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SECRET
HIS D O C U M E N T
IS T H E P R O P E R T Y
OF H E R BRITANNIC
MAJESTY'S
GOVERNMENT
COPY
C(81) 4 0 t h
NO
7S
onclusions CABINET
CONCLUSIONS
of a M e e t i n g of t h e
h e l d a t 10 D o w n i n g S t r e e t THURSDAY
10 D E C E M B E R
a t 9- 30
Cabinet
on
1981
am
P R E S E N T
The
Rt Hon Margaret Thatcher M P
Prime Minister
he R t H o n W i l l i a m W h i t e l a w M P
The
e c r e t a r y of S t a t e f o r t h e H o m e
Lord
Department
The
he R t H o n S i r G e o f f r e y H o w e Q C M P hancellor of the
Rt Hon L o r d
Hail sham
Chancellor Rt Hon Sir Keith Joseph
M P
S e c r e t a r y of S t a t e f o r E d u c a t i o n a n d
Exchequer
Science
he R t H o n F r a n c i s P y m M P
The
ord P r e s i d e n t
S e c r e t a r y of State f o r N o r t h e r n I r e l a n d
of t h e
he R t H o n J o h n N o t t e c r e t a r y of S t a t e f o r
Council
Rt Hon James
The
M P
Prior
M P
Rt Hon Peter Walker M P
M i n i s t e r of A g r i c u l t u r e , F i s h e r i e s
Defence
and
Food
he R t H o n M i c h a e l H e s e l t i n e
The
M P
Rt Hon George Younger M P
ecretary of State f o r t h e E n v i r o n m e n t
S e c r e t a r y of State f o r
he R t H o n N i c h o l a s
The
ecretary of State f o r
Edwards M P
Lord
Wales
Rt Hon Humphrey Atkins M P Privy
Seal
he R t H o n P a t r i c k J e n k i n M P
The
ecretary of S t a t e f o r
S e c r e t a r y of State f o r
Industry
Scotland
R t H o n J o h n B i f f en M P Trade
he R t H o n D a v i d H o w e l l M P
The
ecretary of State f o r T r a n s p o r t
S e c r e t a r y of S t a t e f o r S o c i a l
Rt Hon N r m a n Fowler
he R t H o n L e o n B r i t t a n Q C M P
The
hief S e c r e t a r y ,
C h a n c e l l o r of the D u c h y of
Treasury i
SECRET
M P
0
Rt Hon Baroness
Services
Young Lancaster
SECRET
The R t H o n N i g e l L a w s o n M P
The
Secretary of State f o r E n e r g y
Secretary
The
Employment
General
FOLLOWING
WERE
ALSO
The R t H o n S i r M i c h a e l H a v e r s Q C M P
The
Attorney G e n e r a l (Items 4 a n d £)
Lord
The
of S t a t e f o r
Rt Hon Cecil Parkinson M P
Paymaster THE
Rt Hon Norman Tebbit M P
PRESENT Rt Hon Lord Advocate
M a c k a y of C l a s h f e r n Q C
( I t e m s 4 a n d 5)
R t Hon Michael Jopling M P
Parliamentary Secretary,
Treasury
SECRETARIAT Sir
Robert
Mr
M D M F r a n k l i n (Items 2and
Armstrong 3)
M r R L W a d e - G e r y ( I t e m s 2 a n d 3) Mr
P L Gregson
( I t e m s 4 a n d 5)
Mr
D J L Moore
( I t e m s 4 a n d 5)
Mr
D H J H i l a r y ( I t e m 1)
Mr
L J H a r r i s ( I t e m 1) C O N T E N T S
1
Page
Subject
Item PARLIAMENTARY Canadian
AFFAIRS
Local Government FOREIGN
1
Constitution Finance
1
Bill
AFFAIRS
North Atlantic Treaty Soviet
3
Organisation
3
Union
3
Arab/Israel COMMUNITY 7-8
AFFAIRS
December
Foreign Affairs Council
4 5
Steel
5
Community
Budget
8 December
M e e t i n g of C o m m u n i t y
Responsible for Public INDEX-LINKED
PENSIONS;
Ministers
6
Security
F O L L O W - U P
T O T H E SCOTT
6
REPORT E U R O P E A N FOR
COURT
CLOSED
SHOP
O F H U M A N RIGHTS: VICTIMS ii
SECRET
COMPENSATION
7
CONFIDENTIAL
•aLlAMENTARY
1.
IF AIRS
House
n
THE
adian
nstitution
i n f o r m e d of the b u s i n e s s to be t a k e n i n the
The Cabinet were
of C o m m o n s d u r i n g the f o l l o w i n g
LORD PRESIDENT
v/eek.
O F T H E C O U N C I L s a i d that the r e q u e s t
of the
C a n a d i a n P a r l i a m e n t f o r the p a s s a g e of U n i t e d K i n g d o m l e g i s l a t i o n
to
p a t r i a t e the C a n a d i a n C o n s t i t u t i o n h a d now b e e n b r o u g h t to L o n d o n , had
evious
b e e n s u b m i t t e d to T h e Q u e e n .
T h e present intention was for
ference:
C a n a d a B i l l to be i n t r o d u c e d i n the
;(81) 3 9 t h
b e g i n n i n g 21 D e c e m b e r ,
nclusions,
w e e k b e g i n n i n g 18 J a n u a r y .
nute 1
the
He was confident that i n its p r e s e n t
b u t he t h o u g h t i t e s s e n t i a l
time for d i s c u s s i o n in both Houses,
s h o u l d be set f o r R o y a l A s s e n t , , of
Justice
and that no
B i l l by,
been tentatively
for example,
w o u l d be u n w i s e obtained before this. for
THE
the d a t e
PRIME
M a r c h or A p r i l .
pass
which
a n d h a d s a i d that it
M r C h r e t i e n h a d a p p e a r e d to
p o s i t i o n to a s s e s s the l i k e l y
MINISTER,
accept
timetable
Commons.
s u m m i n g up a b r i e f d i s c u s s i o n ,
s a i d that
s h o u l d be s e t f o r the p a s s a g e
the
of t h e
T h e y n o t e d that the C a n a d i a n s h o p e d that T h e Q u e e n C o n s t i t u t i o n A c t into f o r c e i n C a n a d a by a
personal Proclamation during a Royal
Visit.
Cabinet -
1.
ical G o v e r n m e n t
THE
nance
a g r e e d b y the
Bill
on h i m
H o u s e to
of the R o y a l V i s i t to C a n a d a
of the B i l l a f t e r S e c o n d R e a d i n g i n the
w o u l d be a b l e to b r i n g the
The
deadline
to p l a n o n the a s s u m p t i o n t h a t R o y a l A s s e n t c o u l d be
C a b i n e t a g r e e d that no t i m e t a b l e Canada B i l L
on either
proposed for m i d ~ F e b r u a r y ,
H e w o u l d be i n a b e t t e r
the p a s s a g e
form
should
He had i m p r e s s e d
the i m p o r t a n c e of not a p p e a r i n g to put p r e s s u r e had
that t h e r e
H e h a d s e e n the C a n a d i a n M i n i s t e r
( M r C h r e t i e n ) the p r e v i o u s d a y .
the
week
a n d f o r S e c o n d R e a d i n g to t a k e p l a c e i n the
B i l l c o u l d be c a r r i e d ,
be a d e q u a t e
H o u s e of C o m m o n s i n the
and the
Took
note.
S E C R E T A R Y O F S T A T E FOR T H EENVIRONMENT
s a i d that
as
M i n i s t e r i a l C o m m i t t e e o n E c o n o m i c S t r a t e g y he a n d t h e
C h i e f W h i p h a d c o n s u l t e d the G o v e r n m e n t ' s s u p p o r t e r s i n the H o u s e 'evious
C o m m o n s a b o u t the p o s s i b i l i t y of s u b s t i t u t i n g a p r o h i b i t i o n o n the
Terence:
l e v y i n g of s u p p l e m e n t a r y r a t e s f o r the r e f e r e n d u m p r o c e d u r e
'(81)
i n the c u r r e n t L o c a l G o v e r n m e n t F i n a n c e B i l L
36th
delusions,
Conservative
M e m b e r s had reservations
inute 1
might w e l l abstain if legislation
Although some were
introduced,
s e e m e d that a r e v i s e d B i l l c o u l d be c a r r i e d without s e r i o u s S u b j e c t to the v i e w s of the b u s i n e s s m a n a g e r s , e m e r g e d f r o m the m e e t i n g C o m m i t t e e that e v e n i n g ,
and it n o w
difficulty.
a n d to a n y t h i n g w h i c h
of the r e l e v a n t C o n s e r v a t i v e B a c k b e n c h
he r e c o m m e n d e d t h a t the p r e s e n t
Government Finance Bill
proposed
a b o u t the n e w p r o p o s a l ,
on these lines
s h o u l d be w i t h d r a w n ,
1
CONFIDENTIAL
of
and a No 2
Local Bill
CONFIDENTIAL
i n t r o d u c e d the f o l l o w i n g w e e k , i m m e d i a t e l y after the r e v i s e d
the
with Second R e a d i n g being
Christmas adjournment.
B i l l m i g h t be t i m e d s o a s to c o i n c i d e w i t h the
of t h e G r e e n P a p e r o n t h e r a t i n g
THE
SECRETARY
possible
O F STATE
Transport fares
FOR TRANSPORT
p a y m e n t of s u b s i d i e s
for any n e c e s s a r y
by local authorities
e v e n i f that h a d b e e n thought d e s i r a b l e . possible
t h e e n d of t h e
for any necessary
discussions
to p a s s e n g e r t r a n s p o r t
to be p a s s e d
( N o 2)
legislation
under
Bill,
became it m i g h t just
in time
but he c o n s i d e r e d
G o v e r n m e n t s h o u l d not b e c o m e
about p o s s i b l e
This
to r e s t r a i n the
If t h e j u d g m e n t
t a k e e f f e c t i n the f i n a n c i a l y e a r 1 9 8 2 - 8 3 , i m p o r t a n t that the
Christmas.
legislation
Christmas adjournment,
legislation
seemed
London
Local Government Finance
t a k i n g s to be i n c l u d e d i n the available before
s a i d that it now
of L o r d s i n the
c a s e w o u l d not be d e l i v e r e d b e f o r e
it i m p o s s i b l e
publication
system;,
that the j u d g m e n t of the H o u s e
would make
taken
T h e i r . t r e d u c t i o n of
be
f o r it to it
extremely
involved in any
u n t i l the j u d g m e n t h a d
been
delivered.
THE
PRIME
MINISTER,
C a b i n e t a g r e e d that the w i t h the
L o b b y that a f t e r n o o n ,
consultation
s a i d that
of the C o u n c i l ,
at his
following week,
finance
a n d the
was
s h o u l d be
G o v e r n m e n t would then decide
what a c t i o n to Local
G o v e r n m e n t F i n a n c e ( N o 2) B i l l w o u l d b e r e a c h e d e i t h e r o r at a m e e t i n g
in
corres
of the M i n i s t e r s d i r e c t l y c o n c e r n e d .
S e c r e t a r y o f S t a t e f o r t h e E n v i r o n m e n t s h o u l d i n the m e a n t i m e a matter
o f u r g e n c y to r e s o l v e
outstanding points
The
w i t h the
o n the p r o v i s i o n s
temporary borrowing
Cabinet
Chief Secretary,
with
powers.
on whether
the
p r o p o s e d L o c a l G o v e r n m e n t F i n a n c e ( N o 2) B i l l be
The seek
Treasury,
of t h e d r a f t B i l l d e a l i n g
T o o k note that a f i n a l d e c i s i o n
2.
s u b s t i t u t e d f o r the e x i s t i n g
Lo;al
should
Government
B i l l w o u l d be t a k e n i n c o r r e s p o n d e n c e
o r at a
Finance
meeting
b e t w e e n the S e c r e t a r y of S t a t e f o r the E n v i r o n m e n t a n d ether 3.
Ministers
concerned.
I n v i t e d t h e S e c r e t a r y of S t a t e f o r t h e
to s e e k to r e s o l v e
u r g e n t l y w i t h the
Treasury,
the o u t s t a n d i n g p o i n t s
provisions
on t e m p o r a r y b o r r o w i n g
4.
of
taken
e x p e c t e d t o b e c o n c l u d e d e a r l y i n the
A f i n a l d e c i s i o n o n the h a n d l i n g of the p r o p o s e d
pondence
the meeting
s h o u l d t a k e t h e l i n e tha.t t h e p r o c e s s
o n the q u e s t i o n of w h a t i n t e r i m m e a s u r e s
on l o c a l government take.
s u m m i n g up the d i s c u s o i o n , Lord President
A g r e e d to r e s u m e
Chief
of the
Environment
Secretary,
proposed
powers
their discussion
of
subsidies
to p a s s e n g e r t r a n s p o r t u n d e r t a k i n g s at a f u t u r e
2
CONFIDENTIAL
meeting.
as the
CONFIDENTIAL
IREIGN
2.
T H E L O R E
I F AIRS
Commonwealth of the
P R I V Y
Secretary
North Atlantic
was
eaty ganisation
evious ference; ;(81) 3 9 t h nclusions, nute
2
North Atlantic danger
Treaty
unsuccessfully
for
against
what
S E C R E T A R Y
lying health was
on
the
current
last.
Before
ways
Meanwhile
to the
large,
and
be
i n t o the
far
viet
Union
evious
been
to be
brought
£60
the
T H E
L O R D
P R I V Y
S E A L
Alexeyeva,
restrained,
inute
were still
United States, strike.
tranche.
other
exit
'evious iference;
Israeli
-(81)
basis
inute
2
P R I V Y
S E A L
o n w h i c h the
force
It s h o u l d be
not dispute; would
Essentially
the
Britain had
so
might now
need
had
now
her
stepson,
to j o i n her
husband
D r Sakharov had abandoned
on the
situation needed
yet actually been f r o m the
who were
to
issued,
his
be and
Soviet Union who
prospective
and observers
was
there were
established
had tried
possible, the
as
set
Israelis the
European in
of
out i n the
i n a p o s i t i o n to c l a i m
aligned
the
the joint The
this
a f o r m of
p r i n c i p l e s set
the
from
on 3 D e c e m b e r ,
to d e v i s e
1980 a n d h a d i n s t e a d
CONFIDENTIAL
acceptance
u n s u c c e s s f u l l y to a v e r t
however,
E C had now abandoned
D e c l a r a t i o n of June
other
participants
to c o n f i r m their
to be
three
had received a letter
A m e r i c a n s and Israelis
i n r e p l y w h i c h w o u l d not leave of the
was
to
in a crisis
Americans.
s a i d that B r i t a i n a n d the
United States Government
members
to
new
N A T O
refusal
present
Soviet authorities
of t h i s ,
asking them
s t a t e m e n t i s s u e d b y the
Venice
vital
wife of D r A n d r e i S a k h a r o v ' s
emigres
(EC) members
Government
approach.
unlikely
visas.
Sinai multinational force
'nclusions,
reached.
outlook
meeting.
programme
militarily-
under
to d e v i s e
but B r i t i s h i n f l u e n c e
comment
would-be
T H E
39th
The
a n d the
v i s a had not
'ab/Israel
Community
to the
i n v o l v e d i n the
Europe
the
Because
the
being denied
L O R D
was
necessary
a n e x i t v i s a to enable
Western
since
many
would
u n i t y of
e g at a S u m m i t
s a i d that the
granted
inclusions,
pressing
bear.
w o u l d be
i n the
the some
c o h e s i o n of
helped by their
c o u l d not be
that she
hunger
the
German Government's
Germans
i n t i m a t e d to M i s s
ference:
meeting
would
said that N A T O ' s
moment,
i n G e n e v a ; but this
million was
if agreement
to
who had been
being caueed
b y the
only marginally involved,
:(81) 1 1 t h
2
was
dislocation was
lay between
meeting
Turkey,
Alliance,
latest expenditure
endangered
Greeks,
F o r the
but A m e r i c a n a b i l i t y to r e i n f o r c e
dispute
Ministerial
although there was
F O R D E F E N C E
Alliance
Programme
only some
and
to a i u n d e r t a k i n g that N A T O
limitation talks
life
the
chat t h i s
e n d of 1982 i t m i g h t w e l l be
serious
agree
amounted
of the
arms
of b r e a t h i n g
Infrastructure
b y the
a fellow member,
O F S T A T E
the
Foreign
o f che p r o t o c o l o n S p a n i s h a c c e s s i o n t o
deteriorating.
European members
hoped
Organisation (NATO),
defend
T H E
It w a s
of this being obstructed
Greece
s a i d t h a t the
that day attending
Council.
include f o r m a l signature ,rth A t l a n t i c
S E A L
out i n
words that their
themselves
C O N F I D E N T I A L
f u l l y w i t h the p r o c e s s
s e t i n t r a i n b y the C a m p D a v i d
Agreement,,
M e a n w h i l e the A m e r i c a n s h a d i n d i c a t e d t h e i r hope that the t r i b u t i o n to the f o r c e some
would c o m p r i s e
Military Policemen,
m a k i n g a b o u t 50 m e n i n a l l .
s i t u a t i o n h a d b e e n f u r t h e r c o m p l i c a t e d b y the Monsieur Cheysson,
British con
a H e a d q u a r t e r s C o m p a n y and The diplomatic
French Foreign Minister,
who h a d a p p a r e n t l y s p o k e n d i s p a r a g i n g l y about
V e n i c e D e c l a r a t i o n d u r i n g a r e c e n t v i s i t to I s r a e l but was that h i s r e m a r k s r e p r e s e n t e d had
no new d e p a r t u r e .
now
Monsieur
u n d e r t a k e n to c l a r i f y the p o s i t i o n i n a p r e s s c o n f e r e n c e
Cheysson that
f o l l o w i n g a t a l k w i t h the F o r e i g n a n d C o m m o n w e a l t h S e c r e t a r y previous
day
of a b r i e f d i s c u s s i o n
gaffe m i g h t be e x p l o i t e d commercially.
it was
s u g g e s t e d that this F r e n c h
to B r i t a i n ' s a d v a n t a g e
both d i p l o m a t i c a l l y and
F r a n c e ' s p o l i c y s e e m e d to be h i g h l y c h a n g e a b l e
on the S i n a i f o r c e ,
i n w h i c h she h a d i n s i s t e d
i n i t i a l l y r e f u s i n g to d o so,
both
in participating after
a n d on the V e n i c e
P r e s i d e n t G i s c a r d h a d b e e n one
Declaration.
of the D e c l a r a t i o n ' s m a i n
sponsors;
M i t t e r r a n d h a d t h e n c r i t i c i s e d i t at the f i r s t E u r o p e a n
C o u n c i l he a t t e n d e d sequently
evening, the
0
In the c o u r s e
President
the
claiming
insisted
after his election;
but h i s G o v e r n m e n t h a d
t h a t i t b e f a v o u r a b l y r e f e r r e d t o i n the
sub
agreed
s t a t e m e n t b y E u r o p e a n G o v e r n m e n t s o n p a r t i c i p a t i o n i n the S i n a i f o r c e .
The
Cabinet
Took
IMMUNITY
FAIRS
3.
note.
T H E LORD
for Affairs
sreign Juncil
PRIVY SEAL
s a i d the C o u n c i l of M i n i s t e r s
(Foreign
A f f a i r s ) h a d h e l d two p a r a l l e l s e s s i o n s on 7 and 8 D e c e m b e r . chaired a meeting
8 December
-
w h i c h h a d g i ^ e n the
C o m m i s s i o n further
He had
guidance
t h e c o n d u c t o f n e g o t i a t i o n s i n G e n e v a o n the r e n e w a l of the
fibre
A r r a n g e m e n t ( M F A ) a n d f o r n e g o t i a t i o n s w i t h the
preferential suppliers the y e a r .
w h o s e c u r r e n t a g r e e m e n t s e x p i r e d a t t h e e n d of
A n y agreement
the C o m m u n i t y w a s
Multi
Community's
i n G e n e v a w o u l d be p r o v i s i o n a l s o f a r
concerned,
as
b e c a u s e the C o u n c i l w o u l d h a v e to
con
evious
sider whether
ference;
satisfactory,,
:(81)
C o m m o n w e a l t h S e c r e t a r y a n u m b e r of i s s u e s h a d b e e n d e a l t w i t h ,
but
it h a d not b e e n p o s s i b l e
The
37th
•nclusions, |inute 3
the r e s u l t i n g o v e r a l l c e i l i n g s A t the m e e t i n g
the i n f o r m a l m e e t i n g No
agreement
c h a i r e d b y the
to r e a c h a g r e e m e n t
f i n a n c i n g of s o c i a l m e a s u r e s
i n the
on s e v e r a l
of t h e m .
steel sector had been r e f e r r e d
of M i n i s t e r s of I n d u s t r y due to t a k e
on s u g a r .
The present
with C y p r u s had been extended
a b s e n c e of a g r e e m e n t
on any i m p r o v e m e n t .
o n a l i s t of t r a d e r e q u e s t s to be put to the i n c l u d e d a l l the i t e m s o f c o n c e r n t o t h e
CONFIDENTIAL
tele
African, trade
for six months
i n the
The Council had
Japanese
agreed
Government
United Kingdom,
to
p l a c e that day.
f o r the
i n d u s t r y n o r o v e r n e g o t i a t i o n s w i t h the
Caribbean and Pacific countries
were
F o r e i g n and
h a d b e e n r e a c h e d on r e c o m m e n d a t i o n s
communications arrangements
on textile i m p o r t s
which
C O N F I D E N T I A L
THE
SECRETARY
negotiations important, i n t o the
O F STATE
FOR TRADE
s a i d t h a t the
w i t h the C o m m u n i t y ' s p r e f e r e n t i a l t e x t i l e since
Commission's
suppliers
was
t h a y a c c o u n t e d f o r 20 p e r c a n t o f i m p o r t s of t e x t i l e s
United Kingdom.
d i f f i c u l t p o s i t i o n i n the m o r e l i b e r a l stance,
T h e C o m m u n i t y would find itself in a
M F A negotiations.
closer
to t h a t of the
The United States had a supplying countries.
The
C o m m u n i t y c c u l d a l s o be c r i t i c i s e d f o r its i n a b i l i t y to n e g o t i a t e u n t i l a v e r y late stage.
Nevertheless
France
h a d to i n s i s t
and Italy,
In a b r i e f d i s c u s s i o n it w a s
the
United Kingdom,
together
with
on a tough position.
n o t e d that the
B r i t i s h textile industry
l i k e l y to c r i t i c i s e the G o v e r n m e n t ' s a p p r o a c h , h o w e v e r taken,
b e c a u s e t h e y c o u l d not unite on any other b a s i s .
it was
p o l i t i c a l l y i m p o r t a n t t h a t the G o v e r n m e n t w a s
Nevertheless
P o r t u g a l h o p e d that as a
of h e r a c c e s s i o n
w o u l d be a b l e t o i n c r e a s e
textile exports, the
C o m m u n i t y she
but B r i t a i n a l r e a d y t o o k h a l f the P o r t u g u e s e
C o m m u n i t y a n d c o u l d not enter
SECRETARY
THE
revious
t a k e p l a c e that d a y m i g h t h a v e to be r e s c h e d u l e d .
eference:
since
weather
O F STATE
into c o m m i t m e n t s
teel
conditions,
it was
the i n f o r m a l m e e t i n g
necessary
C(81) 3 9 t h
measures
onclusions,
the
inute 3
state aids f o r s t e e l .
to
more.
i n v i e w of t h e
of I n d u s t r y M i n i s t e r s due
of s o c i a l a s s i s t a n c e i n the
T h i s was
steel industry,
C o m m i s s i o n would rigorously enforce
the
her
exports
to t a k e
s a i d that,
result
to
unfortunate,
to s e t t l e the a r r a n g e m e n t s f o r f i n a n c i n g the
The prospects
a n d to e n s u r e
the a g r e e m e n t
that
o n the u s e
for C o m m u n i t y steel exports
of to
U n i t e d S t a t e s m a r k e t w o u l d be a n i m p o r t a n t i t e m on the a g e n d a f o r
the m e e t i n g b e t w e e n s e n i o r on
FOR INDUSTRY
was
s e e n to be
defending their interests vigorously, to the
was
tough a line
11 D e c e m b e r ,
It w a s
A m e r i c a n M i n i s t e r s a n d the
c l e a r t h a t the
Commission
United States G o v e r n m e n t
was
a n x i o u s to a v o i d a t r a d e w a r w i t h the C o m m u n i t y , a n d C o m m i s s i o n e r Davignon,
w i t h w h o m he h a d d i s c u s s e d
w o u l d be p o s s i b l e
to g i v e
Community steel exports companies duties.
not to p r e s s
If s u c h d u t i e s
assurances
the m a t t e r ,
b e l i e v e d that it
a b o u t the v o l u n t a r y r e s t r a i n t o n
which would persuade
the A m e r i c a n
steel
their case for a n t i - d u m p i n g and countervailing were
i m p o s e d t h e r e w o u l d be s e r i o u s
s e q u e n c e s f o r C o m m u n i t y s t e e l p r o d u c e r s i n c l u d i n g the
con
British
Steel
Corporation.
°mm u n i t y
THE
C H A N C E L L O R
O F T H EEXCHEQUER
the P r i m e M i n i s t e r of the
get
r e f u n d s to the
United Kingdom in respect
' vious
C o m m u n i t y b u d g e t f o r 1980 a n d 1981.
Terence;
c o n t i n u i n g to a r g u e that the
|C(8l) 3 9 t h
agreement
r e
o v e r the p a y m e n t of
c f n e t c o n t r i b u t i o n s to
The F r e n c h and G e r m a n s
the were
United K i n g d o m had been overpaid under
r e a c h e d o n 30 M a y 1980,
and there
delusions,
s t a g e s at w h i c h t h e y c o u l d m a k e d i f f i c u l t i e s .
'inute
a blocking majority,
3
s a i d that he h a d i n f o r m e d
continuing difficulties
were
Unless they could
the C o m m i s s i o n w o u l d s h o r t l y be f r e e
C O N F I D E N T I A L
the
several procedural to
secure
proceed
CONFIDENTIAL
on its o w n r e s p o n s i b i l i t y e x c e p t payments
i n the c a s e of a u t h o r i s i n g a d v a n c e
w i t h i n t h e 1981 b u d g e t .
H e i n t e n d e d to r a i s e t h i s
question
w i t h the M i n i s t e r s w h o w o u l d be a t t e n d i n g the C o u n c i l of M i n i s t e r s ( E C O F I N ) o n 14 D e c e m b e r . the
Since this m e e t i n g was
the E u r o p e a n C o u n c i l , our
he w o u l d do so i n f o r m a l l y .
i n t e r p r e t a t i o n of the
30 M a y A g r e e m e n t w a s
c o n t i n u i n g d i f f i c u l t i e s h a d to be
(December
THE
eeting o f
I
HOME
SECRETARY
contretemps,
mmunity
o n the
same
day
F o r e i g n M i n i s t e r s ' m e e t i n g to f o l l o w up the o u t s t a n d i n g i s s u e s
a successful
He believed
as
from
that
l e g a l l y c o r r e c t but
foreseen.
r e p o r t e d that, meeting
in spite
of s o m e p r a c t i c a l
of M i n i s t e r s r e s p o n s i b l e f o r p u b l i c
s e c u r i t y had been held on 8 D e c e m b e r .
nister s sponsible
for
The
Cabinet -
blic S e c u r i t y Took
note.
DEX-LINKED
4,
INSIONS;
Exchequer
( C ( 8 1 ) 58) a n d a m i n u t e d a t e d 8 D e c e m b e r 1901 f r o m
)LLOW-UP T O
Chancellor
of the D u c h y of L a n c a s t e r to the P r i m e
ffi
SCOTT
T h e C a b i n e t c o n s i d e r e d a m e m o r a n d u m b y t h e C h a n c e l l o r of t h e
possible
changes
in public sector
pension
Minister
the
on
schemes
i EPORT The
Cabinet's discussion and conclusions
6
CONFIDENTIAL
are recorded
separately.
CONFIDENTIAL
AOPEAN
JR.T O F |{AN
5. for
T h e C a b i n e t c o n s i d e r e d a m e m o r a n d u m by the S e c r e t a r y of E m p l o y m e n t (C(81) 59) o n c o m p e n s a t i o n f o r c l o s e d
State
shop v i c t i m s .
RIGHTS:
^IPENSATION
T H E SECRETARY
(
E u r o p e a n C o u r t of H u m a n R i g h t s at S t r a s b o u r g h a d f o u n d that the
dis
m i s s a l o f t h r e e r a i l m e n i n 1976 w i t h o u t c o m p e n s a t i o n i n a c l o s e d
shop
CLOSED
P VICTIMS
OF S T A T E F O R E M P L O Y M E N T
u n d e r the p r e v i o u s G o v e r n m e n t ' s l e g i s l a t i o n , E m p l o y m e n t A c t 1980, Huma:. Rights.
was
s a i d that
the
since r e p e a l e d by the
i n b r e a c h of t h e E u r o p e a n C o n v e n t i o n o n
T h e G o v e r n m e n t was
e n d e a v o u r i n g to r e a c h a f r i e n d l y
settlement on c o m p e n s a t i o n for the three r a i l m e n and also for former
employees
circumstances, Human Rights.
w h o s e c a s e w a s b e f o r e the E u r o p e a n C o m m i s s i o n of T h e r e r e m a i n e d the q u e s t i o n of w h e t h e r the G o v e r n m e n t
should compensate if so,
six
of H u l l C i t y C o r p o r a t i o n d i s m i s s e d i n s i m i l a r
other closed
shop v i c t i m s i n the 1974-80 p e r i o d a n d ,
h o w to a v o i d s e t t i n g u n d e s i r a b l e p r e c e d e n t s
other h u m a n rights cases.
T h e r i s k of setting
for compensation in
a precedent could be
l e s s e n e d b y m a k i n g it c l e a r that the G o v e r n m e n t h a d b e e n
considering
c o m p e n s a t i o n i n s u c h c a s e s o n t h e i r m e r i t s b u t h a d n o t b e e n a b l e to a c t i o n u n t i l the p r o c e e d i n g s pleted.
b e f o r e the E u r o p e a n C o u r t had been
H e t h e r e f o r e p r o p o s e d that p o w e r s
should be taken in his
f o r t h c o m i n g B i l l o n i n d u s t r i a l r e l a t i o n s to set u p a c o m p e n s a t i o n on the l i n e s
take
com
i n d i c a t e d i n A n n e x A of C(81) 59.
scheme
T h e cost could be
a c c o m m o d a t e d within the existing f i n a n c i a l p r o v i s i o n s for
his
D e p a r t m e n t for 1982-83 and 1983-84.
In d i s c u s s i o n i t w a s g e n e r a l l y a g r e e d t h a t t h e r e w a s a s t r o n g c a s e f o r c o m p e n s a t i n g t h o s e who w e r e v i c t i m s of the c l o s e d l e g i s l a t i o n p a s s e d b e t w e e n 1974 a n d 1 9 7 9 .
s h o p b y v i r t u e of
T h e r e was
c o n c e r n about
the
i m p l i c a t i o n s of t h i s f o r a l a r g e n u m b e r of o t h e r c a s e s w h i c h h a d b e e n b r o u g h t b e f o r e the C o m m i s s i o n a n d C o u r t i n S t r a s b o u r g , f o r
example
those c o n c e r n e d with homosexuality i n N o r t h e r n Ireland, a i r p o r t
noise,
leasehold
cases
reform,
a n d the i m m i g r a t i o n r u l e s .
In m a n y o f t h e s e
it c o u l d b e s h o w n that the c i r c u m s t a n c e s w e r e not c o m p a r a b l e with those in the closed
shop c a s e s .
Nevertheless
the G o v e r n m e n t should
a v o i d a p p e a r i n g to s u p p o r t the g e n e r a l p r o p o s i t i o n that, E u r o p e a n C o u r t r u l e d i n f a v o u r of a c o m p l a i n t , be u n d e r a n o b l i g a t i o n to l e g i s l a t e all
to
It w a s a l s o u n d e s i r a b l e t o p l a c e
m u c h weight on the a r g u m e n t that the c l o s e d earlier legislation,
the
to p r o v i d e f i n a n c i a l c o m p e n s a t i o n
those in s i m i l a r circumstances.
under
whenever
the G o v e r n m e n t s n o u l d
shop v i c t i m s had
s i m p l y o n the g r o u n d s that this was
too
suffered legislaticn
w h i c h the p r e s e n t G o v e r n m e n t h a d o p p o s e d and r e p e a l e d . THE
PRIME MINISTER,
legislation
s u m m i n g up the d i s c u s s i o n ,
s a i d that
s h o u l d be i n t r o d u c e d to p r o v i d e c o m p e n s a t i o n f o r t h o s e
w e r e v i c t i m s of the c l o s e d 1974 a n d 1979.
Care
shop by v i r t u e of l e g i s l a t i o n p a s s e d
between
s h o u l d h o w e v e r b e t a k e n to d r a f t the l e g i s l a t i o n
a s to a v o i d a n y r e f e r e n c e to t h e r e c e n t j u d g m e n t of t h e E u r o p e a n Similarly,
who
i n j u s t i f y i n g the s c h e m e ,
CONFIDENTIAL
it was n e c e s s a r y
so
Court.
to a v o i d a n y
CONFIDENTIAL
i m p l i c a t i o n that the G o v e r n m e n t was
g e n e r a l l y i n f a v o u r of f i n a n c i a l
c o m p e n s a t i o n by the G o v e r n m e n t for people either b e c a u s e grievances
c o m p a r a b l e w i t h t h o s e f o u n d to c o n s t i t u t e
E u r o p e a n C o n v e n t i o n on H u m a n R i g h t s ,
they had
a b r e a c h of
u n d e r l e g i s l a t i o n w h i c h the G o v e r n m e n t h a d r e p e a l e d .
T h e justification
s h o u l d r e s t o n the m o r a l c a s e f o r c o m p e n s a t i n g the c l o s e d shop concerned,
scheme
u n t i l the
proceedings
b e f o r e the E u r o p e a n C o u r t had been c o n c l u d e d . Cabinet
1.
A g r e e d that l e g i s l a t i o n to p r o v i d e
for
closed
shop v i c t i m s in 1974-80,
compensation
as p r o p o s e d by
t h e S e c r e t a r y of S t a t e f o r E m p l o y m e n t i n C(81) should be i n c l u d e d i n the f o r t h c o m i n g B i l l industrial 2.
59,
on
relations.
. I n v i t e d the S e c r e t a r y of State f o r E m p l o y m e n t ,
i n c o n s u l t a t i o n with the A t t o r n e y G e n e r a l a n d the Advocate, Minister's
s u m m i n g up.
Office
10 D e c e m b e r
Lord
to b e g u i d e d b o t h i n t h e p r e p a r a t i o n o f t h e
l e g i s l a t i o n a n d i n its p r e s e n t a t i o n by the
Cabinet
victims
a l t h o u g h it c o u l d b e e x p l a i n e d that t h e G o v e r n m e n t h a d not
b e e n a b l e to p r o c e e d w i t h a c o m p e n s a t i o n
The
the
or because they had duffered
1981
8
CONFIDENTIAL
Prime
SECRET
US D O C U M E N T
IS T H E P R O P E R T Y
O F H E R BRITANNIC MAJESTY'S
GOVERNMENT
COPY
NO
38
CABINET
LIMITED
CIRCULATION
CC(81t) 40th C o n c l u s i o n s , Thursday,
10 D e c e m b e r
p E X - L I N K E D
The
NSIONS:
E x c h e q u e r (C(81)
1LLOW-UP E
SCOTT
T O
ANNEX Minute 4
1981
a t 9 . 30 a m .
C a b i n e t c o n s i d e r e d a m e m o r a n d u m b y the
C h a n c e l l o r of
58) a n d a m i n u t e o f 8 D e c e m b e r f r o m
the
the
C h a n c e l l o r o f t h e D u c h y o f L a n c a s t e r to t h e P r i m e M i n i s t e r o n
possible
changes in public sector
pension
schemes.
PORT THE
C H A N C E L L O R O F T H E E X C H E Q U E R s a i d that,
following
d i s c u s s i o n b y the M i n i s t e r i a l C o m m i t t e e o n E c o n o m i c S t r a t e g y , i n t e r d e p a r t m e n t a l group of officials
h a d e x a m i n e d the o p t i o n s
an
for
c h a n g e s i n t h e a r r a n g e m e n t s f o r c o n t r i b u t i o n s a n d b e n e f i t s is. p u b l i c sector
index-linked pension
schemes,
w i t h a v i e w to m e e t i n g
c r i t i c i s m s of inflation proofing for pensions their report was system
of c o n t r i b u t i o n s s h o u l d be a m e n d e d
defended as being d e m o n s t r a b l y increases
i n the p u b l i c
a n n e x e d to h i s m e m o r a n d u m .
a n d so that i t w a s
the p u b l i c s e r v i c e s .
the
sector;
In h i s v i e w ,
the
so that i t c o u l d be p u b l i c l y
l i n k e d to t h e c o s t o f
pensions
applicable on b r o a d l y s i m i l a r lines
a c h i e v e d b y l e a v i n g the e x i s t i n g
l e v e l s of c o n t r i b u t i o n f o r
basic
b e n e f i t s u n c h a n g e d a n d l e v y i n g a s p e c i a l c h a r g e o f a b o u t 2j
per
w h i c h w o u l d be b a s e d o n the e x t e n t to w h i c h the c o s t o f p u b l i c pensions
increases
( o p t i o n B i n the
was
i n e x c e s s o f the p r i v a t e
report by officials).
w o u l d m e a n that m o s t p u b l i c s e r v a n t s c o n t r i b u t i o n o f 8j Forces, better
per cent.
the p o l i c e ,
the f i r e
basic pension benefits,
considered further. these lines
Government's new charge
services
the h i g h e r p e n s i o n s
pension Armed
-
enjoyed
of contributions savings
depending on what was
Because
of
assumed
in his view
the
s h o u l d b e n o o f f s e t to
the
o f the w i d e s p r e a d p u b l i c
of c i v i l s e r v a n t s ,
there was
a case but
to b e g i v e n to t h e i m p l i c a t i o n s o f
which would result from higher gross
d i d n o t r e c o m m e n d a t t e m p t i n g to l e g i s l a t e to i m p o s e
salaries.
new
ments for contributions by nationalised industry employees;
SECRET
on
i n the r a n g e
scheme formally contributory;
further consideration would need He
system
s h o u l d be that t h e r e
through higher pay.
m a k i n g the C i v i l S e r v i c e
this
- the
and p r i s o n officers
on pay negotiations;
m i s u n d e r s t a n d i n g o f the p e n s i o n s for
service
a n d t h e i r p o s i t i o n w o u l d n e e d to b e
£600 million a year,
stance
cent,
average
w o u l d p a y a total
The uniformed services
A c h a n g e i n the
a b o u t the e f f e c t o f the c h a n g e
sector
On current estimates
could produce public expenditure
£ 3 0 0 m i l l i o n to
to a l l
H e r e c o m m e n d e d that t h i s c o u l d b e s t be
arrange the
SECRET
Government could,
however,
i n v i t e t h e n a t i o n a l i s e d i n d u s t r i e s t®
take a c c o u n t o f a n y c h a n g e s i n the a r r a n g e m e n t s f o r c o n t r i b u t i o n s in public service for
schemes.
W h i l e c h a n g e s i n the
c o n t r i b u t i o n s w o u l d be w e l c o m e d ,
d e a l i n g w i t h the d e e p - s e a t 3 d
arrangements
they w o u l d not be
seen
guarantee of i n d e x - l i n k i n g i n public sector pension schemes virtual absence
as
r e s e n t m e n t at the d i s p a r i t y b e t w e e n
in private sector
schemes.
the
and its
He thsrefore invited
the C a b i n e t to c o n s i d e r the c a s e f o r a l l o w i n g f o r f u l l i n f l a t i o n proofing of benefits m
u p to 7 p e r c e n t w i t h a d i s c r e t i o n a r y p o w e r
.ke a n y f u r t h e r i n c r e a s e s .
significant effect to b e n e f i t s
F o r s u c h a p r o v i s i o n to h a v e
on public expenditure, m a d e b e f o r e the
He
1979 E l e c t i o n ,
not i n benefits,
inquiry, did
recognised
m e m b e r s o f the
G o v e r n m e n t h a d i n d i c a t e d the p o s s i b i l i t y o f c h a n g e s but
in contributions,
a n d a l s o t h a t the r e p o r t i n F e b r u a r y
c h a i r e d by S i r B e r n a r d Scott,
n o t p o i n t to c h a n g e s
i n benefits.
1981 o f t h e
i n t o the v a l u e o f There was,
ixi t h e p e n s i o n s c h e m e s
pensions
nevertheless,
p o l i t i c a l c a s e f o r l o o k i n g at t h i s q u e s t i o n a f r e s h . be taken on benefits
any
i t w o u l d h a v e to b e a p p l i e d
f o r p a s t as w e l l as for future s e r v i c e .
that i n statements
to
a
If a c t i o n w e r e
to
o f the p u b l i c s e r v i c e s ,
it
w o u l d b e f o r c o n s i d e r a t i o n w h e t h e r to r e s t r i c t t a x r e l i e f b y w i t h d r a w - : ing
Inland Revenue approval f r o m nationalised industry and private
sector
schemes
which permitted pension increases
was provided by public service
schemes.
to e x c e e d
what
H e p r o p o s e d that,
i n the
l i g h t o f the C a b i n e t ' s d e c i s i o n s o n c o n t r i b u t i o n s a n d b e n e f i t s ,
a
c o n s u l t a t i v e d o c u m e n t s h o u l d b e p u b l i s h e d e a r l y i n 1982 w i t h a to l e g i s l a t i o n a s THE
soon as p r a c t i c a b l e .
C H A N C E L L O R O F T H EDUCHY
a g r e e d that the
view
O F LANCASTER
s a i d that
s y s t e m o f c o n t r i b u t i o n s s h o u l d b e r e v i s e d to
she
ensure
t h a t p u b l i c s e r v a n t s p a i d i n c o n t r i b u t i o n s f o r the b e n e f i t o f i n d e x linked pensions. changes
It w a s ,
however,
to a l l t h e p u b l i c s e r v i c e
essential
necessaiy
g r o u p s i n a c o n s i s t e n t w a y and not
to d i s c r i m i n a t e a g a i n s t c i v i l s e r v a n t s . paid effectively
to m a k e t h e
a b o u t 8-| p e r c e n t a s
Male civil servants
c o n t r i b u t i o n to t h e i r p e n s i o n ;
the n e w a r r a n g e m e n t s f o r c o n t r i b u t i o n s a n d f o r p a y s h o u l d that. and
Further work was necessary in benefits
She w a s
which, if implemented,
d e e p l y r e s e n t e d b y a b o u t 10 m i l l i o n p r e s e n t a n d f u t u r e of p u b l i c s e c t o r p e n s i o n s c h e m e s . to l i m i t i n g b e n e f i t s
scheme opposed
w o u l d be
beneficiaries
T h e r e w o u l d be g r e a t
for past service,
t o s e c u r e a p p r o v a l o f the n e c e s s a r y
recognise
o n t h e d e t a i l s o f the n e w
o n h o w i t s h o u l d a p p l y to the v a r i o u s g r o u p s .
to t h e p r o p o s e d c h a n g e s
already
objections
a n d i t w o u l d be v e r y d i f f i c u l t legislative
c h a n g e s at this
stage
i n the l i f e o f the p r e s e n t P a r l i a m e n t .
THE A T T O R N E Y
G E N E R A L
s a i d that t h e r e w a s no l e g a l r i g h t
r e c o g n i s e d i n t h e U n i t e d K i n g d o m c o u r t s w h i c h n e e d r e s t r a i n the G o v e r n m e n t f r o m p r o p o s i n g l e g i s l a t i o n to l i m i t i n d e x - l i n k i n g o f benefits
for civil servants.
b e g i v e n to t h e m o r a l
Special consideration should,
c l a i m of those c i v i l servants
however,
who h a d p u r c h a s e d
a d d e d y e a r s at a p r i c e w h i c h i n c l u d e d a n e l e m e n t f o r i n d e x - l i n k i n g of benefits
and those who h a d t r a n s f e r r e d p r e v i o u s p e n s i o n 2
SECRET
entitlements
SECRET
i n t o the
scheme
benefits
were
on a basis which reflected index-linking.
probably successfully
r e b u t a n y c a s e b r o u g h t a g a i n s t i t u n d e r the
E u r o p e a n Convention on H u m a n Rights; success,
but he c o u l d not
guarantee
p a r t i c u l a r l y i n the c a s e o f t h o s e p e o p l e w h o h a d p u r c h a s e d
added years
or transferred previous entitlements.
H e had not
c o n s i d e r e d the p o s i t i o n o f p u b l i c s e c t o r e m p l o y e e s servants,
If
to b e l i m i t e d , h e j u d g e d t h a t t h e G o v e r n m e n t c o v . i d
b u t he w a s
other than c i v i l
a w a r e t h a t s o m e o f the n a t i o n a l i s e d i n d u s t r y
p e n s i o n s c h e m e s c o n f e r r e d a l e g a l r i g h t to b e n e f i t w h i c h c o u l d n o t b e taV.en a w a y w i t h o u t a d e q u a t e
compensation.
In d i s c u s s i o n the f o l l o w i n g w e r e a.
It w a s
the m a i n p o i n t s
g e n e r a l l y a g r e e d that,
made:
f o r the r e a s o n s
put
f o r w a r d b y the C h a n c e l l o r o f the D u c h y o f L a n c a s t e r a n d b y the A t t o r n e y G e n e r a l , benefits
there
s h o u l d b e n o a c t i o n to l i m i t
in public sector pension schemes.
A n y such
change
w o u l d no d o u b t be w e l c o m e d b y the p r i v a t e s e c t o r w h e n it announced,
but would p r o v o k e bitter and lasting
a m o n g the e x i s t i n g a n d p o t e n t i a l b e n e f i c i a r i e s o f p u b l i c schemes.
A s inflation came down,
in public sector
If,
inflation were
s u b s t a n t i a l l y it m i g h t be n e c e s s a r y
sector
o b j e c t i o n s to i n d e x - l i n k i n g
schemes would diminish.
the G o v e r n m e n t ' s o b j e c t i v e s ,
was
resentment
to
c o n t r a r y to rise
to l o o k a t the
question
again. b.
T h e r e was
g e n e r a l support i n p r i n c i p l e for action on
c o n t r i b u t i o n s o n the l i n e s o f O p t i o n B . d o c u m e n t c o u l d be i s s u e d , f o r e a c h o f the s e r v i c e s , services
in particular,
a t t e m p t to p r o p o s e
however,
had been fully considered.
uncertainty over what
intended for particular groups.
was
It s h o u l d b e r e c o g n i s e d
that,
to b e a m e n d e d to t a k e a c c o u n t o f i n d e x e d
t h e r e c o u l d t h e n b e l e g a l o b j e c t i o n s to a n y
i n the f u t u r e to l i m i t b e n e f i t s
c.
Any
i n g e n e r a l t e r m s would r u n into
serious difficulties if there was
benefits,
consultative
a n d f o r e a c h o f the u n i f o r m e d
changes
if contributions were
No
u n t i l the i m p l i c a t i o n s
without adequate
attempt
compensation.
F u r t h e r t h o u g h t s h o u l d b e g i v e n to t h e t i m i n g o f a n y
c o n s u l t a t i o n o n c o n t r i b u t i o n s i n r e l a t i o n to n e g o t i a t i o n s p u b l i c s e c t o r p a y c l a i m s i n 1982.
It w a s
w h e t h e r the p r o p o s e d c h a n g e s w o u l d r e a l l y b r i n g t h e o r d e r o f £ 3 0 0 m i l l i o n to £ 6 0 0 m i l l i o n .
savings
a d d i t i o n to t h e C i v i l S e r v i c e ,
contribu
F o r example, in
some National Health
Service
g r o u p s w o u l d c l a i m that their p a y a l r e a d y took a c c o u n t of c o n t r i b u t i o n s r e l a t e d to i n d e x - l i n k e d p e n s i o n s .
3
SECRET
of
In p r a c t i c e i t
c o u l d b e d i f f i c u l t tc s e c u r e a n o u t c o m e w h e r e b y the tions w e r e not offset b y p a y i n c r e a s e s .
on
questionable
SECRET
d.
T h e r e was
pressure
i n P a r l i a m e n t for a debate
the S c o t t r e p o r t o n p u b l i c s e c t o r p e n s i o n s *
this
on
might
m o s t s u i t a b l y take p l a c e i n late F e b r u a r y o r e a r l y M a r c h It w o u l d g i v e a n o p p o r t u n i t y to e x p l a i n t h e c o m p l e x i t y o f s u b j e c t a n d to b r i n g h o m e
THE
opinion,
civil
to t h e i r
pensions.
PRIME
servants
MINISTER,
the f a c t t h a t ,
1982. the
c o n t r a r y to p o p u l a r
already made a substantial
s u m m i n g u p the d i s c u s s i o n ,
contribution
s a i d that
the
C a b i n e t a g r e e d t h a t n o s t e p s s h o u l d b e t a k e n to l i m i t b e n e f i t s i n p u b l i c sector pension d i m i n i s h as
the
schemes;
the o b j e c t i o n s
rate of inflation was
to s u c h b e n e f i t s
reduced.
would
The C h a n c e l l o r of
the E x c h e q u e r s h o u l d a r r a n g e f o r f u r t h e r w o r k b y o f f i c i a l s i m p l i c a t i o n s of i n c r e a s e s i n contributions benefits.
it was
apply.
on
the
index-linked
T h i s f u r t h e r w o r k s h o u l d l o o k a t e a c h o f the p u b l i c
g r o u p s a n d i n p a r t i c u l a r at t h o s e , where
to r e f l e c t
s u c h as
the u n i f o r m e d
n o t y e t c l e a r h o w the p r o p o s e d a r r a n g e m e n t s
In the l i g h t o f t h i s f u r t h e r r e p o r t ,
service
services, might
the C a b i n e t w o u l d
decide
o n the l i n e to b e t a k e n i n t h e p r o p o s e d P a r l i a m e n t a r y D e b a t e
o n the
Scott report,
and on whether
and when there
s h o u l d be a
consultative
d o c u m e n t o n t h e p o s s i b i l i t y o f c h a n g e s i n the a r r a n g e m e n t s contributions in public service p r o s p e c t of l e g i s l a t i o n Session
pension
to i m p l e m e n t
schemes.
s u c h c h a n g e s i n the
no
present
a n d i t c o u l d w e l l b e i m p r a c t i c a b l e to i m p l e m e n t
l i f e o f the p r e s e n t
for
T h e r e was
t h e m i n the
Parliament.
The Cabinet 1.
A g r e e d that t h e r e
s h o u l d b e n o c h a n g e i n the
conferred by public sector pension 2.
I n v i t e d t h e C h a n c e l l o r o f the i.
Exchequer:
to a r r a n g e f o r a f u r t h e r r e p o r t b y
o f the D e p a r t m e n t s the implications
benefits
schemes.
officials
c o n c e r n e d dealing fully with
for each public s e r v i c e
c h a n g e s i n the p r e s e n t
s y s t e m of
group of
contributions;
and ii. 3.
to r e p o r t p r o g r e s s
A g r e e d to r e s u m e
in February
their discussion,
t h e Tr r i m e M i n i s t e r i n h e r
s u m m i n g up,
1982.
as indicated by i n the l i g h t of
C h a n c e l l o r o f t h e E x c h e q u e r ' s f u r t h e r r e p o r t to
Cabinet
Office
11 D e c e m b e r
1981 4
SECRET
them.
the
