§ 10. Mr. Hamlingasked the Postmaster-General what plans his Department has now made to speed up the supply of telephone equipment; and whether he will make a statement.
§ Mr. Edward ShortThis year we plan to spend, on exchange equipment, more than double the amount of two years ago. The supply position is being kept under constant review and I am satisfied that the manufacturers are making great efforts to step up their output to meet our requirements.
§ Mr. HamlingWhy has the Post Office had to face this crisis in the last two years?
§ Mr. ShortIt has had to face this crisis because the capacity of the industry has not been great enough because in the 1950s the forecast of telecommunications demand was inadequate.
§ Mr. Stratton MillsWithout going into the political comments of the right hon. Gentleman, can I ask him to refer to the number in arrears? Can he say whether there is a penalty clause in the contract?
§ Mr. ShortThe number in arrears, now running up to six months late, is 1,030 out of 1,292 contracts, so that it is serious. There is no penalty clause. I was not making a political point. I do not blame anybody for the inadequate forecasting. Forecasting telecommunications demand is extremely complicated. However, we are now planning with a very wide margin for the 1970s, and I hope that whoever is here in the 1970s will not have to answer questions of this sort.
Mr. Bob BrownWould not my right hon. Friend agree that his Answer to my hon. Friend the Member for Woolwich, West (Mr. Hamling) indicates the need for State participation in this industry? Will he look at the possibility of establishing factories in the development areas?
§ Mr. ShortThere is a later Question on that subject. Perhaps my hon. Friend will await my reply to it.