HC Deb 19 April 1971 vol 815 cc790-1
8. Mr. Kenneth Baker

asked the Minister of Posts and Telecommunications what general directions he has given to the Post Office Corporation relating to the losses made on postal and money orders service.

Mr. Chataway

None, Sir.

Mr. Baker

Is the Minister aware that in the financial year from March, 1970 the postal order service and the money order service between them lost £3 million'? How long are losses on this scale to be tolerated, since ultimately such losses have to be financed by the general taxpayer?

Mr. Chataway

There is a great deal of force in what my hon. Friend says. The recent increases in tariffs for these services were expected to avoid incurring further losses in the period to March, 1973. The prospects are being reviewed in the aftermath of the strike.

Mr. Richard

Is the Minister aware that I do not like the sound of the last three or four words he used—namely, that the prospects are being reviewed. Is he further aware that we view with grave concern any interference with these two services, which are used by many ordinary people? The postal order and money order services are an essential part of the present system, and I hope that the hon. Gentleman will squash any idea that they are to be disposed of.

Mr. Chataway

I hope that the hon. Gentleman will not expect me, each time he asks a question, to say that there will never be a change in anything the Post Office does. He will recall that it was the Labour Government that set targets for the Post Office. If these targets are to be achieved, then it will probably be necessary from time to time to make changes and, as he knows, a review is to be undertaken by the Post Office to look into the scope of its services.

Mr. William Hamilton

How is the Post Office to reach the targets which were laid down if the Government threaten to hive off its profitable sectors?

Mr. Chataway

The profitability of the Post Office will be taken into account in any proposals which are put before the House.