CAB129-52 — Page 104

CABINET OFFICE RECORD COPY

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(THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT)

SECRET

C. (52) 186

10TH JUNE, 1952

CABINET

COPY NO. 69

SUPPLEMENTARY PENSIONS SCHEME

Memorandum by the Minister of Labour and National Service

The Cabinet at their meeting on 8th May (C. C. (52) 51st Conclusions, Minute 8) authorised me to consult the Trades Union Congress (T. U. C.) about the possibility of a wider inquiry into the long-term economic and financial aspects of the growing cost of making adequate provision for old age, with particular reference to schemes, both State and otherwise, for retirement and old age pensions. In doing sc I was to ensure that there was no misunderstanding about the limited significance of any approval that may be given to pensions schemes that had reached an advanced stage of consideration.

2.

I have seen Mr. Arthur Deakin and Sir Vincent Tewson, but they are not prepared to co-operate or assist in any such inquiry. They regard the wider inquiry as a camouflage to cover up an inquiry into supplementary pensions schemes and thus prevent them from bringing to fruition a number of schemes on which negotiations are well advanced. They are obviously still very sore about the tactics employed by the previous Government.

3.

We must now decide whether or not to go ahead with the inquiry. I see no advantage in having a head-on collision with the T.U. C. on this matter. Moreover, while the extension of schemes for supplementary pensions might have serious repercussions throughout industry, I also see no advantage in the circumstances of pursuing the policy initiated by the Labour Government.

4.

I suggest that we should give up the idea of inquiring on the above lines and appoint a Committee to report to us the facts about making adequate provision for old age, which might take the form either of an ad hoc interdepartmental Committee of officials or a Committee appointed within the framework of the National Insurance scheme. We should then be able to gq to the various organisations concerned, including the T. U. C., on an informe basis and after this consultation we could formulate our own policy. In the meantime, we shall have to deal on their merits with proposals formulated in the different industries as a result of negotiation with the Trade Unions and Staff Associations.

Ministry of Labour and National

Service, S.W.1.,

10TH JUNE, 1952.

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W. M.

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