HC Deb 19 January 1972 vol 829 cc441-2
12. Mr. Golding

asked the Minister of Posts and Telecommunications what, when he took office, were the forecasts of investment on telecommunications for the years 1971, 1972 and 1973, respectively; and what they are today at constant prices.

Mr. Chataway

The forecasts at constant prices in 1970 were: for 1971–72, £478 million, for 1972–73, £507 million and for 1973–74, £522 million. The latest forecasts are £462 million, £498 million and £511 million, respectively. The slight changes are due to the introduction of economies of design and a more realistic assessment of delivery dates for new types of equipment.

Mr. Golding

Is the Minister aware that he has replied to Questions in this House by saying that the investment forecasts of the Labour Government were inadequate to meet demands, and that today he has announced reductions in those estimates which surely must make the situation very much worse in terms of the waiting list as it is today?

Mr. Chataway

It was not the forecasts of the previous Government which were inadequate to meet demands. It was the capacity that they left behind them which was inadequate to meet demands. There is no element here of restriction on the part of the Government. The Post Office investment programmes have been met in full. The reduction is due in part to the fact that there have been considerable delays and development difficulties with new types of exchange equipment and also, commendably, due to the fact that the Post Office has been able to achieve substantial economies of design.

Mr. Gregor Mackenzie

Is the Minister aware that, when we have put these questions to him over past months, he has constantly put the investment point to us instead of answering the point that we have put to him that it is the delay in delivery of exchange equipment and so forth about which we are concerned? In view of the representations which have been made to the Minister by the C.B.I. and the T.U.C. about the need to increase investment to combat unemployment, which we are told will be announced tomorrow at a level of more than 1 million, should he not try to persuade the Post Office to accelerate its programme for investment both on the telecommunications side and on postal mechanisation?

Mr. Chataway

The hon. Gentleman must recognise that, to this small extent that I have shown today, the previous forecasts were unrealistic. The telecommunications investment programme has already contributed to the bringing forward of the £100 million investment recently announced by my right hon. Friend the Chancellor of the Exchequer and the possibility of further acceleration is being considered.