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Profit-Sharing Schemes

Volume 958: debated on Thursday 16 November 1978

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asked the Chancellor of the Exchequer if he will make a statement about the exemption of profit-sharing schemes under the Finance Act 1978 from the pay guidelines; and what steps he proposes to take to bring this information to the attention of pay negotiators on both sides of industry.

The essential feature of successive pay policies has been the restraint of the growth of earnings.

Schemes under the Finance Act 1978 are capital-sharing schemes, with their capital nature protected by the five-year locking-in period; accordingly, they are not subject to current pay policy. I see no need to bring this to the special attention of pay negotiators.