e l i e v e d that a single c o m m i t t e e would be m o r e likely to
a r r i v s at a balanced view.
In d i s c u s s i o n s o m e M i n i s t e r s a r g u e d t h a t b o t h i s s u e s s h o u l d b e
settled b y the G o v e r n m e n t , without r e f e r e n c e to an Independent
inquiry, t h e f i r s t a s a m a t t e r which should be decided s i m p l y in t e r m s
of t h e p u b l i c i n t e r e s t a n d t h e s e c o n d a s a m a t t e r w h i c h p r o p e r l y f e l l
to the Government as employer,
A substantial majority, however,
t o o k t h e v i e w t h a t , p a r t i c u l a r l y in t h e l i g h t of t h e Staff S i d e s r e q u e s t
a n d t h e a t t i t u d e of t h e O p p o s i t i o n , i t w o u l d b e r e a s o n a b l e t o r e f e r
t h e q u e s t i o n of p o l i t i c a l a c t i v i t i e s t o a n i n d e p e n d e n t c o m m i t t e e of
inquiry,
A f u r t h e r c o n s i d e r a t i o n i n f a v o u r of t h i s c o u r s e w a s t h e
l e n g t h of t i m e w h i c h h a d e l a p s e d s i n c e t h e s u b j e c t w a s l a s t r e v i e w e d
by the Master man Committee.
Doubt w a s h o w e v e r e x p r e s s e d
w h e t h e r , a s t h e L o r d P r i v y S e a l h a d s u g g e s t e d , it w o u l d b e
a p p r o p r i a t e for the c o m m i t t e e to be c h a i r e d by a Law Lord (rather
t h a n , f o r e x a m p l e , a d i s t i n g u i s h e d l a y m a n w i t h e x p e r i e n c e of p u b l i c
administration) o r , so far a s political or other representation was
c o n c e r n e d , t o b e d r a w n p r i m a r i l y f r o m t h e r a n k s of t h e r e t i r e d .
f
A s r e g a r d s t h e p r o p o s a l t h a t a c o m m i t t e e of i n q u i r y s h o u l d a l s o d e a l
w i t h t h e q u e s t i o n of a p p l y i n g t h e c l o s e d s h o p p r i n c i p l e t o t h e C i v i l
S e r v i c e , it w a s pointed out t h a t , despite m i s r e p r e s e n t a t i o n t o the
c o n t r a r y , t h e l e g i s l a t i o n p r o m o t e d by the G o v e r n m e n t did not favour
t h i s p r i n c i p l e b u t m e r e l y a l l o w e d i t s a p p l i c a t i o n t o b e t h e s u b j e c t of
negotiation b e t w e e n e m p l o y e r s and e m p l o y e e s .
To t r e a t the Civil
S e r v i c e differently in this r e s p e c t b y r e f e r r i n g the question t o a
c o m m i t t e e of i n q u i r y w o u l d t h u s b e c o n t r a r y t o t h e G o v e r n m e n t s
general policy.
T h i s would b e r e s e n t e d b y the T r a d e s Union
C o n g r e s s a n d a l s o b y o t h e r s e c t i o n s of t h e c o m m u n i t y , e g n e w s p a p e r
e d i t o r s , who would like t h e i r c a s e to be s i m i l a r l y distinguished.
The
r i g h t c o u r s e w a s for the G o v e r n m e n t a s an e m p l o y e r t o negotiate on the
closed
shop p r i n c i p l e and to c o n s i d e r what exceptions o r adaptions
t o t h e g e n e r a l p r i n c i p l e m i g h t b e r e q u i r e d i n t h e c a s e of t h e C i v i l
Service,
U
It w a s h o w e v e r a l s o s t r o n g l y a r g u e d t h a t t h e q u e s t i o n of a p o s t - e n t r y
union shop in t h e Civil Service r a i s e d unique i s s u e s which touched at
t h e h e a r t of p u b l i c a d m i n i s t r a t i o n a n d a t t h e r e p u t a t i o n of t h e S e r v i c e
f o r i m p a r t i a l i t y a n d l o y a l t y t o t h e G o v e r n m e n t of t h e d a y .
There was
a good c a s e f o r f i r m l y r e s i s t i n g d e m a n d s f o r a c l o s e d s h o p ,
p a r t i c u l a r l y s i n c e t h e r e w a s n o e v i d e n c e of w e a k n e s s i n t h e
o r g a n i s a t i o n a n d s t r e n g t h of u n i o n s w i t h i n t h e C i v i l S e r v i c e , w h i c h a
c l o s e d shop m i g h t be designed to r e m e d y .
I n d e e d if t h e G o v e r n m e n t
r e j e c t e d a c l o s e d shop on constitutional g r o u n d s t h e r e w a s r e a s o n to
think that t h i s would c o m m a n d c o n s i d e r a b l e s y m p a t h y with the r a n k
and file.
THE PRIME MINISTER, summing up the discussion, said that the
C a b i n e t w e r e c l e a r l y i n f a v o u r of t h e p r o p o s a l t o r e f e r t h e q u e s t i o n of
p o l i t i c a l a c t i v i t i e s t o a n i n d e p e n d e n t c o m m i t t e e of i n q u i r y .
In the
l i g h t of t h e d i s c u s s i o n h e w o u l d c o n s i d e r f u r t h e r , i n c o n s u l t a t i o n w i t h
t h e L o r d P r e s i d e n t of t h e C o u n c i l , t h e C h a n c e l l o r of t h e E x c h e q u e r
a n d t h e L o r d P r i v y S e a l , t h e c o m p o s i t i o n a n d t e r m s of r e f e r e n c e of
such a c o m m i t t e e .
Equally c l e a r l y the Cabinet rejected the p r o p o s a l
t o r e f e r t h e q u e s t i o n of a p o s t - e n t r y u n i o n s h o p t o a c o m m i t t e e of
i n q u i r y a n d felt that the G o v e r n m e n t should r e a c h i t s own d e c i s i o n on
the matter.
T h e C a b i n e t h a d not r e a c h e d a f i n a l v i e w o n w h a t t h a t
d e c i s i o n should b e : and he would a r r a n g e for a r e p r e s e n t a t i v e g r o u p
of M i n i s t e r s t o c o n s i d e r t h e i s s u e f u r t h e r a n d t o r e c o m m e n d t o t h e
Cabinet the Hne which the G o v e r n m e n t should t a k e with the
N a t i o n a l Staff S i d e .
The Cabinet T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e M i n i s t e r ' s
s u m m i n g u p of t h e i r d i s c u s s i o n .
12
6.
The Cabinet had before 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 S t a t e f o r F o r e i g n and C o m m o n w e a l t h A f f a i r s a n d t h e S e c r e t a r y of
S t a t e f o r t h e H o m e D e p a r t m e n t (C(76) 2 ( R e v i s e ) ) c o v e r i n g a d r a f t
W h i t e P a p e r on d i r e c t e l e c t i o n s t o t h e E u r o p e a n A s s e m b l y .
T H E F O R E I G N AND COMMONWEALTH SECRETARY said that since
the Cabinet l a s t d i s c u s s e d the m a t t e r in J a n u a r y he had b e e n in
c o n s u l t a t i o n with the political P a r t i e s .
The U l s t e r Unionists w e r e in
principle opposed to direct elections; Plaid C y m r u wanted Wales to
h a v e h e r own v o i c e i n t h e C o m m u n i t y ^ i n s t i t u t i o n s , w e r e o p p o s e d t o
d i r e c t e l e c t i o n s , b u t if t h e y t o o k p l a c e w o u l d l i k e t o k n o w h o w W e l s h
r e p r e s e n t a t i o n c o m p a r e d with t h a t of s m a l l e r M e m b e r S t a t e s ; t h e
L i b e r a l s supported direct elections, w e r e anxious about the
r e p r e s e n t a t i o n of S c o t l a n d , W a l e s a n d N o r t h e r n I r e l a n d i n r e l a t i o n t o
t h a t of t h e s m a l l M e m b e r S t a t e s , s t r e s s e d t h e n e e d f o r a l i n k
b e t w e e n A s s e m b l y m e m b e r s and the B r i t i s h P a r l i a m e n t , and u r g e d
t h a t s o m e f o r m of p r o p o r t i o n a l r e p r e s e n t a t i o n w a s r e q u i r e d ; t h e
C o n s e r v a t i v e P a r t y a n d t h e r e l e v a n t s u b - c o m m i t t e e s of t h e N a t i o n a l
E x e c u t i v e C o m m i t t e e of t h e L a b o u r P a r t y h a d d e f e r r e d c o m m e n t u n t i l
a f t e r p u b l i c a t i o n of t h e W h i t e P a p e r ; a n d t h e S c o t t i s h N a t i o n a l i s t
P a r t y had said that the first priority was direct Scottish r e p r e s e n ­
t a t i o n o n a l l t h e C o m m u n i t y ^ i n s t i t u t i o n s , e n d o r s e d t h e p r i n c i p l e of
d i r e c t e l e c t i o n s , but r e s e r v e d t h e i r position in p r a c t i c e until
Scotland W & B in t h e i r view a p p r o p r i a t e l y r e c o g n i s e d .
The p r o p o s e d White P a p e r was in t h r e e p a r t s .
The first p a r t
described the c u r r e n t situation, the second discussed m a t t e r s
requiring Community decision, and the third listed i s s u e s for
subsequent national decision.
It did n o t d e b a t e w h e t h e r o r n o t t h e r e
should b e d i r e c t e l e c t i o n s - we w e r e c o m m i t t e d to t h e m b y o u r
accession t o the European Economic Community (EEC), confirmed
b y the r e f e r e n d u m , and r e i t e r a t e d b y t h e P r i m e M i n i s e r and h i m s e l f
following t h e Cabinet d e c i s i o n t h e p r e v i o u s N o v e m b e r .
Discussion
s h o u l d b e c o n c e n t r a t e d on t h e s e c o n d p a r t of t h e W h i t e P a p e r , a n d
p a r t i c u l a r l y o n t h e t o t a l s i z e of t h e A s s e m b l y a n d i t s d i s t r i b u t i o n
between countries.
T h i s was bound t o give r i s e t o m u c h d i s p u t e .
T h e r e w o u l d h a v e t o b e s o m e w e i g h t i n g i n f a v o u r of t h e s m a l l e r
c o u n t r i e s , but the p r e s e n t A s s e m b l y p r o p o s a l s w e r e weighted
heavily in t h e i r favour and the c o n t r a s t between the r e p r e s e n t a t i o n
proposed for Luxembourg, the Irish Republic and D e n m a r k with that
likely to come from Scotland, Wales and Northern Ireland was v e r y
stark.
H e believed t h e r e f o r e that we should s t r i v e t o achieve a
d i s t r i b u t i o n giving a c l o s e r r e l a t i o n s h i p between s e a t s and population.
T h e F r e n c h felt the s a m e ; t h e y did not in a n y c a s e wish t o s e e r a p i d
p r o g r e s s t o w a r d s d i r e c t elections and t h i s i s s u e could e a s i l y d e l a y t h e
i n t r o d u c t i o n of t h e s y s t e m b e y o n d 1 9 7 8 .
13
H e p r o p o s e d t h a t i n t h e l i g h t of t h e C a b i n e t ' 8 d i s c u s s i o n h e a n d t h e
H o m e S e c r e t a r y should p r e s e n t t h e White P a p e r the following w e e k ,
t h a t t h e L o r d P r e s i d e n t of t h e C o u n c i l s h o u l d a r r a n g e f o r i t t o b e
d i s c u s s e d b y t h e P a r l i a m e n t a r y L a b o u r P a r t y ( P L P ) and then b y the
H o u s e of C o m m o n s , I n t i m e t o g i v e g u i d a n c e t o t h e P r i m e M i n i s t e r
and himself when they dealt with t h i s m a t t e r a t t h e E u r o p e a n Council
m e e t i n g on 1 and 2 A p r i l ,
In d i s c u s s i o n i t w a s a r g u e d t h a t t h e p r o p o s a l r a i s e d a n u m b e r of
i s s u e s of f u n d a m e n t a l i m p o r t a n c e w h i c h r e q u i r e d t h o r o u g h d U c u a s i o n ,
The t i m e t a b l e indicated in the White P a p e r , which envisaged finalising
t h e t e r m s of a d r a f t C o n v e n t i o n o n d i r e c t e l e c t i o n s a t t h e E u r o p e a n
C o u n c i l o n 1-2 A p r i l , w a s f a r t o o p r e c i p i t a t e .
The commitment in
t h e T r e r - t y of R o m e w a s t o " e l e c t i o n s b y d i r e c t u n i v e r s a l s u f f r a g e i n
a c c o r d a n c e with a u n i f o r m p r o c e d u r e " ; but the M e m b e r States had
d e f e r r e d that c o m m i t m e n t and t h e r e w a s no r e a s o n why t h e y should
n o t s i m i l a r l y d e f e r a m o v e in t h a t d i r e c t i o n .
M o r e o v e r on
e x a m i n a t i o n the p r o p o s a l s set out in the draft White P a p e r w e r e
vague - m o r e suitable t o a G r e e n P a p e r at b e s t - t h e d e b a t e s in t h e
P L P a n d P a r l i a m e n t w o u l d b e d i f f u s e , and it w o u l d b e v e r y d i f f i c u l t
foi t h e P r i m e M i n i s t e r a n d t h e 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
to know what t h e i r mandate was at t h e E u r o p e a n Council.
The
i n t r o d u c t i o n of d i r e c t e l e c t i o n s w o u l d m o v e u s t o w a r d s a f e d e r a l
E u r o p e a n s t a t e and would confuse d e m o c r a t i c l e g i t i m a c y , introducing
a s e p a r a t e c e n t r e of s o v e r e i g n t y w i t h i t s own s e t of r e p r e s e n t a t i v e s ,
c l a i m i n g the e l e c t e d r i g h t t o speak for the United Kingdom.
There
w a s no p o p u l a r p r e s s u r e for such a d e v e l o p m e n t .
The increased
legitimacy given to t h e E u r o p e a n A s s e m b l y would be bound to lead in
d u e c o u r s e t o i n c r e a s e s I n I t s p o w e r s , a n d t h u s t o t h e d o w n - g r a d i n g of
Parliament.
D i r e c t e l e c t i o n s would m o r e o v e r e n c o u r a g e t h e
t e n d e n c i e s t o w a r d s t h e b r e a k - u p of t h e U n i t e d K i n g d o m , a p r o c e s s
which would be e x a c e r b a t e d by the s h a r p d i s p a r i t y b e t w e e n r e p r e s e n ­
t a t i o n a t t h e E u r o p e a n A s s e m b l y of S c o t l a n d , W a l e s a n d N o r t h e r n
I r e l a n d w i t h t h a t of i n d e p e n d e n t M e m b e r S t a t e s of s i m i l a r s i z e .
All
t h e s e i s s u e s , t o g e t h e r with the c o n s i d e r a b l e o r g a n i s a t i o n a l difficulties
involved, should be c o n s i d e r e d by a S p e a k e r ' s Conference o r s i m i l a r
body.
On t h e o t h e r h a n d i t w a s a r g u e d t h a t w e h a d a l r e a d y a c c e p t e d t h e
c o m m i t m e n t to move to d i r e c t elections and t h e draft White P a p e r
w a s a n h o n e s t e x p o s i t i o n of t h e a s s o c i a t e d q u e s t i o n s w h i c h h a d t o b e
faced.
A l t h o u g h , a s a m a t t e r of r e c o r d , t h e E u r o p e a n C o u n c i l h a d
s e t w o r k i n h a n d w i t h a v i e w t o f i n a l i s i n g t h e t e x t of a d r a f t
Convention on d i r e c t e l e c t i o n s at the next E u r o p e a n Council in A p r i l ,
i n f a c t It w a s m o s t u n l i k e l y t h a t f i n a l d e c i s i o n s w o u l d b e t a k e n t h e n ,
and possibly might be delayed until much l a t e r .
The illustrative draft
C o n v e n t i o n s e t o u t In A n n e x B t o t h e W h i t e P a p e r c a m e f r o m t h e
14
A s s e m b l y , and in no way c o m m i t t e d t h e G o v e r n m e n t .
T h e t e x t of
the draft White P a p e r should b e a m e n d e d t o m a k e this plain, and t o
avoid a n y i m p l i c a t i o n t h a t we w e r e c o m m i t t e d t o finalising the t e x t in
April.
T h e s e c h a n g e s would m a k e it even m o r e obvious t h a t the
G o v e r n m e n f s p r o p o s a l s w e r e m a i n l y of a G r e e n P a p e r r a t h e r t h a n a
White P a p e r n a t u r e .
T h e r e p r e s e n t a t i o n of S c o t l a n d , W a l e s a n d
N o r t h e r n I r e l a n d in r e l a t i o n to the s m a l l e r M e m b e r S t a t e s would
a d m i t t e d l y b e a d i f f i c u l t i s s u e , on w h i c h w e w o u l d h a v e t o p r e s s o u r
views.
T h e i n t r o d u c t i o n of d i r e c t e l e c t i o n s , f a r f r o m i n c r e a s i n g t h e
p o w e r s of t h e E u r o p e a n A s s e m b l y , w o u l d i n t h e i m m e d i a t e f u t u r e h a v e
the opposite effect.
T h e q u e s t i o n of i n c r e a s e d p o w e r s w o u l d b e
deferred until direct elections had been instituted, and then the
G o v e r n m e n t s of M e m b e r S t a t e s w o u l d b e m o r e c h a r y a b o u t t h e g r a n t i n g
of a d d i t i o n a l p o w e r s .
It w a s i m p o r t a n t t h a t t h e P r i m e M i n i s t e r a n d
the F o r e i g n and Commonwealth S e c r e t a r y b e in a position t o influence
t h e d i s c u s s i o n o n d i r e c t e l e c t i o n s which would b e g i n a t t h e E u r o p e a n
Council in A p r i l .
In f u r t h e r d i s c u s s i o n t h e following a d d i t i o n a l p o i n t s w e r e m a d e ­
a.
The F o r e i g n and C o m m o n w e a l t h S e c r e t a r y had
sugge sted that t h e Cabinet should spend a whole d a y at
C h e q u e r s after the Budget on c o n s i d e r i n g o u r objectives in the
EEC.
This proposal was to be welcomed.
Discussion at the
E u r o p e a n C o u n c i l i n A p r i l w o u l d i n e v i t a b l y not r e a c h f i n a l i t y :
a n d t h e i s s u e c o u l d t h u s b e d i s c u s s e d m o r e fully a t C h e q u e r s
before any irrevocable decision w a s taken.
b.
A g a i n s t t h e b a c k g r o u n d of t h e c o n s i d e r a b l e c h a n g e s i n
t h e C o m m u n i t y w h i c h w o u l d f o l l o w t h e a d m i s s i o n of G r e e c e a n d
possibly certain other Mediterranean countries d i r e c t elections
w o u l d i n p r a c t i c e b e of l e s s i m p o r t a n c e t h a n h a d b e e n a r g u e d .
c.
E l e c t i o n s t o the E u r o p e a n A s s e m b l y on a single day,
o r s h o r t s p r e a d of d a y s , b e t w e e n n a t i o n a l g e n e r a l e l e c t i o n s
could c a u s e c o n s i d e r a b l e complications for d o m e s t i c politics
if t h e e l e c t i o n w e n t a g a i n s t t h e G o v e r n m e n t of t h e d a y .
The
r e l a t i o n s h i p of e l e c t i o n s t o t h e E u r o p e a n A s s e m b l y t o
e l e c t i o n s t o local a u t h o r i t i e s and the Scottish and Welsh
A s s e m b l i e s required further thought.
d.
T h e r e h a d b e e n n o c o n s i d e r a t i o n of o t h e r i m p o r t a n t
i s s u e s *uch a s t h e m e t h o d s of e l e c t i o n , t h e o r g a n i s a t i o n a n d
f i n a n c i n g of t h e E u r o p e a n e l e c t i o n s , a n d t h e r e l a t i o n s h i p
b e t w e e n m e m b e r s of t h e E u r o p e a n A s s e m b l y a n d t h e U n i t e d
Kingdom P a r l i a m e n t .
It w a s p o i n t e d o u t h o w e v e r t h a t t h e s e
m a t t e r s fell within the a r e a for n a t i o n a l d e c i s i o n , which would
15
follow t h e i s s u e s for C o m m u n i t y d e c i s i o n .
The principles and
b a s i c f r a m e w o r k of d i r e c t e l e c t i o n s s h o u l d b e d e t e r m i n e d
first, and t h e s e i s s u e s later.
e,
F u r t h e r t h o u g h t s h o u l d b e g i v e n t o t h e q u e s t i o n of
n a t i o n a l s of o t h e r M e m b e r S t a t e s v o t i n g i n t h i s c o u n t r y i n t h e
European Assembly elections.
f.
Since we had t h e s t o n g e s t d e m o c r a t i c t r a d i t i o n s , we
s h o u l d g a i n i n i n f l u e n c e in t h e E u r o p e a n A s s e m b l y , p a r t i c u l a r l y
o n t h e c o n t r o l of e x p e n d i t u r e a n d o n t h e r e p r e s e n t a t i o n of t h e
g e n e r a l w i l l of t h e p e o p l e r a t h e r t h a n of p r e s s u r e g r o u p s f o r
individual i n t e r e s t s .
T h e C a b i n e t t h e n c o n s i d e r e d t h e t e x t of t h e d r a f t W h i t e P a p e r .
A m e n d m e n t s w e r e agreed to p a r a g r a p h 7 and Annex B to make plain
that the draft Convention s u m m a r i s e d t h e r e c a m e f r o m the European
A s s e m b l y and t h a t the G o v e r n m e n t w a s not c o m m i t t e d to it; t o
p a r a g r a p h s 10, 2 7 a n d 42 t o a v o i d t h e i m p l i c a t i o n t h a t t h e G o v e r n m e n t
w a s c o m m i t t e d t o f i n a l i s i n g a t e x t of t h e C o n v e n t i o n a t t h e E u r o p e a n
C o u n c i l o n 1-2 A p r i l ; a n d t o p a r a g r a p h 18 t o s t r e n g t h e n t h e r e f e r e n c e
t o t h e n e e d t o t a k e i n t o a c c o u n t t h e r e l a t i o n s h i p of t h e r e p r e s e n t a t i o n
of t h e s m a l l e r M e m b e x S t a t e s w i t h t h a t of t h e c o n s t i t u e n t p a r e s of
larger Member States.
Other amendments were also agreed.
THE PRIME MINISTER, summing up the d i s c u s s i o n , said that a clear
m a j o r i t y of t h e C a b i n e t a g r e e d t h a t t h e 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 and the H o m e Secretary should p r e s e n t t h e i r proposals to
P a r l i a m e n t t h e following week, but a s a G r e e n P a p e r r a t h e r t h a n a
White P a p e r , and a s a m e n d e d in d i s c u s s i o n .
T h e L o r d P r e s i d e n t of
the Council should a r r a n g e for the G r e e n P a p e r to be d i s c u s s e d by the
P L P a n d t h e n t o b e d e b a t e d in P a r l i a m e n t .
Following this the Cabinet
would h a v e o p p o r t u n i t y to d i s c u s s the line t o b e t a k e n at the E u r o p e a n
C o u n c i l o n 1-2 A p r i l , a n d t h e r e a f t e r t h e r e w o u l d b e t h e p r o p o s e d w h o l e ­
d a y d i s c u s s i o n of o u r E E C o b j e c t i v e s b e f o r e f i n a l d e c i s i o n s o n t h e
Convention on d i r e c t elections were taken.
The Cabinet T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e M i n i s t e r ' s
s u m m i n g u p of t h e i r d i s c u s s i o n .
C a b i n e t Office
12 F e b r u a r y 1976
16