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Commons Chamber

Volume 897: debated on Tuesday 5 August 1975

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House Of Commons

Tuesday 5th August 1975

The House met at half-past Two o'clock

Prayers

[Mr. Speaker in the Chair]

Oral Answers To Questions

Social Services

Speech Therapy Services

1.

asked the Secretary of State for Social Services what progress she is making in implementing the Quirk Report recommendations on speech therapists; and if she will make a statement.

The speech therapy services were integrated under the National Health Service on 1st April 1974. My Department has recently appointed a member of the profession as Adviser in Speech Therapy, whose advice will also be available to the Department of Education and Science and the Welsh Office. Implementation of the remaining recommendations depends on further discussion with the College of Speech Therapists and on the resources that health authorities can make available for this service. The House will recall the very substantial improvement in the pay of speech therapists, recommended by Lord Halsbury and implemented by the Government early this year.

Is my right hon. Friend aware that in Salford there is only one speech therapist although there should be 11 and although the need for therapists has been stressed by the teachers? Is my right hon. Friend further aware that the shortage is not due to money but is because many areas cannot get therapists as there are not sufficient training places for them?

I am aware that there is an acute shortage of speech therapists in certain areas. I am sorry to hear that my hon. Friend's constituency is one of those areas. As I think he knows, the Government have accepted the target in the Quirk Report for building up to a total of 2,500 whole-time speech therapists but, as he says, the problem in the interim is partly of training and not merely of money. We are in consultation with the Department of Education and Science on ways of increasing the number of speech therapists. I am glad to say that a number of degree courses are now being introduced in addition to the diploma courses.

The right hon. Lady has explained what is happening to speech therapists, and it is true that Lord Halsbury has done them proud, but is she aware that nurses in schools without health visitor certificates and nurses in tuberculosis clinics are not getting the money which they need and which would put them on the same footing as nurses with health visitor certificates for exactly the same work? Does the right hon. Lady realise that she or one of her Ministers promised the House that this matter would be considered? What is happening now?

I am sure the hon. Gentle-is aware that that is an entirely different question which does not arise from the Question on speech therapists. The matter to which the hon. Gentleman has referred is being discussed in the Whitley Council.

Hospital Services (Leicester)

2.

asked the Secretary of State for Social Services what progress is being made on the provision of hospital services in the Leicester area; and if she will make a statement.

Three major developments are in progress: an expansion of the Leicester General Hospital, including 124 acute beds and supporting services, which is expected to be completed by the end of this year; phase II of the Leicester Royal Infirmary, containing 415 acute beds and supporting services, which is scheduled for completion in 1977; and a 168-bed geriatric unit and day hospital on the Glenfrith site, expected to be finished by the end of 1976. The provision both of new maternity facilities at the Leicester General Hospital and of residential accommodation at the Leicester Royal Infirmary has received approval to start in the current year, subject to receipt of suitable tenders.

I am grateful to the hon. Gentleman for that information, but will he bear in mind that it is vitally important that Leicester's teaching hospital be not lost sight of and that rapid progress be made towards getting the necessary output of qualified doctors by the given date?

The expansion of the medical student intake is one of the highest priorities, despite the fact that we are having to limit capital expenditure on hospital buildings. That is one of the reasons for the large number of projects being built in the Leicester area.

Is my hon. Friend aware that Leicester has increasing health problems and one of the lowest ratios of hospital beds to population in the country? In the circumstances, will be give Leicester people the assurance that the plans for improving the health services in Leicester will be continued in spite of any cuts that may have to be made?

It is an acknowledged fact that there is a level of health deprivation in Leicester and throughout the region. We are trying to concentrate our resources on the basis of putting them into areas of health deprivation and of seeking to find better indices of such deprivation. I cannot give the assurance that my hon. and learned Friend wants other than to say that we recognise Leicester has a high priority.

As these local facilities are within the context of the national health resources, will the Secretary of State announce exactly what cuts she is envisaging nationally, and particularly the implications they will have for medical health staffing?

We are not yet in a position to give regional health authorities capital allocations for future years, although in her answer to the hon. Member for Cornwall, North (Mr. Pardoe) on 29th April my right hon. Friend indicated that the effect of the Budget on the Department's regional allocations for hospital and community health services in 1976–77 would be a 25 per cent. reduction on the allocations for the current year.

Destitute Young Persons

3.

asked the Secretary of State for Social Services what has been the total cost during the latest year for which records are available of caring for destitute young people aged between 16 and 18 years.

This information is not available in the terms requested, but during 1974 the total amount of supplementary allowances paid to young people aged between 16 and 18, including those living as part of a family, is estimated to be £11½ million.

Is my hon. Friend aware that although the problem of destitute and homeless young people is acute and terrible in London and was well highlighted in the television programme "Johnny Go Home", the problem also exists in many other parts of the country, particularly in the great cities en route from Scotland to London, including Leicester? Will he give an idea whether there will be any increase in Government help to public and voluntary bodies which are trying to cope with this desperate human problem?

Yes, Sir. My right hon. Friend the Secretary of State for the Environment is now seeking to encourage local authorities and housing associations to provide more single-person accommodation, although there are constraints in terms of resources in regard to competition with more accommodation for homeless families. Furthermore, the Housing Act 1974 makes local authorities and housing associations eligible for the first time for grants and subsidies available for other types of accommodation if they provide single-person accommodation. We hope that they will take full advantage of that facility.

What steps does the Minister intend to take to make hostel accommodation available in city centres rather than the long-term, purpose-built, single-person housing to which he has referred? Does he not agree that this is what is needed?

I was not referring only to purpose-built long-term accommodation, because short-term accommodation with a high rate of turnover could also be involved. If the hon. Lady is thinking of the inner cities, and particularly of London, which has the major problem, the Greater London Council and the London Boroughs Association have had a working party sitting for some time seeking to provide means of giving a higher priority of provision to single-person accommodation. I am hopeful that they will have some answer soon.

Will my hon. Friend see to it that there is more effective coordination involving the Home Office, the police, his own Department, local authorities and people purporting to provide accommodation for homeless young people, of which we have had some horrifying examples lately? Does he not agree that we should take a serious view of the situation?

I agree that there needs to be closer co-ordination, and the Home Office is already undertaking any internal inquiry about why information concerning the Gleaves hostel empire was not distributed among Government Departments. We are always mindful of closer co-operation, particularly with local authorities which have to provide accommodation. This is why we have written to the chief executives of Camden and Westminster to try to encourage them to provide better answers to the question of identifying homeless young persons at risk and to refer them to suitable accommodation.

Will the Minister confirm that public money was made available to Gleaves in respect of hostels run by that concern? Will he also say what checks took place before the money was paid out?

It is not true that money was paid direct to Gleaves. Gleaves did not receive block payments from the Supplementary Benefits Commission on the presentation of a list. Under Section 17 of the Supplementary Benefits Act the commission can award payments to a third party, for example to a hostel warden in respect of board and lodging vouchers, but each voucher is issued to one individual only for one week at a time and only after that individual has been interviewed by a Supplementary Benefits Commission officer. There is no truth in the statement that block payments have been made to Gleaves.

Supplementary Benefits

4.

asked the Secretary of State for Social Services if she has received any representations from the CBI on the payment of supplementary benefits.

The Minister of State, Department of Health and Social Security
(Mr. Brian O'Malley)

No, Sir.

In regard to the payment of social security benefit to strikers, does not the Minister accept that the significant share of responsibility for the welfare of families of people who may strike against the Government's pay policy this winter should fall upon the trade unions? Has any consideration been given to assisting those families by way of loans from the social security system, to be repayable on return to work? Will the right hon. Gentleman confirm that we are the only civilised country that acts in such a benevolent way to strikers and their families?

I thought that the hon. Gentleman was against extreme views, even of those attributed to so notable a person as the President of the CBI. I am sorry that he has not behaved in such a manner this afternoon. May I point out to him that when the right hon. Member for Leeds, North-East (Sir K. Joseph) was responsible for these matters in a Conservative Government he conducted a major inquiry into the subject and created the present state of the law in respect of strikers. The present Government are not prepared to make mothers and children pawns on the board of industrial conflict.

Disabled Housewives

5.

asked the Secretary of State for Social Services what further recent representation she has received about introducing a pension for disabled housewives ahead of 1977.

A substantial number of representations have been received recently including, in particular, representations initiated by the National Federation of Women's Institutes. The replies have pointed out that the introduction of the housewives' non-contributory invalidity pension has to be phased in as part of our heavy overall programme of benefit improvements.

Will the Minister say what he means by "has to be phased in"? If some people can receive pension from 1st January 1976, why cannot all invalid housewives who can neither work nor undertake housework in their own homes receive similar pensions? Will he give a more satisfactory answer?

No, Sir. Housewives are being phased into non-contributory invalidity pension after men and single women breadwiners. The criterion is incapacity for work. In the case of housewives there is an additional criterion of incapacity for housework. I assure the hon. Gentleman that the making of dividing lines as to who is or is not incapable of undertaking housework is a difficult test to devise in a way which can be seen to be both efficient and fair.

Supplementary Benefit (Long-Term Additions)

6.

asked the Secretary of State for Social Services whether she will now lower from two years to 12 months the qualifying period for the long-term addition to supplementary benefit.

Is my right hon. Friend aware that many people who are dependent on supplementary benefit, particularly one-parent families, are becoming increasingly desperate and disillusioned concerning their ability to cope in the present economic crisis? Does he agree that the Government should take action at least on the short-term measures suggested by the Finer Report? If the Government continue not to accept the guaranteed maintenance allowance, when will they come up with measures involving a non-means-tested benefit for all one-parent families?

I wish that my hon. Friend would occasionally draw attention to how much money in additional resources has been spent by the present Government in the whole area of social security. The record of the Labour Government bears comparison with any previous Government in this country throughout the whole post-war period. There is no dispute between my hon. Friend and the Government about wanting to improve the lot of deprived families, whether one-parent families or any other group of families or individuals in the community. We shall achieve this as quickly as available resources permit us to do so.

Does the Minister agree that he has not answered the question? Does he agree that it is now 13 months since Finer reported? The Government have not yet provided time for a proper debate on that report. Does he not agree that this is a scandalous situation and shows a distorted sense of Government priorities?

If there is one thing which is scandalous in the history of the treatment of one-parent families—and, indeed, of all families with children—it is the failure of the previous administration to increase family allowances ever since 1956. As for what has been implemented arising out of the Finer recommendations, I refer the hon. Gentleman to Questions already answered in this House.

National Insurance Contributions (Calculation)

7.

asked the Secretary of State for Social Services what level of unemployment will be assumed by her Department for 1975–76 for the purpose of fixing the level of national insurance contributions.

I must ask the hon. Member to await the Government Actuary's Report which we shall be laying before the House in due course, together with a draft order fixing contributions for 1976–77.

I can hardly say that I am grateful to the right hon. Gentleman for that reply. Is he aware that with high rising unemployment, special measures are needed to bring relief and hope to those who will be affected in increasing numbers during the coming winter? Can he give an assurance that his Department will take the initiative to bring together the combined resources of the Government, local authorities and voluntary bodies to try to assist the large number of people who will find themselves out of work during the coming winter?

Dealing with the second part of the hon. Gentleman's question, I can give him the assurance that this Government, through my Department, are doing everything possible on the lines described by him to assist individuals who have difficulties. As for his reference to special measures, he will be aware that there is another substantial uprating for November of this year which will help not only retirement pensioners but all other recipients of both long-term and short-term benefits.

Is my right hon. Friend aware that the line which has been suggested by the hon. Member for Somerset, North (Mr. Dean) is fraught with a little danger in that although most right hon. and hon. Members will applaud the efforts of local communities, authorities and others and Government Departments combining to reduce the level of unemployment in areas where the dole queue may be as large as 20 per cent. of the working population, there is a fellow known as the district auditor who may call upon a local authority and say that it has reduced unemployment levels too greatly and that it will be surcharged to the tune of £30,000, as happened in the recent case of the 11 councillors at Clay Cross?

My hon. Friend will get me into trouble. He knows a great deal more than I do about these matters. I think that his question would be more appropriately addressed to my right hon. Friend the Secretary of State for the Environment.

Pharmaceutical Journals

8.

asked the Secretary of State for Social Services what requests she has received from the pharmaceutical journals for clarification of her policy towards them: and if she will make a statement.

I have received a number of representations about the possible effects of our proposals to reduce pharmaceutical promotion. I do not wish to see the position of journals of reference value prejudiced.

I thank the hon. Gentleman for that helpful reply. He will agree, I am sure, that there should be the widest possible dissemination of information on new drugs. He will be aware that accidents have occurred because of misunderstandings over the use of new drugs. In my constituency the pharmaceutical industry is a very big and very good employer. It provides excellent working conditions. Can the hon. Gentleman assure the House that he will not impede the fine progress which this industry is making?

Yes. I think that the pharmaceutical industry makes a valuable contribution to the country's export drive, and we shall do everything possible to help it. However, it spends a high percentage—something like 14 per cent.—of the product of its home sales on promotion. Although there is a need for information about new drugs, I think that there can be too much promotional activity.

Does my hon. Friend also accept that although it is necessary to protect the future of pharmaceutical journals, some of the protection might be afforded by redirecting resources from the industry, which spends too much money on representatives, creating a ratio between representatives and doctors of about one to eight?

The whole question of medical representatives needs looking into. Doctors are scientifically trained, and obviously they need objective information. But whether they need such a large amount of spending on medical representation is open to doubt. I feel that too much is being spent.

Does the Minister agree that it would be all to the good if his proposal led to the pharmaceutical industry spending its promotional money strictly on the provision of information—reducing the money spent on favours and general promotional activity concentrated on general practitioners which have commanded so large a part of it hitherto?

Yes. I have made it clear that gifts and lavish amounts of samples are a charge which should not be made on the National Health Service. At the moment they are claimable on the VPRS system. I think that there is a widespread feeling that this is an area for sensible expenditure cuts which might then be devoted to the National Health Service. I look forward to the support of right hon. and hon. Gentlemen opposite.

Preventive Medicine

9.

asked the Secretary of State for Social Services if she will institute a high-level inquiry into the possibility of extending the scope of preventive medicine.

I have already announced in my reply to my hon. Friend the Member for Eccles (Mr. Carter-Jones) on 30th June—[Vol. 894, c. 277–8.]—the Government's intention to issue a consultative document on preventive medicine either at the end of this year or the beginning of next year. The Government consider that this is the best way to advance this very important subject.

Would it not be helpful to gather people together to discuss this? It seems to me that we have in the past paid too little attention to the old adage about prevention being better than cure.

I agree that we pay too much lip service to preventive medicine. This will be the first document put forward. It will be for consultation. When it is published, the idea of bringing together people to discuss it is one which I shall want to consider.

Is my hon. Friend aware that I support the request of the hon. Member for Plymouth, Drake (Miss Fookes) for an inquiry? In view of the fact that so little is spent on preventing illness and so much on curing it, this is vitally necessary. If my hon. Friend agrees to an inquiry, will he include in its terms of reference the effects of such things as pollution, food additives and various other causes of so much illness?

Many of the facts are well known, and if there is any responsibility for the lack of action on preventive medicine it probably lies in this House. There has been a marked reluctance on the part of successive Governments to tackle the problem. We shall bring forward evidence of many aspects, and I hope that it will be possible to debate it. However, that will be a matter for my right hon. Friend.

Is the hon. Gentleman aware that there are scores of known causes of mental handicap but that very few ways are known of preventing those causes? Will his consultative document deal fully with the prevention of mental handicap?

I am sure that it will cover screening. It is a very complex subject, and the document could be very large. It will tend to concentrate on the main areas and perhaps later go into detail on the area in which the right hon. and learned Gentleman is interested. This is an important area, and there have been some recent advances. But progress is slow, although I am hopeful for the future.

On the subject of preventive medicine, is my hon. Friend aware that the early introduction of good rehabilitative services can be of assistance in prevention?

This is an important aspect. Much of it is related to our concept of community care and involves close association between health services and local authorities. My right hon. Friend and I have made it clear repeatedly that it is impossible to look at the nation's health without looking at the National Health Service and the personal social services together.

Self-Employed Persons (Benefits)

11.

asked the Secretary of State for Social Services if she has reached a decision on earnings-related benefits for the self-employed.

I would refer the hon. Member to my reply to the hon. Member for Braintree (Mr. Newton) on 8th July.—[Vol. 895. c. 103.]

Can the right hon. Lady give us any idea how long her studies will take and some estimate of how many self-employed people will still be left in business at that time to receive these benefits when they eventually come?

The hon. Gentleman's last quip rather militated against the seriousness of his question. We are taking extremely seriously this examination of the possibilities of extending earnings-related benefits to the self-employed. This is a difficult problem. Its solution has defeated the efforts of all previous Governments. I cannot say whether we shall be successful. I am afraid that I cannot give a date for when I shall be ready to put my conclusions to the House. But I am taking the matter very seriously and I am anxious to find a solution.

On extending benefits generally to the self-employed, has any thought been given to the possibility of renegotiating the reciprocal agreements between this country and a number of European countries, for example, so that in the future the self-employed may obtain sickness and accident benefits in respect of illness or injury occurring in those countries?

One of the difficulties that we have faced is that membership of the Community does not automatically bestow these reciprocal benefits on the self-employed, because we have better facilities for the self-employed through our public services. But I was happy to go to the Federal Republic of Germany to sign a reciprocal health agreement which extended to the self-employed from this country benefits equivalent to those that the self-employed from that country obtain here from our health service. We continue to press ahead with these agreements.

Speech Therapy (Cost)

12.

asked the Secretary of State for Social Services what is the present cost of providing speech therapy in the National Health Service.

The cost of providing speech therapy services is not available centrally, but the cost of employing speech therapists in the National Health Service in England is estimated to be about £3·3 million a year.

In addition to the question of costs, can the Minister say what is being done to encourage the area health authorities to appoint chief speech therapists and thereby establish a proper career structure, and what is being done to promote the speech therapy tapes for rehabilitation?

I take the view that what share of total resources can or should be devoted to speech therapy, as in many other areas, must be the responsibility of the health authorities to determine in the light of the resource restraints under which they are operating. We have made it clear that we attach importance to speech therapy but that it is one of the many priorities which are pressing for extra resources.

Disabled Persons (Welfare Services)

13.

asked the Secretary of State for Social Services if she will make a statement regarding the implementation of Section 2 of the Chronically Sick and Disabled Persons Act 1970 by local authorities.

49.

asked the Secretary of State for Social Services what is the most recent information she has on the extent to which local authorities are implementing their duties under Section 2 of the Chronically Sick and Disabled Persons Act 1970.

54.

asked the Secretary of State for Social Services if she will issue a further circular to local authorities regarding their legal duties under Section 2 of the Chronically Sick and Disabled Persons Act 1970.

The statistics showing help provided by local authorities under Section 2 are placed in the Library of the House each year as soon as available. Local government reorganisation makes comparisons difficult but the returns so far received in respect of 1974–75 suggest that the number of households assisted last year showed an increase over the 1973–74 figure.

I am satisfied that local authorities are aware of the mandatory nature of Section 2. Once they accept that need exists in respect of one of the services listed in the section, it is incumbent on them to make arrangements to meet that need. While it may be difficult sometimes in present circumstances to balance the discharge of the duty with due exercise of financial restraint, I believe that on the whole the right balance is being maintained. I see no need for a further circular. My hon. Friend the Under-Secretary with responsibility for the disabled has, however, said publicly that he will take up any individual case which suggests that a particular authority is misinterpreting the section.

I thank my right hon. Friend for that encouraging reply. Will she thank her hon. Friend with responsibility for the disabled for the reply on Section 2 that he gave to the National Deaf Children's Society and Action Research for the Crippled Child? Could that reply be widely circulated among local authorities so that they know the mandatory nature of Section 2? Is she aware that those of us who served in Committee on the Act did not realise how cunning we had been? Will she please review Circular 12/70, particularly the paragraph which discourages people from taking action under Section 2? Will she make sure that this review is made known to the public at large and to the disabled in particular?

On the first point, I shall certainly convey what my hon. Friend has said to the Minister with responsibility for the disabled, who, I am sure, will carefully consider the suggestion. On the second point, I do not think that there is any need for me to add to what I have said, which is sufficient clarification in itself.

Will the right hon. Lady look carefully into the situation in which one area health authority discharges patients who are mentally handicapped or disabled back into the area of another health authority because the one area does not have the facilities and hopes that the other does? I know of a case where that has happened and it is not satisfactory. Will the Secretary of State look into these particular cases?

I should certainly be willing to look into any case that the hon. Gentleman or any other hon. Member cared to bring to my attention.

Does my right hon. Friend agree that there is a feeling abroad, particularly among people serving in local authorities, that this legislation is optional? Would it not be useful if local authority members and officials were advised that this is the law of the land and that the Act must be administered in full? How will it be possible for local authorities to administer the Act successfully in view of the anti-inflation legislation?

I do not quite see the relevance of the last part of the question, but on the first part I repeat that, once a local authority accepts that need exists in respect of one of the services listed in Section 2, it is incumbent on it, I am advised, to make arrangements to meet that need. Of course, "need" is an imprecise concept and local authorities have discretion in determining that need. Parliament did not attempt to define that precisely, so that there is and must be an area of discretion of which local authorities will take advantage in dealing with the conflict between what they desire to do and the resources they have available. Of course there are other facilities additional to those in Section 2 which are of value to the disabled. For example, they need cash—we try to give it to them—they need a house sometimes and they need social work support. The idea of help is a complex one.

Will the right hon. Lady investigate why there is not one Possum appliance in the Wessex Regional Health Authority area? Will she also look into the fact that the giving of appliances and adaptations to disabled people will often save a local authority a great deal of money in the long term, as identified in the Sunday Times article on Wendy Bassett last Sunday?

I have of course seen that report and was as interested in it as was the hon. Lady. I am having inquiries made into the case and will be glad to write to the hon. Lady about it as soon as my inquiries are complete. With regard to the Possum machine I will draw the attention of the Minister with responsibility for the disabled to what she has said. Even there, however, it is a question of doing the most one can within the resources, which are limited. We all know that, and as a House we must accept it.

Family Income Supplement

14.

asked the Secretary of State for Social Services if she will reduce for lone parents the weekly number of hours of work required to qualify for family income supplement.

We are still continuing studies to identify, if possible, an acceptable scheme which would benefit lone parents unable to work 30 hours a week.

Would my hon. Friend accept that that answer will be welcomed? Would he also accept that most people concerned with assisting one-parent families would support the Government's view that a system of child cash allowances to replace means-tested benefits is the best approach? Would he also accept, however, that the introduction of a scheme of that sort with benefits on a scale large enough to meet the aims will be many years delayed? Will he consider carefully whether the FIS can be used to benefit parents who earn too much to benefit from supplementary benefit but who cannot, because of family responsibilities, work long enough to qualify for the FIS? Will he in particular consider whether in those circumstances the hours limit could be reduced to 25 or 20 hours?

I agree that the introduction of a Finer-type guaranteed maintenance allowance, if non-means tested, at a cost of £400 million a year is not possible in the immediate future. As to reducing the number of hours for entitlement to FIS for lone parents, if the number of hours were reduced from 30 to 24—or 25, as my hon. Friend suggests—only about 5,000 families out of more than 600,000 would benefit and double assessment of all families would be required to see whether they would get greater advantage from family income supplement plus rent and rate rebates or from supplementary benefits. Therefore, what we are concerned to do is to devise a scheme which will give extra help to a significant number of extra families but which is also operationally manageable.

Is the Under-Secretary aware that one of the problems is that the more people there are in receipt of FIS, the greater the number of people who are liable to get into the poverty trap? Have the Government made any progress in reducing the number of families who are subject to these high marginal tax rates?

One change which reduces liability to the poverty trap is the fact that there is no immediate adjustment of benefits. Therefore, families in receipt of family income supplement and such things as free welfare milk and free school meals now receive those for a period of at least a year before adjustments are made. Although this does not eliminate the poverty trap—the only way to eliminate it is by providing benefits as of right—nevertheless it reduces the liability.

General Practitioners

15.

asked the Secretary of State for Social Services if she is satisfied with the arrangements under which GPs in medical practices are paid.

I have no major proposals for changes, but improvements in the arrangements are negotiated from time to time and priced by the Review Body. I shall be glad to consider any changes my hon. Friend has in mind.

Is it not the case that a general practitioner can run his practice with the aid of assistants and that these assistants are paid at present £6,000 a year while the general practitioner can receive £9,000 a year from the Family Practitioner Committee? Will the hon. Gentleman investigate this and take steps to prevent this profiteering?

I will look into any individual cases. I think it is normally accepted that assistants are employed with a view to eventual partnership, and these should be training posts. In some cases the assistantship can become almost permanent, and then there is this development to which the hon. Gentleman referred, which is in some cases undesirable.

Fraudulent Claims

16.

asked the Secretary of State for Social Services what progress has been made in reducing the abuse of the social security system.

In all its social security operations, the Department seeks to strike the right balance between dealing with genuine claimants in a prompt and civilised way and providing adequate safeguards against fraud and abuse. One of the best safeguards is the detection and prosecution of fraudulent claimants, and the number of such prosecutions increased from about 12,000 in 1973 to nearly 14,000 in 1974.

While accepting that answer, may I ask the Minister whether he is aware that there is something wrong with the system when a student who works in his vacation finds his earnings aggregated to his parents' income, whereas if he takes the advice of the National Union of Students, as 9,000 did last Easter, and collects supplementary benefits, these are tax-free? To the majority of taxpayers this is an abuse. Will the right hon. Gentleman reconsider the tax payments?

I refer the hon. Gentleman to a statement made last week in which it was announced that the whole question of student support was under examination.

Will my right hon. Friend publish in the Official Report the amounts reclaimed from fraudulent claimants of social security side by side with the amounts reclaimed as a result of fraud under the income tax laws?

I entirely agree with my hon. Friend. I shall try to provide those figures. It is a pity that Opposition Members do not show the same kind of concern for income tax frauds as they do in the case of a number of very poor people.

Nhs Patients (Private Hospital Care)

17.

asked the Secretary of State for Social Services how many National Health Service patients are cared for, on average, each month in private hospitals and nursing homes.

There are approximately 2,000 admissions a month to establishments in England.

Is it the policy of the Secretary of State to continue to use beds in the private sector for National Health Service patients while closing down the private beds within the National Health Service?

Certainly it would be no part of my proposals for the private sector to terminate these arrangements if it was suitable both to the health authorities and to the private sector to continue them.

Family Allowances

18.

asked the Secretary of State for Social Services what is the current value of the family allowance expressed in real terms as a percentage of the 1968 value.

On the basis of the General Index of Retail Prices, June 1975, the family allowance for the second child represented, in real terms, 80·1 per cent. of the value it held in October 1968. For the third and subsequent children the percentage was 72·1.

Does my hon. Friend agree that this is a very deplorable situation? Is he aware that the combined value of child tax allowances and family allowances is lower after the April Budget this year than it was after the Budget the previous year? Will he make representations to the Chancellor of the Exchequer to take urgent action to bring these figures to a more reasonable state?

I am sure my hon. Friend is aware that the Government are proposing to introduce a child benefit which will amalgamate the child tax allowances and family allowances. The rate of these has not yet been fixed, but it will be fixed next year. We shall certainly bear in mind the representations that my hon. Friend has made.

Can the hon. Gentleman say how the economy can stand an increase of £6 a week for men who go out to work while there is nothing available for women who work at home?

The Question was about family allowances. Women gain from an increase in family allowances. The increase which the Government introduced this year was the first increase since 1968 under a previous Labour administration. As the hon. Gentleman knows, the last time a Conservative administration raised family allowances was 19 years ago.

Trades Union Congress

Q1.

asked the Prime Minister if he has received an invitation to address the TUC conference in September.

Q2.

asked the Prime Minister if he has received an invitation to address the TUC Congress in September.

Q6.

asked the Prime Minister whether he has received an invitation to address the TUC conference in September.

Q9.

asked the Prime Minister if he has received an invitation to address the TUC conference in September.

Q10.

asked the Prime Minister if he has received an invitation to address the TUC conference in September.

Since the Prime Minister is always accusing the Opposition of wanting to cause unemployement by cutting public expenditure, will he tell the TUC, if he receives such an invitation and accepts it, how he proposes to cut public spending next year when unemployment will be much higher than it is now?

The proposal was announced by my right hon. Friend. The House will know that unemployment, which is endemic in all advanced countries, for reasons of which the House is aware, is seriously affecting this country, but we are not prepared to accept the proposals of the Opposition which would greatly increase unemployment at this time.

If the right hon. Gentleman receives such an invitation, will he take advantage of the opportunity to explain to the TUC how he can reconcile his own commitment to more open government and to proper accountability by the British Government to the British people, as he expressed to the TUC last year, with his suppression of the Crossman diaries, with his lack of inclination to disclose—[Interruption.] I am sorry, Mr. Speaker, but these interruptions come from the Prime Minister's own back benchers.

I have three other points which I suggest the Prime Minister should marry up.

Order. The hon. Member is wrong. He has only one more point to make, and that one shortly.

You are entirely correct, Mr. Speaker. How can the Prime Minister reconcile those matters with his refusal to give the Ombudsman the necessary papers so that he can pursue the Clay Cross affair—[Hon. Members: "Court Line."]—I am sorry, the Court Line affair—it is easy to get mixed up with these various affairs of the Government—and the secrecy concerning the Government's reserve powers Bill?

It is quite clear that the hon. Member does not know his Court Line from his elbow. With regard to the Crossman diaries, the matter is currently before the courts and it would be wrong for me to make any comment in reply to the hon. Member. With regard to the Ombudsman and the question of Cabinet documents, this matter was debated in Parliament in 1965 on Government legislation and was fully explained to the House. The rules were laid down and have been followed by successive Governments. But if, after the totally mendacious and characteristic article in The Times yesterday, right hon. and hon. Members would like me to pursue this matter further, I shall be happy to make a statement in the House tomorrow and nail this once and for all.

Would my right hon. Friend agree that the Government's central strategy of keeping down unemployment is, to say the least, more than a little confusing to the average trade unionist when one takes into account the fact that, having been elected to keep down unemployment, we are now witnessing a very large increase, rising to well over 1 million unemployed this year? Is he aware that the Government are making announcements to throw more people on the dole, as was shown in the statement on Norton Villiers Triumph last week and the possible statement on the steel industry some time this week, while at the same time talking about introducing a temporary unemployment subsidy to reduce the unemployment level? What precisely is the Government's strategy?

My hon. Friend says that our strategy is difficult to understand for the average trade unionist, but he is not an average trade unionist. For example, he does not support, as he showed a couple of weeks ago, the TUC and the vast majority of trade unionists on the Government's anti-inflation policy. As far as unemployment is concerned, the world recession following the oil crisis hit every advanced country, many of which had higher unemployment figures than at any time for 30 years. Apart from the short-term consequences, the long-term problem we face is due to a lack of investment in this country and a failure to make better use of investment—I shall be fair about this—under successive Governments of different parties in this country.

Is the Prime Minister aware that at his Press conference on 11th July—I refer not to The Times, about which he has this strange obsession, but to page 3/5 of the official Downing Street transcript—he stated categorically that the Government would publish the reserve powers Bill? Why has he now run away from that undertaking?

This was very fully debated in the House—[Hon. Members: "Answer."]—and it was fully answered by my right hon. Friend. I gave no commitment to publish the Bill before the debate—

I have seen it. I have read that document and I remember what I said. I gave no undertaking. It was used by the Opposition Front Bench as an excuse for their total shambles in their approach to this matter.

Assuming that the TUC accepts the argument in relation to the £6, can my right hon. Friend explain to the House what he will say, if invited to the TUC conference, in very concrete terms about how the Government are going to deal with rising unemployment and what steps will be taken by the Government to begin to bring down this level, especially as areas such as the one from which he and I both come now have one in eight men unemployed? Does he accept that we cannot stand any more unemployment?

I hope I am right in interpreting that question as meaning that my hon. Friend now accepts the TUC view on the Counter-inflation policy, although that may not be so. When speaking about unemployment at TUC meetings I have repeated the warning I gave a year ago when I last addressed the TUC conference.

Will the right hon. Gentleman explain how the undertaking given by the Secretary of State for Energy on 6th November to the convener of shop stewards at Small Heath that, to use his own words, the Government were fully committed to securing the future of the motor-cycle industry in this country can be reconciled with the Government's decision to abandon the industry and allow it to collapse? Is it not clear that the undertaking was grossly misleading to the work force of NVT and their families, and is it not high time that the Secretary of State made a public statement on this matter and gave a public apology?

I do not know where the hon. Gentleman has been. This matter is to be debated later this week. I have seen a transcript of the recording of what my right hon. Friend said to the shop stewards and I have no doubt this will be stated to the House. I think it has been published in the Press. The hon. Gentleman should familiarise himself with it. It is a very clear statement involving no possible commitment by any Government in this respect.

How can the Prime Minister describe the current main policy as anti-inflationary when, in essence, workers are supposed to have their wages kept behind rising prices? Is he aware that this sort of kidology and phraseology will bring an enormous backlash from organised labour in about January or February next year?

I cannot remember offhand whether my hon. Friend supported the policy of the Government and the TUC in this matter. This is TUC policy, and the Congress has slightly more authority to speak for organised labour than has my hon. Friend.

Does the Prime Minister accept that trade unions have a unique position of power in our society? If so, does he agree that it would be very much in the national interest if, whenever possible, they were seen to be supporting the Government of the day, whatever their colour? Assuming that the Prime Minister receives an invitation to address the TUC, will he suggest to its leadership that in future it would be helpful if it invited not only the present Prime Minister but also the present Leader of the Opposition?

I think that would be a very good idea. It would be highly educational for the right hon. Lady. One of the reasons for the troubles of the last few years has been that successive leaders of the Conservative Party have never understood organised labour or the TUC. They have had long meetings with them, but have sought to bully and organise confrontations with them. They have never tried to understand the minds of the trade union movement.

Does the Prime Minister accept that if he had taken action earlier to deal with inflation, the level of unemployment would have been a good deal lower than that which we shall have to endure next year? As the Government's last economic package clearly did not restore confidence, will he say whether he expects to specify any public expenditure cuts between now and the TUC conference or before the House returns after the recess?

When the right hon. Lady says that if we had acted earlier unemployment would be lower, she is totally wrong. She knows that countries which have tried to follow the sort of policies she advocates—in so far as they can possibly guess what they are—have had much higher unemployment than ours and it has come to them much earlier.

I do not accept the right hon. Lady's statement that our economic package has not carried confidence. We know that it did not carry confidence on the benches opposite. That is why they abstained—that was all they could do—on the main policy and voted against the legislation. She has been told by the Chancellor of the Exchequer and myself in the economic debate that we are carrying through, as is normal at this time of the year, a searching probe into public expenditure which will be published at the proper time in relation to the Public Expenditure White Paper.

While the right hon. Lady is talking about this, she still has not, after all these months, indicated—[Interruption.] I understand the anxiety that my words be not heard. I was always challenged when I was in her place to say what our policy would be. She has still not said what items of expenditure she would cut, except for food subsidies and housing subsidies, which would increase the rate of inflation.

As the right hon. Gentleman knows that he will make public statements, can he specify the cuts, as Prime Minister?

The cuts were specified in the Budget Statement by my right hon. Friend the Chancellor of the Exchequer this year. A £900 million cut was announced in the Budget. The next lot will be announced, as is always done, in the Public Expenditure White Paper. The trouble about our predecessors is that they announced the cuts and never carried them out.

European Security And Co-Operation Conference

With permission, Mr. Speaker, I shall make a statement.

As the House will know, my right hon. Friend the Foreign and Commonwealth Secretary and I attended the third and final stage of the Conference on Security and Co-operation in Europe in Helsinki last week. The text of my speech has already been published as a White Paper. In accordance with what was agreed at the conference, Her Majesty's Government, in common with all other participating Governments, are also publishing the full text of the Final Act signed at Helsinki, which includes the texts of all the documents adopted at the conference.

The conference included the Heads of State or Government of all countries, except Albania, directly concerned with security and co-operation in Europe. It was not merely an occasion for making speeches and signing documents. It was rather the opportunity for countries scarred by the experience of war 30 years ago, and convinced of the need to end the sterile divisions which followed it, to look towards new and more constructive relationships on the basis of an agreed code of behaviour and undertakings to advance co-operation of all kinds and permit the freer flow of people, ideas and information.

Two years from now our representatives will meet in Belgrade to assess the results and recommend action for the future. I can assure the House that for their part Her Majesty's Government will do all in their power to honour and fulfil the undertakings we have accepted in the Final Act. We are also ready to consider making bilateral agreements with other participating States to carry through its provisions.

The Final Act has been variously described. It is not of course a peace treaty, nor is it any other kind of legally binding agreement. It is rather a set of political undertakings which will at the very least provide a yardstick against which future behaviour can be measured and judged. These undertakings apply to all the participating States on the basis of complete equality, irrespective of their social, economic or political systems. At best—and I am thinking here particularly of the articles relating to the rights of individuals, journalists and business men—they should provide the basis for the development of more fruitful and constructive relationships.

This conference represented no more than a beginning, but I hope that the House will agree that it is a beginning in the right direction. Those who worked so arduously for two years, with instructions given by the Prime Ministers of successive Governments in this country, to negotiate the Final Act did not attempt to cover all European problems. The limited measures which were agreed should have their value in creating the first elements of confidence without which further progress will not be possible. But, as the House knows, the problems of military security are being dealt with elsewhere—for Central Europe, in the conference on force reductions at Vienna; in the strategic nuclear field, in the SALT negotiations between the United States and the Soviet Union; and in disarmament discussions generally.

The Vienna negotiations have not made the progress for which we had all hoped, and the disparity of forces between the Warsaw Pact and NATO is as great as ever. I expressed our disappointment at the slow progress so far, and a number of those who spoke after me expressed, as I did, the hope that now that the basis for a better political relationship has been established at Helsinki we shall be able to make the progress necessary at Vienna. That should now have the highest priority in the development of East-West relations, together with the negotiation of SALT II.

It is my firm hope that the new spirit of co-operation which was demonstrated at this conference will extend beyond it. I have particularly in mind the economic problems which face the world and the dangers of further nuclear proliferation. What we have achieved in CSCE will be judged by history by our success in extroverting our achievement to a wider world.

The conference also provided the occasion for me to have separate meetings with nearly all the participating Heads of State or Government, including bilateral meetings with the Presidents of the United States, France and Finland, the Federal German Chancellor, Mr. Brezhnev, the Italian Prime Minister—who is, of course, also currently in the Chair of the EEC Council of Ministers—and the Prime Ministers of Greece and Turkey. My right hon. Friend and I had meetings with other East European leaders and with President Tito, and we also had a meeting with President Costa Gomes of Portugal, at which we expressed the very grave concern felt by Her Majesty's Government and, I am sure, the whole House at recent developments in Portugal. I raised the question of Portugal also with the leader of the Soviet delegation.

On my way back from Helsinki on 2nd August my right hon. Friend and I attended in Stockholm a meeting convened by the Swedish Prime Minister of Socialist Heads of Government and Party Leaders, at which Dr. Mario Soares, the Leader of the Portuguese Socialist Party, was also present. This gave us an opportunity to express once again to Dr. Soares the importance we attach to a speedy return to what is known as pluralistic democracy in Portugal—[Interruption.]—it is not a laughing matter—a point which I had already strongly emphasised in my talk with President Costa Gomes at Helsinki. I also told the meeting that I had described the future of Portugal as one test, and an early test, of detente during my talk with Mr. Brezhnev. The meeting also discussed the world economic situation and, Prime Minister Rabin of Israel being present, the position of Israel and all of us in relation to possible action against Israel at the forthcoming General Assembly of the United Nations. We expressed our full support for the doctrine of the universality of the United Nations, as I had in my opening speech at the Helsinki conference.

I thank the Prime Minister for making that statement. Is he aware that if the political undertakings given at Helsinki are observed a real advance will have come about in East-West relationships? In the meantime, neither some of the excellent speeches nor the signatures have altered the underlying position one bit. Therefore, may I put two main points to the Prime Minister?

First, what actual steps does the right hon. Gentleman expect the Soviet Union to take in the coming year or so if it is to prove that the agreement is a living reality and not a formality? For example, the right hon. Gentleman mentioned that he had raised the question of Portugal with the Soviet Union. He did not say what reply he received. Will he tell the House what the answer was? Does he expect real progress on the freer movement of peoples and ideas across the Soviet frontier? I know that he is as concerned about that matter as the rest of the House is.

Secondly, may I ask the Prime Minister about his own interpretation of Mr. Brezhnev's speech, in view of the previous speech of Mr. Brezhnev which became known as the Brezhnev Doctrine? I read the translations, and found them somewhat ambiguous. Does the Prime Minister take the view that the events which led to the occurrence in Czechoslovakia in 1968 cannot be repeated if the Helsinki agreement is to be honoured in reality?

The right hon. Lady said that the political undertakings given—she went on to talk about their fulfilment—represented real progress. Most of us—certainly from the West, but some others as well—said that the real test would not be the undertakings signed but the progress in fulfilling them. I said that in my opening speech at the conference, as the right hon. Lady knows, and this was also the chief message of President Ford when he spoke on the Friday morning. As the right hon. Lady has made clear, these matters have to be reviewed afterwards. The Belgrade conference is meant to review the progress in fulfilling the undertakings reached at Helsinki and then to discover to what extent we can build on those undertakings, which we all agree were limited and did not go as far as we would have liked. The actual undertakings must be the subject of continuous monitoring and, finally, the test of Belgrade.

I stressed free movement in my speech and went into it in more detail later. It includes not merely free movement in Europe. I said that there was no reason why people in Europe should not be free to travel, to read what they want, to hear what they want, to settle where they want and to marry whom they want. I said that this was the test we would apply on these matters. However, I went further and said that this also relates to the movements of citizens to States beyond the European borders. I have in mind, as I have emphasised many times, Soviet Jews being free to move to the Middle East.

The right hon. Lady asked about the next steps to be taken. One of the real tests will be in relation to the mutual reductions in forces, because a number of people on the eastern side of what has been the Great Divide in Europe have said that they are not ready to make progress on this until they have the Helsinki agreement. It will be a real test whether we make progress, and it will be in the interests of all concerned and of the economies of both the East and the West. The right hon. Lady will have noticed that as a first consequence, within hours of the signature, the agreement between the German Federal Republic and the Polish Government, which involves the free movement of people from Poland to Germany, came into effect and 120,000 people who sought to return to Germany will be allowed to do so. That is not a bad first dividend. We want to see this followed up.

The right hon. Lady mentioned the Brezhnev Doctrine. She will know that I have said publicly here—and this has been the view of many keen and suspicious Western observers in the past—that what happened in Czechoslovakia could not have happened had the Helsinki agreement come first. [HON. MEMBERS: "Oh!"] This may be laughed at but there are some quite serious Heads of Government. I do not know why Opposition Members arrogate to themselves a greater degree of knowledge of world affairs than the President of the United States or Dr. Kissinger, who have both signed these agreements. Hon. Gentlemen opposite might not have done. This was the view that was expressed by a number of leaders at Helsinki.

The right hon. Lady referred to Portugal. I have said that not only myself but other Social Democratic leaders in Western Europe—for example, Herr Schmidt, the Prime Ministers of Sweden and the Netherlands and others-spoke in the very strongest terms to President Costa Gomes. I hope that what we have said has registered. Also in my talk with Mr. Brezhnev I said, as has been said by some of my other colleagues from Western Europe, that we would regard the future events in Portugal as being the first test of the spirit of detente signed at Helsinki.

Is the Prime Minister aware that the Liberal Party welcomes the approach that he has made in emphasising that this is a first step in the right direction but that in the end it all has to be judged on results?

I know that it is difficult to be more specific, but could the right hon. Gentleman explain in more detail how he hopes to monitor progress between now and two years hence, when the Belgrade conference is held, on the freer movement of people, information and the like? For example, does he regard the jamming of overseas broadcasts as a criterion? Does he think that the entitlement of Soviet citizens to leave the Soviet Union if they so wish is a criterion? I agree that this is a difficult matter, but I am sure that we should all appreciate a clearer idea of how the right hon. Gentleman hopes to monitor the situation.

Could the right hon. Gentleman say whether the meeting which he said he had with the Prime Ministers of Greece and Turkey gave him any reason to hope for an early settlement in Cyprus?

I thank the hon. Gentleman for welcoming what I have said, and I agree with him that what really counts will be the results which follow the signing of the agreement.

On the matter of monitoring various of the decisions relating, above all, to human freedom, all the signatories will be in a position to do this. There are well-established criteria. For example, it would be easy to test whether broadcasts are being jammed, and whether there is greater freedom of movement of journalists between East and West and in respect of what they write.

On the subject of Greece and Turkey, my right hon. Friend the Foreign Secretary and I met President Makarios and the Prime Ministers of Greece and Turkey. We all know of the serious impasse that has been reached because of certain attitudes there and of everything that has happened since the vote of the American Congress. However, the hon. Gentleman will be glad to know that as a result of the initiative taken at the meeting of the Heads of Government of the European Community last week there is now a hope of an initiative, or hope of an honest broker position being taken up by the President of the European Council—that is to say, Italy—on behalf of the Community.

Was anything said in discussions with the Portuguese about the question of Angola?

Yes, we discussed with the Portuguese mainly internal questions in relation to Portugal and expressed our views, which I am sure will be shared by all hon. Members, about developments there. There is a tragic series of developments in Angola. A massive evacuation is taking place, and we should be prepared to play our part in helping in that evacuation if it were considered necessary or helpful.

Is the Prime Minister aware that it is the wish of this House and the British people as a whole that the establishment of democracy in Portugal should go ahead? Is he further aware that we view with increasing concern and, indeed, disgust the way in which unarmed members of democratic parties in Portugal have recently been shot down in cold blood in the streets? Is he aware that we are deeply concerned at the way in which the Portuguese Communist Party is apparently riding to power despite the clear verdict of the Portuguese electorate, which voted anti-Communist four to one? Will the Prime Minister say whether he was able to obtain any reassurance whatever from Mr. Brezhnev that the present unacceptable level of Soviet interference in the internal affairs of a NATO country will be diminished, and, if not, would he regard this as a clear breach of the Helsinki agreement?

I thank the hon. Gentleman and agree with everything he has said. Indeed, I agree with the vehemence with which he put it. If he does not mind, I should like to refer to the useful meeting that he and I had on these questions after he returned from Portugal and a few days before I went to Helsinki. I found what he told me useful, and nearly all of it was confirmed by Mario Soares in Stockholm last week, when he set out, with brutal frankness over a period of 90 minutes, the whole situation that democracy faces in Portugal.

As I have said, we have expressed our deep concern—I used stronger words to the Portuguese President, as did my right hon. Friend—about this, and so did other Western leaders. I hope that this has registered. [Interruption.] I am talking at present about the President of Portugal. We know that a great deal of soul-searching, manoeuvring and so on is taking place in Portugal. The European Community has made clear, even against the advice of some Portuguese democrats, that it is prepared to give maximum aid and economic co-operation only on the basis of a pluralistic democracy and not, as it was urged, in any circumstances. I think this is right.

With regard to the Soviet Union, this point was made very clearly by some of my Western colleagues, and finally, on the last night, by myself. I am sure that Mr. Brezhnev will now consider very seriously what was said. [Interruption.] We are more concerned with getting a democratic solution in Portugal than with the titters of hon. Members opposite, as, I am sure, is the hon. Member for Stretford (Mr. Churchill), who put this question. I am sure, from what was said to me, that Mr. Brezhnev will consider very seriously what was said by me and by others, and that he will be aware that many of us on the Western side regard the future attitude of the Soviet Union to Portugal as being the first test of the spirit of Helsinki.

Will the Prime Minister agree that the arrangements for a follow-up will be crucial to the long-term success of the conference, and is not a period of two years rather a long time to wait for a full stocktaking, at Belgrade? Will the Prime Minister therefore consider proposing that there should be regular meetings at Foreign Minister level between leaders in Eastern and Western Europe, including the President of the United States, to consider the progress that has been made, particularly in improving freedom of movement, of ideas and of people, between East and West Europe?

That was the agreement we signed—that two years from now there should be a full stocktaking, that we should see how far the spirit has become reality, and, following that, how far we can build on the undertakings given at Helsinki. These meetings take place all the time. There will be very shortly, I understand, a meeting between the President of the United States and Mr. Brezhnev. There are regular meeting taking place all the time between East and West. Meetings are planned between Ministers in this country and Ministers of countries in Eastern Europe. There will be, therefore, a continuing stocktaking and continuous monitoring. It does not mean that we all go away and do not meet one another until the two years are up.

When the Prime Minister spoke to General Gomes and Dr. Soares about the necessity of building a pluralistic democratic society, did he stress to both of them, and particularly to Dr. Soares, the need to recognise centre parties such as the Christian Democratic Party, and that they should be allowed to partake in future elections?

Yes, indeed. When the President of Portugal said that he wanted a Socialist democracy, and called Dr. Soares a Socialist, I was not sure whether he meant that kind of Socialist democracy, but I said that in a pluralistic democracy any leader, whether Socialist or anything else, must face the possibility, as I once did, of a change of Government. We emphasised to the President and to Dr. Soares that we mean a genuine democracy, through the ballot system, under which a Government is formed and is accountable in the future elections. Certain Mario Soares, with the full support of the Socialist leaders at Stockholm, wants to see a democratic system. He would like to win the elections in Portugal but recognises that in the system he wants there will be variations from time to time. So certainly the answer is "Yes, that is what we were contemplating".

Will my right hon. Friend accept my congratulations to him and to his right hon. Friend the Foreign Secretary for the way in which they assisted in bringing about the success of the Helsinki conference, and in particular for his constructive speech in opening the conference, which was in marked contrast to the remarks of the right hon. Lady the Leader of the Opposition before he left for Helsinki?

Will my right hon. Friend agree that, while it is important to see that there is free movement of individuals between East and West Europe, the real significance of this conference was that it paved the way for a reduction in the arms expenditure of all of the nations involved in the conference—which together account for 80 per cent. of the total arms expenditure in the world—so that resources may be freed to assist the Third World and so carry out the destiny of Europe as a whole?

I am grateful to my hon. Friend. He is right in what he says about 80 per cent. of the arms expenditure of the world. Calculations have been made about that. I doubt whether a single one of these countries does not want to see a reduction of that arms expenditure, consistent with the safety of the country concerned.

With regard to the attitude of parties in this country, it really ought to be said to hon. Members opposite who criticise or jibe that the success of the conference had to be prepared over many years. The instructions given by my predecessor, the former Prime Minister, were material in helping to secure the success of the conference. It was a continuing process and has been going on now for very many years.

My hon. Friend referred to the speech of the right hon. Lady. She will be glad to know that it made no impact whatsoever on the conference in Helsinki. I think that, on reconsideration, she will probably want to charge it up to experience.

Will the Prime Minister accept that the fact that he and Mr. Brezhnev discussed Portugal is an implied admission by the Russians of active interference in the internal affairs of another country? Will he also tell the House whether, in his discussions with Mr. Brezhnev about interference in the internal affairs of other countries, he mentioned clandestine as well as open interference, and whether he received any assurances or had any reactions from Mr. Brezhnev about continuing subversion in Western democratic countries?

The fact that Mr. Brezhnev was willing to discuss this, and not rely on the usual stock phrases used on these occasions, certainly did not imply an admission on his part of any complicity in what is going on in Portugal today. One or two of my colleagues who, in consultation with myself, and following the discussions in Brussels a fortnight earlier, raised it with him got the standard reply that there was no interference. I took some encouragement from the fact that some of these points seemed to be registering.

I want to make this distinction to the right hon. Gentleman. I think it is a fair one. There is some evidence, and it has been fairly widely publicised—indeed, some was given to me by the hon. Member for Stretford when we met—of financial assistance from East European countries to party machines, or a party machine, in Portugal. That is a different thing from Government help and support. I think it was important to register—[Interruption.] I am dealing with a very serious subject, and I am saying that it was important to make clear to the Soviet Union that, in terms of their actions as a Government, this will be taken as a test of the détente spirit. We all emphasised this at Helsinki.

In view of the concern shown by the Prime Minister in his statement about the dangers of further nuclear proliferation, will be indicate to the House whether he expects any progress to be made, between now and the Belgrade conference, with regard to the possible limitation of the Polaris and Poseidon bases and their eventual removal from Scottish soil?

I did not hear that specifically mentioned by the Heads of Government, but certainly the hon. Lady is right in emphasising the importance that we all attach to nuclear proliferation. We all hope that, following the Helsinki agreement, there will be more rapid progress made on SALT II, the limitation of the international nuclear arms race, as well as the force reduction in central Europe.

There was also some concern, as I said in my opening speech, about the question of nuclear proliferation and the extension to non-nuclear States. The hon. Lady, when she reads the White Paper, will see exactly what I said on that. It received a wide measure of support at Helsinki.

As the Prime Minister is now being so closely questioned by the Opposition on whether there has been a link between the force reduction discussions in Vienna and the Helsinki and Geneva conferences, does he recall that when Lord Home was in charge of our foreign affairs, he pointed out several times from the Dispatch Box that we should not link the two together, and that it was his policy not to do so, that the only way in which the Geneva and Helsinki conferences could be brought to a successful conclusion would be by not doing so, and that the Conservative Government was as responsible for the severance between the two as any other of the participating Governments? Has our foreign policy changed? Are we now in favour of making rapid progress with these force reductions?

Is the Prime Minister aware that the friends of political democracy in Portugal were glad that he took the opportunity to have these discussions? However, as all those who have recently visited Portugal will know, this is not a simple problem, as the military, who were responsible for the revolution, are working against a backcloth of 48 years of dictatorship dominated by a secret police created by Heinrich Himmler. In that period no member of the Conservative Party ever criticised the dictatorship in Portugal. Only now are the Opposition so vociferous in their defence of democracy in Portugal. Will the Prime Minister ignore the protests of the Opposition and convey to the people of Portugal that those who wish Portuguese democracy well are all the more concerned that political parties and trade unions should have the fullest freedom?

One of the great difficulties in Portugal is that, although the situation has become worse since the original revolution in April 1974, before that there were 50 years of Fascism and very little economic advance, which must be made up.

My hon. Friend expressed strictures. I recall, as Leader of the Opposition, opposing the visit of Dr. Caetano and being howled down by the Conservatives, and what they said about that, even though the reason I gave was the Wiriyamu massacre. They denied that, although the evidence has since proved that I was right. Therefore, I am not taking criticism from the Opposition in their support of Portuguese Fascism.

My hon. Friend is right in what he says about force reductions and the statement of Lord Home. Lord Home said that we should not link the two matters together in this period of the run-up to the Helsinki conference. Both points should be followed, but one should not be made a condition of the other. My hon. Friend asked whether the policy had been changed. The policy has not been changed. I repeat what I said in my speech at Helsinki. Some people who have spoken about this have justified the lack of progress on force reductions in central Europe by the fact that they wanted to see the Helsinki agreement signed first. I said "All right, but I hope that is right". If the signature of the Helsinki agreement means more rapid progress on this and on other disarmament matters, we would welcome it, but we would see how far that was tested by the results.

Devolution

The Lord President of the Council and Leader of the House of Commons
(Mr. Edward Short)

I regret that I was not in my place yesterday when the hon. Member for West Lothian (Mr. Dalyell) raised the matter of an article in the Daily Record on Friday 1st August. My right hon. Friend the Chief Whip said that I would make a statement today. I had already seen the article referred to and can only say that if I were to come to this Dispatch Box to comment on all the Press speculation on devolution, I should be here daily.

As I have frequently made clear to the House, the Government are examining all the issues that arise on devolution. Some of these are mentioned in the article—the constitution and working of the Scottish Assembly, its economic and taxation powers, and so on. There is no secret about the issues involved. But this article is intelligent speculation and nothing more. Final decisions on these matters have not been taken. All the issues involved in devolution will be reviewed together before decisions are reached on the scheme as a whole. When we have done that, our proposals will be set out in detail in a White Paper. I have already made clear that this White Paper will be published in the autumn.

Will the right hon. Gentleman confirm his appreciation of the major constitutional issue involved? Does he therefore agree that this question is far too serious to be dealt with on the basis of leaks and speculation? Does he accept that in considering devolution proposals we shall discuss not only the future of Scotland and Wales but also the future composition and powers of the Parliament at Westminster? Does he understand that those of us who support sensible proposals for devolution are nevertheless determined to ensure that these do not undermine the basic unity of the United Kingdom?

May we take it that the Daily Record claim, that there is a set blueprint, is without foundation?

With regret I heard the Lord President say that he agreed with every word spoken by the right hon. Member for Penrith and the Border (Mr. Whitelaw). Does the right hon. Gentleman accept that all that matters is to achieve genuine proposals for devolution, to ensure that the timetable is kept to, and that the reactionaries in the Labour and Tory parties do not dictate against the wishes of the Scottish people?

I agree that it is important to obtain credible, viable proposals for devolution. I shall present those to the House at the end of the year. That is the only commitment we have made about the timetable. That commitment will be kept.

Are we to understand that the leaks in the Scottish Press are totally without foundation, and secondly, that the devolution Bill will be produced by Christmas of this year, although the White Paper will not be available until the autumn?

I hope that the White Paper will be available about the second week in October. We hope that the Bill will be available by the end of the year or the beginning of the next year.

I cannot say anything about leaks in the Press. The issues are discussed and are well known. There is no secret about them. The issues were discussed in a seven-hour debate recently. The Press speculates on these issues daily.

Is my right hon. Friend aware that it is not desirable that there should be any great disparity between the proposals for Scotland and the proposals for Wales?

There is one great disparity, which we set out in the White Paper last year. The Scottish Assembly will have legislative power in restricted fields. The Welsh Assembly will not have that power. It will have executive power. I thought that there was general agreement in Wales on that.

In describing this article as intelligent speculation, is the right hon. Gentleman saying that it is largely correct in the analysis it provides of Government intentions on this matter?

I have said nothing of the kind. I said that this article discussed the issues. Newspaper articles do so daily. There is no secret about the issues. The issues are known. Any journalist who has followed the devolution exercise can speculate intelligently on these matters—as this one did.

Industrial Democracy

The Secretary of State for Trade and President of the Board of Trade
(Mr. Peter Shore)

With permission, I should like to make a statement.

The Government are committed to carrying through as soon as possible a programme for the radical extension of industrial democracy in both the private and public sectors. The first steps have been taken by my right hon. Friends the Secretaries of State for Employment and Industry with the Employment Protection Bill and the Industry Bill which contain provisions allowing for greater disclosure of information and for the work force to be more closely involved in future planning. Meanwhile developments in industrial democracy, particularly below board level, are now taking place and more are planned. It is desirable that these should continue. The next step is to formulate measures which will enable those employed to participate in major decisions affecting the future of their companies through representation at board level. Not only will this involve a major change in company law but it will clearly bring about a fundamental change in the way industry is managed.

Because of this, and because the issues are both complex and in this country relatively unexplored, the Government wish to have the best available advice before coming forward with legislation. I have therefore decided to appoint an independent committee of inquiry to advise on questions relating to representation at board level in the private sector. It will have the following terms of reference:
"Accepting the need for a radical extension of industrial democracy in the control of companies by means of representation on boards of directors, and accepting the essential rôle of trade union organisations in this process, to consider how such an extension can best be achieved, taking into account in particular the proposals of the Trades Union Congress report on industrial democracy as well as experience in Britain, the EEC and other countries. Having regard to the interests of the national economy, employees, investors and consumers, to analyse the implications of such representation for the efficient management of companies and for company law."
The names of the chairman and members will be announced very shortly. The committee will be asked to present its report to the Government within 12 months so that legislation can be placed before Parliament during the 1976–77 Session. The committee will wish to call for and receive evidence quickly and I hope that interested parties will begin to prepare their evidence right away. There is a need for a wide-ranging debate on this important subject so that a full measure of public support may be achieved, and I earnestly hope, therefore, that all who are able to make a contribution, including those who are already practising forms of industrial democracy, will assist in the vital work of this committee.

I should also like to pay a tribute to my hon. Friend the Member for Chester-le-Street (Mr. Radice) who brought before the House a Private Member's Bill on industrial democracy and also those who served with him on the Standing Committee. In their debates they examined many of the issues which are fundamental to legislation and this will be a very helpful contribution to the work of the committee of inquiry.

In parallel with the work of the committee, the Government also intend to take a radical look at the rôle of employees in relation to decision-making within the nationalised industries. A study has been set in hand.

Meanwhile, the Government hope that experiments in developing new forms of industrial democracy and democratic self-management within the existing framework of the law will continue, and that the establishment of the committee of inquiry will in no way prevent the work now in progress from continuing to develop.

I am sure that the whole House will welcome that statement on this vitally important subject, albeit somewhat late in the Session. It is especially welcome to members of Standing Committee C who considered this matter upstairs.

I recognise the important rôle of trade unions in this matter, but do the Government see industrial democracy as involving all the work force? If so, should not they reconsider the terms of reference of the inquiry, which at first sight appear to be somewhat narrow?

Will the Secretary of State say when the study into decision-making in the nationalised industries will be completed?

Will the Minister be a little more precise about when the name of the chairman of the inquiry will be announced? As the Government want the best available advice, and as there will be two studies in progress at the same time as well as developments in Europe, will the Government assure us that they will not sacrifice thorough consultation, especially with those organisations that already practise industrial democracy, for the sake of early legislation? Finally, may we take it that the process up to legislation will be a Green Paper, a White Paper and then a Bill?

I begin by thanking the hon. Gentleman for his warm response to the announcement I have made. I believe that the development of industrial democracy is welcomed on both sides of the House and, indeed, broadly in British industry.

I should like to be able to give the hon. Gentleman a firm answer on his last question about a Green Paper, a White Paper and a Bill, but it would possibly be inadvisable for me at least to say that there will be a Green Paper and a White Paper. At the end of the process of inquiry when we have the report the Government may well put forward their conclusions based upon its findings.

As to the timing of the nationalised industry inquiry, we certainly hope that it will be at least in phase with the timing of the inquiry I have just announced.

On the question whether the whole of the work force will be involved, it is clearly not the intention in the terms of reference to close any option for representation in boardrooms.

I thank my right hon. Friend for his kind remarks about the contribution made by the Industrial Democracy Bill. Is he aware that we welcome his statement, especially the terms of reference for the inquiry and the commitment to legislate in 1976–77? Does my right hon. Friend accept that the speedy appointment of a suitable chairman for the inquiry is crucial for early legislation?

I thank my hon. Friend for his welcome and, again, for the conspicuous part he played in pushing forward legislation in this difficult but important area of industrial democracy. It is our intention to be ready with legislation in 1976–77, although I take the point made by the hon. Member for Bedfordshire, South (Mr. Madel) that we have to strike a difficult balance between thoroughness and speed. We shall go all out to get this in the 12-month period I announced. I assure my hon. Friend that there will be no delay on our part in the appointment of the chairman.

Is the Minister aware that his statement will be equally welcome to the Liberal Party which has been committed to the principle of worker participation since 1928, indeed for far longer than any other political party, including his own?

Will the right hon. Gentleman say whether the terms of reference of the inquiry require it to report on the possibility of worker participation as opposed to mere trade union representation at board level?

Will the Secretary of State note the regret that some of us feel that the committee of inquiry will not cover nationalised industries? I understand that there is to be a separate statement about nationalised industries but it seems to me that they have some relationship to this subject and that it is wrong to preclude the committee of inquiry from considering them.

Finally, will the right hon. Gentleman say whether there is to be an opportunity for the official Opposition and other Opposition parties to make nominations for the appointment of members to serve on the committee of inquiry? I am thinking not of politicians but of people of whom we are all aware who have a long history in and knowledge of worker participation. What facilities will be available to us to make nominations?

It is always open to hon. Members to make suggestions to a Minister before he has made an announcement and come to a firm conclusion about whom to invite. If the hon. Gentleman has proposals to put to me, I shall be glad to have them, but I ask him to make haste if his proposals are to have any effect.

The study of nationalised industries poses questions significantly different from those that are posed by the study of representation on the boards of privately owned companies. Therefore, I think it right that they should be the subject of a separate study, although there might be a certain element of overlap in some of the conclusions reached.

In the terms of reference we draw attention properly in the British context to the importance of trade unions and trade union organisation. They are part of the history of the country and represent a different kind of development in some ways from that which has occurred in many other European countries which have different forms of industrial democracy. We do not rule out worker participation in the broadest sense.

Order. The House has a great deal to do today. I hope that questions will be brief.

Is my right hon. Friend aware that long before the Liberal Party was involved in industrial democracy many of us in the Labour Party were arguing for self-management for workers in industry? Is he also aware that some of us will be disappointed that we shall have to wait a further year for the report of another committee of inquiry? The Labour movement has been examining this subject from the time I joined it at 14 years of age. We should have come forward much earlier with concrete proposals. However, the Government have decided upon a year and we shall accept it, but let us get the legislation quickly immediately following the inquiry and not let the inquiry be used as a further excuse for holding up something which should have been done a long time ago.

I am being conciliatory to my hon. Friend when I say that whereas I think it is true that he and other hon. Members have given a great deal of thought to questions of industrial democracy in the Labour movement, I do not think that the movement, as a whole, has paid anything like enough attention to the questions that are involved. That is certainly my experience over the years that I have been associated with it. As my hon. Friend will recall, it was only recently that the TUC, as the most representative body of organised workers in the country, endorsed the general principle of industrial democracy. There is still a great deal of work and thinking to be done, and I am sure that this committee will be valuable.

Having advocated industrial democracy since 1948, before I entered the House of Commons, may I congratulate the right hon. Gentleman on his statement. My only regret is that it was not made by the Conservative Party 15 years ago. I should like to raise one specific matter. Is the right hon. Gentleman aware that under our present antiquated company law, management and labour are still regarded as commodities to be hired in the market? In the guidance which the right hon. Gentleman gives to the committee, will he ask it to consider the representation of management as well as of labour, in other words, both brains and skill, because it is not easy to draw the precise dividing line between the two when considering industrial enterprise?

I know that the right hon. Gentleman has been a long-established advocate of forms of industrial democracy. I am glad that he, too, has joined other hon. Members in welcoming this move forward. I believe that management representation, on whatever structure of boards or board is agreed, is certainly one of the questions which the committee of inquiry must consider very carefully.

In his statement my right hon. Friend mentioned the fact that industrial democracy had been exercising the minds of three Government Departments. May we now take it that there is to be a co-ordinated approach on this subject and not three Departments going in three different directions? Will he also accept from me that the appointment of workers to boards is not the be-all and end-all of worker participation?

My hon. Friend was absolutely right in his last observation. One of the matters which caused the Government some anxiety was what was the best way to proceed. Certainly no one should underestimate the importance of—if I may put it this way—the sub-board level of industrial democracy, which many people consider to be even more important than representation on the boards themselves.

On the question of the three Departments, I assure my hon. Friend that we have been marching together. We have been one foot after another, or whatever the right phrase is. We have been in close contact and I am not aware of any significant disagreement.

I, too, have long advocated participation in ownership as well as in other matters. Can the right hon. Gentleman tell us whether the committee of inquiry will have written into its terms of reference the question of worker participation and ownership and whether it will have the power to consider some of the fiscal obstacles which at present stand in the way of many schemes which would enable employees of a company to become owners of part of the equity?

It would not be for me to put limits on the scope of the inquiry. If such matters appear to be relevant I am sure that they will be taken up by those concerned. The terms of the inquiry are clearly related mainly to the question of representation on board of directors.

As my right hon. Friend has said that there will be a 12-month time limit on the working party, will he give an undertaking that the study concerning the nationalised industries will be completed at the same time and the conclusions published in the same White Paper?

I cannot give my hon. Friend a binding undertaking on that point, but it is certainly my understanding that the inquiry into nationalised industries will be kept in phase and possibly may be concluded at an earlier date.

I, too, welcome the right hon. Gentleman's statement. Industrial democracy tends to flourish more effectively in those companies and factories where decision-making is integral and less effectively in branch factories, of which we have all too many in Scotland. Does the right hon. Gentleman agree that the best way to stimulate industrial democracy in Scotland is by the creation of indigenously owned and run companies?

I am not sure that I draw the same conclusions as the hon. Gentleman from that train of reasoning. However, I take the point that in considering the question of representation on boards, the problems of companies with substantial numbers of subsidiaries need to be thought out very carefully. Now that we have heard from the hon. Member for Perth and East Perthshire (Mr. Crawford), I point out that I have seldom launched a statement which has received such unanimous and all-party support in the House. May it continue.

Picketing (Amendment)

4.25 p.m.

I beg to move,

That leave be given to bring in a Bill to amend the law in respect of picketing otherwise than in the course of industrial disputes.
It has long been the right of British people to meet, to demonstrate and to protest against abuses whether at home or abroad and to do so in a manner which is peaceable and does not create any risk of a breach of the law. As a result of a deplorable majority decision of the Court of Appeal in the case of Hubbard v. Pitt, which became well known because it involved the picketing of estate agents' offices in Islington, this important safety valve of our society has been largely sealed.

The Bill has no part to play concerning the criminal law, because the criminal law is designed, effectively or otherwise, to deal with the minimum standards required by society in connection with peaceable picketing. The great danger that has been caused by the decision in Hubbard v. Pitt is that a private individual or group of individuals can now go to the court and obtain an injunction to restrain people, on an interim basis until the hearing of a case, from placarding, demonstrating or showing their disgust in any lawful and peaceable way in connection with any kind of complaint. The type of complaints which are normally the subject of demonstrations are extremely well known. They range from protests against Government activity, although not, of course, in connection with this Government, to the behaviour of foreign authorities. The Islington case was a typical example because the people were protesting against changing the nature of an area by the behaviour of particular estate agents. Had the case come to trial it might have been found to be right or wrong. However, the demonstrations were halted in their tracks as could any future demonstrations be halted, so that by the time the case comes to trial which may be in one, two or three years, the purpose of the protest and the cause of the demonstration will have passed.

Briefly, the decision in the case concerned which I seek to have implemented as law is that of Lord Denning. the Master of the Rolls. That will not surprise anyone who knows the views of that very great judge. I am happy to pay tribute to Lord Denning who, although he has been the scourge of law students for a generation, has produced more compassionate, intelligent, and, probably, dissenting judgments than any other judge who has been on the bench this century. He sums up the matter in a paragraph. He referred to the Court of Common Council decision after the demonstration at St. Peter's Fields, Manchester, in 1819 where the court affirmed
"the undoubted right of Englishmen to assemble together for the purpose of deliberating upon public grievances".
Lord Denning then said:
"Such is the right of assembly. So also is the right to meet together, to go in procession, to demonstrate and to protest on matters of public concern. As long as all is done peaceably and in good order, without threats or incitement to violence or obstruction to traffic, it is not prohibited."
He then stressed what he called
"the need for peace and good order"
and said:
"Only too often violence may break out: and then it should be firmly handled and severely punished. But so long as good order is maintained, the right to demonstrate must be preserved."
Lord Denning then quoted from the judgment of Lord Justice Scarman who was asked to recommend after the Red Lion Square disorders that
"a positive right to demonstrate should be enacted".
Lord Justice Scarman said that new law to establish this right was unnecessary:
"The right, of course, exists, subject only to limits required by the need for good order and the passage of traffic".
Finally, Lord Denning, referring to The Sunday Times dispute over thali-domide, said that the committee considered that the issues were
"a legitimate matter for public comment".
The report recognised that it was important to maintain the
"freedom of protest on issues of public concern".
Lord Denning concluded:
"It is time for the courts to recognise this too. They should not interfere by interlocutory injunction with the right to demonstrate and to protest any more than they interfere with the right of free speech; provided that everything is done peaceably and in good order."
This ringing declaration of the duty of the court to protect the right of the individual to demonstrate was overruled by the decision of Lord Denning's two brother judges. The purpose of this Bill is to reinstate that right.

I appreciate that at this stage in the Session the Bill can only be an indication of what I hope will be the unanimous feeling of the House on the matter and that, as a result, it will not be opposed. It will then be an indication to the courts, if the case goes further, and certainly to this House, that, if the law is to be interpreted in the way in which it has been interpreted, that law is bad and must be changed in order that this safety valve for British society may be properly and fully reopened.

Question put and agreed to.

Bill ordered to be brought in by Mr. Greville Janner, Mr. A. W. Stallard, Mr. George Cunningham, Mr. Max Madden, Mr. Marcus Lipton, Mr. Ronald Atkins, Mr. James Lamond, Mrs. Helene Hay-man, Mr. John Watkinson, Mr. Michael Ward and Mr. Arthur Palmer.

Picketing (Amendment)

Mr. Greville Janner accordingly presented a Bill to amend the law in respect of picketing otherwise man in the course of industrial disputes; and the same was read the First time; and ordered to be read a Second time tomorrow and to be printed. [Bill 231.]

Orders Of The Day

Employment Protection Bill

As amended ( in the Standing Committee), further considered.

Clause 22

Right To Guarantee Payment

4.32 p.m.

I beg to move Amendment No. 46, in page 18, line 44, at end insert

"and in consequence is neither paid for that day by his employer nor entitled to be paid by virtue of his contract of employment remuneration at least equal to the remuneration he would have received if he had been provided with work on the whole of that day".

With this we may take Government Amendments Nos. 47, 62, 68 and 129.

When we considered this Bill on Report last week, we made good progress by short speeches not only from both Front Benches but from all parts of the House. It is our intention to continue in the same vein today.

A similar amendment to this was moved in Committee when an undertaking was given by the Minister. I understand that the Government's amendments put into effect that undertaking. However, they do so in a fairly unintelligible fashion, because one has to search through the Bill to discover what is meant, whereas our wording is straightforward and simple. That is the way of legislators. If the end result is the same, I imagine that I shall seek leave to withdraw the amendment, having established that the Government's amendments serve the purpose that we have in mind.

The phrases "short speeches" and "good progress" sound like an oasis at the end of a desert. I shall certainly wish to fit in with that spirit.

The Government's amendments propose to do what the Opposition intended to do but what strictly their amendment does not do. The effect of the Government's amendments is that the five guarantee days would run concurrently with any contractual entitlement. The effect, though not the intention, of Amendment No. 46 is that the guarantee days would run consecutively. I am sure that the Government's amendments achieve what the Opposition want. I am glad that I have been able to make my speech so short.

Amendment, by leave, withdrawn.

Amendment made: No. 47, in page 19, line 1, after "shall", insert

" "subject to the following provisions of this Act,".—[Mr. John Fraser.]

Clause 23

General Exclusions From Right Under Section 22

I beg to move Amendment No. 48, in page 19, line 23, at end insert:

'or a trade dispute in a nationalised industry'.
We had a long discussion on this clause and on similar amendments in Committee. The purpose of the amendment is to ensure that employers who are completely helpless to stop crippling industrial action in the public sector should not be forced to make guarantee payments due to short-time working caused by that action.

We have had many examples of this problem in recent years. The legislation, as it stands, would mean that in the event of, say, a national rail strike, a partial or total shutdown of power caused by a dispute in the coal mines, the gas or electricity supply industries, an employer in a totally unrelated industry, who is not a party to the dispute and has no say in the negotiations but is already suffering from lost orders and production, would have to make guarantee payments to his employees although, through no fault of his own, he has no work for them. This seems monstrously unfair.

This is yet another instance where this legislation, in attempting to help work people, may stop the best provision being made. By imposing uniform statutory requirements, it will hinder voluntary negotiations which are already undertaken in many industries to make guaranteed weekly payments appropriate to their circumstances.

The Opposition have always argued that if collective bargaining means anything at all, it certainly means bargaining about this kind of issue and that it is better left to negotiations conducted between employers and unions. But if, on occasions such as these, there is to be an obligation falling on employers, we believe that it will be more suitable if the State is made responsible for these matters. The State, through the social security system, should foot the bill.

This is another instance where the onus has been placed on employers at a time when they cannot afford this kind of imposition. The Financial Times, in a leading article some weeks ago, reported:
"If the economy were expanding, with business in a confident mood and price rises well under control, the case for implementing measures of this kind would be extremely strong; the only reasonable argument in such circumstances could be about whether they should be introduced piecemeal in response to collective bargaining procedures, or as a wholesale legislative package. In present circumstances the argument must be about their contribution to inflation; if the economy is forced by law to swallow all this at one go its present malaise may be worsened."
We believe that it would be better and more suitable if the negotiations which are already carried out between unions and employers were allowed to continue. We also believe that where a strike takes place or there is a dispute in a nationally owned industry the State, being the employer, should foot the bill for the guaranteed weekly payments. It is monstrously unfair to put this additional imposition arbitrarily and by statute on employers at a time when they are already facing considerable difficulties in trying to control inflation and keep employment going. Therefore, we have tabled this amendment. It follows closely the powerful argument which we deployed in Committee.

The right hon. Gentleman's arguments seem to be about the principle of guarantee payments and not about whether such payments should be paid when a dispute flows from a disruption in a nationalised industry. The argument on principle was discussed on Second Reading and at great length in Committee. I must say to the right hon. Gentleman that on the general principle we must agree to differ. We believe that it is right to make the advances in terms of guarantee payments to workers that are provided in the Bill. The right hon. Gentleman may disagree about that, but that is the matter which has been discussed. I think that the principle has already been decided upon.

I turn to the particularity of the amendment. If the amendment were accepted it would have a number of effects which would be illogical and unjustifiable. The reference to nationalised industries is a discriminatory reference which cannot possibly be supported. On the basis of the amendment, if someone's works were disrupted because of a dispute at British Leyland, the people outside who would lose a day's work as a result would receive no benefit. However, if the dispute were to take place at Chryslers, other workers would receive benefit. If there were a dispute at a nationalised steel mill there would be no benefit for those disrupted, but benefit would be payable if the dispute were to take place at a private foundry or mill. If there were a dispute at British Airways benefit would be denied, but if there were a dispute at British Caledonian Airways it would be available. I believe that that is illogical and an unjustifiable distinction.

The amendment would mean that whether someone received guarantee payment would be decided on capricious and illogical grounds. I submit that there is no case for drawing a distinction between disputes in nationalised industries and disputes outside. Further, the amount of benefit that may be paid amounts to no more than five days in one period of three months. We are not imposing an intolerable burden on employers.

The amendment would introduce discrimination in another way, in that it would deny to workers by hand the sort of benefits that have traditionally been enjoyed by workers by brain for many years in the past. The amendment is discriminatory as to the cause of the dispute and the persons who will be denied benefit. I ask the House to reject the amendment.

Briefly I take issue with the Minister on whether it is illogical to discriminate against the nationalised industries. Clearly those industries are apart from the rest of the economy in two important respects. The first respect is that they command a monopoly of vital services. The second respect, which we have seen in recent months, is the extent to which pay and conditions in the nationalised industries have borne no relation to the market place. So long as those who work in the nationalised industries believe that the taxpayer is there to foot the bill, they will have to be regarded as different from the rest of industry. Unfortunately, we are beginning to see the effect of wage increases which have far outstripped productivity. Employment, and the prospects of employment, depends upon the forces of the market place coming far more into the reckoning of the Government than has been the case.

As my right hon. Friend has said, throughout the Bill we have seen provisions which are to be welcomed in terms of improving conditions for employees, but at the same time we have seen the Government's failure to recognise the many different burdens placed on employers at a time when they are unable to discharge them. If we consider what happens in the rest of Europe, it is clear that the principle of guarantee pay does not fall on the employer to the extent that is mooted in the Bill. In certain European countries provision is made for strikes in the nationalised industries—

I return to the point that the hon. Gentleman made about the nationalised industries being monopolies. He suggested that nationalised industries are always in monopoly positions, but is that true? Is it not true that there are privately-owned companies which are in monopoly positions?

I would not seek to argue that every nationalised industry is a monopoly, but I think we are all aware of crucial services that are monopolies. The withdrawal of those services places individual employers in a position in which they cannot carry on their businesses.

My point was that we cannot draw a distinction in terms of monopolies and equate monopolies with nationalised industries.

The point I was seeking to argue was that if monopoly situations are allowed to operate without the normal sanctions of the market applying, there is created a separate and privileged position. Therefore, if people go on strike in that situation they are in a somewhat different position from people who go on strike in a commercial enterprise. So long as the position remains that the Government will foot whatever deficit results at the end of the day, that position will continue.

I return to the point I was making about the position in Europe. It is accepted throughout Europe that guarantee pay is something that should be offered. On the other hand, there is no country in Europe which seeks to operate a system which is so prejudicial to the employer as that which is proposed in the Bill.

4.45 p.m.

I am sorry that the Minister has not been forthcoming, but I am not altogether surprised. As he said, this is ground that we debated, albeit in a slightly different context, in Committee. Quite clearly there was a major difference between both sides of the Committee which has been reflected in this short debate.

We feel that there is unfairness and inadequacy in the present wording of the Bill. When an industrial dispute, a strike, takes place—in some circumstances, a lockout, as the Minister pointed out in Committee—which has nothing to do with a particular employer except that it involves his own work force, and when that work force is laid off, the Bill gives those workers an entitlement to some guarantee pay, and the employer who is the innocent party has to make that guarantee payment. We think that that is an unfairness, and that the innocent employer should be excused from making such payment when the lay-off is being caused by the activities of others.

Division No. 323.]

AYES

[4. 50 p.m.

Aitken, JonathanBoscawen, Hon RobertClark, Alan (Plymouth, Sutton)
Alison, MichaelBottomley, PeterClark, William (Croydon S)
Arnold, TomBraine, Sir BernardCockcroft, John
Atkins, Rt Hon H. (Spelthorne)Brittan, LeonCooke, Robert (Bristol w)
Baker, KennethBrotherton, MichaelCope, John
Banks, RobertBrown, Sir Edward (Bath)Cordle, John H.
Berry, Hon AnthonyBuchanan-Smith, AlickCormack, Patrick
Biggs-Davison, JohnBuck, AntonyCorrie, John
Blaker, PeterBulmer, EsmondCraig, Rt Hon W. (Belfast E)
Body, RichardCarr, Rt Hon RobertCritchley, Julian

Let us take a case under the Remuneration, Charges and Grants Bill. Let us suppose that the maximum or flat-rate increase of £6 leads to industrial action and that there is an attempt to try to break that policy. Such a situation could lead to many workers being laid off in many undertakings. We would then find that employers would be having to make guarantee payments because of action by another group of workers opposed to the Government's policy of trying to overcome inflation. That is a curious and convoluted way of looking at affairs.

The purpose of our debates in Committee and in this debate today has been to draw attention to what we think is an unfairness. Of course, we do not stand by the precise details of the words of our amendment, and we recognised that it was possible to make the sort of debating point that was made by the Minister. However, we hoped that the Minister recognised the underlying serious nature of the feeling of many employers, including the many people who run small businesses, that this legislation is placing upon them an additional burden, a burden which will mean that their costs will be increased by the activities of others over whom they have no control.

We would not press our amendment to the vote if we had an indication from the Government that they were prepared to meet what we believe is our legitimate point of view. However, as we have had no such indication, I must advise my right hon. and hon. Friends to divide the House on this matter. We are dividing on the principle of the matter. We accept the inadequacies of the wording of the amendment but because there is such a basic unfairness in the legislation we feel that we should divide on the point.

Question put, That the amendment be made:—

The House divided: Ayes 170, Noes 237.

Dean, Paul (N Somerset)Lane, DavidRees, Peter (Dover & Deal)
Douglas-Hamilton, Lord JamesLatham, Michael (Melton)Rees-Davies, W. R.
Drayson, BurnabyLawrence, IvanRenton, Rt Hon Sir D. (Hunts)
Eden, Rt Hon Sir JohnLawson, NigelRenton, Tim (Mid-Sussex)
Edwards, Nicholas (Pembroke)Le Marchant, SpencerRhys Williams, Sir Brandon
Elliott, Sir WilliamLester, Jim (Beeston)Ridley, Hon Nicholas
Eyre, ReginaldLuce, RichardRifkind, Malcolm
Fairgrieve, RussellMcAdden, Sir StephenRoberts, Michael (Cardiff NW)
Farr, JohnMacfarlane, NeilRoberts, Wyn (Conway)
Fell, AnthonyMacGregor, JohnRodgers, Sir John (Sevenoaks)
Finsberg, GeoffreyMacmillan, Rt Hon M. (Farnham)Rossi, Hugh (Hornsey)
Fisher, Sir NigelMcNair-Wilson, M. (Newbury)Rost, Peter (SE Derbyshire)
Fletcher, Alex (Edinburgh N)Madel, DavidSt. John-Stevas, Norman
Fletcher-Cooke, CharlesMarshall, Michael (Arundel)Shaw, Giles (Pudsey)
Fookes, Miss JanetMarten, NeilShelton, William (Streatham)
Fowler, Norman (Sutton C'f'd)Mates, MichaelShepherd, Colin
Fry, PeterMather, CarolSilvester, Fred
Gardiner, George (Reigate)Maude, AngusSims, Roger
Gardner, Edward (S Fylde)Maudling, Rt Hon ReginaldSinclair, Sir George
Gilmour, Rt Hon Ian (Chesham)Mawby, RaySkeet, T. H. H.
Glyn, Dr AlanMaxwell-Hyslop, RobinSmith, Dudley (Warwick)
Godber, Rt Hon JosephMayhew, PatrickSpeed, Keith
Goodlad, AlastairMeyer, Sir AnthonySpence, John
Gray, HamishMiller, Hal (Bromsgrove)Sproat, Iain
Griffiths, EldonMitchell, David (Basingstoke)Stainton, Keith
Grist, IanMoate, RogerStanbrook, Ivor
Hall-Davis, A. G. F.Monro, HectorStanley, John
Hamilton, Michael (Salisbury)Montgomery, FergusSteen, Anthony (Wavertree)
Hampson, Dr KeithMoore, John (Croydon C)Stradling Thomas, J.
Harrison, Col Sir Harwood (Eye)More, Jasper (Ludlow)Tebbit, Norman
Hastings, StephenMorris, Michael (Northampton S)Temple-Morris, Peter
Hawkins, PaulMorrison, Charles (Devizes)Townsend, Cyril D.
Hayhoe, BarneyMorrison, Hon Peter (Chester)Trotter, Neville
Holland, PhilipMudd, DavidTugendhat, Christopher
Howe, Rt Hon Sir GeoffreyNelson, Anthonyvan Straubenzee, W. R.
Howell, David (Guildford)Neubert, MichaelVaughan, Dr Gerard
Hunt, JohnNewton, TonyViggers, Peter
Hurd, DouglasNormanton, TomWall, Patrick
Irvine, Bryant Godman (Rye)Page, John (Harrow West)Warren, Kenneth
Irving, Charles (Cheltenham)Page, Rt Hon R. Graham (Crosby)Weatherill, Bernard
Jenkins, Hugh (Putney)Parkinson, CecilWhitelaw, Rt Hon William
Jessel, TobyPattie, GeoffreyWood, Rt Hon Richard
Percival, Ian
Johnson Smith, G. (E Grinstead)Peyton, Rt Hon JohnYoung, Sir G. (Ealing, Acton)
Kershaw, AnthonyPrice, David (Eastleigh)
Kimball, MarcusPrior, Rt Hon JamesTELLERS FOR THE AYES:
King, Tom (Bridgwater)Pym, Rt Hon FrancisMr. Adam Butler and
Kirk, PeterRaison, TimothyMr. W. Benyon.
Lamont, NormanRathbone, Tim

NOES

Allaun, FrankCorbett, RobinFaulds, Andrew
Anderson, DonaldCraigen, J. M. (Maryhill)Fitch, Alan (Wigan)
Archer, PeterCrawford, DouglasFlannery, Martin
Armstrong, ErnestCrawshaw, RichardFletcher, Raymond (llkeston)
Ashton, JoeCrosland, Rt Hon AnthonyFletcher, Ted (Darlingon)
Atkins, Ronald (Preston N)Cunningham, Dr J. (Whiteh)Foot, Rt Hon Michael
Atkinson, NormanDalyell, TamForrester, John
Bagier, Gordon A. T.Davidson, ArthurFowler, Gerald (The Wrekin)
Bain, Mrs MargaretDavles, Bryan (Enfield N)Fraser, John (Lambeth, N'w'd)
Bates, AltDavies, Denzil (Llanelli)Freeson, Reginald
Beith, A. J.Davis, Clinton (Hackney C)Freud, Clement
Benn, Rt Hon Anthony WedgwoodDeakins, EricGarrett, John (Norwich S)
Bennett, Andrew (Stockport N)Dean, Joseph (Leeds West)Garrett, W. E. (Wallsend)
Bidwell, Sydneyde Freitas, Rt Hon Sir GeoffreyGilbert, Dr John
Bishop, E. S.Delargy, HughGinsburg, David
Booth, AlbertDell, Rt Hon EdmundGould, Bryan
Boothroyd, Miss BettyDempsey, JamesGourlay, Harry
Bottomley, Rt Hon ArthurDormand, J. D.Graham, Ted
Boyden, James (Bish Auck)Douglas-Mann, BruceGrant, George (Morpeth)
Bradley, TomDuffy, A. E. P.Grimond, Rt Hon J.
Brown, Hugh D. (Provan)Dunn, James A.Grocott Bruce
Buchanan, RichardDunnett, JackHamilton, W. W. (Central Fife)
Callaghan, Jim (Middleton & P)Eadie, AlexHardy, Peter
Cant, R. B.Edelman, MauriceHarper, Joseph
Carter-Jones, LewisEdge, GeoffHarrison, Walter (Wakefleld)
Cartwright, JohnEdwards, Robert (Wolv SE)Hatton, Frank
Clemitson, IvorEllis, Tom (Wrexham)Hayman, Mrs Helene
Cocks, Michael (Bristol S)English, MichaelHeffer, Eric S
Cohen, StanleyEnnals, DavidHenderson, Douglas
Coleman, DonaldEvans, Ioan (Aberdare)Hooley, Frank
Conlan, BernardEvans, John (Newton)Hooson, Emlyn
Cook, Robin F. (Edin C)Ewing, Harry (Stirling)Horam, John

Howell, Denis (B'ham, Sm H)Mendelson, JohnSmall, William
Hoyle, Doug (Nelson)Mikardo, IanSmith, Cyril (Rochdale)
Huckfield, LesMillan, BruceSmith, John (N Lanarkshire)
Hughes, Rt Hon C. (Anglesey)Miller, Dr M. S. (E Kilbride)Snape, Peter
Hughes, Mark (Durham)Miller, Mrs Millie (Ilford N)Spearing, Nigel
Hughes, Robert (Aberdeen N)Mitchell, R. C. (Soton, Itchen)Spriggs, Leslie
Hughes, Roy (Newport)Molloy, WilliamStallard, A. W.
Hunter, AdamMorris, Charles R. (Openshaw)Stewart, Donald (Western Isles)
Irvine, Rt Hon Sir A. (Edge Hill)Moyle, RolandStewart, Rt Hon M. (Fulham)
Irving, Rt Hon S. (Dartford)Mulley, Rt Hon FrederickStoddart, David
Jackson, Colin (Brighouse)Murray, Rt Hon Ronald KingSummerskill, Hon Dr Shirley
Janner, GrevilleNewens, StanleySwain, Thomas
Jay, Rt Hon DouglasNoble, MikeTaylor, Mrs Ann (Bolton W)
Jenkins, Hugh (Putney)O'Malley, Rt Hon BrianThomas, Mike (Newcastle E)
Johnson, James (Hull West)Orbach, MauriceThomas, Ron (Bristol NW)
Johnson, Walter (Derby S)Ovenden, JohnTinn, James
Johnston, Russell (Inverness)Palmer, ArthurTorney, Tom
Jones, Barry (East Flint)Pardoe, JohnTuck, Raphael
Jones, Dan (Burnley)Park, GeorgeUrwin, T. W.
Judd, FrankParker, JohnWainwright, Edwin (Dearne V)
Kelley, RichardParry, RobertWalden, Brian (B'ham, L'dyw'd)
Kerr, RussellPavitt, LaurieWalker, Harold (Doncaster)
Kilroy-Silk, RobertPeart, Rt Hon FredWalker, Terry (Kingswood)
Lamborn, HarryPendry, TomWard, Michael
Lamond, JamesPenhaligon, DavidWatkins, David
Latham, Arthur (Paddington)Phipps, Dr ColinWatkinson, John
Lewis, Arthur (Newham N)Prescott, JohnWatt, Hamish
Lewis, Ron (Carlisle)Price, C. (Lewisham W)Weitzman, David
Lipton, MarcusPrice, William (Rugby)Welsh, Andrew
Litterick, TomRadice, GilesWhite, Frank R. (Bury)
Loyden, EddieRichardson, Miss JoWhite, James (Pollok)
Luard, EvanRoberts, Albert (Normanton)Whitehead, Phillip
Lyon, Alexander (York)Roberts, Gwilym (Cannock)Whitlock, William
Lyons, Edward (Bradford W)Robertson, John (Paisley)Williams, Alan (Swansea W)
McCartney, HughRodgers, George (Chorley)Williams, Alan Lee (Hornch'ch)
MacCormick, IainRooker, J. W.Williams, Rt Hon Shirley (Hertford)
MacFarquhar, RoderickRoper, JohnWilson, Alexander (Hamilton)
Maclennan, RobertRoss, Stephen (Isle of Wight)Wilson, William (Coventry SE)
McMillan, Tom (Glasgow C)Sandelson, NevilleWise, Mrs Audrey
Madden, MaxSedgemore, BrianWoodall, Alec
Magee, BryanShaw, Arnold (Ilford South)Woof, Robert
Mahon, SimonSheldon, Robert (Ashton-u-Lyne)Wrigglesworth, Ian
Marks, KennethShort, Rt Hon E. (Newcastle C)Young, David (Bolton E)
Marquand, DavidShort, Mrs Renée (Wolv NE)
Marshall, Dr Edmund (Goole)Silkin, Rt Hon S. C. (Dulwich)TELLERS FOR THE NOES:
Marshall, Jim (Leicester S)Sillers, JamesMr. James Hamilton and
Maynard, Miss JoanSilverman, JuliusMiss Margaret Jackson.
Mellish, Rt Hon RobertSkinner, Dennis

Question accordingly negatived.

Clause 25

Limits On Amount Of And Entitlement To Guarantee Payment

5 p.m.

I beg to move Amendment No. 49, in page 20, line 43, at end insert:

' and the amount of guarantee payment payable to an employee in respect of any one week shall not exceed the amount which when added to any earnings in respect of any work actually done during that week, equals that employee's week's pay, which shall be calculated by applying the provisions of Part II of Schedule 3 to this Act'.
The object of the amendment is to ensure that in the operation of a guaranteed payments system as outlined in these clauses an individual employee will not end up with more money as a result of their operation than he would receive for normal full-time working for a normal week.

We debated this matter at length in Committee, and the Minister assured the Committee that he would seek to meet what he accepted to be the reasonable arguments that the Opposition made. He concluded his remarks by saying:
"However, I shall look at this question again and try to find some way of dealing with it on Report, so that we can introduce a guaranteed safeguard element for the week without introducing these enormous complications and difficulties."—[Official Report, Standing Committee F, 19th June 1975; c. 605–6.]
We recognise that there are difficulties in trying to cover these eventualities in the legislation, but we think that some effort should be made to do so. However, the Opposition's drafting does not necessarily achieve all that we would wish, and it may have some wholly unintentional damaging consequences. So by putting down this amendment again we hope that further assurances will be forthcoming from the Minister, since clearly he has been unable to find a way to achieve this during the interval between our discussion in Committee on 19th June and today, that perhaps during the Summer Recess his experts and officials may be able to come up with a formulation of words which can be considered in another place.

I appreciate the tone in which the hon. Member for Brentford and Isleworth (Mr. Hayhoe) introduced the amendment. My hon. Friends and I have considered this matter, but without coming to a conclusion that the Bill should be amended. Therefore, I am afraid that I cannot give any assurance that an amendment to meet the hon. Gentleman's points will be introduced in another place.

The essence of the problem is to decide what is the simplest and most effective scheme both from the point of view of the employee who ought to be able to understand what he is entitled to and from that of employers who have to administer the scheme. We have come to the conclusion that it should be a scheme based on a daily entitlement. To introduce a ceiling on guarantee pay plus earnings in a week would virtually mean grafting a weekly guarantee on to a daily scheme. The mixture of the two would produce inordinate complexities, and we have not been able to find any solution that would not mean that the cure was worse than the disease.

The chief difficulty lies in the way it would complicate entitlement rules. A weekly ceiling such as is proposed could mean in a particular case that an employee got only, say, £1 or £2 for a day's layoff. Should this day count against his five days? Obviously it would be grossly unfair if it did, for other employees would be getting £6 for each of their five days. It is when we try to get over this difficulty that we come up against the horrifying complications that I have already mentioned.

My impression in discussing this Bill with employers and with representatives of the CBI is that the general feeling outside this House is that our legislation should be simple to understand for the benefit of those who have to implement it. They cry out against undue complications in legislation. If we tried to graft a weekly limit on to a daily entitlement, we would create complications with which they would find it extremely difficult to live.

We have a choice between a simple comprehensible scheme based on practical experience and of trying to devise one based more on anomalies and perhaps flights of imagination than typical circumstances. Weighing up the two, we feel that it is better to have a simple, comprehensible scheme.

It is not impossible to conceive of a situation where an employee works extremely hard and puts in extra effort for, say, four days a week not knowing that on the fifth day a boiler will explode or that some event will take place denying him a fifth day's work. In those circumstances, it would be unfair to penalise him by reducing the daily entitlement for the fifth day.

We have looked at this carefully, but I am afraid that the cure may be worse than the disease. Therefore, with the assurance that we have looked at this proposal carefully, I hope that the Opposition will feel able to withdraw their amendment.

The hon. Gentleman's comments about extra effort are important, and they were made by my right hon. Friend the Member for Lowestoft (Mr. Prior) when he introduced this amendment originally in Committee. We recognise that there are difficulties in seeking to cover all these possibilities by legislation.

The plea of the Under-Secretary for simplicity is echoed on the Opposition benches. It comes ill from a Minister sponsoring a Bill of unparalleled complexity to argue for simplicity as we move through this rich quarry of unintelligible legal jargon. However, perhaps I should not touch upon these wider questions at this stage, especially when we are making such good progress.

Obviously it will be open to interested associations and organisations outside which are following our proceedings with care to make further representations to the Minister between now and the Committee stage in the other place, and, if a formulation of words which has the advantage of simplicity and fairness can be produced, I am sure that the Ministers will not shut their minds to it.

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 26

Supplementary

I beg to move Amendment No. 51, in page 22, line 19, leave out from beginning to 'as' and insert:

'sections 22(2), 24 and 25(3) above'.

We are to discuss at the same time Amendment No. 52, in page 22, line 19, leave out from 'sections' to 'above' in line 21 and insert '22(2) and 24'.

The Government amendment provides that the Secretary of State's power to modify the guarantee payments scheme will not cover the basic entitlement, grounds for exclusion and so forth, but will be limited to the practical rules in Clause 22, on allocation of a night shift, Clause 24, on method of calculating the payment, and Clause 25(3), which contains the provisions for calculating guarantee entitlement. I hope that this meets the points made in Committee, and Amendment No. 52 tabled by the Opposition.

Yes, the Government amendment meets the points that we made in Committee and sought to make in Amendment No. 52. We are happy to support it.

Amendment agreed to.

Clause 28

Exemption Orders

I beg to move Amendment No. 53, in page 22, line 41, at end insert ', or a wages order'.

With this amendment we are to discuss Amendment No. 54, in page 22, line 41, at end insert 'or Wages Council Orders', and Government Amendments Nos. 55, 56, 58, 59 and 60.

In Committee, the Opposition tabled an amendment which would have added the words "or Wages Council Order" so that the Secretary of State's power of exemption would extend to employees covered by such orders. The principle was accepted, but it was obvious that a number of consequential amendments would be required.

It is generally agreed that the powers of exemption should be extended to cover employees in wages council industries or SJICs. There is no reason why these categories should be treated any less favourably than those in other areas of employment. We have consulted the Ministry of Agriculture and the Department of Agriculture and Fisheries in Scotland which have told us that orders of the Agricultural Wages Board in England, Wales and Scotland should also be covered. I hope that this deals with the Opposition points made in Committee.