HC Deb 07 June 1972 vol 838 cc431-2
6. Mr. William Hamilton

asked the Minister of Posts and Telecommunications to what extent the proposed increases in charges for post and telephone services conform to the Confederation of British Industry initiative in seeking to limit price increases to 5 per cent. in any one year.

Sir J. Eden

The recent increases in postal and telephone charges are within the CBI limit. There are no further proposals.

Mr. Hamilton

That is simply not true. Does not the right hon. Gentleman recognise that the Post Office Users National Council pointed out in its last report that there was gross discrimination against residential users compared with some business users: that, for example, some business users' tariffs were to be increased by 1½ per cent. while the tariffs of new residential users were to be increased by 40 per cent. and that more than 50 per cent. of all residential consumers would be paying more than 7 per cent. more? Does he accept that this gross discrimination against the residential user of the telephone compared with the business user is indefensible?

Sir J. Eden

The increases will raise users' costs on average by 3 per cent. I accept of course that there will be variations within that average figure.

Dr. Gilbert

Does the right hon. Gentleman accept that one of the best contributions to getting the costs of the telephone service down is to encourage the greater use of the facilities that are already installed?

Sir J. Eden

indicated assent.

Dr. Gilbert

I am glad to see that the Minister agrees with me. Will he therefore tell the Chancellor of the Exchequer that the imposition of VAT to the tune of £40 million a year on telephone subscribers will impede his efforts in this connection?

Sir J. Eden

The last point made by the hon. Gentleman is of course not for me but for my right hon. Friend the Chancellor of the Exchequer. I agree with the hon. Gentleman in his first point and he will have noted the interesting speech made by Mr. Rosser, President of the Post Office Engineering Union, in which he forecast no falling off in demand for the telephone services of the Post Office.

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