HC Deb 08 November 1972 vol 845 c983
7. Mr. Rost

asked the Minister of Posts and Telecommunications whether he will make a statement on the latest financial position and the estimated profit and loss forecasts for the Giro.

Sir J. Eden

The Post Office Report and Accounts for 1971–72 show that Giro lost £6.4 million in that year. Since then higher tariffs have been introduced, and new marketing plans implemented, and Giro is working towards its announced targets.

Mr. Rost

Have the recommendations of the independent accountants' report, which the Minister has refused to publish, been fully implemented and, if so, why are the financial targets for Giro still behind the estimates?

Sir J. Eden

It will take some time for Giro fully to come up to being able to meet the targets. As my hon. Friend knows, Giro tariffs were recently increased. In the past year Giro balances have grown by about £10 million, the weekly turnover by £34 million, and agents' deposit business by about 60 per cent. Certainly no one is complacent about this, but the House will agree that it indicates a movement in the right direction.

Mr. Gregor Mackenzie

As a member of the Government, how does the Minister propose to assist Giro to expand its business?

Sir J. Eden

The recent decisions of my predecessor to confirm the maintenance of Giro and the recent decisions affecting tariff charges have certainly assisted in encouraging those who operate the Giro system to continue to develop their business base.