HC Deb 22 March 1972 vol 833 cc1487-8
18. Mr. Charles R. Morris

asked the Minister of Posts and Telecommunications whether he will make a statement indicating what the anticipated quinquennium financial deficit of the Post Office Corporation is likely to be by March, 1973.

Mr. Chataway

I do not expect the Post Office to be in deficit over the five years ending in March, 1973.

Mr. Morris

Is the Minister aware that one estimate of the deficit which has been published in some journals is £184 million? Will the right hon. Gentleman confirm or deny the accuracy of that figure for the postal services? Is the right hon. Gentleman further aware that if that staggering figure is correct it will be viewed with alarm by the public? If it is right, does the right hon. Gentleman intend to write off the deficit?

Mr. Chataway

I understand that the Chairman of the Post Office has forecast a shortfall from the financial target of £180 million over the five years and that that is based on certain assumptions. That forecast, together with the other relevant statistics, is being considered within the context of the review which my right hon. Friend the Chancellor of the Exchequer has announced of all nationalised industries as a result of their observance of the C.B.I. initiative.

Mr. Ewing

How will this shortfall in the financial target affect the postal mechanisation programme?

Mr. Chataway

It could have some effects on it, but I do not think that they would be direct.

Mr. Richard

The House will wish to be clear about the Minister's last answer. Is he saying that in the five years up to the end of 1973 there will be an estimated shortfall of no less than £180 million on the postal services? If so, does he hope to make it up on telecommunication services? Is he considering writing it off? If this is the projection, what does the right hon. Gentleman propose to do about it?

Mr. Chataway

As I have said, I am considering, in the context of the discussions referred to by my right hon. Friend the Chancellor of the Exchequer in his statement of 9th November—which covered all the nationalised industries—the possibilities which are open to the Post Office. The House will know that observance of the C.B.I. initiative has posed particular difficulties for a number of nationalised industries, including the Post Office.