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qualified staff outside London to 14 per cent and add just under 0.5 per cent to this year's pay bill. In his view it was right for these highly skilled people to receive this additional recognition.

Continuing, THE SECRETARY OF STATE FOR HEALTH said that the established Trade Unions had refused to resume negotiations on the basis of these proposals. They had continued to press publicly for an increase this year of over 11 per cent, to secure parity with fifth-year qualified fire-fighters. A settlement on that basis would not only have very damaging

Sonsequences for future pay negotiations in the NHS and outside

and it was relevant that laboratory and scientific offers in the NHS had recently accepted a 6.5 per cent pay offer but would deprive the Service of the true benefit of the additional resources allocated to it in the Chancellor's Autumn Statement. He was now minded to have a formal offer on the basis of the Chief Executive's proposals made to the Association of Professiona Ambulance Personnel (APAP). This Trade Union, which was hot affiliated to the TUC and which had been denied representation on the Trade Union side, might be disposed to recommend acceptance of the offer to the twenty-five per cent of ambulance perso it claimed to have in its membership. The offer would simultaneously be extended to members of the other Unions, condition a resumption of normal working. In his view, this was the most promising route to an early settlement of the dispute, which would allow the ambulance workers to have their increase and a substantial amount of back pay before Christmas. If APAP were pared to recommend the new offer to their members, there would be advertisements in national newspapers early the following week setting out the detailed terms of the pay offer, in order to ensure that both the ambulance workers and the pubderstood the Management Side's position. A difficult time, however, lay ahead.

THE SECRETARY OF STATE FOR SCOTLAND d that industrial action by ambulance workers was spreading to Scotland. In some areas non-emergency services had been withdrawn. The Management Side had made it clear that they were not prepared to pay ambulance workers in full if the complete range of services was not available. This was a reasonable view, which should gain public support. The Unions had responded however, by threatening also to withdraw the accident and emergency services. He was in touch with the Secretar of state for Defence about whether the Armed Forces should be

standby against this possibility.

The Cabinet

Took note.

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