HC Deb 07 June 1972 vol 838 cc426-8
2. Mr. Ewing

asked the Minister of Posts and Telecommunications if he will make a statement regaring his discussions with the Post Office Board concerning future plans for the postal services.

16. Mr. Arthur Lewis

asked the Minister of Posts and Telecommunications whether his discussion with the Post Office about the financial position of the postal services is complete; and if he will make a statement to the House of Commons before issuing details to the public, and include in it details of losses written off.

17. Mr. Charles R. Morris

asked the Minister of Posts and Telecommunications what is the estimated shortfall in the financial targets of the Post Office Corporation for postal services for the period ended 31st March, 1972.

23. Mr. William Price

asked the Minister of Posts and Telecommunications what recent discussions he has had with the Post Office Corporation over the future of postal services.

Sir J. Eden

The Chairman of the Post Office has indicated that the shortfall is likely to be about £180 million over the five years ending March, 1973. My discussions have not yet been concluded.

Mr. Ewing

Is the right hon. Gentleman aware that the postal services are a very important part of the country's economy and that the fear at present is that, if the economy expands at the expected rate, because of the delay in the reconsideration which is taking place the Post Office will not be equipped to handle the expansion in the economy?

Sir J. Eden

I agree of course that the Post Office and the postal services are a very important part of the economy. I was referring in my answer to the actual figures for the shortfall which is likely or expected to be incurred over five years. As the hon. Gentleman knows, the full accounts are not yet available. That is why I am having to temporise until I see the actual figures.

Mr. Morris

Is the right hon. Gentleman aware that his announcement that the shortfall in the financial targets of the Post Office Corporation on postal services is £180 million is alarming? Taking into account that the current deficit of the Corporation on the postal side is running at about £142 million, do these figures herald a further increase in postal tariffs or is it the Government's intention to write off this alarming and indeed staggering deficit?

Sir J. Eden

The matters mentioned in the last part of that question are still under discussion and the whole question of the development of the postal services is also under active consideration. The price restraint policy and the postal strike have both made a substantial mark on the finances of the corporation.

Mr. Bruce-Gardyne

Can my right hon. Friend give us a little more detail about the impact of price restraint on the Post Office? To what extent has that contributed to the horrific figures of projected losses which he has announced, and to what extent will further provision be made to allow for the effects of this price restraint scheme on the Post Office in future?

Sir J. Eden

The full implications for all nationalised industries of the policy of price restraint are under consideration by the Government, as my right hon. Friend the Chancellor of the Exchequer has announced. That consideration is still taking place.

Mr. Price

Is it not a racing certainty that if the postal services are to be maintained at present levels, if postmen are to be paid adequate wages and if any sort of return is to be gained on capital, we will have a 5p first-class post within the next two years?

Sir J. Eden

That is the hon. Gentleman's view. No doubt the Post Office is taking very seriously into account the fact that there is a decline in the demand for the postal service.

Mr. Gregor Mackenzie

I think the Minister will be aware that the figures he has announced will give us all cause for concern and thought. We should like to hear from him at an early stage what steps the Government propose to take about this and we should like to hear that we will have an early opportunity of discusing these matters in the House.

Sir J. Eden

As soon as my discussions have been concluded an announcement will be made.