HC Deb 11 April 1968 vol 762 cc1571-2
22. Mr. Bryan

asked the Postmaster-General by what means he plans to introduce an element of competition into the bulk supply agreements in respect of exchange equipment.

Mr. Mason

The percentage of orders which may be placed with firms not parties to the agreement is being increased from 10 to 25 per cent. My Department will play a more decisive part in the allocation of orders, taking account of quality and delivery performance; and there will thus be an element of competition based upon these criteria within the agreement.

Mr. Bryan

Is there to be any competition in price?

Mr. Mason

Price, quality and date of delivery are always taken into consideration.

Mr. William Hamilton

Would not my right hon. Friend agree that one way of introducing an element of competition would be to set up in our development areas, State-owned factories producing this kind of equipment, as we promised at the last election?

Mr. Mason

I am aware of the proposal, but I hope that my hon. Friend will take note that this is a useful first step where we have stepped up the reservation clause from 10 per cent. to 25 per cent. so that more firms that were outside the initial agreement will be now able to compete very effectively for Post Office orders.