§ 23. Mr. Bruce-Gardyneasked the Minister of Posts and Telecommunications, in view of the recent authorisation of the increase of Giro tariffs, whether it now remains his policy that the Post Office Giro shall be making a positive contribution to the overall finances of the Post Office within one year.
§ Sir J. EdenThe financial objective of Giro remains as stated by my predecessor in replying to my hon. Friend on 22nd March.—[Vol. 833, c. 1478.]
§ Mr. Bruce-GardyneI am grateful to my right hon. Friend. May we understand that, unless the Giro is making a positive contribution to the finances of 1430 the Post Office by 1st July, 1973, its condition of decline, whether culpable or non-culpable, will be terminated?
§ Sir J. EdenThe Post Office is confident that a reshaped Giro can be made to pay its way within the five-year target period.
§ Mr. Charles R. MorrisWhen will the Minister refute these political and commercial knockers at Giro? Is he aware that the present financial difficulties facing the Post Office Giro would not have been quite the problem they are now had the Government had the courage to raise Giro charges at the appropriate time? Will the Minister take an early opportunity to do something to refute the allegations made by his hon. Friend the Member for South Angus (Mr. Bruce-Gardyne) and his political comrade the hon. Member for Worcestershire, South (Sir G. Nabarro) in their constant denigration of an essential national service?
§ Sir J. EdenThe troubles that Giro has experienced have arisen very largely from the excessive optimism which accompanied its introduction during the tenure of office of the previous Government. I have no doubt that, now it sees its way clear ahead towards profitability, confidence in and support for Giro will grow.
§ Mr. Biggs-DavisonWhat are the services which Giro provides at a loss which cannot be provided by other organisations at a profit?
§ Sir J. EdenGiro will increasingly be providing its facilities for transfer of money at a profit.
§ Mr. Gregor MackenzieFirst, will the Minister help Giro by telling the House at some time the comparison between Giro charges and normal bank charges? Second, will he suggest that there should be a less complex system than that which operates at present? Third, will the Minister now reply to the question we have been putting to him for several weeks about Giro and Government Departments? Which Government Departments do not use Giro? Has the Minister asked them why they do not use it?
§ Sir J. EdenThe last part of the hon. Gentleman's question is a matter for Government Departments. As to the first 1431 part, Giro has also been handicapped by the fact that it has been charging 1965 prices in 1972. It cannot be said to be competing fairly as long as its charges remain pegged at artificially low levels. This is why new proposals are coming into effect.
§ Mr. Bruce-GardyneOn a point of order, Mr. Speaker. As my right hon. Friend did not answer my supplementary question, I beg to give notice that I shall put it again in the near future.