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however be d i f f i c u l t t o j u s t i f y , and c o u l d c a l l i n q u e s t i o n t h e

c o n t i n u a t i o n o f t h e Review Body arrangements. The d o c t o r s and d e n t i s t s

would be l i k e l y t o o b j e c t s t r o n g l y t o s i g n i f i c a n t d i s c r i m i n a t i o n

against them i n f a v o u r o f t h e nurses and p r o f e s s i o n s a l l i e d t o

l i c i n e . The Government might t r o n g c r i t i c i s m i f i t

ine vjovernmenc mignc aa li ss oo aa tc tc rr aa cc tt sstrc Ppeared t o be abandoning t h e promise r e f e r r e d tco ( a l b e i t n o t

g i v e proper pay and

i m p l i c i t l y renewed) i n t h e 1983 M a n i f e s t o " t o giy

d i t i o n s " t o t h e armed f o r c e s . M i n i s t e r s t h e r e f o r e concluded t h a t

r i g h t course was t o i n c r e a s e pay by 3 p e r cent from 1 A p r i l 1984

Too* ^ ^ H recommended r a t e s coming i n t o payment from 1 November

Based on t h e Review Bodies' f i g u r e s , i t i s e s t i m a t e d t h a t t h i s

^ould reduce t h e e f f e c t i v e i n c r e a s e over 12 months from 1 A p r i l 1984 t o

-.63 }

it f o r d o c t o r s and d e n t i s t s , 4.92 p e r cent f o r t h e armed

force

14.46 p e r cent f o r t h e t o p s a l a r y groups. Pensions w i l l be

based

s a l a r i e s a c t u a l l y i n payment i n accordance w i t h t h e

Principi"

>out i n t h e Prime M i n i s t e r ' s W r i t t e n Answer on 13 A p r i l

1984 (Off Report, column 383).

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Para ° s e o f ^ g H Q m e d f o r c e s , t h e cost oi the proposals i n top g f ^ would b e ^ ^ i«Lthin e x i s t i n g cash l i m i t s ; t h e same goes f o r t h e

case groups g e n e r a L ^ ^ ^ h o u g h t h e T r e a s u r y a r e prepared t o l o o k a t

°cial°c y l a r d i f f i c u l t y . For the NHS t h e S e c r e t a r y o f S t a t e f o r

i c e s and t h e Chief S e c r e t a r y , Treasury have agreed, s u b j e c t t o

the shoui j t h e other h e a l t h M i n i s t e r s , t h a t the h e a l t h a u t h o r i t i e s

exc r i b u t e from t h e i r e f f i c i e n c y savings £57 m i l l i o n towards t h e

rovision. ( T h i s would cover b o t h

view B § P uming s e t t l e m e n t s o f up t o 4.5 p e r

n t . ) Zt § P s and o t h e r s t a ^rould be £300 m i l l i o n ; t h e

Pres . • l charge t o t h e R R~-. t l o n o f i - v , - . on. The S e c r e t a r y o f S t a t e f o r °ci i s -° ^ ^ consi!

be c o n s i d e r i n g whether t h e r e

shoui f n d Treasury M i n i s t ^fcional Insurance C o n t r i b u t i o n

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o n s -P t h e r e f o r e recommend t h a t , i f t h e Cabinet a r e a b l e t o reach

th 7 June, a l l t h e Reports should be p u b l i s h e d t h a t a f t e r n o o n and at t h e M i n i s t e r should s i m u l t a n e o u s l y announce t h j ^ o v e r n m e n t ' s ci An werions _ t h e m by W r i t t e n Answer, as i n -recent year K r a f t Written

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SECRET

183

SECRET

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SECRET 1 8 5



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