HC Deb 01 March 1972 vol 832 cc380-2
2. Mr. Ewing

asked the Minister of Posts and Telecommunications if he is now in a position to make a statement to the House as a result of his discussions with the Post Office Board arising from the rejection of the board's restructuring proposals by the Post Office Users' National Council.

29. Mr. Charles R. Morris

asked the Minister of Posts and Telecommunications what proposals he has now received from the Post Office Corporation for restructuring the postal services; and whether he will make a statement.

Mr. Chataway

I would refer the hon. Members to the reply I gave on 27th January to my hon. Friend the Member for Belfast, North (Mr. Stratton Mills).—[Vol. 829, c. 520.]

Mr. Ewing

Does the right hon. Gentleman accept that this is a matter of great concern, especially to those who work in the Post Office and not least to the consumers who use the Post Office? Surely the time has come when there should be some urgency about this matter, and should not the House know at an early date the outcome of the discussions?

Mr. Chataway

My right hon. Friend the Chancellor of the Exchequer has made it clear that the Government are considering the position of all the nationalised industries following the C.B.I. initiative. A statement will be made about the Post Office, like all the other nationalised industries, in due course.

Mr. Morris

Is the right hon. Gentleman aware that the original restructuring proposals of the Post Office Corporation envisaged the redundancy of 25,000 of the Post Office staff by 1978? In view of the fact that the Post Office Users' National Council has now rejected some of the major recommendations in the original restructuring report, what is now the position regarding the redundancy of Post Office staff?

Mr. Chataway

The proposals were never based upon the belief that redundancies would be necessary. It was a matter of recruitment and natural wastage over that period. The Post Office has said that it will not now implement these major service cuts in view of the recommendations of the Post Office Users' National Council. I think that the other changes will not affect the service markedly.

Mr. Richard

Will the right hon. Gentleman recognise that there is now considerable urgency about this matter? It is not simply a question of what happens when the C.B.I. initiative comes to an end and what action the Government take generally. If we are to accept what the Chairman of the Post Office Corporation has said, there will be serious financial problems to be considered. Does not the right hon. Gentleman agree that this is a matter which should be considered soon? Will he make an early statement to the House?

Mr. Chataway

In part, those serious financial problems arise from the very serious situation of the Post Office in the middle of 1970. In part they arise from the terms of the C.B.I. initiative. It is in that context that the Post Office, together with the other nationalised industries, is being considered by the Government.