HC Deb 19 January 1972 vol 829 cc436-7
6. Mr. Skinner

asked the Minister of Posts and Telecommunications if he will now make a further statement on postal charges.

Mr. Chataway

I have nothing yet to add to the reply I gave on 17th November last to my hon. Friend the Member for Beckenham (Mr. Goodhart) and the hon. Members for Manchester, Openshaw (Mr. Charles R. Morris) and Fife, West (Mr. William Hamilton).—[Vol. 826, c. 395–6.]

Mr. Skinner

Is the right hon. Gentleman aware that at about this time last year he and other members of the Government were trying to frighten the Post Office workers, who had put in a reasonable wage claim, about the massive increase in postal charges that would ensue? Perhaps he can be more specific now, 12 months later. Will he assure the House that there will be no further postal charge increases this year?

Mr. Chataway

We are at the moment awaiting the report of the Post Office Users National Council on the proposals put to that body by the Post Office. However, I would point out to the hon. Gentleman that an inescapable fact for the Post Office is that some 75 per cent. of its postal costs are labour costs.

Mr. Charles R. Morris

Will not the Minister break this conspiracy of silence about prospective increases in postal charges? As he is well aware, the quin-quennial financial target is not likely to be achieved if the rumour is correct that the Post Office Users National Council is about to oppose the Post Office Corporation's demand for the abolition of the second delivery, and would not the financial consequences make postal charge increases inevitable?

Mr. Chataway

The Post Office could not have been more open about the matter. It has put forward a number of alternative proposals for increases within the 5 per cent. limit and also suggestions for cutting services. It has put forward those matters as suggestions for consideration by the users' representatives and has said that no final decision will be reached until their comments have been received. That is the Post Office's position, and it is also the Government's position. I do not think we could be more open than that.

Mr. Gregor Mackenzie

When does the right hon. Gentleman expect to make a statement on this matter? Will he make any such statement in the House of Commons, so that we can question him about it, and not in the form of a Written Answer to one of his hon. Friends? Secondly, although in a technical sense there must be recommendations by the Post Office Board, presumably the Minister has a view on the matter and could he say what it is as soon as possible?

Mr. Chataway

I shall be consulting the Post Office as soon as the Post Office Users National Council's report is received and I have undertaken to inform the House when a decision is taken. It is not the practice to make oral statements on every price increase in a nationalised industry.