HC Deb 30 April 1973 vol 855 cc778-9
10. Mr. Biffen

asked the Minister of Posts and Telecommunications what is the estimated impact on the revenue of the postal services of the proposal of the President of the European Commission, M. Francois Xavier-Ortoli, that Great Britain should charge domestic rates for ordinary letters and postcards despatched to foreign countries which are members of the Common Market.

Sir J. Eden

The Post Office estimates the loss of revenue at about £2 million a year assuming that this concession were applied, as the Commission envisages, to letters at the first weight step and postcards.

Mr. Biffen

Does not my right hon. Friend agree that M. Francois Xavier-Ortoli shows a charming innocence with regard to the finances of the Post Office to make such a suggestion at this time? Can my right hon. Friend assure us that the Post Office will carry out a comparative study of the cost involved in the dispatch of domestic mail within this country and mail to other countries within the Community before undertaking any such form of cross-subsidisation, as is seemingly implied in this suggestion?

Sir J. Eden

I am sure that the Post Office will wish to conduct full studies into the matter. The concessionary postage rates in force between certain EEC member countries stem from separate agreements which were made outside the Treaty of Rome, but this is something which we are prepared to discuss with individual countries.

Mr. English

But since the Common Market is spending between £30 million and £50 million on subsidising Polish barley and other sums on subsidising Russian butter, has not the right hon. Gentleman asked for a subsidy for this purpose—or has he asked and been re fused it?

Sir J. Eden

Barley and butter are not matters for me.

Mr. Scott-Hopkins

Does not my right hon. Friend agree that this has nothing to do with the Treaty of Rome, and that the agreements which exist between some of the member countries of the EEC were concluded outside that treaty? Will he further confirm that the Post Office and Her Majesty's Government would have to conclude separate agreements with EEC countries before any such concession was allowed in this country?

Sir J. Eden

I confirm what my hon. Friend has said. This is a matter for bi lateral discussion and agreement, if it can be concluded. These matters do not derive from the Treaty of Rome, which contains no specific provision relating to postal rates and imposes no new obligations upon Her Majesty's Government in this respect.

Mr. Ewing

Does the right hon. Gentleman consider this to be a management or a Government matter? If he considers it to be a Government responsibility will he assure the House that he will resist the proposals and will, in the process, point out to the Common Market countries that any reduction in the cost of mail to them would increase the cost of mail inside this country?

Sir J. Eden

This matter is obviously of interest to both the Government and the Post Office, and it is something which would have to be carried further through bilateral discussions.