HC Deb 12 May 1971 vol 817 cc353-4
6. Mr. Atkinson

asked the Minister of Posts and Telecommunications what consultations he has had with the Post Office Board about their plans for an increase in the first class letter rate of 92 per cent. above the rate introduced on 15th February.

Mr. Chataway

None, Sir. I know of no such plans.

Mr. Atkinson

Is the Minister aware that if there is to be an increase in the cost of postage stamps from five old pence as was the situation on 15th February last, to four new pence next 15th February, this will represent a 92 per cent. increase? Does this not give credence to the view, held by many members of the Union of Post Office Workers, that the Minister has impressed upon the Chairman of the Post Office that he should take steps to exaggerate the impact upon the price of stamps of wage agreements which are now going through? Would not the right hon. Gentleman agree that an increase in stamp charges of 92 per cent. in 12 months is fantastic when compared with the award to postmen of a mere 9 per cent.?

Mr. Chataway

The hon. Gentleman will bear in mind that when the present Government came to power we found the Post Office with the largest-ever deficit on the postal side, and that is a contributory factor in the situation.

I have received no proposal of the kind the hon. Gentleman mentioned. His Question contains the words: above the rate introduced on 15th February. I take it that he means the rate prevailing before 15th February.

Mr. Geoffrey Finsberg

Could my right hon. Friend impress on hon. Members opposite the fact that any statements alleged to have been made about increases will first have to come to the Post Office Users' National Council, as indeed will any suggestions for putting telephones on trains and in stations?

Mr. Chataway

I entirely agree with my hon. Friend the Member for Hampstead (Mr. Geoffrey Finsberg) who is a much valued member of the National Council.

Mr. Gregor Mackenzie

May I remind the Minister that when last year he announced the largest single increase we have ever had in postal charges, he told the hon. Member for St. Ives (Mr. Nott) that the increases should be sufficient for the remaining quinquennium period to 1973–74? Does he still take this view in the light of what the Chairman of the Post Office said after the Hardman Committee reported?

Mr. Chataway

No. The Chairman of the Post Office has made it clear that he is considering putting to the Government and to the Post Office Users' National Council proposals for a further increase.

Mr. Gregor Mackenzie

But the Minister of State in reply to my hon. Friend the Member for Tottenham (Mr. Atkinson) said he had heard no suggestion that there should be an increase at all. As we are rather puzzled by this statement, would the right hon. Gentleman explain it a little further?

Mr. Chataway

I heard no suggestion that there should be a 92 per cent. increase over the rate introduced on 15th February. As the House will know, and as has been made clear on a number of occasions in the House, the increase in costs since last summer makes it more than probable that there will need to be an increase earlier than was envisaged in the statement last July.

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