HC Deb 09 February 1972 vol 830 cc1312-4
10. Mr. Bruce-Gardyne

asked the Minister of Posts and Telecommunications whether proposals by the Post Office to revise the Giro tariff structure in conformity with the recommendations of the Cooper Brothers report would be subject to the 5 per cent. ceiling on nationalised industry price increases.

Mr. Chataway

The scale and timing of any required tariff increase are being considered by the Post Office as part of the restructuring of Giro. Detailed proposals have yet to emerge.

Mr. Bruce-Gardyne

But my right hon. Friend said only yesterday that he believed that commercial disciplines in the public sector were highly desirable for a good service. Will he not accept that, so long as the Post Office is allowed to operate tariffs designed to attract custom from the private sector through subsidisation from the results of its monopoly position, what can fairly be described as a bankrupt bucket-shop operation is operating in complete defiance of the principles which he enunciated yesterday?

Mr. Chataway

Apart from that last description, I would go all the way with my hon. Friend's general proposition. As he knows, the tariffs here have remained the same since 1965 and, as a result of the investigation by Cooper Brothers, it is recognised that there has to be a radical alteration in tariffs as well as substantial changes in the way that the Giro is run.

Mr. Richard

Is the Minister aware that we are wholly with him in his resistance to the absurdities of hon. Members behind him about the Giro and that we too regard it as a most valuable public service which deserves our full and wholehearted support?

Mr. Chataway

The sentiments which the hon. and learned Gentleman expresses are very welcome. It would have been even more welcome if the conduct of the Giro before the present Government arrived had been rather more satisfactory.

Sir G. Nabarro

Would my hon. Friend explain how, if he works within the 5 per cent. agreed with the C.B.I., he can possibly recover all the losses forward on this service, which now amount to £20 million or more, and hope to make a profit in future?

Mr. Chataway

The C.B.I. initiative in certain circumstances allows variations to the 5 per cent. ceiling, but, as I say, concrete proposals have not yet been put to me. I will certainly take into account all the relevant factors, including the policy of price restraint.

Mr. Leslie Huckfield

Would the Minister recognise that these continued stupid snipings from his own back benches can only damage the future of Giro? After a long period of his own hesitancy, can he now reaffirm his own faith in its future?

Mr. Chataway

I believe that my hon. Friends are anxious, as I am, to ensure that the Giro is making a profit as soon as possible.