HC Deb 12 March 1973 vol 852 cc869-70
7. Mr. Rost

asked the Minister of Posts and Telecommunications how many new National Giro accounts have been opened since the recent increase in charges; how many accounts have been closed; and what has been the effect on the current trading deficit.

Sir J. Eden

Information of this kind is normally published in the Annual Report and Accounts but the Post Office published figures in October last showing that the number of accounts had risen then to 465,000.

Mr. Rost

Is my right hon. Friend aware that there have been substantial increases in service charges since then, and that the East Midlands Electricity Board claims that there has been a drop of 25 per cent. in the number of customers paying their bills by National Giro since those increases? Is my right hon. Friend satisfied that the Giro service is still competitive?

Sir J. Eden

Giro balances have increased by 20 per cent. Its weekly turnover has increased by 25 per cent., and agents' deposit business has increased by about 50 per cent. That indicates a movement in the right direction. I am sure that my hon. Friend will agree that the profitability of Giro does not depend on the number of accounts alone. Other aspects and factors are just as important.

Mr. Bruce-Gardyne

Can my right hon. Friend assure the House that he has not weakened in any way on the obligation placed by his predecessor on the Giro to make a positive contribution to Post Office finances within a year of the increase of tariffs? Will that objective be achieved?

Sir J. Eden

I remain steadfast on the subject, with the active support of my hon. Friend, and have not weakened on the objective set for Giro.

Mr. Gregor Mackenzie

Is the right hon. Gentleman aware that Opposition Members at least are delighted to hear about the progress of the Giro? May we press him a little further, as we have often done in the past, to try to persuade many more local authorities to use Giro, and certainly to persuade more Government Departments to use it?

Sir J. Eden

I am certain that the hon. Gentleman does not want me to feather-bed Giro, but expects it to stand on its own feet and compete.