§ 16. Mr. Kenneth Bakerasked the Postmaster-General what will be the effect of the postal strike and the decline in the use of the postal services on the profita- 1904 bility of the General Post Office in the financial year 1968–69.
§ Mr. StonehouseThe strike cost at least £2 million. I estimate the drop in traffic overall against last year at 1 per cent., which means a reduction of net income of at least £3 million on a total postal income of £380 million. The total effect will, therefore, be between £5 million and £6 million.
§ Mr. BakerDoes the right hon. Gentleman agree that the Answer he has given shows that the profits of the postal side and the telephone service will come under increasing pressure in 1969 and 1970, and could he give an undertaking, therefore, that profitability will be restored not by increasing charges to the public but by savings in operating costs?
§ Mr. StonehouseWe are doing our best to reduce costs all the time, and efficiency is being improved. For example, we have a new programme of development which will decrease manpower costs. In answer to another Question, I have a statement to make about increased charges in the next financial year.