POST OFFICE (PARCELS) BILL. (Hansard, 21 July 1932)

The POSTMASTER-GENERAL (Mr. Kellaway)
I beg to move, "That the Bill be now read a Second time."
I think the House is entitled to an explanation why I am introducing the Bill at so late a period in the Session. The remuneration of the railway companies for parcel traffic was regulated under the Post Office (Parcels) Act, 1882, under which the companies were entitled to 55 per cent. of the gross postage receipts on all parcels carried over the whole or any part of the journey by rail. The agreement under that Act was subject to termination after a period of 21 years on 12 months' notice being given on either side. It continued to operate until the war period, when, owing to the abnormal rise in costs, the Post Office, in agreement with the Treasury, raised the remuneration of the railway companies first to 60 per cent. and later to 100 per cent. over the pre-War standard. That arrangement was embodied in the Post Office and Telegraphs Act, 1920. The authority given by that Act lapsed about the middle of August last. We were therefore faced with a new situation and it became necessary to make a fresh agreement with the companies. As the result of prolonged negotiations, the companies have agreed with the Post Office to accept remuneration of 40 per cent. of the parcels rates now prevailing. The short financial effect of that would be that we shall be paying the railway companies, if the House gives me this authority, at 40 per cent. of the present postage, about £2,400,000 a year. At the 55 per cent., on which they were paid before the War, the cost would now be £3,300,000 a year, while at the 100 per cent, which we were paying during the latter part of the War period, the amount would be £2,730,000. So that the present agreement effects a saving of about £900,000 as compared with the 55 per cent. basis of the pre-War period, and £330,000 as compared with the rate the companies were paid during the War. It was necessary to ask the House for this authority, because the agreement has been worked by the companies in anticipation of Parliamentary sanction being given. I think the agreement is the best possible which could be made in the circumstances. It 2469 has meant very hard bargaining indeed, and I ought to recognise that the railway companies have met the Post Office and the taxpayers fairly in the matter.

Mr. ATKEY
It would appear from the statement of the Postmaster-General that a very considerable economy will be effected under the provisions of this Bill. I am wondering whether the concession that has been secured from the railway companies of a reduction from 55 per cent. pre-War to 40 per cent. pre-War is clear of any obligations on the part of the Government which would tie their hands in any way in respect of the transport of mails or parcels by the Postmaster-General on his own account. Is there any consideration to which the Postmaster-General has not referred, which is not disclosed in the Bill, which will be or is likely to be any handicap on his Department in future if he desires to avail himself of forms of transport other than that by rail?

Mr. KELLAWAY
The hon. Member will find that the only Clause which can in any way be said to restrict the freedom of the Post Office is Clause (1, c), in which an undertaking is given that the mails shall not be transferred to the road for the purpose of defeating the agreement; but up to a percentage of 10 per cent. the Post Office is free to make such arrangements where satisfactory trade communication does not exist.