§ 3. Mr. Bruce-Gardyneasked the Minister of Posts and Telecommunications whether he has now been able to assess the performance of Giro in achieving the first financial target set for it by his predecessor; and if he will make a statement.
§ Sir J. EdenThe short-term target agreed with the Post Office by my predecessor required Giro to make a positive contribution to Post Office finances within a year of introducing new tariffs on 1st July 1972. I can now inform the House that this target has been achieved. Though 3 too much cannot be read into short-run figures, the contribution made by Giro to Post Office overheads during the last part of the target period was about £500,000 per month.
§ Mr. Bruce-GardyneThat is welcome news as far as it goes, but will my right hon. Friend acknowledge that this was a somewhat imprecise objective, and will he ascertain that the Giro has not been taking on substantial contracts in the past year involving an element of indirect subsidy, because they were taken on at a substantial discount?
§ Sir J. EdenThe objective, as my hon. Friend knows, was never to create a sort of make-or-break situation, and, as he recognises also, this is part now of the long-term objective of achieving viability which is to cover the five-year period. The matter raised in the second part of his supplementary question is one of detail and is a responsibility of management.
Mr. HellerThe right hon. Gentleman's news will give great satisfaction on Merseyside, especially in the areas where Giro is situated. Will he go a little further and give the House an assurance that the future of Giro is now assured, on the basis of the statement that he has made—and will he be kind enough to give us that answer in the House, without talking about coming outside afterwards to explain it?
§ Sir J. EdenI have always made clear that the decision, in principle, to maintain Giro subject to its ability to meet the targets that have been set means that the Government are now anxious that business shall proceed as effectively as possible. That is why a new appointment to the Post Office main board was recently made in this connection. But the ultimate test of this business must be its profitability, and Giro's progress towards that goal will continue to be monitored by my Department as part of its normal sponsorship function.
§ Sir G. NabarroMay we have the accounts for the last financial year presented in such a form as to enable us to analyse precisely what contribution is made by this service—which many of us regard as a waste of time and money—and to see whether it is truly profitable and in the national interest or ought to be 4 supplanted by a different form of service altogether?
§ Sir J. EdenThe Giro accounts will form part of the Post Office report and accounts for 1972–73, which will become available shortly. Of course, there are certain details of management accounting and other such matters which it would clearly not be appropriate for a business to reveal.
§ Mr. Gregor MackenzieMay I express a genuine welcome to the information that the Minister has imparted to us today? Since he has mentioned the new appointment to the board, will he say whether he sees any scope for further development, particularly on the lines along which we have been pressing him for some time in connection with the Government's own interest in the service, and the interest of local authorities?
§ Sir J. EdenI have always taken the view that the development of this business is a matter for those who are appointed to run it, and I have no doubt that the new appointee will take note of what the hon. Member has said.