1. (1) All payments made by the Commission involving the employment of labour shall be made subject to the condition that the wages and conditions of employment of the persons employed shall, unless agreed upon by the employer and by organisations representative of the persons employed, or by a joint industrial council representing them, be not less favourable to the persons employed than the wages which would be payable, and the conditions which would have to be observed, under a contract which complied with the requirements of any resolution of the House of Commons for the time being in force applicable to contracts of Government Departments, and if any dispute arises as to what wages ought to be paid, or what conditions ought to be observed in accordance with this Section, it shall, if not otherwise disposed of, be referred by the Commission to the industrial court for settlement.
2. (2) Where any matter is referred to the industrial court under this Section, the court, in arriving at its decision, shall have regard to any determination that may be brought to its notice relating to the wages or conditions of service of persons employed in a capacity similar to that of the persons to whom the reference relates, being a determination contained in a decision of a joint industrial council, conciliation board or other similar body, or in an agreement between organisations representative of employers and workpeople.
3. (3) Where any award has been made by the industrial court upon a dispute referred to that court under this Section, then, as from the date of the award, or from such later date as the court may direct, it shall be an implied term of the contract between the employer and workers to whom the award applies that the rate of wages to be paid or the conditions of employment to be observed under the contract shall, until varied in accordance with the provisions of this Section, be in accordance with the award.—[Mr. Woodburn.]

Brought up, and read the First time.

I beg to move, "That the Clause be read a Second time."

I move this Clause in order to safeguard the principle of the Fair Wages Clause. In view of the fact that it has been agreed to by the House there is no need to argue the principle or the justice of it.

The general principle of this new Clause, that wherever possible the Fair Wages Clause should be followed, is accepted by the Government. I intended to confer with my hon. Friend as to the exact form which this new Clause should take. I was not aware that this was a matter which had to be dealt with by Resolution only and I will, therefore, have to consult with you, Sir Dennis, and my hon. Friend. But whether it is done by Resolution or new Clause the principle is accepted. If we decide to proceed by way of a new Clause, I will suggest to my hon. Friend what he may like to put down for the Report stage.

I thank the Chancellor and accept his assurance and gladly take advantage of his offer. I beg to ask leave to withdraw the new Clause.

Motion and Clause, by leave, withdrawn.