HC Deb 16 July 1973 vol 860 cc15-6
13. Mr. Tom King

asked the Minister of Posts and Telecommunications whether he is yet in a position to announce the revised financial targets for the Post Office postal services.

Sir J. Eden

I have nothing to add to the reply I gave on 9th April to the hon. Member for Newcastle-under-Lyme (Mr. Golding).—[Vol. 854, c. 229–30]

Mr. King

Is it true that the Post Office is limited to 2 per cent. profit on the counter services it provides for other Government Departments? Is not that a pathetic return for very valuable services? Should not my right hon. Friend support the Post Office in seeing that it gets a more realistic return for the services it provides?

Sir J. Eden

The counter services were the subject of an observation in the recently available report of the Post Office Users' National Council. The five-year target for the Post Office postal services business has been 2 per cent, return on expenditure.

Mr. Charles R. Morris

Did the Minister note the observation of the Chairman of the Post Office Corporation about the Post Office's proposals for postal tariff increases? Was he aware that the chairman was to make a statement saying that even if the Post Office's proposals were accepted there would still be a deficit of £50 million in 1973–74? On the assumption that the latest proposals are accepted by the Price Commission, how soon shall we face a proposal for yet another increase in postal tariffs?

Sir J. Eden

I was aware of the observations by the chairman. The proposition about the tariff increases has been studied by the Post Office Users' National Council and is still before the Price Commission. I must reserve the Government's position until those studies have been concluded.

Mr. Biffen

If the proposed tariff increases now before the Price Commission are confirmed and implemented, will the Post Office then be meeting the financial targets referred to in the Question?

Sir J. Eden

Those targets were for the five years that expired in March 1973. The question of future targets is still under consideration.