HC Deb 01 March 1972 vol 832 cc397-8
26. Sir G. Nabarro

asked the Minister of Posts and Telecommunications what estimate he has made of losses on postal services to 31st January, 1972, and to 31st March, 1972, for the full year ending on that date; and what financing proposals including increased charges he now has to finance such losses.

Mr. Chataway

As indicated in the answer I gave to the hon. Member for Manchester, Openshaw (Mr. Charles R. Morris) on 2nd February. [Vol. 830, c. 121.] I am considering these matters with the Post Office. There are no proposals for further increases in postal tariffs this year.

Sir G. Nabarro

Will my right hon. Friend study the paradox that when the telephone service makes a large profit the tariffs go up, and when postal charges show a large loss the tariffs go up again? Can he discern any possibility that the consumer might be protected in this matter and might sometimes win?

Mr. Chataway

I shall be dealing with telephone charges in due course. My hon. Friend will be aware that neither the postal services nor the telephone service can be immune from rising costs. What one must see in both respects is that the maximum is done to meet rising costs by increased productivity.

Mr. Joel Barnett

If the Post Office cannot be commercially viable while at the same time abiding by the Government's indirect request through the C.B.I. to restrict increases to 5 per cent., may I ask the right hon. Gentleman to confirm that he will, in effect, have to provide a subsidy to the Post Office?

Mr. Chataway

As the hon. Gentleman knows, the results of the C.B.I. initiative affect a number of nationalised industries, and my right hon. Friend the Chancellor of the Exchequer has announced that they are being considered by the Government. Those considerations are in progress.