CAB128-94_A1b — Page 113

ENTARY

IDENTI

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1. THE LORD PRESIDENT OF THE COUNCIL said that the House of Lords would resume sitting on 9 October and the Commons on 17 October. A difficult spillover was in prospect, particularly in the House of Lords, with a number of substantial Government Bills still to receive Royal Assent. It had been suggested that some 500 Government amendments would be tabled to the Local Government and Housing Bill, which was scheduled to complete its Committee Stage in the Lords on 9-11 October and to begin its Report Stage on 19 October. Commons consideration of Lords amendments to the Bill could not be before 6

November. Many of the proposed amendments were technical and others were designed to meet commitments entered into during the passage of Bill. Nevertheless the number of amendments envisaged might opardise the smooth passage of the Bill through the Lords, threatening the understanding reached with the Opposition in that House about the timetable for the Bill's consideration. He would be discussing with the Secretary of State for the Environment and the Minister for Local Government the prospects for reducing the number of amendmente, It was desirable to start the next Session of Parliament as early in November as possible in view of the heavy legislative programme in prospect for that Session. That programme

the would itself now need some adjustment in the light of developments since it had been provisionally agreed by the Cabinet in March. He would be consult colleagues concerned about this.

THE PRIME MINISTER, ming up a brief discussion, said that it was important that the next session of Parliament should begin as early as possible in November The Lord President should discuss with the Secretary of State for environment and the Minister for Local Government the scope for reducing the number of Government amendments envisaged to the Local Government and Housing Bill. He should keep the Chancellor of the Exchequer informed about the likely date for the State Opening of the new paramentary Session, bearing in mind in particular the desirable timing of the Autumn Statement. He should also consult colleagues cerned about the legislative programme for the next Session, it was clear was in some

Wait respects too heavy, in order to enable final decisions on the programme to be taken in the Queene Speeches and Future Legislation Committee.

The Cabinet -

Took note, with approval, of the Prime Minister's summing up of their discussion and invited the Lord President to proceed accordingly.

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CONFIDENTIAL

CONFIDENTIAL

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CONFIDENTIAL

TAIRS

Industrial Action in the

Service

Previous Reference:

hance

ENT

CC (89) 26.2

Page'114 of 260

2. THE SECRETARY OF STATE FOR HEALTH said that industrial action by ambulance drivers had started at midnight, following the rejection by the National Union of Public Employees (NUPE), after two separate ballots of its members, of the National Health Service (NHS) Whitley Council's 6.5 per cent pay offer. The handling of the dispute was potentially difficult, particularly in view of some settlements since the offer was made and the public sympathy the ambulance drivers might attract. The 6.5 per cent offer was, however, consistent with settlements already concluded with other NHS staff in this pay round, including same groups which had a more compelling Case for a higher award than the ambulance drivers. The nurses had epted a 6.8 per cent settlement following the introduction of ep new salary structure in 1988. NUPE's expectations had no

bt risen following the more recent settlements with the railwaymen and with local government staff at 8.8 per cent. In addition, the ambulance drivers were seeking to compare their case to that of other emergency service workers who had received higher pay increases, particularly firemen. It would be regrettable if the ambulance drivers secured a higher settlement than other NHS staff had done. This would have serious implications for next year's NHS pay round and could lead to an industrial dispute in the Spring.

out

The management of the NHS Whitley Council had made some improvements to the original offer, notably through a package for drivers in London amounting to an increase of at least 9.3 per cent, and a review of sore aspects of the salaried structure which had been introduced in 1986. They were urging NUPE to suspend industrial action and resume talks there was no immediate prospect of a settlement. The effects of the overtime ban were not at present expected to be serious, beaction was being targeted on non- emergency services, although problems might be encountered at weekends.

TIAL

nemployment

revious eference: CC(89) 21.2

THE CHANCELLOR OF THE EXCHEQUER said that the unemployment figures for August would be published later that day. They showed a remarkably large seasonally adjusted fall in unemployment of 36,000, the size of which could be attributed to amber of special factors. Unemployment had now fallen over 37 consecutive months and by a total of 1.38 million since July 1986, giving the longest and largest sustained fall on record. The rate of fall of long-term unemployment continued to be even higher than the rate of an unemployment as a whole. The United Kingdom unemployment rate how stood at 6.1 per cent, and the size of the workforce in employment was an all time record. Figures for the annual increase in earnings over the whole economy would also be published that day and would of particular interest to the financial markets. These showed that the annual increase in earnings over the whole economy had risene quarter per cent in July, returning to the level prevailing in the spring.