HC Deb 10 May 1972 vol 836 cc1293-4
5. Mr. Dempsey

asked the Minister of Posts and Telecommunications what is the annual value of public contracts placed by the Post Office Corporation; and what proportion of those sanctioned by him are placed in special development areas.

Sir J. Eden

The Post Office tells me that the total value of all contracts awarded in 1970-71, the last year for which information is available, was £384 million. The placing of individual contracts is a matter for the Post Office but I understand that a considerable proportion of telecommunications equipment is manufactured in special development areas.

Mr. Dempsey

Will the right hon. Gentleman bear in mind that special development areas such as Coatbridge and Airdrie rely a great deal on the Post Office Corporation for employment? Will he convey my personal thanks on behalf of the firms and workers in my constituency for the opportunities we receive? Will he continue to prevail upon the corporation to place the maximum number of contracts in such special development areas since this is one of the most effective ways of minimising the unemployment problem which is so serious in my locality?

Sir J. Eden

I am sure that the Post Office will be grateful for the hon. Gentleman's remarks. He will recognise that it is for the Post Office to place contracts and it is for the individual firms concerned to decide where the product is to be manufactured.

Mr. Hugh Fraser

Would my right hon. Friend agree that there is surplus capacity in this country which could be used and that one of the reasons why it is not being used is that his Department goes far too much in leaps and starts without a steady development and investment? Will he think of going to the market to raise money for these investments, which show a good return, instead of leaving it to the public to find the money by increased charges? Is he aware that if this were done we could get a steady advance in telecommunications?

Sir J. Eden

I can assure my right hon. Friend that the forward requirements of the Post Office indicate a steady and increasing demand for equipment. The second part of his question is another matter.