§ 13. Mr. Albuasked the Postmaster-General the annual amount to be charged to the notional trading accounts of the Post Office in recoupment of deficienscies in the past provisions of the hypothetical pension fund.
§ The Postmaster-General (Dr. Charles Hill)I would refer the hon. Member to the Commercial Accounts for 1953–54 which explain that a provision of £6.8 million a year is at present necessary to make good the deficiencies in past provisions.
§ Mr. AlbuWhile congratulating the right hon. Gentleman on the fact that he is still in his office and able to answer this difficult Question, may I ask whether he has considered the fact that the inclusion of this sum to make up past deficiencies in a fund that does not exist will have the effect of exaggerating the current loss of profit to the postal services?
§ Dr. HillIt is quite right that Post Office pensions should be paid out of revenues of the Post Office and not by the taxpayer; and, similarly, when deficiencies are reported by the actuary it is right that they should be met out of Post Office revenue.
§ Mr. Ness EdwardsIs the right hon. Gentleman not aware that this deficiency arose over past years during which the Exchequer took very substantial profits from the Post Office? In these circumstances, ought not the Exchequer to make the contribution, and not the Post Office?
§ Dr. HillNo, Sir. It is still a sound principle that there should be paid to the Exchequer amounts estimated to be the deficiency, bearing in mind that the pensions are paid out by the Exchequer.
§ Mr. Ness EdwardsIs the right hon. Gentleman aware that the Post Office has paid to the Exchequer about £50 million over the last 10 years? I should have thought that that would have covered any deficiency on the pension fund.
§ Mr. AlbuIs there not a great difference between a charge for the current actuarial cost of the fund and making up the deficiency of a fund that does not exist?
§ Dr. HillThe hon. Member will appreciate that as wages rise so the pension commitment rises, and it is a sound principle that what is necessary to meet the deficiency, as to meet the cost, should be paid from the revenues of the Post Office.