HC Deb 20 October 1971 vol 823 cc704-6
15. Sir G. Nabarro

asked the Minister of Posts and Telecommunications, having regard to the urgent need for stabilisation of prices and competitiveness of exports, whether he will undertake to ensure that his embargo on increased postal charges for 1971 is extended throughout 1972; and whether he will make a statement.

Mr. Chataway

There is no embargo, but the Post Office will adhere to the terms of the C.B.I. initiative.

Sir G. Nabarro

That is a half-baked reply. It does not answer the Question. Will my right hon. Friend now read the Question in detail and answer it? If there is any increase in postal charges, as already announced by the Post Office Corporation, will it not be highly inflationary? Further, having regard to the overall surplus of the Post Office—about £40 million—is it necessary to increase either telephone charges or postal charges? Even if there is an increase, can it not be kept strictly to the 5 per cent. clamped on by the C.B.I.?

Mr. Chataway

My hon. Friend is not as familiar as I should expect him to be with the C.B.I. initiative. I have told him that the Post Office will abide by the terms of that initiative, as other nationalised industries have undertaken to do. That means that there will not be increases of more than 5 per cent., although, as my hon. Friend will know if he has studied the terms of the C.B.I. initiative, it would allow for increases in certain circumstances which might take the form of a weighted average within the 5 per cent.

Mr. Charles R. Morris

In seeking to abide by the C.B.I. initative, will the Minister take an early opportunity to make a statement to allay the anxiety of Post Office staff that he is seeking to achieve the target set by the C.B.I. by making 20,000 postal workers redundant as a consequence of postal economies?

Mr. Chataway

There is no question of 20,000 postal workers being made redundant, although, as the Post Office has made clear, it is examining the scope of its services to determine what is a sensible structure for them in the 1970s.

Mr. Richard

Has the Minister received any approaches for an increase of tariffs? Will he give the House an undertaking that if he does receive such approaches from the Post Office he will not grant them before the House has had an opportunity to discuss them?

Mr. Chataway

I am discussing with the Post Office a number of possibilities along the lines indicated in my previous answer. No decisions will be taken in the matter without informing the House.

Mr. Richard

We should have a debate in the House.

Sir G. Nabarro

In view of the unsatisfactory answers to Questions Nos. 12 and 15, I beg to give notice that I shall raise the matter on the Adjournment as soon as may be.

Mr. Speaker

Order. The hon. Gentleman is out of order in the notice which he gives on Question No. 12. The reference to Question No. 15 is permissible.

Sir G. Nabarro

I withdraw the reference to Question No. 12, Mr. Speaker.