HC Deb 02 November 1970 vol 805 cc659-60
25. Mr. Stratton Mills

asked the Minister of Posts and Telecommunications if he will make a statement on the long-term review which he is undertaking, in conjunction with the Post Office, of the trends affecting the postal service.

Mr. Chataway

The review will look at the social, economic and technological trends, assess how they are likely to affect the labour-intensive postal services over the years ahead, and try to establish what the choices are likely to be in terms of cost and standards of service.

Mr. Stratton Mills

Does my right hon. Friend think that he has the right machinery for this important review? Does he feel that his Department is competent to check on the efficiency of the Post Office and to conduct a long-term review jointly with the Post Office? Would he not rather there were some form of outside machinery.

Mr. Chataway

I have not thought that the case was strong enough for an outside efficiency audit, as the Post Office has been investigated in that way by McKinsey, the Select Committee on Nationalised Industries and the Prices and Incomes Board, all over recent years. I believe that there is a case for looking at the kind of choice which may exist for society in terms of standards of service and costs over the years ahead.

Mr. Charles Morris

Is the right hon. Gentleman aware that over recent years there has been a plethora of investigations of the Post Office? Is he further aware in regard to the new review which he now proposes to undertake that many people will be of the opinion that costs alone should not determine the choice of services to the public?

Mr. Chataway

One of the things which I have had in mind is that over the last three months many people and bodies have written to me suggesting that it would be better to have as cheap a service as possible even if it were not as sophisticated as the one we are now offering. This may offer possibilities of choice which deserve investigation of this kind.

Mr. Benn

May I ask the right hon. Gentleman whether the review will look at the two-tier post, or is it intended that the two-tier post will be taken as a basis and the argument will be, as it could be, what the spread of charges as between the lower tier and higher tier ought to be?

Mr. Chataway

It will be within the broad terms of reference of this review to look at the two-tier post.

Mr. Golding

What rôle will the trade unions play in this inquiry?

Mr. Chataway

The trade unions obviously have their channels of communications with management in the Post Office. This review is simply one between my Ministry and the Post Office.