§ 14. Mr. Kenneth Bakerasked the Postmaster-General why in 1968–69, in view of the fact that the profits of the Post Office are officially estimated to fall by £7 million the staff numbers have been allowed to increase by an estimated 8,000.
§ Mr. StonehouseStaff increases were caused by the new Giro service, the taking over of the staff canteens, new housing estates needing more delivery postmen, and increased business.
Improvement in productivity prevented much larger increases.
§ Mr. BakerIs it not a disgraceful example of Ministerial inertia that while profits are declining, clerical staff—and that is what this is—has increased by 8,000? Does this not indicate a lack of determination and energy to cut costs, evident throughout the whole Government, and particularly evident in the Post Office?
§ Mr. StonehouseI do not accept that at all. We have had an increase of productivity of quite sizeable proportions. In one section of our business we have increased turnover by 11 per cent. with an increase of staff of only 1½ per cent.
§ Mr. ShinwellHas my right hon. Friend seen the statement by the General Secretary of the Postal Workers' Union to the effect that the administration suffers because it is excessively top-heavy? Is he aware that it is said that there are far too many people at the top while at the bottom a large number of persons have become redundant?
§ Mr. StonehouseThere have been no redundancies in that sense. We have had productivity agreements with the full co-operation of the staff sides. There is no reason for them to complain, because their own members have enjoyed increased income as a result. I do not accept the main case which has been made against us by Mr. Jackson. We have on the postal side of our business 200,000 staff. The supervisory staff number about 3,000, which is about 1½ per cent.—a very low proportion indeed, comparing very well with any other similar business.
§ Mr. BryanHas there not been an increase in Treasury grade staff to the extent of 6,500 in this period?
§ Mr. StonehouseThere has been an increase in staff to start the Giro and there has been an increase in accountancy staff to deal with the administration of the staff canteens, which are now transferred to our responsibility.
§ Mr. DobsonIs my right hon. Friend forgetting that there has also been an increase in regional staff caused by the splitting of the post and telegraphs into two sections, and as this was supported by hon. Members opposite, who pressed very hard for it, would it not be fair to lay some of the blame at least at their door, because they thought of the idea first?
§ Mr. StonehouseThat is the case. The administration of a vast investment programme of £2,000 million in five years and the expansion of our commmunications system by 50 per cent. in these five years has called for an increase in some staff.