:

It will be apparent that where a Government servant is susperled under C. S. R. 611 the operation of the contract is in practice not in fact suspended as the right to housing and education allowances continues. We do not think this necessarily alters the nature of the question, but it certainly affords an easy basis on which Wallwork v. Fielding might be distinguished. Although we are hopeful of being able to sustain on Appeal the decision of the High Court, we must recognise the very real possibility that the withholding of pay may be held to be without legal authority. We think it would be embarrassing to argue that suspension without pay is embraced by the words "may take such other disciplinary action" in view of the clearly stated intention that suspension under

C. S. R. 611 should not be regarded as such. Doubtless this line of argument will also be invoked by counsel for the Dispensers on the general pover of suspension: viz. that Article XVI deals only with suspension as a disciplinary measure.

5.

If the Appeal succeeds the Government will lose its only effective short term response to full or partial withdrawal of labour. This may lead to considerable difficulties. Report No. 5 of the Standing

Commission on Civil Service Salaries and Conditions of Service to be

published in mid-November will contain recommendations on the salaries scales of some major grades. These recommendations may attract opposition from some grades including primary school teachers, and the danger of some

form of industrial action in late November cannot be ruled out. It is

thus considered highly desirable that immediate steps be taken to secure proper legal authority for a power of suspension without pay, in case of

an unfavourable result. The Appeal is set down for hearing on 30th &

31st October but it is anticipated the Government would not give

judgement at the close of the argument.

6.

The Government favours amendment of the Letters Patent or issue

of additional instructions, i.e. reliance upon prerogative powers, as the

most appropriate way of dealing with the matter. In the United Kingdom regulation of the conduct and condition of service of Her Majesty's Home Civil Service is by exercise of the Royal Prerogative via the Civil

Service Order in Council 1969, and we would prefer to see this traditional

reliance on the prerogative preserved, as opposed to enactment of an

Ordinance.

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