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SECRET
fouta
^THIS D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ^
GOVERNMENT
fin C M ( 7 3 ) 15th
COPY
NO
Conclusions
CABINET
C O N C L U S I O N S of a M e e t i n g of the
h e l d a t 10 D o w n i n g S t r e e t
THURSDAY 8 MARCH
a t 11. 0 0
Cabinet
on
1973
am
P R E S E N T
The Rt Hon Edward Heath
Prime
The Rt Hon Sir A l e c D o u g l a s - H o m e
S e c r e t a r y of State for F o r e i g n
Commonwealth
Minister
MP
T h e R t H o n L o r d H a i l s h a m of St M a r y l e b o n e
Lord
and
MP Chancellor
Affairs
The Rt Hon Lord
Carrington
The Rt Hon William Whitelaw M P
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
S e c r e t a r y of State for
The Rt Hon Robert Carr
T h e Rt Hon J a m e s P r i o r
MP
S e c r e t a r y of State for t h e H o m e
The Rt Hon Sir
Keith Joseph
S e c r e t a r y of State for S o c i a l
Department
The Rt Hon Geoffrey Rippon QC
Services
S e c r e t a r y of State for the
Science
Jellicoe
S e c r e t a r y of State for
C h a n c e l l o r of t h e D u c h y of
S e c r e t a r y of State for
The Rt Hon M a u r i c e M a c m i l l a n
MP
Lancaster
The Rt Hon P e t e r T h o m a s QC
Seal
MP
MP
Scotland
T h e Rt Hon John D a v i e s
MP
S e c r e t a r y of State for T r a d e and I n d u s t r y
Lord Privy
S e c r e t a r y of State for
MP
Environment
T h e Rt Hon Gordon C a m p b e l l
MP
S e c r e t a r y of State for E d u c a t i o n and
The Rt Hon The E a r l
MP
Council
MP
The Rt Hon M a r g a r e t Thatcher
The Rt Hon Peter Walker
L o r d P r e s i d e n t of the
Defence
MP
Wales
The Rt Hon Sir Geffrey Howe QC
Employment
Minister for Trade and Consumer
SECRIT MP
Affairs
3
THE FOLLOWING WERE ALSO PRESENT
The Rt Hon John Peyton MP
Minister for Transport Industries (Item 6)
Mr Tom Boardman MP Minister for Industry (Items 6 and 7) Mr Patrick Jenkin MP
Chief Secretary, Treasury
The Rt Hon F r a n c i s Pym MP Parliamentary Secretary, Treasury SECRETARIAT
The Rt Hon Sir Burke Trend
Mr H F T Smith
Mr P Benner
Mr J Anson
Mr I T Lawman
Mr H F E l l i s - R e e s
Mr R J 0 ' N e i l l
CONTENTS
Item
I .
2,
Subject
PARLIAMENTARY AFFAIRS
1
Counter-Inflation Bill
1
COUNTER-INFLATIONARY POLICY
Building Societies: Interest Charge on Mortgages
3.
Page
1
NATIONAL HEALTH SERVICE REORGANISATION BILL
F a m i l y Planning Services
2
4.
EUROPEAN COMMUNITY AFFAIRS^
4
5,
NORTHERN IRELAND
6
6.
INDUSTRIAL AFFAIRS
,
The Gas Industry
7
British Railways Board
7
National Health Service Ancillary Workers
8
The Coal Industry
8
The Water Industry
9
Civil Service TlsjfenV
9
Subject
REORGANISATION OF THE NUCLEAR DESIGN
CONSTRUCTION
INDUSTRY
REMUNERATION OF SCOTTISH
HOUSING F I N A N C E
ACT
COUNCILLORS
AND
t -PARLIAMENTARY
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 to b e t a k e n in the
AFFAIRS
H o u s e of C o m m o n s d u r i n g the f o l l o w i n g
Counter-
A n understanding had now b e e n reached with the Opposition in the
Inflation Bill
H o u s e of L o r d s a s a r e s u l t of w h i c h the C o a n t e r - I n f l a t i o n B i l l
week.
c o m p l e t e a l l i t s s t a g e s i n t h a t H o u s e b y 19
would
March,
Previous
Reference:
CM(73)
12th
Conclusions,
Minute 1
COUNTER-
2.
T h e Cabinet w e r e informed that there w a s considerable
INFLATIONARY
and P a r l i a m e n t a r y c o n c e r n about the p r o p o s a l by the
POLICY
S o c i e t i e s to i n c r e a s e to 9 p e r c e n t the r a t e of i n t e r e s t
to b o r r o w e r s .
public
Building
charged
It w a s u n d e r s t o o d that t h e y c o n t e m p l a t e d a
further
Building
i n c r e a s e to 9i p e r c e n t s h o r t l y t h e r e a f t e r ;
and t h e r e a p p e a r e d to
Societies:
s o m e p r e s s u r e for the r a t e to be f i x e d at the h i g h e r f i g u r e at o n c e .
Interest
Such action w a s c l e a r l y p r e m a t u r e and unjustified,
Charge
b e c a u s e the m e a s u r e s to encourage personal
on
Mortgages
particularly
savings which had
b e e n a n n o u n c e d b y the C h a n c e l l o r of the E x c h e q u e r in h i s
Budget
s t a t e m e n t w o u l d not h a v e an i m m e d i a t e e f f e c t on the v o l u m e of
deposited with Building Societies by i n v e s t o r s .
by inflating house p r i c e s ,
to the G o v e r n m e n t s
charged
would be
counter-inflationary policies.
damaging
It w o u l d
t h e r e f o r e b e d e s i r a b l e that t h e S e c r e t a r y of S t a t e f o r t h e
and the Chief S e c r e t a r y ,
Treasury,
should u r g e the
could not be wholly d i s s u a d e d ,
If,
however,
cent.
Cabinet
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 t h e
and the Chief S e c r e t a r y ,
increase
they should be v e r y strongly
to ensure that the n e w rate would not e x c e e d 9 per
The
Environment
Building
Societies forthwith to refrain f r o m making any i m m e d i a t e
i n the r a t e of i n t e r e s t c h a r g e d to b o r r o w e r s .
Treasury,
accordingly.
1
Environment
to
funds
In t h e s e
c i r c u m s t a n c e s a n i n c r e a s e i n the r a t e of i n t e r e s t
by the Societies,
be
proceed
they
advised
-NATIONAL
3.
THE HOME SECRETARY
said that the H o m e and
Social
HEALTH
A f f a i r s C o m m i t t e e had r e c e n t l y c o n s i d e r e d the attitude to be
SERVICE
a d o p t e d b y t h e G o v e r n m e n t in t h e H o u s e of C o m m o n s
REORGANISATION
the d e b a t e o n the S e c o n d R e a d i n g of the N a t i o n a l H e a l t h
Service
Reorganisation Bill in the following week,
deletion
BILL
during
following the
f r o m t h e B i l l b y t h e H o u s e of L o r d s of a n y p o w e r to c h a r g e
Previous
family planning,
Reference:
The r e s u l t would be to i n c r e a s e e x p e n d i t u r e by about £16
CM(72)
a y e a r after s o m e four y e a r s ,
59th
e v e n b y w a y of the o r d i n a r y p r e s c r i p t i o n
for
charge.
million
in addition to the e x t r a £17
million
Conclusions,
a y e a r for i m p r o v e d f a m i l y planning s e r v i c e s which the
Minute 1
of State for S o c i a l S e r v i c e s h a d a n n o u n c e d in D e c e m b e r of the
previous year.
Secretary
T h e a n n u a l f i g u r e of £16 m i l l i o n w o u l d be
reduced
Family-
to £13 m i l l i o n if o r d i n a r y p r e s c r i p t i o n c h a r g e s w e r e i m p o s e d
Planning
of the
Services
The H o m e and Social A f f a i r s C o m m i t t e e had c o n s i d e r e d that on
s p e c i a l c h a r g e s e n v i s a g e d in the B i l l a s originally
instead
introduced.
merits
a f u r t h e r e x t e n s i o n of t h e s e r v i c e did n o t c o m m a n d h i g h
priority.
B u t t h e p r e s e n t c l i m a t e of o p i n i o n a m o n g s t G o v e r n m e n t
supporters
a s evidenced by the well-supported E a r l y Day Motion,
urging
p r o v i s i o n of c o m p r e h e n s i v e f a m i l y p l a n n i n g and b i r t h c o n t r o l
a s a n o r m a l part of the N a t i o n a l Health S e r v i c e - w a s
services
such that it
unlikely that the G o v e r n m e n t would be able to s e c u r e the
the C o m m i t t e e had concluded that,
would be right (and would p r o b a b l y b e a c c e p t a b l e to the
In
while
it
Governments
s u p p o r t e r s ) to p r o p o s e an a m e n d m e n t p r o v i d i n g for the l e v y i n g
ordinary prescription charges,
was
reinstate­
m e n t of the c h a r g i n g p o w e r s d e l e t e d b y the H o u s e of L o r d s .
these circumstances,
­
the
it would be u n w i s e to go
of
further.
T h e S e c r e t a r y of State f o r S o c i a l S e r v i c e s w o u l d i n d i c a t e in t h e
d e b a t e that t h e a d d i t i o n a l e x p e n d i t u r e w o u l d h a v e to b e m e t
either
by a reduction in expenditure in other a r e a s (which,
extent
that the health s e r v i c e s w e r e involved,
to the
would i m p l y the
abandonment
o r p o s t p o n e m e n t of p a r t s of a g r e e d p r o g r a m m e s ) o r b y an
in either National Health S e r v i c e c h a r g e s or the Health
e l e m e n t in the weekly National Insurance
THE PRIME MINISTER,
the Cabinet a g r e e d that,
increase
Service
contribution.
s u m m i n g up the d i s c u s s i o n ,
said that
although on m e r i t s t h e r e w a s little
for a further expansion of the s e r v i c e ,
case
it would on political
grounds
b e i m p r a c t i c a b l e to s e e k to r e i n s t a t e the c h a r g i n g p o w e r s d e l e t e d
the H o u s e of L o r d s
v
It w a s c l e a r l y r i g h t ,
however,
that
planning should be subject to the prescription c h a r g e s which
to the r e s t of the National Health S e r v i c e ;
end should accordingly be tabled.
Services
applied
and an a m e n d m e n t to
T h e S e c r e t a r y of State for
s h o u l d i n d i c a t e to t h e H o u s e of C o m m o n s that,
with the Chief S e c r e t a r y ,
Treasury,
He should
to
to
r e s t r i c t other p r o g r a m m e s in the health field or e l s e w h e r e or
increase either prescription charges or the Health Service
this
Social
in order
m e e t the additional e x p e n d i t u r e it would be n e c e s s a r y either
in the weekly National I n s u r a n c e contribution.
by
family
to
element
discuss
w h i c h of t h e s e m e t h o d s
preferable and should submit p r o p o s a l s to the Cabinet in due
was
course.
The Cabinet
Took note,
with approval,
of the P r i m e
Minister'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 and invited the
of State for S o c i a l S e r v i c e s and t h e C h i e f
Treasury,
to p r o c e e d
accordingly.
3
Secretary
Secretary,
4.
T H E C H A N C E L L O R OF THE DUCHY OF LANCASTER
said
t h a t t h e r e w a s a m e e t i n g of t h e C o u n c i l of M i n i s t e r s ( F i n a n c e ) of t h e
European Economic
Community (EEC) in B r u s s e l s that day,
the C h a n c e l l o r of the E x c h e q u e r w a s attending,
the p o l i c y which the E E C
currency crisis.
which
in o r d e r to
should adopt in the p r e s e n t
discuss
international
T h e r e w a s to b e a further m e e t i n g on
Sunday
11 M a r c h ,
A t t h e m e e t i n g of the C o u n c i l of M i n i s t e r s ( F o r e i g n A f f a i r s )
5 M a r c h t h e r e had b e e n a g e n e r a l d i s c u s s i o n of t h e s e r i e s
a g r e e m e n t s which it w a s p r o p o s e d that the E E C
should
with countries bordering on the M e d i t e r r a n e a n .
w e r e of s i g n i f i c a n c e for the E E C s
r e v e r s e tariff p r e f e r e n c e s
concerned,
of
conclude
These
agreements
external relations generally.
w e r e required from the
If
countries
this would c a u s e offence to t h e United S t a t e s
and
could a d v e r s e l y affect the p r o s p e c t s for the multilateral
trade
negotiations which w e r e to be begun later in the y e a r .
a g r i c u l t u r a l p r o v i s i o n s of t h e a g r e e m e n t s w o u l d a l s o
i m p l i c a t i o n s for the E E C s
on
relations both with the
The
have
developing
c o u n t r i e s already a s s o c i a t e d with the C o m m u n i t y and with t h o s e
Commonwealth countries which might seek Association.
a p r e m a t u r e d e c i s i o n to give particular aid to the
countries could prejudice the comprehensive
Mediterranean
based
on
which we wished
to
It w a s t h e r e f o r e i m p o r t a n t that t h e s e r i e s
of
c o n c e n t r a t i n g h e l p w h e r e it w a s m o s t n e e d e d ,
s e e the E E C adopt.
Moreover,
Mediterranean agreements
aid policy,
should a c c o r d with the external
policy
which we hoped that the enlarged E E C would develop rather
s i m p l y r e f l e c t the t r a d i t i o n a l r e l a t i o n s h i p s of the f o r m e r
of Six.
T h e F o r e i g n and C o m m o n w e a l t h
p r o p o s e d that the E E C C o m m i s s i o n
Secretary had
than
Community
accordingly
should d r a w up p r o p o s a l s
which
m i g h t f o r m the b a s i s of an a p p r o p r i a t e E E C offer to e a c h of the
Mediterranean
countries.
T h e C o m m i s s i o n w e r e a l s o to p r o d u c e by the m i d d l e of A p r i l
draft mandate which would f o r m the b a s i s for the
negotiating position in the forthcoming multilateral
negotiations.
a
Community^
trade
This document would need to take account
t h e c r i t i c a l i m p o r t a n c e of the U n i t e d S t a t e s i n t h e s e
of
negotiations
and to r e f l e c t r e c e n t e x c h a n g e s b e t w e e n E E C M i n i s t e r s and the
United States Administration,
including the P r i m e
Minister's
d i s c u s s i o n s with P r e s i d e n t N i x o n at the b e g i n n i n g of
T h e t i m e t a b l e p r o p o s e d for a g r e e i n g and announcing
agricultural p r i c e s for 1973-74 w a s relevant to the
counter-inflationary policy.
February,
EEC
Governments
It w a s i n t e n d e d t h a t t h e E E C
should put f o r w a r d p r o p o s a l s for t h e s e p r i c e s on 22 M a r c h j
Commission
that they
should b e c o n s i d e r e d b y the C o u n c i l of M i n i s t e r s (Agriculture)
2 6 - 2 7 M a r c h and on 16-17 A p r i l and that t h e y should b e
o n 18 A p r i l ,
on
announced
I
The Cabinet
-
T o o k n o t e 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 t h e
D u c h y of
Lancaster,
5
-NORTHERN
IRELAND
5.
THE SECRETARY
OF STATE FOR NORTHERN
IRELAND
s a i d t h a t s e v e r a l m e m b e r s of t h e P r o v i s i o n a l I r i s h R e p u b l i c a n
h a d b e e n a r r e s t e d in the c o u r s e of the p a s t w e e k ;
had been recovered.
t h e c o n t i n u i n g l o s s of a r m s h e l d b y m e m b e r s
Regiment,
and s o m e
But there were grounds for concern
by terrorists.
A draft O r d e r in Council a m e n d i n g the
A c t ( N o r t h e r n I r e l a n d ) 1969 and i m p o s i n g m o r e
arms
about
of the U l s t e r
who a p p e a r e d to put up little r e s i s t a n c e w h e n
Army
Defence
confronted
Firearms
stringent
controls
o n t h e p o s s e s s i o n of l i c e n s e d w e a p o n s w o u l d s h o r t l y b e m a d e ;
further efforts w e r e in train to p e r s u a d e r e g i s t e r e d a r m s
and
dealers
t o p l a c e t h e i r s t o c k s of w e a p o n s v o l u n t a r i l y i n t h e h a n d s of t h e
police.
T h e B o r d e r P o l l which w a s taking p l a c e that d a y would
be the o c c a s i o n for s o m e violence;
making a m a x i m u m effort to contain it.
should be available on 9
probably
but the s e c u r i t y f o r c e s
T h e r e s u l t of t h e
were
Poll
March.
T H E P R I M E MINISTER i n f o r m e d the Cabinet that he would
be
opening d i s c u s s i o n s that afternoon with M r C o s g r a v e ,
the
of the F i n e G a e l P a r t y in the I r i s h R e p u b l i c ,
succeeding
Mr Lynch as Prime Minister,
by Mr Corish,
who was
Mr Cosgrave would be
the L e a d e r of the Irish Labour
Party,
Leader
accompanied
who w a s to be
D e p u t y P r i m e M i n i s t e r in the n e w Coalition G o v e r n m e n t ,
in the c o u r s e of t h e s e d i s c u s s i o n s ,
I r i s h q u e s t i o n s of c o m m o n
He
c o n c e r n to the two G o v e r n m e n t s
obtain a r e a c t i o n to the p r o p o s a l s which would shortly be
in our White P a p e r on constitutional r e f o r m in N o r t h e r n
The Cabinet
hoped,
to engage in a general r e v i e w
and the S e c r e t a r y of State for N o r t h e r n
Ireland,
Minister
Ireland.
and to
appearing
-
T o o k note of the s t a t e m e n t s b y the P r i m e
of
INDUSTRIAL
6,
AFFAIRS
the National Joint Industrial Council for the g a s i n d u s t r y on the
THE MINISTER FOR INDUSTRY
previous afternoon,
The Gas
said that,
at the
meeting
which had b e e n c o n v e n e d to d i s c u s s the
b y t h e g a s u n i o n s t o c u t off t o w n g a s s u p p l i e s t o d o m e s t i c
Industry
of
threat
consumers
u n l e s s the B r i t i s h G a s C o r p o r a t i o n (BGC) a g r e e d to start cutting
natural gas supplies to industrial c o n s u m e r s ,
Previous
forward proposals which w e r e intended to r e s o l v e the
Reference:
T h e B G C h a d n o t c h a n g e d t h e t e r m s of t h e o f f e r of i n c r e a s e d
CM(73) 14th
but t h e y had p r o p o s e d that t h e r e s h o u l d b e n o c o m p u l s o r y
Conclusions,
i n t h e g a s i n d u s t r y b e f o r e 1 O c t o b e r 1973. t h a t t h e r e
Minute 1
negotiations about
dispute.
pay;
redundancy
should be
a n e w p a y structure in the industry and that
t h e r e should be i m p r o v e m e n t s in the p e n s i o n s
arrangements,
including a r e v a l u a t i o n of the p e n s i o n s fund and an
of the l e v e l of c o n t r i b u t i o n s .
adjustment
He had b e e n a s s u r e d by the
Chairman
of the B G C that t h e r e w a s nothing in t h e s e p r o p o s a l s w h i c h
was
contrary to the Pay Code or would bring the total cost above
permitted by the pay limit.
The union l e a d e r s t h e m s e l v e s
r e a c t e d favourably to the p r o p o s a l s and n o w p r o p o s e d to
them,
albeit without e n d o r s e m e n t ,
that
had
submit
t o a d e l e g a t e c o n f e r e n c e of t h e
G e n e r a l and Municipal W o r k e r s ' Union (GMWU) on the following
!
a f t e r s e e k i n g t h e s u p p o r t of t h e u n i o n s r e p r e s e n t a t i v e s i n t h e
If t h e d e l e g a t e c o n f e r e n c e
supported the p r o p o s a l s ,
The union l e a d e r s had a g r e e d that they would
i m p l e m e n t a t i o n of the B G C s
and t h e y u n d e r s t o o d
of
that
If t h e o f f e r w a s r e j e c t e d ,
r a p i d e s c a l a t i o n of i n d u s t r i a l a c t i o n c o u l d be e x p e c t e d .
should take E m e r g e n c y P o w e r s
i n a b e y a n c e u n t i l t h e o u t c o m e of t h e u n i o n s
1
a
The
C h a i r m a n of the B G C had a s k e d that h i s e a r l i e r r e q u e s t
offer was
following
offer was conditional upon the
e n d i n g of a l l i n d u s t r i a l a c t i o n .
the Government
regions.
instruct
their m e m b e r s that t h e r e should be no i n c r e a s e in the s c a l e
industrial action in the m e a n t i m e ;
day,
they would be
further c o n s i d e r e d b y the G M W U E x e c u t i v e C o m m i t t e e on the
Monday,
off
the B G C had put
thai
should be
held
c o n s i d e r a t i o n of t h e
known.
British
Railways
THE MINISTER FOR TRANSPORT INDUSTRIES
said that the
Board
taken b y the A s s o c i a t e d S o c i e t y of L o c o m o t i v e E n g i n e e r s
situation on the r a i l w a y s c a u s e d by the industrial action being
Firemen (ASLEF) was now serious.
and
Widespread action,
which
had clearly been deliberately planned and was m o r e extensive
than
Reference:
in the p r e v i o u s y e a r ' s dispute,
day
CM(73)
by d r i v e r s e m p l o y e d in the Southern R e g i o n without any
Previous
14th
h a d b e e n t a k e n on the p r e v i o u s
T h e r e would be insufficient t i m e b e t w e e n the
advance
Conclusions,
notice.
Minute 1
strike by A S L E F on that d a y and the further national strike
be held on the following Sunday to enable the B r i t i s h
national
B o a r d (BRB) m a n a g e m e n t to s e c u r e a r e s u m p t i o n of n o r m a l
throughout the s y s t e m ;
to
Railways
working
and by the following Monday t h e r e would
be
KB a s u b s t a n t i a l a c c u m u l a t i o n of d e l a y e d f r e i g h t t r a f f i c a n d ,
probably,
w i d e s p r e a d d i s o r g a n i s a t i o n of r a i l s e r v i c e s g e n e r a l l y .
Only 50
per
c e n t of t h e n o r m a l a m o u n t of o i l t r a f f i c h a d b e e n c a r r i e d o n t h e
previous day;
and c o a l s t o c k s w o u l d start to a c c u m u l a t e at p i t h e a d s
by the following day.
The difficulties were being exacerbated by a
s h o r t a g e of e m p t y c o a l w a g o n s a n d o f s t e e l w a g o n s .
The
Chairman
of B R B w a s a n x i o u s to a v o i d a n y a c t i o n w h i c h would be l i a b l e
aggravate the situation.
B u t the b e h a v i o u r of A S L E F
to
officials,
who w e r e e n c o u r a g i n g t h e i r m e m b e r s to i n c r e a s e the l e v e l of
n o n - c o - o p e r a t i o n at a t i m e when d i s c u s s i o n s
b e t w e e n the B R B and the unions,
direction.
w e r e taking
w a s working in the
their
place
opposite
The Metropolitan Police were making their
customary
a r r a n g e m e n t s t o f a c i l i t a t e t h e m o v e m e n t a n d p a r k i n g of v e h i c l e s
in
London,
National
T H E S E C R E T A R Y OF S T A T E F O R SOCIAL SERVICES said that the
Health
i m p a c t of the i n d u s t r i a l a c t i o n b y the N a t i o n a l H e a l t h S e r v i c e
Service
a n c i l l a r y w o r k e r s continued to v a r y f r o m p l a c e to p l a c e .
Ancillary
difficulties in h o s p i t a l l a u n d r i e s w e r e being o v e r c o m e b y a v a r i e t y
Workers
of m e a s u r e s ,
Previous
bringing the industrial action to an end and w e r e trying,
Reference:
success,
i n c l u d i n g t h e u s e of d i s p o s a b l e l i n e n ,
(NHS)
The
The
leaders
of the u n i o n s c o n c e r n e d w e r e c l e a r l y s e a r c h i n g f o r s o m e m e a n s
CM(73)
14th
with
to fulfil t h e i r undertaking to k e e p e s s e n t i a l s e r v i c e s
h o s p i t a l s in o p e r a t i o n .
The unions appeared unwilling
Conclusions,
to put t h e i r c a s e to the P a y B o a r d ,
Minute 1
i n b r e a c h o f the-
of
mixed
in
themselves
on the grounds that this would
r e s o l u t i o n s adopted by the Special C o n g r e s s of the
Trades Union C o n g r e s s
(TUC) e a r l i e r that w e e k .
But they
seemed
w i l l i n g t o c o - o p e r a t e If a r e f e r e n c e t o t h e P a y B o a r d w e r e m a d e
the M a n a g e m e n t Side.
In t h e s e c i r c u m s t a n c e s the
about
the situation and to a l l o w the p r e s s u r e s of a d v e r s e publicity
have their effect on the unions.
It h a d p r o v e d p o s s i b l e
to avoid informing the NHS e l e c t r i c i a n s that their pay
would have to c o n f o r m to the pay
The
Coal
THE MINISTER F O R INDUSTRY
so
to
far
settlement
limit.
said that,
although the
National
Coal B o a r d ' s (NCB) negotiators had maintained a firm attitude
the face of p r e s s u r e f r o m the N a t i o n a l Union of M i n e w o r k e r s
Previous
by
Government
would be w i s e to continue to avoid showing undue c o n c e r n
Industry
be
that m i n e r s should b e g r a n t e d an e x t r a w e e k ' s h o l i d a y ,
the
in
(NUM)
Chairman
Reference:
of the N C B had d i s c l o s e d p u b l i c l y that h e w o u l d h a v e b e e n willing
to
CM(73)
m a k e t h i s c o n c e s s i o n if h e h a d b e e n f r e e to do s o .
Even so
NUM
m i g h t not d e c i d e to t a k e i n d u s t r i a l a c t i o n w h e n the
Executive
12th
Conclusions,
Minute
4
C o m m i t t e e n e x t m e t o n 16 M a r c h ,
since they would be
e
the
entitled
to a substantial pay i n c r e a s e within the pay limit and would not
be anxious to j e o p a r d i s e the n e w redundancy
arrangements,,
THE SECRETARY
OF STATE FOR THE ENVIRONMENT
said that
there appeared to be a growing risk that industrial action a m o n g
manual w o r k e r s in the water industry would spread after the
the
next
n e g o t i a t i n g m e e t i n g t o b e h e l d o n 14 M a r c h .
THE L O R D PRIVY S E A L reported on industrial action in the
Service,
His report is recorded
separately.
In d i s c u s s i o n t h e f o l l o w i n g m a i n p o i n t s w e r e m a d e
a.
Civil
­
T h e i n t e n s i f i c a t i o n of i n d u s t r i a l a c t i o n b y
of A S L E F a n d the a t t i t u d e of t h e u n i o n l e a d e r s
members
representing
NHS ancillary w o r k e r s d e m o n s t r a t e d the a d v e r s e effect
the r e s o l u t i o n s adopted at the T U C S p e c i a l C o n g r e s s
have on industrial relations generally.
would
Union l e a d e r s
n o w be bound to find it h a r d e r to r e s i s t p r e s s u r e
militant elements.
was
s o i m p r e c i s e that it w a s p o s s i b l e to c l a i m that u n i o n s
should
Board.
T h e fact that t h e r e w e r e no l o n g e r s t r i k e s at the
M o t o r C o m p a n y ^ w o r k s d e m o n s t r a t e d the w i s d o m of
c o n c e s s i o n s would b e unlikely to influence in any
There was increasing criticism among
Governments
supporters about the apparent
whom
way.
the
unwillingness
o n t h e p a r t of t h e a u t h o r i t i e s t o m a k e u s e of t h e l a r g e
of m e m b e r s of t h e p u b l i c w h o had v o l u n t e e r e d t o h e l p
hospitals.
Ford
adopting
a f i r m attitude i n t h e f a c e of p r e s s u r e b y m i l i t a n t s ,
c.
would
from
T h e w o r d i n g of the r e s o l u t i o n s
r e f u s e t o a v a i l t h e m s e l v e s of t h e s e r v i c e s of t h e P a y
b.
which
It w a s f a r f r o m c l e a r t h a t the a n c i l l a r y
number
in
workers
w e r e e n g a g e d in t a s k s which v o l u n t e e r s would be unable to
perform.
On t h e o t h e r h a n d t h e r e w a s a s e r i o u s r i s k
if v o l u n t e e r s w e r e u s e d ,
the unions would w i t h d r a w
u n d e r t a k i n g t o k e e p a m i n i m u m of e s s e n t i a l s e r v i c e s
operation.
that,
their
in
d.
T h e arbitration award to the N U M had b e e n
confined
to the n a r r o w point that the five r e s t d a y s granted under
the
Wilberforce
holiday.
s e t t l e m e n t did not constitute a third w e e k ' s
It h a d n o t b e e n c o n c e r n e d w i t h t h e s e p a r a t e i s s u e w h a t h e r
m i n e r s w e r e entitled to three w e e k s '
e.
Continued efforts
holiday,
should b e m a d e to e n s u r e that the
publicity for industrial disputes w a s presented by the
without
THE
the
media
bias,
PRIME MINISTER,
s u m m i n g up the d i s c u s s i o n ,
said that the
C a b i n e t a g r e e d t h a t t h e q u e s t i o n of t h e n e e d f o r E m e r g e n c y
Powers
in relation to the dispute in the g a s industry should be held
in
a b e y a n c e until the o u t c o m e of the G M W U d e l e g a t e c o n f e r e n c e
the following day was known.
T h e S e c r e t a r y of State f o r
on
Employment
should s e e k f r o m the G e n e r a l S e c r e t a r y of the T U C c l a r i f i c a t i o n of the
question w h e t h e r the r e s o l u t i o n s p a s s e d by the T U C S p e c i a l
Congress
e a r l i e r that w e e k w e r e intended to preclude any approach by the
u n i o n s to the P a y B o a r d .
for the Civil C o n t i n g e n c i e s
The Lord P r i v y Seal should
arrange
Unit to g i v e further c o n s i d e r a t i o n
the possibility of u s i n g volunteer w o r k e r s to r e p l a c e N H S
workers,
particularly in hospital
The Cabinet
2.
ancillary
laundries.
­
1.
T o o k n o t e , with a p p r o v a l , of the s u m m i n g
of their d i s c u s s i o n by the P r i m e M i n i s t e r .
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
up
Employment
to c o n s u l t t h e G e n e r a l S e c r e t a r y of the T r a d e s
Union
C o n g r e s s a b o u t t h e m e a n i n g of t h e r e s o l u t i o n s
passed
by its Special Congress,
Minister's
3.
a s indicated in the
s u m m i n g up of t h e i r
Prime
discussion.
Invited 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
Civil Contingencies
volunteers in
the
Unit to c o n s i d e r further the u s e
hospitals.
to
of
REORGANISATION
7.
OF
State for T r a d e and I n d u s t r y (CP(73) 22) about the r e o r g a n i s a t i o n
THE
NUCLEAR
DESIGN
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 the S e c r e t a r y of
the nuclear d e s i g n and construction
industry.
AND
CONSTRUCTION
THE SECRETARY
INDUSTRY
t h a t a t t h e i r p r e v i o u s d i s c u s s i o n o n 19 F e b r u a r y t h e C a b i n e t
Previous
b y t h e c r e a t i o n of a n e w c o m p a n y ,
Reference:
C o m p a n y (GEC) would h a v e the leading r o l e ,
CM(73)
the two existing consortia.
OF STATE FOR TRADE AND INDUSTRY
c o n s i d e r e d h i s p r o p o s a l that the industry should be
8th
Conclusions,
Minute
of
3
said
had
reorganised
in which the G e n e r a l
Electric
in r e p l a c e m e n t
T h e m a i n points on which
of
concern
h a d b e e n e x p r e s s e d w e r e t h e e x t e n t of t h e G o v e r n m e n t s
control
over the n e w company,
should
the m a n n e r in which t h i s control
be e x e r c i s e d and the role which the company would play in
r e s e a r c h and d e v e l o p m e n t .
A s r e g a r d s the f i r s t of t h e s e i s s u e s
w a s clearly e s s e n t i a l that the G o v e r n m e n t
of c i v i l n u c l e a r p o l i c y ,
nuclear
should control the
including the c r i t i c a l d e c i s i o n s on
m a t t e r s as the c h o i c e of r e a c t o r s ,
such
the b r o a d l i n e s of r e s e a r c h
d e v e l o p m e n t and t h e r i g h t s to the t e c h n o l o g y of the A t o m i c
Authority (AEA).
The G o v e r n m e n t s
but t h e y should a l s o r e s e r v e
company's policies on purchasing,
however,
control would be
supported by advice f r o m the p r o p o s e d N u c l e a r P o w e r
Board;
Advisory
special rights over the
new
t h e f o r m a t i o n of o v e r s e a s
i s s u e s relating to r e s e a r c h and d e v e l o p m e n t affecting the
links,
AEA,
a l t e r a t i o n i n s h a r e c a p i t a l and (if the c o m p a n y w e r e n o t to b e
s u b s i d i a r y of G E C ) u l t i m a t e c o n t r o l of the
a
management.
A l t e r n a t i v e p r o p o s a l s f o r t h e s t r u c t u r e of the n e w c o m p a n y
set out in C P ( 7 3 ) 2 2 .
and
Energy
GEC must be given clear responsibility,
for m a n a g e m e n t and m a r k e t i n g .
it
strategy
were
T h e r e w a s a choice between giving G E C
a
majority shareholding or a minority shareholding coupled wiih a
management contract.
It w o u l d b e i m p o r t a n t t o s t r i k e t h e
right
balance between protecting the public interest and ensuring
G E C would b e fully c o m m i t t e d to the n e w v e n t u r e .
There
strong a r g u m e n t s for giving G E C a majority holding in the
subject to the proposed
safeguards;
would have a m i n o r i t y stake in the undertaking.
As
to
they
major
in v i e w of the l a c k of c o m m e r c i a l o r i e n t a t i o n w h i c h
structure.
company,
regards
r e s e a r c h and d e v e l o p m e n t the n e w c o m p a n y m u s t play a
terised the existing
were
but it would b e p o s s i b l e
explore with t h e m an alternative a r r a n g e m e n t under which
part,
that
charac­
F o r this p u r p o s e it should b e a
f u n c t i o n of t h e c o m p a n y t o f o r m u l a t e p r o p o s a l s f o r t h e
Government
t o c o n s i d e r o n t h e b a s i s of a d v i c e f r o m t h e N u c l e a r P o w e r
Advisory
Board.
In d i s c u s s i o n t h e C a b i n e t w e r e i n f o r m e d t h a t t h e A E A a c c e p t e d
need for strengthening and r e o r g a n i s i n g the d e s i g n and
industry.
construction
T h e y w e r e m a i n l y c o n c e r n e d that the p o s i t i o n of the
m e m b e r s of t h e t w o e x i s t i n g d e s i g n a n d c o n s t r u c t i o n
the
consortia
should be adequately safeguarded;
and this condition a p p e a r e d to be
s a t i s f i e d by t h e p r o p o s a l s in C P ( 7 3 ) 2 2 .
M a n a g i n g D i r e c t o r of G E C ,
Sir Arnold Weinstock,
had confirmed that G E C w e r e
p r e p a r e d to b e a c c o m m o d a t i n g o n s u c h i s s u e s a s t h e s i z e of
shareholding in the n e w company;
their
that they would concentrate
financial and m a n a g e m e n t r e s o u r c e s on the n u c l e a r d e s i g n
construction industry;
adequate
and
and that they would g i v e it p r e f e r e n c e
their interests in other e n t e r p r i s e s .
the
now
They would also be
over
willing
t o c o l l a b o r a t e f u l l y with the A E A in r e s e a r c h and d e v e l o p m e n t ,
which they t h e m s e l v e s were already devoting
substantial
to
resources.
T h e y r e c o g n i s e d t h a t t h e c h o i c e of n u c l e a r s y s t e m s w o u l d b e a
for final d e c i s i o n by the G o v e r n m e n t ,
Nuclear Power Advisory Board,
that,
Sir Arnold Weinstock had
the
maintained
until the 3 r i t i s h s t e a m generating h e a v y water r e a c t o r
had b e e n p r o v e n in c o m m e r c i a l u s e ,
matter
i n t h e l i g h t of a d v i c e f r o m
(SGHWR)
its export prospects could not
c o m p a r e with t h o s e of the light w a t e r r e a c t o r s d e v e l o p e d in the
United States,
safety.
i n s p i t e of the d o u b t s e n t e r t a i n e d a b o u t t h e
This issue,
however,
had been brought into u s e .
could not be r e s o l v e d until the
SGHWR
Sir Arnold a l s o r e c o g n i s e d that the
b r e e d e r reactor offered the best p r o s p e c t s for the
future;
f
latter s
fast
longer-term
and G E C would p u r s u e the d e v e l o p m e n t of t h i s
system
vigorously.
In f u r t h e r d i s c u s s i o n it w a s
s u g g e s t e d that it m i g h t b e
to e x p l o r e t h e p o s s i b i l i t y of l i m i t i n g t h e G E C
holding,
desirable
stake to a
coupled with a management contract.
minority
The Cabinet
then take a final d e c i s i o n b e t w e e n this and the alternative
involving a G E C majority holding,
could
approach,
when they k n e w in m o r e detail the
t e r m s and c o n d i t i o n s i n v o l v e d o n e a c h of t h e t w o h y p o t h e s e s .
would be important to avoid exposing the G o v e r n m e n t to
It
political
c r i t i c i s m that their p r o p o s a l s would be unduly favourable to G E C ,
even though an a r r a n g e m e n t involving a m a n a g e m e n t contract
could
a l s o b e p o l i t i c a l l y c o n t r o v e r s i a l i n t e r m s of t h e l e v e l of t h e
management
fee.
THE PRIME MINISTER,
s u m m i n g up the d i s c u s s i o n ,
said that
the Cabinet a g r e e d that the S e c r e t a r y of State for T r a d e and
should n o w open negotiations with G E C and the other
Industry
parties
c o n c e r n e d in o r d e r to p r o m o t e a r e o r g a n i s a t i o n of t h e
nuclear
d e s i g n and c o n s t r u c t i o n i n d u s t r y on the b a s i s of a p r i v a t e
sector
company led by G E C .
an
These negotiations
should include
e x p l o r a t i o n of t h e p o s s i b i l i t y of l i m i t i n g t h e G E C s t a k e t o a
holding,
a s s u g g e s t e d in p a r a g r a p h 5 of C P ( 7 3 ) 15.
The
minority
Cabinet
w o u l d t a k e a f i n a l d e c i s i o n on t h e s t r u c t u r e of the c o m p a n y i n the
l i g h t of t h e o u t c o m e of t h e e x c h a n g e s w i t h G E C
t
t The Cabinet
1.
­
Took note,
with approval,
of t h e s u m m i n g
of their d i s c u s s i o n by the P r i m e
2*
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 for T r a d e
Industry,
up
Minister,
i n c o n s u l t a t i o n w i t h t h e S e c r e t a r y of
and
State
f o r D e f e n c e a n d the C h a n c e l l o r of the D u c h y of
Lancaster,
to initiate negotiations on the
i n d i c a t e d in the P r i m e M i n i s t e r ' s
lines
summing
up
of their d i s c u s s i o n and to report the o u t c o m e
the Cabinet a s soon as
to
possible.
REMUNERATION
8,
OF
State for the H o m e D e p a r t m e n t (CP(73) 29) about the
SCOTTISH
of m e m b e r s
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 the S e c r e t a r y of
remuneration
of r e g i o n a l c o u n c i l s i n S c o t l a n d .
COUNCILLORS
THE HOME SECRETARY
said that the M i n i s t e r i a l C o m m i t t e e
on
R e g i o n a l P o l i c y a n d t h e E n v i r o n m e n t h a d c o n s i d e r e d o n 21 F e b r u a r y
a p r o p o s a l that r e g i o n a l councillors in Scotland should be
by way of a s a l a r y rather than attendance a l l o w a n c e s .
C o m m i s s i o n on L o c a l G o v e r n m e n t in Scotland had
r e c o m m e n d e d that s a l a r i e s
should be paid to all
unanimously
a s t r o n g d e g r e e of s u p p o r t f o r t h i s v i e w f r o m S c o t t i s h
i n c l u d i n g s o m e of the G o v e r n m e n t s
and it s e e m e d l i k e l y that,
1
o r i n t 'e H o u s e of L o r d s ,
Royal
councillors.
P r o c e e d i n g s on the Local Government (Scotland) Bill had
of P a r l i a m e n t ,
remunerated
The
shown
Members
supporters;
either in the Scottish Standing
a m e n d m e n t s to provide
Committee
s a l a r i e s at l e a s t
for regional councillors would be carried against the
Government.
On the o t h e r hand w h e n l o c a l g o v e r n m e n t in E n g l a n d and W a l e s
reorganised,
the G o v e r n m e n t had maintained that,
was
in principle,
s e r v i c e on a local authority should be voluntary and not
salaried;
a n d s e v e r a l m e m b e r s of t h e C o m m i t t e e h a d f e l t s t r o n g l y that t o
c o n c e d e t h e p r i n c i p l e of s a l a r i e d s e r v i c e e v e n f o r r e g i o n a l
would e s t a b l i s h an unfortunate p r e c e d e n t ,
councillors
which would lead by
degrees
to a f u n d a m e n t a l c h a n g e in the c h a r a c t e r of l o c a l g o v e r n m e n t .
opinion in the C o m m i t t e e had been divided;
p o l i t i c a l i m p o r t a n c e of the q u e s t i o n at i s s u e ,
to r e f e r it to the
THE SECRETARY
But
and in v i e w of t h e
it h a d b e e n
necessary
Cabinet.
OF STATE FOR SCOTLAND
said that,
although
at the t i m e when the p o l i c y for England and W a l e s w a s under
review
little support had b e e n e v i n c e d in Scotland for the c o n c e p t that
government
service
should be salaried,
there would now be
local
sustained
p r e s s u r e f r o m S c o t t i s h M e m b e r s of a l l P a r t i e s i n i t s f a v o u r .
To
r e s i s t it would stimulate nationalist sentiment and forfeit m u c h
of
the goodwill which the G o v e r n m e n t had so far acquired by the
in which they had dealt with the L o c a l G o v e r n m e n t (Scotland)
manner
Bill.
The Royal C o m m i s s i o n had been partly influenced in their
r e c o m m e n d a t i o n b y t h e s i z e of t h e S c o t t i s h r e g i o n s and t h e
consequent d e m a n d s which would be m a d e on regional
councillors;
and t h e r e w e r e good g r o u n d s for distinguishing t h e m in t h i s
respect
f r o m d i s t r i c t c o u n c i l l o r s o r m e m b e r s of the n e w E n g l i s h and
authorities.
Moreover,
Welsh
the proposed change need not cost m o r e
a s y s t e m of a t t e n d a n c e a l l o w a n c e s ,
s i n c e it w o u l d b e r e a l i s t i c to
t h e l e v e l of s a l a r i e s b y r e f e r e n c e t o t h e c o s t of a t t e n d a n c e
f o r a n o r m a l n u m b e r of m e e t i n g s .
There was already a
than
fix
allowances
tendency
a m o n g m e m b e r s of l o c a l a u t h o r i t i e s in S c o t l a n d to p r o l i f e r a t e
meetings
in o r d e r to qualify for h i g h e r a l l o w a n c e s ;
salaries
should t h e r e f o r e e n c o u r a g e efficiency and,
a n d t h e p a y m e n t of
possibly,
even save
money
In d i s c u s s i o n t h e r e w a s a w i d e m e a s u r e of s u p p o r t f o r t h e v i e w t h a t
the p r o p o s a l to pay s a l a r i e s to c o u n c i l l o r s would set an
undesirable
precedent in a field which had traditionally been regarded
appropriate for voluntary s e r v i c e .
E v e n the
as
differentiation
b e t w e e n regional and district councillors in Scotland might,
time,
p r o v e difficult to sustain;
and outside Scotland
w o u l d d e v e l o p f o r s a l a r i e s t o b e p a i d i n r e s p e c t of s e r v i c e
only on l o c a l authorities but on the m a g i s t r a c y ,
and other public bodies a s well.
^
jh
health
be
and it would be
u n c h a r a c t e r i s t i c of a C o n s e r v a t i v e A d m i n i s t r a t i o n t o
promote
s u c h a w h o l e s a l e e r o s i o n of the p r i n c i p l e of v o l u n t a r y
the
not
authorities
Such a change might well
u n w e l c o m e to the g e n e r a l b o d y of r a t e p a y e r s ;
Moreover,
over
pressure
service.
Royal C o m m i s s i o n had a d d r e s s e d t h e m s e l v e s
t o the situation in S c o t l a n d ;
but it w a s doubtful w h e t h e r the
only
demands
on regional councillors would be significantly h e a v i e r than,
for
example,
or
t h o s e on m e m b e r s of t h e G r e a t e r London C o u n c i l
the n e w metropolitan boroughs.
in Scotland,
T h e p r e s e n t s y s t e m of
which was based on c l a i m s for individual
might be widely abused;
allowances
expenses,
but attendance a l l o w a n c e s on the
pattern
n o w p r o p o s e d w o u l d e n a b l e m e m b e r s of l o c a l a u t h o r i t i e s to
r e a s o n a b l e r e c o m p e n s e for the duties which t h e y actually
receive
discharged,
w h e r e a s a salary would provide no incentive to efficiency and
b e o p e n to a b u s e of a r a t h e r d i f f e r e n t k i n d .
At present
m e m b e r s of l o c a l a u t h o r i t i e s did not c l a i m a l l o w a n c e s ;
many
and
s a l a r i e d s e r v i c e at a c o m p a r a b l e r a t e w o u l d be b o u n d to b e
expensive.
a year;
in
t h e t o t a l c o s t m i g h t b e o f t h e o r d e r o f £7.0 m i l l i o n
and its introduction in p r e s e n t c i r c u m s t a n c e s might give
t o c r i t i c i s m i n t h e c o n t e x t of the G o v e r n m e n t s
policies.
more
If t h e p r a c t i c e w e r e to e x t e n d t o l o c a l a u t h o r i t i e s
England and Wales,
would
rise
counter-inflationary
a
THE PRIME MINISTER,
Cabinet,
summing up the discussion,
said that the
while r e c o g n i s i n g the difficulties which the S e c r e t a r y
State for Scotland faced in P a r l i a m e n t ,
considered that the
to pay s a l a r i e s to c o u n c i l l o r s in Scotland w a s u n d e s i r a b l e
p r i n c i p l e and would c r e a t e an unfortunate p r e c e d e n t for
parts of the United K i n g d o m ,
accept the a r g u m e n t that,
:
In the light of the C a b i n e t s
t h e S e c r e t a r y of S t a t e s h o u l d n o w c o n s u l t t h e L o r d
m e a n s of d e a l i n g with the q u e s t i o n in
in
the
Members
decision,
President,
the L o r d P r i v y Seal and the Chief Whip about the m o s t
The Cabinet
not
if S c o t t i s h M e m b e r s w e r e to v o t e
G o v e r n m e n t to r e l y on t h e v o t e s of E n g l i s h and W e l s h
to r e s t o r e the position.
proposal
in
other
F o r this reason they could
f a v o u r of s u c h a p r o p o s a l it w o u l d b e i n a p p r o p r i a t e for
appropriate
Parliament.
-
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 S c o t l a n d ,
in
c o n s u l t a t i o n with the L o r d P r e s i d e n t of the
Council^
the L o r d P r i v y S e a l and the P a r l i a m e n t a r y
Secretary,
Treasury,
to e n s u r e that the L o c a l
Government
(Scotland) B i l l w a s not a m e n d e d to p r o v i d e f o r
p a y m e n t of s a l a r i e s to
councillors.
15 of
the
9.
THE SECRETARY
OF S T A T E F O R S C O T L A N D said that
those within the Scottish T r a d e s Union C o n g r e s s who
sympathised
with the Clydebank l o c a l authority had m a d e it c l e a r that they
were
u n w i l l i n g to p a y a n y f u r t h e r f i n e i m p o s e d b y t h e C o u r t of S e s s i o n
l
a r e s u l t of C l y d e b a n k s f a i l u r e t o c o m p l y w i t h t h e i n t e r i m O r d e r
specific p e r f o r m a n c e m a d e by the Court;
and in these
circumstances
the Clydebank authority w e r e no longer refusing to i m p l e m e n t
Housing Finance Act.
T h r e e of t h e f o u r m i n o r l o c a l
still in default had a l s o capitulated;
Took note,
and the revolt by Scottish
with approval,
S e c r e t a r y of State for
Cabinet
8 March,
Office
1973
of the s t a t e m e n t by the
Scotland.
the
authorities
authorities against the Act w a s n o w v i r t u a l l y at an end.
The Cabinet
as
for
local
THIS DOCUMENT IS
THE PROPERTY OF HER
BRITANNIC MAJESTVS
GOVERNMENT
The circulation of this paper has been strictly limited.
,
It is issued for the personal use " S A . ^ v w ^ f o J L TMkAd ^ T i ^ M l ^ ^
^
f
T O P SECRET
Copy No
L.
CABINET
CONFIDENTIAL
ANNEX
C M ( 7 3 ) 15th C o n c l u s i o n s ,
Minute
T h u r s d a y 8 M a r c h 1973 at 11.00
6
am
INDUSTRIAL
T H E L O R D P R I V Y S E A L said that the Civil and P u b l i c
Services
AFFAIRS
A s s o c i a t i o n ( C P S A ) had i n s t r u c t e d 25 c l e r i c a l staff and
machine
operators^
who w e r e e m p l o y e d in operating the c o m p u t e r
Civil
in the preparations to introduce Value Added T a x (VAT),
Service
f r o m m i d n i g h t o n t h e p r e v i o u s n i g h t u n t i l 16 M a r c h ,
engaged
to
during
time they would apparently receive strike pay f r o m the
strike
which
Association.
T h i s a c t i o n w o u l d p r e v e n t t h e o p e r a t i o n of the c o m p u t e r ;
but,
Previous
although it would initially disrupt the a d m i n i s t r a t i o n of V A T ,
Reference:
would not prevent the
C M ( 7 3 ) 11th
International C o m p u t e r s L i m i t e d w e r e unwilling to
Conclusions,
the w o r k i n v i e w of t h e r i s k that t h e i r staff w o u l d b e c o m e
Minute 1
in the dispute;
volunteers f r o m among the C u s t o m s and E x c i s e
The CPSA had threatened,
and E x c i s e
undertake
involved
but it w o u l d p r o b a b l y b e p o s s i b l e to r e c r u i t
provocative and,
it
i n t r o d u c t i o n of t h e t a x o n 1 A p r i l .
however,
if it w e r e t a k e n ,
to regard
staff to undertake
such action
t o w i t h d r a w 1, 0 0 0 o t h e r
staff for an extended p e r i o d .
non-union
Customs
The C o m m i s s i o n e r s
of
C u s t o m s and E x c i s e p r o p o s e d to adopt a r o b u s t attitude t o w a r d s
s t r i k e r s but would take n o action until the Civil S e r v i c e
T h e r e w e r e reports that other
the
Department
h a d c a r r i e d out an u r g e n t r e v i e w of t h e situation t h r o u g h o u t
Service,
it.
as
strikes by CPSA
the
members
w o u l d t a k e p l a c e during the following w e e k at a n u m b e r of l o c a t i o n s ,
l
i n c l u d i n g t h e St S t e p h e n s P r e s s ,
s o m e o f f i c e s of the D e p a r t m e n t
H e a l t h a n d S o c i a l S e c u r i t y and the D e p a r t m e n t of t h e
Environment
and at p r e m i s e s o c c u p i e d b y c o m p u t e r s u s e d b y the D e p a r t m e n t
N a t i o n a l S a v i n g s and the M i n i s t r y of D e f e n c e .
He hoped v e r y
to be in a position to consult the M i n i s t e r s m o s t c l o s e l y
about the action which would need to be taken.
The Cabinet
CPSA.
-
T o o k note of the s t a t e m e n t by the Lord P r i v y
Cabinet
Office
9 March
1973
of
shortly
concerned
The attitude in
unions a p p e a r e d to be l e s s militant than that in the
of
Seal.
other