HC Deb 15 February 1971 vol 811 cc1178-80
12. Mr. Leslie Huckfield

asked the Minister of Posts and Telecommunications whether he will now make a statement on the future of Giro.

Mr. Chataway

I have nothing to add to the reply I gave on 25th January to the hon. Member for Newcastle-under-Lyme (Mr. Golding).—[Vol. 810, c. 23–24.]

Mr. Huckfield

Is the Minister aware that his own indecision in this matter is seriously undermining the growth potential of Giro? is he further aware that two very big national accounts are teetering on the brink, but will not sign until he makes his statement?

Mr. Chataway

I am aware of the desirability of making as early a decision as possible, but the House will appreciate that it is not an easy decision to take. This is a service which is losing a substantial amount of money and, naturally, it has to be reviewed carefully. It must also be said that the present strike has added some new factors which must be assessed.

Mr. Heifer

Is not the hon. Gentleman aware that on Merseyside it is felt that there must be a quick decision, precisely because of the high level of unemployment on Merseyside and because part of the Lucas factory is to close because of the Rolls-Royce debacle? It is important for the people on Merseyside, particularly the workers in Giro, that there should be a quick decision.

Mr. Chataway

I am aware of the importance of a quick decision for the employment situation in the area, but, as the hon. Gentleman will appreciate, I cannot sanction the continuance of the service until I am satisfied that it may be run at a profit.

Mr. Ridsdale

My right hon. Friend said that it was losing a substantial amount of money. Can he say exactly how much Giro is losing?

Mr. Chataway

At the moment it is losing at the rate of £6 million a year.

Mr. Gregor Mackenzie

Is the right hon. Gentleman aware that the Opposition would regard any decision to drop this exceedingly useful service as very serious, the more so as at some stage we should like to hear that he will persuade his right hon. Friends and their Departments to use what we have always regarded as an exceedingly useful service?

Mr. Chataway

A Government Department, like any other organisation, must choose the service which it thinks best fitted to its own needs. I do not deny that it is a useful service to many people, but one has to be concerned with whether it can ever be run profitably.