§ 12. Mr. Nabarroasked the Postmaster-General, having regard to the Government's reiterated appeals for lower prices, what contribution is to be expected from the General Post Office by reduction of their charges.
§ Mr. BevinsThe Post Office will continue to make every contribution it can 1424 towards stability of prices. But I am not able to say when the position will be such as to enable me to adjust tariffs.
§ Mr. NabarroWill my right hon. Friend bear in mind that his first responsibility as Postmaster-General is to provide a cheap and efficient postal service? As I am the Parliamentary successor in Kidderminster to Sir Rowland Hill, who inaugurated the Penny Post, would my right hon. Friend observe my special interest in the matter and make an early statement pointing to a reduction in postal charges and a resumption of at least a twopenny post for a letter?
§ Mr. BevinsI think that hon. Members on both sides of the House are conscious of my hon. Friend's historical and other associations with the General Post Office, but he ought to bear in mind that our surplus last year was just over £8 million on a turnover of rather more than £400 million, which is 2 per cent. If my hon. Friend can persuade manufacturers in Kidderminster who are working on such a narrow margin to bring down their prices, I shall be interested to know it.
§ Mr. NabarroWill my right hon. Friend observe that manufacturers in Kidderminster enjoy no such monopoly as the Post Office enjoys for letters?
§ Mr. BevinsIt is because the Post Office is a monopoly that we are so conscious of the need to give the public an efficient and cheap service.
§ 13. Mr. Nabarroasked the Postmaster-General on what date he increased letter-post rates from 2½d. to 3d., and remaining postal rates approximately commensurately; how much of last year's surplus of £8 million arose from these increases; and whether he will state his future policy in regard to postal and associated rates.
§ Miss PikeThe postal tariff changes to which my hon. Friend refers were made on 1st October, 1957. Last year's surplus on Postal Account was £3 million. I estimate that, but for the tariff changes mentioned in the Question, there would instead have been a deficit of about £20 million. My right hon. Friend has already indicated his general policy in the Answer to the previous Question.
§ Mr. NabarroThat is no excuse for the Postmaster-General seeking to contract out of the Chancellor's policy of a general reduction in prices. Has he not observed that the first step of reducing letter postal charges would have an important bearing on the general level of prices, notably for business and commerce? Cannot he be a little more objective and forthcoming in that important regard?
§ Mr. Ness EdwardsIs not the hon. Lady aware that on the letter rate alone the profit last year was £13.5 million?
§ Mr. NabarroWas it?
§ Mr. Ness EdwardsIs not the letter rate carrying far too much of the burden to make the postal charges viable?
§ Miss PikeWe have a general responsibility for all our postal undertakings. The right hon. Gentleman is quite right in saying that the letter post made the highest profit. On the other hand, we have to discharge our other responsibilities.