HC Deb 20 July 1960 vol 627 cc476-8
28. Mr. Ness Edwards

asked the Postmaster-General if, in view of the recent large developments in the electronic industry, he will consider revising the arrangements for the supply of Post Office equipment.

Mr. Bevins

I do not accept that the benefits of the electronic development are not available under the present arrangements for the supply of Post Office equipment. I would instance the joint research effort between the Post Office and the telephone equipment manufacturers in the design of an electronic telephone exchange. The Post Office is fully cognizant of the important developments in electronics to which the right hon. Gentleman refers, and particularly their application to the field of telecommunications.

Mr. Ness Edwards

Is not the right hon. Gentleman aware that in this matter he is limited by the agreement with the consortia, and that the consortia have a monopoly in the supply of equipment to the Post Office, especially of this type? Is he not further aware that this is a very juicy business? Is it not time that this agreement was referred to the Public Accounts Committee, for full examination and exposure?

Mr. Bevins

This business—as the right hon. Gentleman describes it—was referred to the Public Accounts Committee in 1947 and 1954. On both occasions the Committee decided to make no report to Parliament. It was again examined in 1950 by the Select Committee on Estimates, which was not critical of the system. Moreover, in 1950 it was further examined by a Government committee, at the time when the right hon. Member for Caerphilly (Mr. Ness Edwards) was a member of the Administration. That committee expressed the view that it was satisfied with the great advantages and economy of the system.

Mr. Ness Edwards

Is not the right hon. Gentleman aware that a new agreement has been made since then, and also that there have been extensive developments in this matter? Materials are also much more readily available than they were in 1950. Surely the time has come for the wind of change to blow through this monopoly, so that we can have the benefits of some competition inside it?

Mr. Bevins

On the general question, I would have said that the more rapid the progress is in electronics the more desirable it is that we should have close co-ordination between the British Post Office and the biggest suppliers of telephonic equipment. I can instance the new electronic telephone exchange which, as the right hon. Gentleman knows, has been produced by the Post Office in conjunction with the manufacturers, and the now 700 type telephone, and also the developments which have been made in subscriber trunk dialling.