CAB128-94_A1b — Page 213

CONFIDENTIAL

NFIDEN

er Group

Page 213

1. The Cabinet were informed of the business to be taken in the House of Commons and the House of Lords in the following week.

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY said that he proposed to make a statement that afternoon about the sale of the Rover Group to British Aerospace plc (BAe). A report in morning's Guardian, referring to a leaked confidential Memorandum prepared by the Comptroller and Auditor General and nered to the National Audit Office (NAO) Report on the Rover Group Sale, had alleged that the Government had concealed from the European Commission payments of around £38 million to BAe. The AO report was due to be discussed by the Public Accounts Committee (PAC) in closed Session on 4 December, but he believed it right in the circumstances to volunteer a statement to Parliament Ne would inform the Chairman of the PAC of his intentions. He would also clear his statement with the for Health, who, as Chancellor of the Duchy of Lancaster had made a statement to the House of Commons on the Rover Grouple on 14 July 1988, and if possible with the former Trade and try Secretary, Lord Young of Graffham, who

Secretary

ba

was out of the co

nisters' and id Office

lders' Salaries

FIDENTI

The Cabinet discussed salaries. The discussion The discussion

oals for increases in Ministerial

Wegorded separately. orded separately.

ME AFFAIRS

dustrial Action the Ambulance

ervice

evious ference

(89) 35.2

2. THE SECRETARY OF STATE FOR HEA

aid that at the beginning

of the week National Health Service

vice (NHS) management had advertised widely the latest terms amounting to some 9% over 18 months - which were on offer to ambulance workers. The London Ambulance Service had also won an important court judgement recognising management's right to withhold pay where ambulance staff were not working normal

{Y. This would mean reduced pay for ambulance workers takkomustrial action which, in the run up to Christmas, would put added pressure on them to accept the latest management offer. No which he had given the Trade Union Side of the National We Council of his intention to establish new negotiating machine including representatives of the Association of Professional Ambulance Personnel (APAP) was due to expire the following day would enable a variant of the latest management offer to be put to APAP (whose members were estimated to make up some ambulance workers) the following week. At the same offer would be extended to members of other unions condigna

This

of

FIDENTIAL

on a return to normal working. If APAP accepted the offer

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