HC Deb 23 January 1969 vol 776 cc635-7
2. Sir G. Nabarro

asked the Postmaster-General what percentage of mails is now first class; what progress he is making in inducing more people to use first-class mails; and whether he will make a statement.

14. Mr. Dalyell

asked the Postmaster-General what study he has now made of the advantages and disadvantages of the first and second-class mail system in the light of experience.

20. Mr. Ridsdale

asked the Postmaster-General what is his estimate of the increase in revenue due to the introduction of first-class mail, and a 5d. postal rate.

27. Mr. William Price

asked the Postmaster-General what percentage of first-class mail is now arriving the day after posting.

37 and 38. Mr. Eldon Griffiths

asked the Postmaster-General why, after increasing postal charges and introducing two-tier post, he is now proposing to reduce staff and further curtail the service;

(2) if he will publish details of the additional revenues obtained by the Post Office as a result of the introduction of the two-tier system.

Mr. Stonehouse

33 per cent. of mail is now sent first class compared to 25 per cent. when the new service started. 94 per cent. of first-class envelopes are delivered by the day after posting, including some delivered the same day. I expect total revenue to increase by £21 million a year: about half of this increase comes from first-class mail.

As I told the House on 4th November, a full survey into the operation of the two-tier service is being undertaken and this report will be made public. Meanwhile, I have no intention of curtailing the postal services; but we must continue with our normal prudent policy of adjusting staff and other costs to traffic.—[Vol. 772, c. 558–618.]

Sir G. Nabarro

Will the right hon. Gentleman give the House an assurance now, as we are on the point of changing over to decimal currency, that first-class mails will cost four new pennies, equal to 4.8 old pennies, and that he will not take conversion to decimal currency as an opportunity to raise the cost to five new pennies, equal to sixpence at present?

Mr. Stonehouse

There are many factors which come into the fixing of postal tariffs, and it is too early to say exactly what those tariffs will be in two or three years' time.

Mr. Dalyell

Is my right hon. Friend aware that, after some understandable teething troubles, many of us in Scotland now regard the system as an increasing success, and this reflects great credit on those who work in the Post Office?

Mr. Stonehouse

I am very grateful for that expression of view, and certainly it corresponds with a great many expressions of opinion that we have had from consumers who are very appreciative of the fact that they now have an opportunity of choosing a first-class or second-class service, knowing that the first-class service provides a very good reliability.

Mr. Ridsdale

Should not the right hon. Gentleman give more study to the law of diminishing returns? Why was he £4 million wrong in his estimate, and how does his revised estimate of £21 million in increased revenue compare with that of a year ago?

Mr. Stonehouse

We were expecting an increase of £25 million, and certainly the amount of traffic which the two-tier system has attracted is less than we anticipated. But it is only a marginal decrease. What we did not anticipate was that people would be able to take such good advantage of the new rates that we introduced, especially the increases in weight allowances.

Mr. Price

Does my right hon. Friend agree that, despite the knockers on the benches opposite and their friends in business, the system is working very well in the Midlands, but that there is a problem in central London? Can he say what study he is making of this aspect of the postal service?

Mr. Stonehouse

The Regional Director whom I have appointed to conduct a study into the two-tier system will take this point on board. I am grateful for my hon. Friend's observation that the system is working successfully in the Midlands. That has been the view expressed to me on my numerous visits there.

Mr. Bryan

If the total traffic has gone down, how can it be a marked success?

Mr. Stonehouse

The success is in relation to the reliability of service and the fact that the split of traffic anticipated by the Post Office planners has been achieved. We are providing a next-day delivery of first-class mail in 94 cases out of 100. This really is an exceptional performance, and I am sure that the hon. Gentleman and his colleagues will want to give credit where it is due. Certainly it is due in this case.