HC Deb 30 June 1965 vol 715 cc605-6
5. Mr. Farr

asked the Postmaster-General what were the reasons which led him to increase the fee of the Railex service from 6s. to 20s. a packet.

Mr. Joseph Slater

The fee was put up because of the very heavy loss we were incurring on Railex packets; even with the new charge, the service will not be paying its way.

Mr. Farr

What is the purpose of the Minister's right hon. Friends asking for price restraint when commercial, financial and legal concerns have to face this sort of increase? Is it his right hon. Friend's intention to price the service out of existence?

Mr. Slater

It is not the intention of the Post Office to price this service out of existence. Perhaps I should inform the House of what the position really is. Before the tariff increase, about 22,000 Railex packets were posted annually. Without the tariff increase the loss on the service in 1965–66 was expected to be about £23,000. With the increase, the loss is still estimated at about £4,000. It is not, therefore, the object to try to price it out of existence.

Mr. Rankin

As the increase to 20s. has not eliminated losses but has eliminated many users of the service, such as myself, will my hon. Friend say what charge would have to be imposed so that the service "washed its own face"?

Mr. Slater

It is not so much that one is seeking to give the service, as it were, to one individual, but this is a service afforded to all the general public. I must ask the House to realise how the service actually operates on behalf of the general public. There has to be a messenger who goes to the railway station, and the packet is put on the first available train to the station of destination. The office of delivery is notified by service telegram, and that office in turn sends a messenger to meet the train and deliver the packet. If a packet—[HON. MEMBERS: "Too long."] I hope that hon. Members will take this seriously. It is no use their directing criticism against the Post Office and its operations if they are not prepared to accept the facts when they are presented to them. If a packet has to be transferred between stations at an intermediate town, this also is done by a messenger and the post office concerned is notified by telegram.