§ 8 and 13. Mr. William Hamiltonasked the Postmaster General (1) what proportion of total General Post Office expenditure is currently spent in Scotland; how much this has increased in each of the last five years; and what steps he is taking to increase it;
(2) what is the total value of contracts placed by his Department in Scotland and in Fife, respectively; and what plans he has for channelling more such contracts into development areas.
§ Mr. Edward ShortThe proportion has remained almost constant over the period at about 8 per cent. Of the total spent in 1966–67, some £5¾ million went on contracts placed in Scotland for Post Office stores. I regret that full information about the proportion of these orders placed in Fife is not available. In addition to stores suppliers, our major plant suppliers have seven factories in the Scottish Development Area, but we do not know what proportion of our orders for the supply and installation of plant was manufactured in them. Nationally, however, we estimate that over 40 per cent. of these orders—worth some £50 million a year at present—are carried out in development areas.
The transfer of the Post Office Savings Bank to Glasgow and to a lesser extent, the Philatelic Bureau to Edinburgh will help to increase our share of expenditure in Scotland, and I am now considering what else we can do to help create wider employment opportunities in the Scottish and other development areas.
§ Mr. HamiltonIs my right hon. Friend aware that that Answer will give considerable satisfaction to those of us who represent Scottish constituencies? Can he say what is the future of the A.E.I. factories in Fife, whether they will be run down or their employment prospects increased? When does he expect to receive a report from the Industrial Reorganisation Corporation on the future of the telecommunications industry and the 1464 prospect of the Post Office itself manufacturing some of its own equipment?
§ Mr. ShortIt is much too early to say anything about the A.E.I. factories, but this is naturally one of the things which we shall watch very carefully. I have already received the I.R.C. Report. The Bill which we hope to publish in January will, if Parliament agrees, give the Post Office Corporation power to manufacture.
§ Mr. ShortI said that that would provide employment to a lesser extent. It will provide 80 jobs in Edinburgh, but the Post Office Savings Bank provides 5,000 jobs in Glasgow.