HC Deb 25 January 1968 vol 757 cc567-9
17. Mr. Bryan

asked the Postmaster-General if it will be his practice in future to obtain the approval of the National Board for Prices and Incomes for increases in postal charges.

26. Sir Harmar Nicholls

asked the Postmaster-General if he will make a statement on the recent reference of postal charges to the National Board for Prices and Incomes.

Mr. Edward Short

The Government have decided that all future proposals for major increases in nationalised industries' prices should be referred to the National Board for Prices and Incomes for examination. This policy will apply to the Post Office. I am circulating in the OFFICIAL REPORT a copy of the reference to the Board which my right hon. Friend the Secretary of State for Economic Affairs and I made jointly on 3rd October.

Mr. Bryan

Now that the Postmaster-General has surrendered responsibility for unpopular price increases to Mr. Aubrey Jones, does he undertake to accept the recommendations which he receives?

Mr. Short

There is no question of surrendering anything. The Prices and Incomes Board has been told of the Post Office's financial problem arising from the under-capitalisation of the Post Office when the party opposite was in power for years and years. That is why there is a waiting list for telephones. The Board has had the problem put to it and we have asked for its suggestions. When we get those suggestions, the Government themselves will decide what tariff changes, if any, have to be made.

Sir Harmar Nicholls

The Postmaster-General must not get angry, because we have precedents for increases in Post Office charges being announced by Ministers other than himself. If the Chancellor of the Excheqeur decides to increase the charges in the Budget, will that cut across any recommendations which the Prices and Incomes Board may make?

Mr. Short

Many people in the past, apart from the Postmaster-General, have interfered with the running of the Post Office and the hon. Gentleman probably knows that as well as anyone in the House. If he would like me to enumerate them, I shall be happy to do so.

Following is the Reference: