Mr. Arthur Lewis asked the Prime Minister (1) in view of the application by the organisation representing the chairmen of the boards of the nationalised industries for substantial salary increases, whether she will take whatever action may prove necessary to ensure that any increases will not exceed the Government's policy of 4 percent. as laid down for public servants;

(2) why the recently announced increase in the salary of the chairman of British Rail was not subject to Her Majesty's Government's announcement of a 4 per cent. maximum increase in salaries in the public sector; and whether the maximum increase will apply to the chairmen and members of other nationalised industries.

The Prime Minister: I am sending the hon. Member a copy of the statement of 15 September which is available 6 in the Library of the House, from which he will see that the pay factor is neither a limit on individual increases—some may be less and some more than 4 percent.—nor is it applicable to the present financial year.