Written Answers To Questions
Friday 4th November 1977
Employment
Job Release Scheme
the Secretary of State for Employment when the rules of the extended Job Release Scheme will be available.
The rules of the scheme for the extended period from 1st July 1977 to 31st March 1978 have now been produced and I have arranged for a copy to be placed in the library.
Factory Inspectorate
asked the Secretary of State for Employment what is the total strength of the Factories and other Inspectorates: what was that strength on any convenient date in each of the past five years ; and what proposals he has for future strengthening of the Inspectorate.
pursuant to his reply [Official Report, 26th October 1977 ; Vol. 936, c. 886], gave the following information:I am informed by the Chairman of the Health and Safety Commission that at 1st October 1977 the total strength of the Factory and other Inspectorates— Agricultural, Alkali and Clean Air, Explosives, Mines and Quarries, Nuclear Installations— in HSE, including inspectors and administrative support staff, was 2,348.It is not possible to produce comparable statistics for the past five years. The HSE was established in 1975 with elements from a number of Departments. and has since been enlarged by the inclusion of the Agricultural Inspectorate.The Factory and other Inspectorates— Agricultural, Alkali and Clean Air, Explosives, Mines and Quarries, Nuclear Installations—are planned to increase to about 2,750 inspectors and administrative support staff to meet the anticipated work load over the next three years or so.
Home Department
Fire Services (Pay Claim)
asked the Secretary of State for the Home Department what guidance the Government have given to the Employers' Side of the National Joint Council for Local Authorities' Fire Brigades about the fire service pay claim.
The Government have informed the Employers' Side that they expect to see any pay settlement for the Fire Service with effect from 7th November 1977 negotiated within the limits of the Government's guidelines on pay.The Government recognise that there is a long-standing claim for a reduction in the 48-hour working week of the Fire Service and would now be prepared for a reduction in working hours to be negotiated. The reduction could not be implemented before the autumn of 1978, although preparations could begin before then. Detailed arrangements on costs and other aspects of the reduction would be matters for negotiation.The Government recognise the need to establish a formula for determining Fire Service pay. The Government welcome the fact that the National Joint Council is seeking through established negotiating procedures to achieve this. The Government are following closely discussion on this subject in the NJC, but the phasing of any further pay increase will have to be considered in the light of circumstances prevailing at the time.I understand that on 3rd November 1977 the Employers' Side of the National Joint Council made an offer of 10 per cent. in earnings as from 7th November 1977 and agreed to continue negotiations about a reduction in working hours and establishing a formula for determining Fire Service pay.
Legal Fees
Lewis asked the Attorney-General whether he will publish in the Official Reportas much detailed information as may be available showing to what extent since October 1974 those connected with the legal profession have observed the various Government restrictions on incomes and whether he will publish figures showing actual or estimated payments which show that the restrictions on incomes have been observed by the legal profession.
Detailed information is not available but I would refer my hon. Friend to my replies to him on. 28th July 1977. —[Vol. 936, c. 437.) The Government will continue to apply their general policy on prices and pay to any proposals that may be made for increases in the remuneration of lawyers.
National Finance
Estate Duty
asked the Chancellor of the Exchequer if any further objects have recently been accepted in lieu of estate duty.
Yes, a number of mediaeval ivories have been accepted under the provisions of Section 34 of the Finance Act 1956. The total cost borne by the National Land Fund after allowing for exemption from estate duty and capital gains tax is £331,100.The Minister responsible for the Arts will announce the destination of these items in due course after taking advice from the Standing Commission on Museums and Galleries.
Government Contracts (Report)
asked the Chancellor of the Exchequer whether he has yet received from the Review Board for Government Contracts its Report on the Second General Review of the Profit Formula for Non-Competitive Government Contracts ; and, if so, what decisions the Government have reached.
The Report was submitted to the Government on 15th July 1977 and a copy has been placed in the Library. The Report formed the basis of discussions with the Confederation of British Industry, which have now been completed. Both the Government and the CBI have agreed to accept all the Board's recommendations. The agreement has been formalised by an exchange of letters with the President of the CBI. The texts of the letters are as follows:
From the Chief Secretary to Lord Watkinson, 4 October 1977.
REPORT ON THE SECOND GENERAL REVIEW OF THE PROFIT FORMULA FOR NON- COMPETITIVE GOVERNMENT CONTRACTS
This report by the Review Board for Government Contracts was submitted to us by the Chairman on 15 July 1977, as provided in paragraph 24 of the 1968 Memorandum of Agreement between the Government and the CBI.
Discussions on the report between Government officials and CBI representatives have now been completed. In the light of these, I write to you to propose that the arrangements put forward by the Board for consideration by us both should be accepted as they stand. The main features of the arrangements are set out in the Annex to this letter.
If you agree with the arrangements incorporated in the report, I propose that they be implemented with effect from 1 October 1977. The revised arrangements would then apply to:
The report makes various comments and recommendations which will require full co-operation between Departments placing noncompetitive contracts and the contractors who carry them out. In particular I attach importance to the implementation of the proposals in the document "Working Guidelines for the Pricing of Non-Competitive Risk Contracts" (General Notice to Defence Contractors No. 4 refers); to the increased use of budgeted or forecast information for determining the cost of production to capital employed (CP/CE) ratios relevant to the periods when contract work will be carried out; and to the establishment, wherever practicable, of CP/CE) ratios for relevant units or divisions of companies. Regard should be had to the need to avoid undue delay in pricing contracts as a consequence of implementing these proposals.
I also welcome the Board's recommendation that, where there is genuine difficulty in classifying a contract at the outset as between risk and non-risk, the contract should by agreement be placed on a non-risk basis but with a specific statement of the intention to introduce incentive pricing at an agreed stage. I accept that cases where this arrangement might be appropriate would be exceptional.
I should be grateful for your assurance that the CHI attach the same importance to both sides co-operating in the manner recommended by the Board as I do, and will use its best endeavours to this end.
ANNEX
NON-COMPETITIVE GOVERNMENT CONTRACTS PROFIT FORMULA
New profit formula arrangements will take effect from 1st October 1977 and will then apply to:
The new arrangements will not necessarily apply for a full three-year period. The Review Board for Government Contracts will be invited to carry out an interim review, the date and terms of reference for which shall be determined by agreement between the Government and the CBI, after consultation with the Board.
3. The new arrangements will be as follows:
4. The new profit rates to be used to give effect to 3 above will be:
Risk work
14 per cent. on capital employed plus 4 per cent. on cost ; on the basis of the CP/CE ratio of 2·25 to 1, this provides an average return on capital employed of 23 per cent.
Non-risk work
1175 per cent. on capital employed plus (i)075 per cent. on cost, and (ii) up to a further 3 per cent. on cost for efficiency (1·5 per cent. being the assumed average addition) on the basis of the CP/CE ratio of 2725 to 1, this provides an average return on capital employed of 16 per cent.
5. For target cost contracts which include a minimum profit provision, the target profit rate shall be negotiated between the parties within the range of the risk and non-risk rates.
6. In exceptional cases where it is accepted that there is genuine difficulty in classifying a contract at the outset as between risk and non-risk, the contract shall, by agreement, be placed initially on a non-risk basis but with a specific statement of intention to introduce incentive pricing at an agreed stage of the contract.
7. For contracts and sub-contracts to which the new profit formula rates at 4 above apply and where the CP/CE ratio does not exceed 3 to I, the reference points stated in paragraphs 16 of the Memorandum of Agreement become respectively 3775 per cent. profit on capital employed and 475 per cent. loss on capital employed.
8. For contracts and sub-contracts to which the new profit formula rates at 4 above apply, and where the CP/CE ratio is greater than 3 to 1, the reference points are defined in terms of a return on cost of production, and become, respectively, 1275 per cent. profit on cost and 175 per cent. loss on cost.
NOTE:
These arrangements are set out in full in the Review Board's "Report of the Second General Review of the Profit Formula for Non-Competitive Government Contracts" of 15th July 1977, published by Her Majesty's Stationery Office in August.
LORD WATKINSON'S REPLY OF 7TH OCTOBER 1977
Report on the Second Genera! Review of the Profit Formula for Non-competitive Government Contracts
Thank you for your letter of 4th October. I confirm that the CBI is prepared to accept and to recommend to CBI member firms and trade associations the revised arrangements as put forward by the Review Board for Government Contracts in their "Report on the Second General Review of the Profit Formula for Non-Competitive Government Contracts" dated 15th July 1977. The main features of the arrangements are set out in the Annex to your letter.
The revised arrangements will, as indicated in paragraph 3 of your letter, be implemented with effect from 1st October 1977. The CBI accepts the importance of the Board's proposals set out in paragraph 4 of your letter, and the need for full co-operation between the Departments and contractors concerned to implement these proposals. The CBI will use its best endeavours to this end. I agree that your letter of 4th October 1977 and my reply should form an agreement between us.
Secretary Of State For Wales
asked the Prime Minister what plans he has to transfer additional functions in respect of education to the Secretary of State for Wales.
I have decided to transfer to my right hon. and learned Friend the Secretary of State for Wales responsibility in the Principality for all non-university institutions of higher and further education; public libraries; the youth and community services; and adult education. My right hon. Friend the Secretary of State for Education and Science will continue to exercise responsibility as at present for the University of Wales; the Research Councils; mandatory and postgraduate awards to students; and the pay, superannuation, qualifications, probation and medical fitness of teachers and cases of teachers' misconduct.The new arrangements will make it easier to take account, as appropriate, of the special needs and circumstances of Wales, but both Secretaries of State will work closely together on the full range of functions now being transferred, as on those already transferred.The educational and library interests will be consulted about the details of the implementation of the transfer and a Transfer of Functions Order will then be laid before Parliament. I envisage that it will come into effect on lst April 1978 or as soon as possible thereafter.
Environment
Sport And Recreation
asked the Secretary of State for the Environment what progress has been made with the series of leisure experiments set up in 1973 in Stoke-on-Trent, Sunderland, Dumbarton and part of Clwyd.
The report of a central steering group of officials entitled "Leisure and the Quality of Life" was published on 27th September by Her Majesty's Stationery Office. Volume 1 describes and evaluates the experiments which were jointly sponsored by my Department, the Department of Education and Science, the Scottish Education Department and the Welsh Office in association with the Arts Council of Great Britain— including the Scottish and Welsh Arts Councils— and the Sports Councils. Volume 2 contains detailed supporting papers. Copies of both volumes have been placed in the Library. The experiments themselves were carried out by local groups, set up by the local authorities in partnership with local and regional arts and sports organisations and actively involving many voluntary organisations and individuals from the communities concerned. I intend that the findings of the report, particularly the importance of greater community involvement in the regeneration of urban areas, will be among the subjects discussed at a series of regional conferences on sport and recreation that I am arranging.
asked the Secretary of State for the Environment when he intends to publish the study on "Recreation and Deprivation in Inner Urban Areas."
The study was published on 2nd November. It was commissioned jointly by myself, the Chairmen and Directors of the Government Agencies concerned with recreation and the representatives of the local authority associations, and was carried out by a research worker in my Department. A copy of the report has been placed in the Library. The study is a research document, not a statement of Government policy. It examines the effect of policies for sport and recreation on opportunities for deprived groups in our inner city areas. Its findings will he among the subjects discussed at a series of conferences to be organised by the Regional Councils for Sport and Recreation in the first half of next year.
Transport
European Community Transport Council Meeting
asked the Secretary of State for Transport what decisions were made at the meeting of the EEC Council of Transport Ministers which was held in Luxembourg on 27th October; and if he will make a statement.
I reported to the House on 1st July that at the meeting of the last Transport Council in June, the item of greatest immediate importance to the United Kingdom was the proposal to amend EEC Regulation 543/69 on bus and lorry drivers' hours of work. At that meeting it had proved impossible to agree to a package of amendments including the staged introduction of the regulation for domestic traffic in the United Kingdom and Ireland. I am glad to be able to say that at last week's meeting the Council agreed to the amendment of the regulation, and to the introduction of the amended regulation in the United Kingdom and Ireland over a period of three years from 1st January 1978. This agreement requires the United Kingdom to seek the Commission's authorisation for our proposed programme of changes over the three-year period, and I shall be doing this within the next few days.The Council went on to approve a related regulation to bring into force the European Agreement on the Work of Crews of Vehicles Engaged in International Road Transport (AETR).
The Council adopted a compromise regulation on tariffs for road haulage under which those member States which prefer compulsory (bracket) tariffs will be at liberty to use these in dealings between each other; other member States will use so-called reference, or indicative, tariffs negotiated by the road haulage industry in consultation with their Governments and the Commission. Reference tariffs are intended to provide guidance only and place no obligation on operators or their customers. This regulation will be operated for an experimental period.
The Council noted the first biennial report from the Commission on the financial and economic situation of EEC railway undertakings and adopted a regulation designed to make it easier to compare their financial results.
It also adopted an amendment to the 1972 regulation dealing with common rules for regular bus and coach services between member States in order to exclude sea miles covered by ferry.
The Council approved in principle a draft directive providing for the mutual
NUMBER OF CLAIMANTS RECEIVING BENEFFIT | |||||||
1973–74
| 1977–78
| ||||||
Attendance allowance: | |||||||
Higher rate | … | … | … | … | … | 118,000 | 146,000 |
(31.12.1974) | (30.9.1977)(a) | ||||||
Lower rate | … | … | … | … | … | 69,000 | 137,000 |
(31.12.1974) | (30.9.1977)(a) | ||||||
Mobility allowance | … | … | … | … | … | None(b) | 57,000 |
(24.10.1977) | |||||||
Invalidity benefit | … | … | … | … | … | 444,000 | 452,000(d) |
(31.5.1974) | |||||||
Non-contributory invalidity pension | … | … | … | … | … | None(c) | 130,000(e) |
War disablement pension | … | … | … | … | … | 333,000 | 309,000(f) |
(31.12.1974) | |||||||
Industrial disablement benefit | … | … | … | … | … | 201,000 | 201,000(g) |
(30.9.1974) | |||||||
(a) Provisional figures. | |||||||
(b) Mobility allowance was introduced on 1st January 1976. | |||||||
(c) Non-contributory invalidity pension was introduced on 20th November 1975. | |||||||
(d) at 31st May 1975. | |||||||
(e) estimate at 31st December 1976. | |||||||
(f) at 31st December 1976. | |||||||
(g) provisional at 30th September 1976. |
recognition of diplomas, certificates and other evidence of formal qualifications for road haulage and road passenger operators.
There was an exchange of views on a number of other issues.
Social Services
Allowances
asked the Secretary of State for Social Services what is his estimate of the number of recipients of each of the following benefits in, respectively, 1973–74 and 1977–78: attendance allowance, mobility allowance, invalidity benefit, non-contributory invalidity pension, war disablement pension and industrial disablement benefit.
pursuant to his reply [Official Report, 26th October 1977 ; Vol. 936, c. 729], gave the following information:The table below gives the available statistics: