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c o n t i n g e n c i e s i n t h e G u l f T i c a ni n v o l v e m e n t h a d d i m i n i s h e d a s a c o n t i n u e t o s u p p l y a r m s t o t h e i r N a t i o n s S e c u r i t y C o u n c i l h a d a d o p t e r e s o l u t i o n o n 1 J u n e a n d c o n s u l t a t i ^ c o u n t r i e s o v e r t h e b e s t w a y t o b r i n g d o r d e r t o c o n t a i n t h e s i t u a t i o n i n t h e o i l m a r k e t s o f a r h a d b e e n m a n a g e a b l e i t s

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r e s u l t e d i n h e a v y c a s u a l t i e s a n d t h e r e ^ k o ^ o amp e n b a n c e s t h r o u g h o u t I n d i a T h e r e w e r e n o r e p o r t s o ^

s u b j e c t s O n 5 J u n e t h e r e h a d b e e n a v i o l e n t a s u - i - ~

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T h e C a b i n e t w e r e i n f o r m e d o f t h e b u s i n e s s t o b e t a k e n i n t h e H o u s e o f C o m m o n s d u r i n g t h e f o l l o w i n g w e e k

T H E L O R D P R E S I D E N T O F T H E C O U N C I L s a i d t h a t t h e H o u s e o f L o r d s w o u l d t a k e t h e S e c o n d R e a d i n g o f t h e L o c a l G o v e r n m e n t ( I n t e r i m P r o v i s i o n s )

1 1 o n M o n d a y 11 J u n e H e w a s c o n c e r n e d a b o u t t h e p o s s i b l e e f f e c t G o v e r n m e n t s u p p o r t e r s o f a r e a s o n e d a m e n d m e n t p u t d o w n b y t h e

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t h a t m o r n i n g o f d a m a g e t o a L i b e r i a n t a n k e r b e e n i n v o l v e d T h e l o n g a w a i t e d m a j o r

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c o n t i n g e n c i e s i n t h e G u l f T i c a ni n v o l v e m e n t h a d d i m i n i s h e d a s a c o n t i n u e t o s u p p l y a r m s t o t h e i r N a t i o n s S e c u r i t y C o u n c i l h a d a d o p t e r e s o l u t i o n o n 1 J u n e a n d c o n s u l t a t i ^ c o u n t r i e s o v e r t h e b e s t w a y t o b r i n g d o r d e r t o c o n t a i n t h e s i t u a t i o n i n t h e o i l m a r k e t s o f a r h a d b e e n m a n a g e a b l e i t s

t e n d e n c y t o s e e k m i l i t a r y a l t h o u g h t h e A m e r i c a n s w o u l d i n t h e a r e a T h e U n i t e d e l a t i v e l y e v e n - h a n d e d

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r e s u l t e d i n h e a v y c a s u a l t i e s a n d t h e r e ^ k o ^ o amp e n b a n c e s t h r o u g h o u t I n d i a T h e r e w e r e n o r e p o r t s o ^

s u b j e c t s O n 5 J u n e t h e r e h a d b e e n a v i o l e n t a s u - i - ~

C o m m i s s i o n i n L o n d o n o f S i k h H i g h b y a s m a l l g r o u pT h n e p o l v u w u u w u uy a au iax x g x u u p u x Q X M I raquo r r e sPOl iro gt-laquobdquor o u A c t i o n P deg n s e h a d b e e n r a p i d a n d n i n e a r r e s t s h a d b e e A c t i o n h A ueen ra]

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T H E L O R D P R E S I D E N T O F T H E C O U N C I L s a i d t h a t t h e H o u s e o f L o r d s w o u l d t a k e t h e S e c o n d R e a d i n g o f t h e L o c a l G o v e r n m e n t ( I n t e r i m P r o v i s i o n s )

1 1 o n M o n d a y 11 J u n e H e w a s c o n c e r n e d a b o u t t h e p o s s i b l e e f f e c t G o v e r n m e n t s u p p o r t e r s o f a r e a s o n e d a m e n d m e n t p u t d o w n b y t h e

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t h a t m o r n i n g o f d a m a g e t o a L i b e r i a n t a n k e r b e e n i n v o l v e d T h e l o n g a w a i t e d m a j o r

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e r i c a n A W A C S a n d i n - f l i g h t r e f u e l l i n g o n f i r m e d i n h i s r e c e n t c o n v e r s a t i o n

f S t a t e M r S h u l t z t h i s d i d n o t i c y T h e F o r e i g n a n d C o m m o n w e a l t h c o n t a c t w i t h t h e A m e r i c a n s a b o u t

c o n t i n g e n c i e s i n t h e G u l f T i c a ni n v o l v e m e n t h a d d i m i n i s h e d a s a c o n t i n u e t o s u p p l y a r m s t o t h e i r N a t i o n s S e c u r i t y C o u n c i l h a d a d o p t e r e s o l u t i o n o n 1 J u n e a n d c o n s u l t a t i ^ c o u n t r i e s o v e r t h e b e s t w a y t o b r i n g d o r d e r t o c o n t a i n t h e s i t u a t i o n i n t h e o i l m a r k e t s o f a r h a d b e e n m a n a g e a b l e i t s

t e n d e n c y t o s e e k m i l i t a r y a l t h o u g h t h e A m e r i c a n s w o u l d i n t h e a r e a T h e U n i t e d e l a t i v e l y e v e n - h a n d e d

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s u b j e c t s O n 5 J u n e t h e r e h a d b e e n a v i o l e n t a s u - i - ~

C o m m i s s i o n i n L o n d o n o f S i k h H i g h b y a s m a l l g r o u pT h n e p o l v u w u u w u uy a au iax x g x u u p u x Q X M I raquo r r e sPOl iro gt-laquobdquor o u A c t i o n P deg n s e h a d b e e n r a p i d a n d n i n e a r r e s t s h a d b e e A c t i o n h A ueen ra]

n b a d b e e n t a k p e r s o n n 1 bull t a k e n t o p r o t e c t I n d i a n d i p l o m a t i c p r e m i s e s e r s o n n e

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n t c i d e s r e m a i n e d h i g h

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T H E F O R E I G N A N D C O M M O N W E A L T H S E C R E T A R Y s a i d t h a t h e h a d a t t e n d e d t h e _ M i n i s t e r i a l m e e t i n g o f t h e N o r t h A t l a n t i c C o u n c i l i n W a s h i n g t o n o n 2 9 - 3 1 M a y T h e m a i n r e s u l t h a d b e e n t o c o n f i r m t h a t t h e g e n e r a l d i r e c t i o n o f t h e A l l i a n c e s E a s t - W e s t s t r a t e g y w a s c o r r e c t a n d t h a t t h e A l l i a n c e w a s i n g o o d s h a p e d e s p i t e p r o b l e m s o v e r c r u i s e m i s s i l e p o l i c y i n D e n m a r k a n d t h e N e t h e r l a n d s a n d t h e c o n t i n u i n g

r r e l b e t w e e n G r e e c e a n d T u r k e y T h e P r e s i d e n t o f t h e U n i t e d S t a t e s c h t o t h e I r i s h P a r l i a m e n t i n D u b l i n o n A J u n e h a d s t r u c k e x a c t l y

i g h t n o t e o n E a s t - W e s t r e l a t i o n s a n d t h e r e c e n t d e c i s i o n b y N e t h e r l a n d s G o v e r n m e n t o n c r u i s e m i s s i l e d e p l o y m e n t a l t h o u g h gt V gt o k u s t t h a n w a s d e s i r a b l e w a s n o t u n s a t i s f a c t o r y H e h a d h a d a

n u m b e r ^ f u s e f u l b i l a t e r a l m e e t i n g s i n W a s h i n g t o n i n c l u d i n g o n e w i t h t h e iampgZ^ F o r e i g n M i n i s t e r S i g n o r A n d r e o t t i w h o m h e h a d e n c o u r a g e d t o m a i ^ y S Z i ^ p r e s s u r e o n t h e L i b y a n G o v e r n m e n t f o r c o n s u l a r a c c e s s t o t h e B r i t i r | h s u b j e c t s d e t a i n e d t h e r e

T H E P R I M E M I N I S a i d t h a t h e r t a l k s w i t h t h e S o u t h A f r i c a n P r i m e M i n i s t e r M r P l a i n L o n d o n o n 2 J u n e h a d c o n c e n t r a t e d o n t h e s i t u a t i o n i n S o u W t e f r W V i f r i c a a n d h a d i n c l u d e d a l o n g d i s c u s s i o n o f t h e S o u t h A f r i c a n V ^ o W n e n t s i n t e r n a l p o l i c i e s T h e S o u t h A f r i c a n s

a l m o s t c o m p l e t e ^ f c ^ e y i t h d r a w a l o f t h e i r t r o o p s f r o m M o z a m b i q u e a n d A n g o l a a n d w e r e i^s t h a t t h e a d v a n t a g e s o f h a v i n g a s i g n e d a g r e e m e n t w i t h S o u t h A ^ h o u l d b e a p p a r e n t t o t h e p e o p l e o f M o z a m b i q u e T h e y t h e r e f gt e d t h a t B r i t i s h a i d t o M o z a m b i q u e w o u l d c o n t i n u e T h e y w e t o u s t o w i t h d r a w f r o m N a m i b i a n o t l e a s t o n g r o u n d s o f c o s t e n o t p r e p a r e d t o d o s o a s l o n g a s C u b a n t r o o p s r e m a i n e d i n A n g ^ ^ T h i s i n t u r n d e p e n d e d u p o n s o m e a c c o m m o d a t i o n b e i n g r e a c h e d b t h e A n g o l a n G o v e r n m e n t u n d e r S e n o r D o s S a n t o s a n d t h e U n i o n T o t a l I n d e p e n d e n c e o f A n g o l a u n d e r D r S a v i m b i T h e r e w a s c o t f l y n o e a r l y p r o s p e c t o f i n d e p e n d e n c e f o r N a m i b i a S h e h a i t c l e a r t o M r B o t h a t h a t t h e

A f r i c a nt h ii G o v e r n m e n t s p o l i c y o h e i d w a s u n a c c e p t a b l e t o n e U n i t e d K i n g d o m a n d h a d l e f t h o u b t o f B r i t i s h d i s a p p r o v a l

degr f o r e S o u t h A f r i c a n p a s s l a w s d e f e n d e d S o u t h A f r i c a n

w a s raquo a k i n g t o - ^ r e s p o n s i b i l i t y t o t h e W j 8 b ^ m m i g r a n t s o f

a l s o d r a w n a t t e n t i o n t o c o u n t r i e s V

i n t o S o u t h A f r i c a f r o m n e i g h b o u r i n g g a b i g h s t a n d a r d o f h d

l i v i n g t h e r e T h e a t m o s p h e r e o i a p i r t e o u s a n d n C

M r B o t h a s r o u n d o f v i s i t s t o W e s t ^ i n u s e f u l i n e x p o s i n g h i m t o W e s t e r n v i e w s i d i a l o g u e amp s m u c n

w i t h t h e S o v i e t U n i o n a p p l i e d v i S o u t h A f r i c a o t h e n e e d t o m a i n t a i n c o n t a c t s o f t h i s k n

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ft

THE HOME SECRETARY said that he had attended the recent meeting of European Ministers of Justice held in Madrid under the auspices-of the Council of Europe On Br i t i s h i n i t i a t i v e agreement had been reached on a resolution to set up an ad hoc body to promote co-operation against terrorism Against i n i t i a l French resistance i t had been agreed to include a reference to the abuse of diplomatic

vileges and immunities and to consider a Br i t i s h proposal that omats declared persona non grata in one country should not be

tpounded to others This proposal might usefully be pursued in the ^poundext of the discussion of international terrorism which was due

t 0 a t^P^^ace the forthcoming Economic Summit

S i c nit THE PRIM^MTNISTER said that the major economic issues at the meeting tgtd the of the lexers of the seven major industria l countries in London on

7-9 June would be how to sustain economic recovery how to handle the orial international debt problems how to avoid increased protectionism and how to deal^Rh certain environmental needs I t was important not to rais e puWUexpectations too much The opportunity would also be taken t o reg s some major p o l i t i c a l questions including East-West r e l a t i o S ^ O t h e consequences of the war between Ira n and

Xke President of the United States also wished to discuss i n t e r n a t i c^^Sk t i c i p a t i o n in the American project for a manned space station ltgtgtgt

THE CHANCELLOR OF THE EXC reported on the recent situation in f inancial markets Stock m had fal le n in the United States the United Kingdom and el sew a resul t of concern about the banking system following the l t i e s of Continental I l l i n o i s Bank The underlying problems d the size of the United States de f i c i t the effect of nx erest rates in the United States and the problems of some d ountries part icularl y those in South America United Kingdom g banks however had been able to hold their interest rates an than expected money supply figures had calmed the market y ul work was continuing on the handling of the debt problems oi bo American countries

In discussion i t was pointed out that 1 v s d i f f i cu l t^ ^ i to tread to be the a p e a r t l g

middle l in e between overstating the pr ftfapcStant debtor v a rcomplacent The circumstances of the r

countries were different and i t was rign by case basis 2m on

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THE PRIME MINISTER recalled that the 40th Anniversary of the Normandy landings f e l l in that week The Cabinet would wish to record^its^ deep appreciation of the sacrif ic e of those who had given thei r l ive s for the freedom of Europe and thereby made possible 40 years of peace The ceremonies which had been held the previous day i n France

mark the anniversary and which had been attended by Heads of or Government of the United Kingdom the United States France

lum Norway the Netherlands Canada and Luxembourg had been ndly moving as had been the universal respect and admiration

rayed to Her Majesty the Queen

Cabinet shy

Tod^^^te

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3 THE FOREIGN AND COMMONWEALTH SECRETARY said that he had made clear to the French Minister for European Affairs Monsieur Dumas at a

bull UlgtltV ^ ^ meeting on 6 June that the United Kingdom was wil l in g to reach a conclusion on the reform of Community financing and United Kingdom refunds u t or before the next meeting of the European Council on 25-26 June

bullthough the margin for manoeuvre was small I t was now possible that ^French Presidency which had ear l i e r declined to take any i n i t i a t i v e

take up again the search for a solution although the issues of e remained d i f f i cu l t

THE CHANCELLOR OF E EXCHEQUER said that the Council of Ministers (Finance) on A Juhlt ad agreed to increase the ce i l in g for Community

enc loans The Unitshylt om had opposed the specific proposal for innovation loans was not soundly based and this proposal had not been adopted Thef been further discussion of budget d isc ip l ine Although some other raquonraquo tates in particula r Germany France and the Netherlands share^ [nited Kingdoms view on the need for greater budgetary discipl in e wiuu e Community they were not pressing for this disc ipl in e to be mad binding The discussion however was s t i l l under way and could concluded unt i l the outstanding questions on the reform of Community g and United Kingdom refunds had also been resolved

I S T E R 0 Fl ight AGRICULTURE FISHERl FOOD reported that in the t b e m e e t i n o f t h ethere deg f sect Council ampZl isters (Fisheries ) on 2A May

C deg U l d b e d i f f i c uthere l t i e s with Norway herring Later in the year t a l s o b eon bv m i g h problems with Denmai over certain provisions

catches

T he Cabinet -Took note

latest SECRETARY OF STATE FOR ENERGY reported t jet on the P i o n i n t h e c o a lhi ^ ti s r e r n industry dispute Th ^discussion V gt t r y recorded separately

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l

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY said that the Post Office bull Board had made a new pay offer to the Union of Communications Workers (UCW) The National Executive of the union had not accepted thxs offer but they would recommend their membership to accept i t in a bal lot tyhich they were about to conduct The offer was complicated i t

mdashluded increases in basic rates consolidation of bonuses and changes Overtime rates I t was therefore d i f f i cu l t to be certain about i t s 11 f inancial effect but the Post Office estimated that i t would gtbaut A9 per cent While the ballot of the UCWs membership was

inltjpropoundrss there would be no further o f f i c i a l industr ia l action a l th^fhgtthere might be sporadic unofficial disruption I t seemed l i k e l y that t^Jowernment s threat to suspend the Post Offices monopoly of letterlt^s3had had a salutary effect on union attitudes

The

Took note

bull ^ O R T S 5frbdquo T h e Cabinet co sred a note by the Secretary of the Cabinet

( C ( 8 ltgt 15) about t n bull^mmendations of the Pay Review Bodies

THE PRIME M I N I S T E R sai was necessary to reach decisions on the^commendations of the ro Review Bodies These were as follows

related to increases Apri l 198A) shy

a lt The Armed Forces Pi ew Body (AFPRB) had recommended increases that would add r cent (pound1981 mil l ion) to the estimated pay b i l l for 19 The number affected was 321000

bull The Review Body for N u r s i ^ i ff Midwives Health V i s i tor s a n d professions a l l i ed to medicii tNRB) had recommended increases ror nursing staff midwives and 6secti v i s i t o r s that would add

Ftr cen Cfft laquo in bdquobdquo per centt (pound228 mill ion) to t h ^ r gt a t e d pay b i l l for ^ J of the staff concerned The number^gfected by these recommendations was some 550000 (or A8A000 in who^e-time equivalent terms The NRB had also recommended increases for professions a l l i e d to medicine that would add 78 per cent (pound179jailllon) to the estimated pay b i l l for 198A-85 of the s t a f ^ c e r n e d The number affected was AA000 (or 33500 in w h o l e - t ^ ^ i v a l e i

c The Doctors and Dentists Review Body (DDs recommendedincreases that would add 69 per cent (pound118 tniK gtto the annualPay b i l l for doctors and dentists The number afj was 9A950They had also recommended substantial increases l i nts tofamily doctors in respect of practice expenses expected to cost around pound60mill ion in 1984-85

d- The Top Salaries Review Body (TSRB) had made recomtaftf mvolving increases of just under 6i per cent The numhL^Xgt affected were 682 higher c i v i l servants 215 senior o f f i c ^ S f n the armed forces and 1017 members of the judic iary

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Ministers direct ly concerned had met under her chairmanship to consider the Review Bodies recommendations Their proposals to the Cabinet were as follows The recommendations of the NRB should be implemented in f u l l from 1 April 1984 I t would be exceptionally d i f f icul t to reject

the recommendations for the particular groups concerned who commanded Wide measure of public sympathy in the f i r s t year of a new Review Ny set up in the aftermath of the 1982 National Health Service (NHS)

ite I t should however be made clear to the staff concerned that ommendations were accepted on the basis that they would co-operate nagement in securing improved productivity Acceptance in f u l l

^commendations of the other Review Bodies would have unacceptable Lons on other public sector pay negotiations and unacceptable

for public expenditure but outright rejection would be gtjustify and could c a l l into question the continuation of Ddy arrangements I t was therefore proposed that the pay

groups concerned should be increased by 3 per cent from 1 April 1984 with the fu l l recommended rates coming into payment from 1 November 1984 This would reduce the effective increase over the ^e lve months f April 1984 to 463 per cent for doctors and dentists 492 per cent fc armed forces and 446 per cent for the top salarygroups Pension be based on the salaries actually in payment inaccordance with thi 1 J

iple set out in her Written Answer ofApri l 1984

I f the Cabinet approvec proposals she would announce the Government decisions that afternoon ^ns of a Written Answer A draft text was annexed to C(84) 15

THE SECRETARY OF STATE FOR ttgjg^ ^ b e ^ c h resented immediate effect to the recomm^n^yions of the A trade trade J c o u r s e by the armed forces Never the lVamp^ewas convinced that course

doutlined by the Prime Minister waV^cS^ct higher pay trade l -duce thefunds available within Jexpendxture plan f deg r equipment I t would however bltpoundpoundpoundkrable to stage tne c s to members of the armed forces for fo^cxommodat ion and the l i k e in

bullthe same way as i t was proposed to s t a ^ e pay increase this would something to reduce resentment at littleN^inancial cost He would contain that cost within existing expenditure provisions

THE SECRETARY OF STATE FOR SOCIAL SERVICES said pound he stronglysupported the proposals outlined by the Prime er During discussionso f public expenditure the previous autumn he had with theChief Secretary Treasury that i f pay increases3 NHS exceeded thePer cent which was allowed for in the Government

s

Plans he would try to offset the resulting additi c expenditure far a s - mdash bullbull - lona diture as f b y s a v i n b u trom the RS g s raquo that any balance woul to be found

b u t 6 S e r v e H ethere had identified efficiency savings lt mi l l ion M~ W O u l d

eth n a charge to e e of some pound l i o n I fCabin remairemain a cnarge to ththe ReservReserve of some pound3gt0 au a p p r o v e d bet h o r i S e d the proposals in C(84) 15 he would As S o c t 0 f l n f o n ni a t i n bdquo the Chairmen of the DDRB the Br i t i sh

^ a n d t h ebefore Br i t i sh Dental Association (BDA)thlt Ch^an announcement was made This had been done in previous

rmen had invariably respected the Governments confidenc

CONFIDENTIAL 228

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

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The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

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progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

CONFIDENTIAL

ft

THE HOME SECRETARY said that he had attended the recent meeting of European Ministers of Justice held in Madrid under the auspices-of the Council of Europe On Br i t i s h i n i t i a t i v e agreement had been reached on a resolution to set up an ad hoc body to promote co-operation against terrorism Against i n i t i a l French resistance i t had been agreed to include a reference to the abuse of diplomatic

vileges and immunities and to consider a Br i t i s h proposal that omats declared persona non grata in one country should not be

tpounded to others This proposal might usefully be pursued in the ^poundext of the discussion of international terrorism which was due

t 0 a t^P^^ace the forthcoming Economic Summit

S i c nit THE PRIM^MTNISTER said that the major economic issues at the meeting tgtd the of the lexers of the seven major industria l countries in London on

7-9 June would be how to sustain economic recovery how to handle the orial international debt problems how to avoid increased protectionism and how to deal^Rh certain environmental needs I t was important not to rais e puWUexpectations too much The opportunity would also be taken t o reg s some major p o l i t i c a l questions including East-West r e l a t i o S ^ O t h e consequences of the war between Ira n and

Xke President of the United States also wished to discuss i n t e r n a t i c^^Sk t i c i p a t i o n in the American project for a manned space station ltgtgtgt

THE CHANCELLOR OF THE EXC reported on the recent situation in f inancial markets Stock m had fal le n in the United States the United Kingdom and el sew a resul t of concern about the banking system following the l t i e s of Continental I l l i n o i s Bank The underlying problems d the size of the United States de f i c i t the effect of nx erest rates in the United States and the problems of some d ountries part icularl y those in South America United Kingdom g banks however had been able to hold their interest rates an than expected money supply figures had calmed the market y ul work was continuing on the handling of the debt problems oi bo American countries

In discussion i t was pointed out that 1 v s d i f f i cu l t^ ^ i to tread to be the a p e a r t l g

middle l in e between overstating the pr ftfapcStant debtor v a rcomplacent The circumstances of the r

countries were different and i t was rign by case basis 2m on

CONFIDENTIAL

CONFIDENTIAL

THE PRIME MINISTER recalled that the 40th Anniversary of the Normandy landings f e l l in that week The Cabinet would wish to record^its^ deep appreciation of the sacrif ic e of those who had given thei r l ive s for the freedom of Europe and thereby made possible 40 years of peace The ceremonies which had been held the previous day i n France

mark the anniversary and which had been attended by Heads of or Government of the United Kingdom the United States France

lum Norway the Netherlands Canada and Luxembourg had been ndly moving as had been the universal respect and admiration

rayed to Her Majesty the Queen

Cabinet shy

Tod^^^te

CONFIDENTIAL r rraquo iraquo

3 THE FOREIGN AND COMMONWEALTH SECRETARY said that he had made clear to the French Minister for European Affairs Monsieur Dumas at a

bull UlgtltV ^ ^ meeting on 6 June that the United Kingdom was wil l in g to reach a conclusion on the reform of Community financing and United Kingdom refunds u t or before the next meeting of the European Council on 25-26 June

bullthough the margin for manoeuvre was small I t was now possible that ^French Presidency which had ear l i e r declined to take any i n i t i a t i v e

take up again the search for a solution although the issues of e remained d i f f i cu l t

THE CHANCELLOR OF E EXCHEQUER said that the Council of Ministers (Finance) on A Juhlt ad agreed to increase the ce i l in g for Community

enc loans The Unitshylt om had opposed the specific proposal for innovation loans was not soundly based and this proposal had not been adopted Thef been further discussion of budget d isc ip l ine Although some other raquonraquo tates in particula r Germany France and the Netherlands share^ [nited Kingdoms view on the need for greater budgetary discipl in e wiuu e Community they were not pressing for this disc ipl in e to be mad binding The discussion however was s t i l l under way and could concluded unt i l the outstanding questions on the reform of Community g and United Kingdom refunds had also been resolved

I S T E R 0 Fl ight AGRICULTURE FISHERl FOOD reported that in the t b e m e e t i n o f t h ethere deg f sect Council ampZl isters (Fisheries ) on 2A May

C deg U l d b e d i f f i c uthere l t i e s with Norway herring Later in the year t a l s o b eon bv m i g h problems with Denmai over certain provisions

catches

T he Cabinet -Took note

latest SECRETARY OF STATE FOR ENERGY reported t jet on the P i o n i n t h e c o a lhi ^ ti s r e r n industry dispute Th ^discussion V gt t r y recorded separately

CONFIDENTIAL 2 2 6

l

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY said that the Post Office bull Board had made a new pay offer to the Union of Communications Workers (UCW) The National Executive of the union had not accepted thxs offer but they would recommend their membership to accept i t in a bal lot tyhich they were about to conduct The offer was complicated i t

mdashluded increases in basic rates consolidation of bonuses and changes Overtime rates I t was therefore d i f f i cu l t to be certain about i t s 11 f inancial effect but the Post Office estimated that i t would gtbaut A9 per cent While the ballot of the UCWs membership was

inltjpropoundrss there would be no further o f f i c i a l industr ia l action a l th^fhgtthere might be sporadic unofficial disruption I t seemed l i k e l y that t^Jowernment s threat to suspend the Post Offices monopoly of letterlt^s3had had a salutary effect on union attitudes

The

Took note

bull ^ O R T S 5frbdquo T h e Cabinet co sred a note by the Secretary of the Cabinet

( C ( 8 ltgt 15) about t n bull^mmendations of the Pay Review Bodies

THE PRIME M I N I S T E R sai was necessary to reach decisions on the^commendations of the ro Review Bodies These were as follows

related to increases Apri l 198A) shy

a lt The Armed Forces Pi ew Body (AFPRB) had recommended increases that would add r cent (pound1981 mil l ion) to the estimated pay b i l l for 19 The number affected was 321000

bull The Review Body for N u r s i ^ i ff Midwives Health V i s i tor s a n d professions a l l i ed to medicii tNRB) had recommended increases ror nursing staff midwives and 6secti v i s i t o r s that would add

Ftr cen Cfft laquo in bdquobdquo per centt (pound228 mill ion) to t h ^ r gt a t e d pay b i l l for ^ J of the staff concerned The number^gfected by these recommendations was some 550000 (or A8A000 in who^e-time equivalent terms The NRB had also recommended increases for professions a l l i e d to medicine that would add 78 per cent (pound179jailllon) to the estimated pay b i l l for 198A-85 of the s t a f ^ c e r n e d The number affected was AA000 (or 33500 in w h o l e - t ^ ^ i v a l e i

c The Doctors and Dentists Review Body (DDs recommendedincreases that would add 69 per cent (pound118 tniK gtto the annualPay b i l l for doctors and dentists The number afj was 9A950They had also recommended substantial increases l i nts tofamily doctors in respect of practice expenses expected to cost around pound60mill ion in 1984-85

d- The Top Salaries Review Body (TSRB) had made recomtaftf mvolving increases of just under 6i per cent The numhL^Xgt affected were 682 higher c i v i l servants 215 senior o f f i c ^ S f n the armed forces and 1017 members of the judic iary

CONFIDENTIAL 2 2 7

CONFIDENTIAL

Ministers direct ly concerned had met under her chairmanship to consider the Review Bodies recommendations Their proposals to the Cabinet were as follows The recommendations of the NRB should be implemented in f u l l from 1 April 1984 I t would be exceptionally d i f f icul t to reject

the recommendations for the particular groups concerned who commanded Wide measure of public sympathy in the f i r s t year of a new Review Ny set up in the aftermath of the 1982 National Health Service (NHS)

ite I t should however be made clear to the staff concerned that ommendations were accepted on the basis that they would co-operate nagement in securing improved productivity Acceptance in f u l l

^commendations of the other Review Bodies would have unacceptable Lons on other public sector pay negotiations and unacceptable

for public expenditure but outright rejection would be gtjustify and could c a l l into question the continuation of Ddy arrangements I t was therefore proposed that the pay

groups concerned should be increased by 3 per cent from 1 April 1984 with the fu l l recommended rates coming into payment from 1 November 1984 This would reduce the effective increase over the ^e lve months f April 1984 to 463 per cent for doctors and dentists 492 per cent fc armed forces and 446 per cent for the top salarygroups Pension be based on the salaries actually in payment inaccordance with thi 1 J

iple set out in her Written Answer ofApri l 1984

I f the Cabinet approvec proposals she would announce the Government decisions that afternoon ^ns of a Written Answer A draft text was annexed to C(84) 15

THE SECRETARY OF STATE FOR ttgjg^ ^ b e ^ c h resented immediate effect to the recomm^n^yions of the A trade trade J c o u r s e by the armed forces Never the lVamp^ewas convinced that course

doutlined by the Prime Minister waV^cS^ct higher pay trade l -duce thefunds available within Jexpendxture plan f deg r equipment I t would however bltpoundpoundpoundkrable to stage tne c s to members of the armed forces for fo^cxommodat ion and the l i k e in

bullthe same way as i t was proposed to s t a ^ e pay increase this would something to reduce resentment at littleN^inancial cost He would contain that cost within existing expenditure provisions

THE SECRETARY OF STATE FOR SOCIAL SERVICES said pound he stronglysupported the proposals outlined by the Prime er During discussionso f public expenditure the previous autumn he had with theChief Secretary Treasury that i f pay increases3 NHS exceeded thePer cent which was allowed for in the Government

s

Plans he would try to offset the resulting additi c expenditure far a s - mdash bullbull - lona diture as f b y s a v i n b u trom the RS g s raquo that any balance woul to be found

b u t 6 S e r v e H ethere had identified efficiency savings lt mi l l ion M~ W O u l d

eth n a charge to e e of some pound l i o n I fCabin remairemain a cnarge to ththe ReservReserve of some pound3gt0 au a p p r o v e d bet h o r i S e d the proposals in C(84) 15 he would As S o c t 0 f l n f o n ni a t i n bdquo the Chairmen of the DDRB the Br i t i sh

^ a n d t h ebefore Br i t i sh Dental Association (BDA)thlt Ch^an announcement was made This had been done in previous

rmen had invariably respected the Governments confidenc

CONFIDENTIAL 228

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

CONFIDENTIAL

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

CONFIDENTIAL

THE PRIME MINISTER recalled that the 40th Anniversary of the Normandy landings f e l l in that week The Cabinet would wish to record^its^ deep appreciation of the sacrif ic e of those who had given thei r l ive s for the freedom of Europe and thereby made possible 40 years of peace The ceremonies which had been held the previous day i n France

mark the anniversary and which had been attended by Heads of or Government of the United Kingdom the United States France

lum Norway the Netherlands Canada and Luxembourg had been ndly moving as had been the universal respect and admiration

rayed to Her Majesty the Queen

Cabinet shy

Tod^^^te

CONFIDENTIAL r rraquo iraquo

3 THE FOREIGN AND COMMONWEALTH SECRETARY said that he had made clear to the French Minister for European Affairs Monsieur Dumas at a

bull UlgtltV ^ ^ meeting on 6 June that the United Kingdom was wil l in g to reach a conclusion on the reform of Community financing and United Kingdom refunds u t or before the next meeting of the European Council on 25-26 June

bullthough the margin for manoeuvre was small I t was now possible that ^French Presidency which had ear l i e r declined to take any i n i t i a t i v e

take up again the search for a solution although the issues of e remained d i f f i cu l t

THE CHANCELLOR OF E EXCHEQUER said that the Council of Ministers (Finance) on A Juhlt ad agreed to increase the ce i l in g for Community

enc loans The Unitshylt om had opposed the specific proposal for innovation loans was not soundly based and this proposal had not been adopted Thef been further discussion of budget d isc ip l ine Although some other raquonraquo tates in particula r Germany France and the Netherlands share^ [nited Kingdoms view on the need for greater budgetary discipl in e wiuu e Community they were not pressing for this disc ipl in e to be mad binding The discussion however was s t i l l under way and could concluded unt i l the outstanding questions on the reform of Community g and United Kingdom refunds had also been resolved

I S T E R 0 Fl ight AGRICULTURE FISHERl FOOD reported that in the t b e m e e t i n o f t h ethere deg f sect Council ampZl isters (Fisheries ) on 2A May

C deg U l d b e d i f f i c uthere l t i e s with Norway herring Later in the year t a l s o b eon bv m i g h problems with Denmai over certain provisions

catches

T he Cabinet -Took note

latest SECRETARY OF STATE FOR ENERGY reported t jet on the P i o n i n t h e c o a lhi ^ ti s r e r n industry dispute Th ^discussion V gt t r y recorded separately

CONFIDENTIAL 2 2 6

l

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY said that the Post Office bull Board had made a new pay offer to the Union of Communications Workers (UCW) The National Executive of the union had not accepted thxs offer but they would recommend their membership to accept i t in a bal lot tyhich they were about to conduct The offer was complicated i t

mdashluded increases in basic rates consolidation of bonuses and changes Overtime rates I t was therefore d i f f i cu l t to be certain about i t s 11 f inancial effect but the Post Office estimated that i t would gtbaut A9 per cent While the ballot of the UCWs membership was

inltjpropoundrss there would be no further o f f i c i a l industr ia l action a l th^fhgtthere might be sporadic unofficial disruption I t seemed l i k e l y that t^Jowernment s threat to suspend the Post Offices monopoly of letterlt^s3had had a salutary effect on union attitudes

The

Took note

bull ^ O R T S 5frbdquo T h e Cabinet co sred a note by the Secretary of the Cabinet

( C ( 8 ltgt 15) about t n bull^mmendations of the Pay Review Bodies

THE PRIME M I N I S T E R sai was necessary to reach decisions on the^commendations of the ro Review Bodies These were as follows

related to increases Apri l 198A) shy

a lt The Armed Forces Pi ew Body (AFPRB) had recommended increases that would add r cent (pound1981 mil l ion) to the estimated pay b i l l for 19 The number affected was 321000

bull The Review Body for N u r s i ^ i ff Midwives Health V i s i tor s a n d professions a l l i ed to medicii tNRB) had recommended increases ror nursing staff midwives and 6secti v i s i t o r s that would add

Ftr cen Cfft laquo in bdquobdquo per centt (pound228 mill ion) to t h ^ r gt a t e d pay b i l l for ^ J of the staff concerned The number^gfected by these recommendations was some 550000 (or A8A000 in who^e-time equivalent terms The NRB had also recommended increases for professions a l l i e d to medicine that would add 78 per cent (pound179jailllon) to the estimated pay b i l l for 198A-85 of the s t a f ^ c e r n e d The number affected was AA000 (or 33500 in w h o l e - t ^ ^ i v a l e i

c The Doctors and Dentists Review Body (DDs recommendedincreases that would add 69 per cent (pound118 tniK gtto the annualPay b i l l for doctors and dentists The number afj was 9A950They had also recommended substantial increases l i nts tofamily doctors in respect of practice expenses expected to cost around pound60mill ion in 1984-85

d- The Top Salaries Review Body (TSRB) had made recomtaftf mvolving increases of just under 6i per cent The numhL^Xgt affected were 682 higher c i v i l servants 215 senior o f f i c ^ S f n the armed forces and 1017 members of the judic iary

CONFIDENTIAL 2 2 7

CONFIDENTIAL

Ministers direct ly concerned had met under her chairmanship to consider the Review Bodies recommendations Their proposals to the Cabinet were as follows The recommendations of the NRB should be implemented in f u l l from 1 April 1984 I t would be exceptionally d i f f icul t to reject

the recommendations for the particular groups concerned who commanded Wide measure of public sympathy in the f i r s t year of a new Review Ny set up in the aftermath of the 1982 National Health Service (NHS)

ite I t should however be made clear to the staff concerned that ommendations were accepted on the basis that they would co-operate nagement in securing improved productivity Acceptance in f u l l

^commendations of the other Review Bodies would have unacceptable Lons on other public sector pay negotiations and unacceptable

for public expenditure but outright rejection would be gtjustify and could c a l l into question the continuation of Ddy arrangements I t was therefore proposed that the pay

groups concerned should be increased by 3 per cent from 1 April 1984 with the fu l l recommended rates coming into payment from 1 November 1984 This would reduce the effective increase over the ^e lve months f April 1984 to 463 per cent for doctors and dentists 492 per cent fc armed forces and 446 per cent for the top salarygroups Pension be based on the salaries actually in payment inaccordance with thi 1 J

iple set out in her Written Answer ofApri l 1984

I f the Cabinet approvec proposals she would announce the Government decisions that afternoon ^ns of a Written Answer A draft text was annexed to C(84) 15

THE SECRETARY OF STATE FOR ttgjg^ ^ b e ^ c h resented immediate effect to the recomm^n^yions of the A trade trade J c o u r s e by the armed forces Never the lVamp^ewas convinced that course

doutlined by the Prime Minister waV^cS^ct higher pay trade l -duce thefunds available within Jexpendxture plan f deg r equipment I t would however bltpoundpoundpoundkrable to stage tne c s to members of the armed forces for fo^cxommodat ion and the l i k e in

bullthe same way as i t was proposed to s t a ^ e pay increase this would something to reduce resentment at littleN^inancial cost He would contain that cost within existing expenditure provisions

THE SECRETARY OF STATE FOR SOCIAL SERVICES said pound he stronglysupported the proposals outlined by the Prime er During discussionso f public expenditure the previous autumn he had with theChief Secretary Treasury that i f pay increases3 NHS exceeded thePer cent which was allowed for in the Government

s

Plans he would try to offset the resulting additi c expenditure far a s - mdash bullbull - lona diture as f b y s a v i n b u trom the RS g s raquo that any balance woul to be found

b u t 6 S e r v e H ethere had identified efficiency savings lt mi l l ion M~ W O u l d

eth n a charge to e e of some pound l i o n I fCabin remairemain a cnarge to ththe ReservReserve of some pound3gt0 au a p p r o v e d bet h o r i S e d the proposals in C(84) 15 he would As S o c t 0 f l n f o n ni a t i n bdquo the Chairmen of the DDRB the Br i t i sh

^ a n d t h ebefore Br i t i sh Dental Association (BDA)thlt Ch^an announcement was made This had been done in previous

rmen had invariably respected the Governments confidenc

CONFIDENTIAL 228

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

CONFIDENTIAL

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

3 THE FOREIGN AND COMMONWEALTH SECRETARY said that he had made clear to the French Minister for European Affairs Monsieur Dumas at a

bull UlgtltV ^ ^ meeting on 6 June that the United Kingdom was wil l in g to reach a conclusion on the reform of Community financing and United Kingdom refunds u t or before the next meeting of the European Council on 25-26 June

bullthough the margin for manoeuvre was small I t was now possible that ^French Presidency which had ear l i e r declined to take any i n i t i a t i v e

take up again the search for a solution although the issues of e remained d i f f i cu l t

THE CHANCELLOR OF E EXCHEQUER said that the Council of Ministers (Finance) on A Juhlt ad agreed to increase the ce i l in g for Community

enc loans The Unitshylt om had opposed the specific proposal for innovation loans was not soundly based and this proposal had not been adopted Thef been further discussion of budget d isc ip l ine Although some other raquonraquo tates in particula r Germany France and the Netherlands share^ [nited Kingdoms view on the need for greater budgetary discipl in e wiuu e Community they were not pressing for this disc ipl in e to be mad binding The discussion however was s t i l l under way and could concluded unt i l the outstanding questions on the reform of Community g and United Kingdom refunds had also been resolved

I S T E R 0 Fl ight AGRICULTURE FISHERl FOOD reported that in the t b e m e e t i n o f t h ethere deg f sect Council ampZl isters (Fisheries ) on 2A May

C deg U l d b e d i f f i c uthere l t i e s with Norway herring Later in the year t a l s o b eon bv m i g h problems with Denmai over certain provisions

catches

T he Cabinet -Took note

latest SECRETARY OF STATE FOR ENERGY reported t jet on the P i o n i n t h e c o a lhi ^ ti s r e r n industry dispute Th ^discussion V gt t r y recorded separately

CONFIDENTIAL 2 2 6

l

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY said that the Post Office bull Board had made a new pay offer to the Union of Communications Workers (UCW) The National Executive of the union had not accepted thxs offer but they would recommend their membership to accept i t in a bal lot tyhich they were about to conduct The offer was complicated i t

mdashluded increases in basic rates consolidation of bonuses and changes Overtime rates I t was therefore d i f f i cu l t to be certain about i t s 11 f inancial effect but the Post Office estimated that i t would gtbaut A9 per cent While the ballot of the UCWs membership was

inltjpropoundrss there would be no further o f f i c i a l industr ia l action a l th^fhgtthere might be sporadic unofficial disruption I t seemed l i k e l y that t^Jowernment s threat to suspend the Post Offices monopoly of letterlt^s3had had a salutary effect on union attitudes

The

Took note

bull ^ O R T S 5frbdquo T h e Cabinet co sred a note by the Secretary of the Cabinet

( C ( 8 ltgt 15) about t n bull^mmendations of the Pay Review Bodies

THE PRIME M I N I S T E R sai was necessary to reach decisions on the^commendations of the ro Review Bodies These were as follows

related to increases Apri l 198A) shy

a lt The Armed Forces Pi ew Body (AFPRB) had recommended increases that would add r cent (pound1981 mil l ion) to the estimated pay b i l l for 19 The number affected was 321000

bull The Review Body for N u r s i ^ i ff Midwives Health V i s i tor s a n d professions a l l i ed to medicii tNRB) had recommended increases ror nursing staff midwives and 6secti v i s i t o r s that would add

Ftr cen Cfft laquo in bdquobdquo per centt (pound228 mill ion) to t h ^ r gt a t e d pay b i l l for ^ J of the staff concerned The number^gfected by these recommendations was some 550000 (or A8A000 in who^e-time equivalent terms The NRB had also recommended increases for professions a l l i e d to medicine that would add 78 per cent (pound179jailllon) to the estimated pay b i l l for 198A-85 of the s t a f ^ c e r n e d The number affected was AA000 (or 33500 in w h o l e - t ^ ^ i v a l e i

c The Doctors and Dentists Review Body (DDs recommendedincreases that would add 69 per cent (pound118 tniK gtto the annualPay b i l l for doctors and dentists The number afj was 9A950They had also recommended substantial increases l i nts tofamily doctors in respect of practice expenses expected to cost around pound60mill ion in 1984-85

d- The Top Salaries Review Body (TSRB) had made recomtaftf mvolving increases of just under 6i per cent The numhL^Xgt affected were 682 higher c i v i l servants 215 senior o f f i c ^ S f n the armed forces and 1017 members of the judic iary

CONFIDENTIAL 2 2 7

CONFIDENTIAL

Ministers direct ly concerned had met under her chairmanship to consider the Review Bodies recommendations Their proposals to the Cabinet were as follows The recommendations of the NRB should be implemented in f u l l from 1 April 1984 I t would be exceptionally d i f f icul t to reject

the recommendations for the particular groups concerned who commanded Wide measure of public sympathy in the f i r s t year of a new Review Ny set up in the aftermath of the 1982 National Health Service (NHS)

ite I t should however be made clear to the staff concerned that ommendations were accepted on the basis that they would co-operate nagement in securing improved productivity Acceptance in f u l l

^commendations of the other Review Bodies would have unacceptable Lons on other public sector pay negotiations and unacceptable

for public expenditure but outright rejection would be gtjustify and could c a l l into question the continuation of Ddy arrangements I t was therefore proposed that the pay

groups concerned should be increased by 3 per cent from 1 April 1984 with the fu l l recommended rates coming into payment from 1 November 1984 This would reduce the effective increase over the ^e lve months f April 1984 to 463 per cent for doctors and dentists 492 per cent fc armed forces and 446 per cent for the top salarygroups Pension be based on the salaries actually in payment inaccordance with thi 1 J

iple set out in her Written Answer ofApri l 1984

I f the Cabinet approvec proposals she would announce the Government decisions that afternoon ^ns of a Written Answer A draft text was annexed to C(84) 15

THE SECRETARY OF STATE FOR ttgjg^ ^ b e ^ c h resented immediate effect to the recomm^n^yions of the A trade trade J c o u r s e by the armed forces Never the lVamp^ewas convinced that course

doutlined by the Prime Minister waV^cS^ct higher pay trade l -duce thefunds available within Jexpendxture plan f deg r equipment I t would however bltpoundpoundpoundkrable to stage tne c s to members of the armed forces for fo^cxommodat ion and the l i k e in

bullthe same way as i t was proposed to s t a ^ e pay increase this would something to reduce resentment at littleN^inancial cost He would contain that cost within existing expenditure provisions

THE SECRETARY OF STATE FOR SOCIAL SERVICES said pound he stronglysupported the proposals outlined by the Prime er During discussionso f public expenditure the previous autumn he had with theChief Secretary Treasury that i f pay increases3 NHS exceeded thePer cent which was allowed for in the Government

s

Plans he would try to offset the resulting additi c expenditure far a s - mdash bullbull - lona diture as f b y s a v i n b u trom the RS g s raquo that any balance woul to be found

b u t 6 S e r v e H ethere had identified efficiency savings lt mi l l ion M~ W O u l d

eth n a charge to e e of some pound l i o n I fCabin remairemain a cnarge to ththe ReservReserve of some pound3gt0 au a p p r o v e d bet h o r i S e d the proposals in C(84) 15 he would As S o c t 0 f l n f o n ni a t i n bdquo the Chairmen of the DDRB the Br i t i sh

^ a n d t h ebefore Br i t i sh Dental Association (BDA)thlt Ch^an announcement was made This had been done in previous

rmen had invariably respected the Governments confidenc

CONFIDENTIAL 228

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

CONFIDENTIAL

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

THE SECRETARY OF STATE FOR TRADE AND INDUSTRY said that the Post Office bull Board had made a new pay offer to the Union of Communications Workers (UCW) The National Executive of the union had not accepted thxs offer but they would recommend their membership to accept i t in a bal lot tyhich they were about to conduct The offer was complicated i t

mdashluded increases in basic rates consolidation of bonuses and changes Overtime rates I t was therefore d i f f i cu l t to be certain about i t s 11 f inancial effect but the Post Office estimated that i t would gtbaut A9 per cent While the ballot of the UCWs membership was

inltjpropoundrss there would be no further o f f i c i a l industr ia l action a l th^fhgtthere might be sporadic unofficial disruption I t seemed l i k e l y that t^Jowernment s threat to suspend the Post Offices monopoly of letterlt^s3had had a salutary effect on union attitudes

The

Took note

bull ^ O R T S 5frbdquo T h e Cabinet co sred a note by the Secretary of the Cabinet

( C ( 8 ltgt 15) about t n bull^mmendations of the Pay Review Bodies

THE PRIME M I N I S T E R sai was necessary to reach decisions on the^commendations of the ro Review Bodies These were as follows

related to increases Apri l 198A) shy

a lt The Armed Forces Pi ew Body (AFPRB) had recommended increases that would add r cent (pound1981 mil l ion) to the estimated pay b i l l for 19 The number affected was 321000

bull The Review Body for N u r s i ^ i ff Midwives Health V i s i tor s a n d professions a l l i ed to medicii tNRB) had recommended increases ror nursing staff midwives and 6secti v i s i t o r s that would add

Ftr cen Cfft laquo in bdquobdquo per centt (pound228 mill ion) to t h ^ r gt a t e d pay b i l l for ^ J of the staff concerned The number^gfected by these recommendations was some 550000 (or A8A000 in who^e-time equivalent terms The NRB had also recommended increases for professions a l l i e d to medicine that would add 78 per cent (pound179jailllon) to the estimated pay b i l l for 198A-85 of the s t a f ^ c e r n e d The number affected was AA000 (or 33500 in w h o l e - t ^ ^ i v a l e i

c The Doctors and Dentists Review Body (DDs recommendedincreases that would add 69 per cent (pound118 tniK gtto the annualPay b i l l for doctors and dentists The number afj was 9A950They had also recommended substantial increases l i nts tofamily doctors in respect of practice expenses expected to cost around pound60mill ion in 1984-85

d- The Top Salaries Review Body (TSRB) had made recomtaftf mvolving increases of just under 6i per cent The numhL^Xgt affected were 682 higher c i v i l servants 215 senior o f f i c ^ S f n the armed forces and 1017 members of the judic iary

CONFIDENTIAL 2 2 7

CONFIDENTIAL

Ministers direct ly concerned had met under her chairmanship to consider the Review Bodies recommendations Their proposals to the Cabinet were as follows The recommendations of the NRB should be implemented in f u l l from 1 April 1984 I t would be exceptionally d i f f icul t to reject

the recommendations for the particular groups concerned who commanded Wide measure of public sympathy in the f i r s t year of a new Review Ny set up in the aftermath of the 1982 National Health Service (NHS)

ite I t should however be made clear to the staff concerned that ommendations were accepted on the basis that they would co-operate nagement in securing improved productivity Acceptance in f u l l

^commendations of the other Review Bodies would have unacceptable Lons on other public sector pay negotiations and unacceptable

for public expenditure but outright rejection would be gtjustify and could c a l l into question the continuation of Ddy arrangements I t was therefore proposed that the pay

groups concerned should be increased by 3 per cent from 1 April 1984 with the fu l l recommended rates coming into payment from 1 November 1984 This would reduce the effective increase over the ^e lve months f April 1984 to 463 per cent for doctors and dentists 492 per cent fc armed forces and 446 per cent for the top salarygroups Pension be based on the salaries actually in payment inaccordance with thi 1 J

iple set out in her Written Answer ofApri l 1984

I f the Cabinet approvec proposals she would announce the Government decisions that afternoon ^ns of a Written Answer A draft text was annexed to C(84) 15

THE SECRETARY OF STATE FOR ttgjg^ ^ b e ^ c h resented immediate effect to the recomm^n^yions of the A trade trade J c o u r s e by the armed forces Never the lVamp^ewas convinced that course

doutlined by the Prime Minister waV^cS^ct higher pay trade l -duce thefunds available within Jexpendxture plan f deg r equipment I t would however bltpoundpoundpoundkrable to stage tne c s to members of the armed forces for fo^cxommodat ion and the l i k e in

bullthe same way as i t was proposed to s t a ^ e pay increase this would something to reduce resentment at littleN^inancial cost He would contain that cost within existing expenditure provisions

THE SECRETARY OF STATE FOR SOCIAL SERVICES said pound he stronglysupported the proposals outlined by the Prime er During discussionso f public expenditure the previous autumn he had with theChief Secretary Treasury that i f pay increases3 NHS exceeded thePer cent which was allowed for in the Government

s

Plans he would try to offset the resulting additi c expenditure far a s - mdash bullbull - lona diture as f b y s a v i n b u trom the RS g s raquo that any balance woul to be found

b u t 6 S e r v e H ethere had identified efficiency savings lt mi l l ion M~ W O u l d

eth n a charge to e e of some pound l i o n I fCabin remairemain a cnarge to ththe ReservReserve of some pound3gt0 au a p p r o v e d bet h o r i S e d the proposals in C(84) 15 he would As S o c t 0 f l n f o n ni a t i n bdquo the Chairmen of the DDRB the Br i t i sh

^ a n d t h ebefore Br i t i sh Dental Association (BDA)thlt Ch^an announcement was made This had been done in previous

rmen had invariably respected the Governments confidenc

CONFIDENTIAL 228

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

CONFIDENTIAL

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

CONFIDENTIAL

Ministers direct ly concerned had met under her chairmanship to consider the Review Bodies recommendations Their proposals to the Cabinet were as follows The recommendations of the NRB should be implemented in f u l l from 1 April 1984 I t would be exceptionally d i f f icul t to reject

the recommendations for the particular groups concerned who commanded Wide measure of public sympathy in the f i r s t year of a new Review Ny set up in the aftermath of the 1982 National Health Service (NHS)

ite I t should however be made clear to the staff concerned that ommendations were accepted on the basis that they would co-operate nagement in securing improved productivity Acceptance in f u l l

^commendations of the other Review Bodies would have unacceptable Lons on other public sector pay negotiations and unacceptable

for public expenditure but outright rejection would be gtjustify and could c a l l into question the continuation of Ddy arrangements I t was therefore proposed that the pay

groups concerned should be increased by 3 per cent from 1 April 1984 with the fu l l recommended rates coming into payment from 1 November 1984 This would reduce the effective increase over the ^e lve months f April 1984 to 463 per cent for doctors and dentists 492 per cent fc armed forces and 446 per cent for the top salarygroups Pension be based on the salaries actually in payment inaccordance with thi 1 J

iple set out in her Written Answer ofApri l 1984

I f the Cabinet approvec proposals she would announce the Government decisions that afternoon ^ns of a Written Answer A draft text was annexed to C(84) 15

THE SECRETARY OF STATE FOR ttgjg^ ^ b e ^ c h resented immediate effect to the recomm^n^yions of the A trade trade J c o u r s e by the armed forces Never the lVamp^ewas convinced that course

doutlined by the Prime Minister waV^cS^ct higher pay trade l -duce thefunds available within Jexpendxture plan f deg r equipment I t would however bltpoundpoundpoundkrable to stage tne c s to members of the armed forces for fo^cxommodat ion and the l i k e in

bullthe same way as i t was proposed to s t a ^ e pay increase this would something to reduce resentment at littleN^inancial cost He would contain that cost within existing expenditure provisions

THE SECRETARY OF STATE FOR SOCIAL SERVICES said pound he stronglysupported the proposals outlined by the Prime er During discussionso f public expenditure the previous autumn he had with theChief Secretary Treasury that i f pay increases3 NHS exceeded thePer cent which was allowed for in the Government

s

Plans he would try to offset the resulting additi c expenditure far a s - mdash bullbull - lona diture as f b y s a v i n b u trom the RS g s raquo that any balance woul to be found

b u t 6 S e r v e H ethere had identified efficiency savings lt mi l l ion M~ W O u l d

eth n a charge to e e of some pound l i o n I fCabin remairemain a cnarge to ththe ReservReserve of some pound3gt0 au a p p r o v e d bet h o r i S e d the proposals in C(84) 15 he would As S o c t 0 f l n f o n ni a t i n bdquo the Chairmen of the DDRB the Br i t i sh

^ a n d t h ebefore Br i t i sh Dental Association (BDA)thlt Ch^an announcement was made This had been done in previous

rmen had invariably respected the Governments confidenc

CONFIDENTIAL 228

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

CONFIDENTIAL

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

2

In discussion the following main points were made shy

a There was l i t t l e alternative to accepting the proposals in C(8A) 15 Nevertheless the pay of large numbers of public servants was now the subject of recommendations of pay review bodies who seemed to give excessive weight to considerations of comparability rather than market factors The pay of other significant groups of public servants notably the police was also settled largely by comparisons I t would not be sustainable

^yV the long run i f the pay of large groups of public servants X$ampkgt determined on the basis of comparability while that of others ^^a^netermined quite differently

b^^^(prgtillustration of this was that the Government had jus t i f i e d its^feproach to the pay of school teachers by reference to the factX^hat there was no general di f f icul ty in recruiting and retaining them The same was true of nurses who stood to receive substantially larger pay increases I t would be necessary to stress that speciaK^pampy arrangements for nurses were jus t i f i ed in large measure byUhejj^act that they did not take industrial action

c The GoverWejp-smight find di f f icul ty in reconciling modification or^H^AFPRB recommendations with the continued operation of the Eajrfijgd-Davies formula for determining police pay However this was ltJiiTsreivreview and nothing could usefully be decided in advance of^heoutcome of that review

THE PRIME MINISTER summingv discussion said that the Cabinet approved the proposals set o (84) 15 They also agreed that charge to members of the armed forces X feod accommodation and the l ik e should be staged as proposed by cretary of State for Defence on the understanding that he the cost within existing expenditure provisions l w shyf the increases in the pay of the relevant NHS groups should be W as proposed by the Secretary of State ^or Social Services tne of the Written Answer to be given that afternoon would 1

mdash raquo w c i u o w w o u i o reixecr t n i s z ^ x might however be desirable ^ n c r e a s e

t a ^ the NHS component of the Nars^nal Insurance Contribution when U P rThe r-C atradee ^ o consideration in the normal way later in the year

n e tinf agreed that the Secretary of State for Social Services should m C n a i r m e nthedegG of the DDRB the BMA and the^BSA in confidence of

c o n c e deg V e r n i n e n t S decisions on those matters with^w^jLch they were r n e d

S f 0 n before the decisions were announced ^ R ^ ^ s c r e t a r y of State

e f e n c e should s imilarly inform the Chairman b AFPRB and the e c r6 t a r y o fS the Cabinet would inform the Cha irman TSRB The e c r

deg^ S t a t ec h i e f f deg r Education and Science should d with the the e c r e t a r y Treasury and the Secretary of State Ygp l i a l Services s r o p r i a tt a f a p e treatment of the pay of university c l i n i academic

e deg^ t nche DDRE ^= n t Cabinets decisions on the rec itions of

CONFIDENTIAL

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

CONFIDENTIAL

The Cabinet shy

1 Approved the proposals set out in C(84) 15

2 Took note that the Prime Minister would announce the Governments decisions that afternoon by means of a Written Answer and approved the text annexed to C(84) 15 subject to the retention of the f i r s t of the two alternative sentences proposed

Invited the Secretary of State for Social Services shy

a to inform the Chairmen of the Doctors and yy Dentists Review Body the Br i t i s h Medical Association

^ J ^ h d the Br i t i s h Dental Association in confidence gtppoundgtth e Governments decisions on those matters with

nich they were concerned before the decisions were mounced and

D tog iv e further consideration in consultation with t^e^Chancellor of the Exchequer to the p o s s i b ^ i ^ p f an increase in the National Health Service dmp)c)nent of the National Insurance Contribuk

4 Invited shy

a the Secret State for Defence to inform the Chairman of ed Forces Pay Review Body and

b the Secretary o abinet to inform the Chairman of the Top Sa Review Body

in confidence of the Govemmeishy decisions on those matters with which they were cof before the decisions were announced

5 Invited the Secretary of State^b r Education and Science to discuss with theChief Secretary Treasury and the Secretary of State for Social Services the appropriate treatment of the pay of univer^r^v c l i n i c a l academic staff in the light of the Cabine^UAfecisions on the recommendations of the Doctors and W n S t s Review Body

C a deg i n e t Office 7 June 198 4

CONFIDENTIAL

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTYS GOVERNMENT

1 1 COPY NO

CABINET

LIMITED CIRCULATION ANNEX

CC(8A) 21st Conclusions Minute A

Thursday 7 June 198A at 1000 am

THE SECRETARY OF STATE FOR ENERGY said that l i t t l e progress had been a e in the previous week at the opening session of the discussions Oil between the Natio Coal Board (NCB) and the National Union of

Nineworkers (NUM e President of the NUM Mr S c a r g i l l had repeated s Pu t e bis demands for drawal of a l l plans for closing pit s on economic

grounds When the representatives had asked the NUM what i t Proposed should be out such p i t s Mr Scarg i l l had contributed l i t t l e to the ensuing ion which had largely been conducted on the NUM side by the Ge 20th ecretary Mr Heathfield Mr Scarg i l l had

s i continued to take an i 1 1 - ons l in e in public i t was not clea r whether there was a d i v i s i ^een him and Mr Heathfield A further meeting was to be held betwlt NCB and the NUM the following day the prospects for progress seem good The NCB had made i t clear after the previous meeting tha had offered no concessions and they intended to continue to re 1 unreasonable demands

Forty-four p i t s were working norma a further seven were producing some coal Attendance continued to Movements of coal by r a i l were satisfactory There was a r is K ^ le recent leak i n the Daily Mirror of Government docum raquoe railway pay negotiations could indu however~f railway workers to support NUM Mr Scargi l l had so far =- bailed to persuade other trade u ins to support hi s cause and

e m p t e a rto p l i e r that week by himself and leaders of the railway uni lions e r

b ^ - f U f d e railway workers in Nottinghamshire to block coal movements vJ r a i l had j - y _r _ ^ lt^x ^ bad had no immediate effect Picketing f^a^ontinued at the C deg ^ ecoincid 6 p Tant Mr Scarg i l l s presence tha^e Appeared to have

e df y u 8 t

w i t h increased violence The police haapoundlT3y)ever been able to j l rate a l l attempts to prevent movements of cok^ the plant and a

t i m e a C C U n a i l a t e d s t o c k s there would have been moved i two weeks

In d i scussion the following main points were made - lt ^

a The leak i n the nlaquo i l v Mirror w ^ ^ n ^ V have some adverse effects on opinion among I n substance however i t provided no reasonable g _ _ cr i t i c i s m of the Government

- - uKvciiimciii The Government had not sough t o

h a d deg V e r r i d e t h e J u d g T n e n t o f t h e B o a r d of Br i t i s h R a i l I t et the financia l framework for the railways and monitore

CONFIDENTIAL 2

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984

progress within that framework Public opinion would expect no less I t would be wrong to take a defensive or apologetic attitude in public comment

b I t was intended that once the accumulated stocks of coke at Orgreave had been moved further movements should cease unt i l stocks had built up again to a worthwhile l eve l There was a r i s k that this might be misrepresented by r Scarg i l l as a victory for the pickets and that movements

^Jkthe accumulated stocks should be phased over a longer R^p^od so that no interruption would occur Against t h i s gttx yafe pointed out that careful preparation had been made to

hat the media were aware of the facts so that by Mr Scargi l l to misrepresent them should not succeed i t would be unfair to impose unnecessary burdens on

the police or the staff at the plant who had shown great loyalty and courage in maintaining production

c Althoug e of the c i v i l law was not as was sometimes suggested i ic debate an alternative to the criminal law and the main of law and order by the police the des irabi l i t y jng remedies under the c i v i l law should continue to be der review by those who might be entitled to such remedies evant point was that i f a unions funds were subject to dai ^ or unlawful action the union would be less able to sustain r action in future

d The NUM would s e e t p a k e common cause with any r a ladversely affected by o t l Vernment decisions of ^

P deg s s l b lor industria l matters S S g f c not be right or J deg defer a l l such decisions g j L w o u l d be necessary to ensure that^ discussions were conduct^d^th careful regard to confidentiality

THE PRIME MINISTER summing up the d i s euro m said that the Government should continue to maintain i t s previou^ ce Government spokesmen should be robust in dismissing any c r i t i m founded on the leak of documents in the Daily Mirror I t should e emphasised that the Government had not sought to override the day-to-day judgment of management and

w o r kt b a t i t had responsibil ity to set the f inancia l J ^ nationalised industries and to monitor their opeVaTftms within framework

The Cabinet -

Took note

Cabinet Offi ce 8 Jun e 1984