Prescott fire pay deal letter in full

This is the full text of the tough letter setting out the government's position on any new pay deal for the firefighters, written by Deputy Prime Minister John Prescott to Sir Jeremy Beecham, chairman of the Local Government Association, which represents the employers.

Dear Sir Jeremy,

PRINCIPLES OF THE GOVERNMENT'S APPROACH TO FIRE SERVICE PAY

I want to make absolutely clear the government's position as you enter exploratory talks with the FBU.

First, the government will not put economic stability at risk. Any headline pay increases must be compatible with this, if necessary by staging over a number of years.

Second, any pay award not affordable within existing public expenditure provision must be paid for by modernisation.

Third, the employers can not commit the government to any agreement that requires any additional government funding.

Fourth, it therefore follows that the government will expect that any agreement will set out clearly and in detail how the costs of any additional pay will be met by savings from modernisation measures.

So, fifth, any agreement will need to set out:

• the scale of modernisation proposed
  
• the timetable for implementation and related staging of pay increases
  
• the audit arrangements for confirming that modernisation has taken place.

These negotiations are between you and the Fire Brigades Union.

But there are serious implications for government, for public sector pay policy as a whole, and the broader public interest.

Therefore, it is right that the government is kept fully up to date with the discussions.

I will be appointing a named senior official to act as the government's point of contact so that there is regular reporting back to ministers on the progress in the negotiations.

[signed]

JOHN PRESCOTT