HC Deb 29 March 1973 vol 853 cc1526-8
Q4. Mr. Golding

asked the Prime Minister whether the public speech made by the Minister of Posts and Telecommunications to the Telecommunication Engineering and Manufacturing Association on 7th March in respect of equipment suppliers represents Government policy.

Q5. Mr. Charles

R. Morris asked the Prime Minister whether the public speech made by the Minister of Posts and Telecommunications to the Telecommunication Engineering and Manufacturing Association concerning equipment supplies on Wednesday 7th March 1973 represents Government policy.

The Prime Minister

Yes, Sir.

Mr. Golding

Before he made that speech was the Minister told by the Chancellor of the Exchequer what the impact of VAT would be on telephone charges? Was he aware that cheap calls from coin boxes were to go, and that subscribers were to have 10 per cent. added to their bills, at a time of standstill? Further, will he tell us when a decision will be taken by the Government on TXE4?

The Prime Minister

Value added tax has been debated in the House on many occasions, and the consequences were known on the prices which will decrease as well as on those which will increase. But my right hon. Friend was not dealing with that subject in that speech. It is not yet possible to announce the exact date for which the hon. Gentleman asks.

Mr. Gorst

In view of the points made by the hon. Member for Newcastle-under-Lyme (Mr. Golding), will my right hon. Friend confirm that it remains the policy of the Government to increase the amount of liberalisation and competition in our telephone service?

The Prime Minister

My right hon. Friend dealt at some length with this matter and showed that there is now a good working relationship between the Post Office and the suppliers, and that the Post Office has a responsibility not only to its customers but also to those who supply the equipment, from the point of view of our long-term plans. I also believe—and I think that my hon. Friend shares this view—that the Post Office has a responsibility to supply us with materials which can be exported. It is important that home and overseas supplies should move together.

Mr. Morris

Does the Prime Minister accept that the Minister might have taken this opportunity to alert the telephone equipment manufacturers to the impact which VAT and increased installation charges are likely to have on the demand for telephone installations? Is it the Government's policy and intention, in terms of cost, to put the telephone beyond the reach of ordinary families? Will he guarantee that telephone rental, installation and unit charges will not be increased during the Government's price restraint policy?

The Prime Minister

That matter concerns VAT. There is no intention to put telephones outside the grasp of the ordinary person. The facts which my right hon. Friend outlined show that demand is very great indeed, and likely to remain so. The net growth of the system this year is forecast to be 9.8 per cent.—nearly 10 per cent.—which shows how substantial the demand is.

Mr. Speaker

Mr. Gregor Mackenzie.

Mr. Gregor Mackenzie rose

—

Hon. Members

Question No. 6.

Mr. Speaker

Order. Mr. Gregor Mackenzie.

Mr. Mackenzie

Will the Prime Minister confirm that these increases will amount to £35 million on private subscribers, and that this £35 million increase has nothing to do with the Post Office or with its workers' wages but is simply the result of VAT? Does he also agree that it will result in a reduction in the demand for telephones and affect the Post Office programme?

The Prime Minister

The whole question of the balance of VAT has been debated many times in the past. The hon. Gentleman knows the situation. As I have emphasised, the demand for the telephone system is now very great indeed. The companies recognise this. The companies are working on long-term plans. [Interruption.] I hope that I have said enough to convince the hon. Gentleman.

Hon. Members

Question No. 6.

Mr. Speaker

Order. I was just as interested as anyone else to go to Chesterfield, but the time has gone.

Mr. Harold Wilson

Are not there abundant precedents, Mr. Speaker, if an hon. Member has been called to put a Question—even if you, Mr. Speaker, change your mind afterwards—for the hon. Member to be allowed to put that Question?

Mr. Speaker

Order. I had called Mr. Gregor Mackenzie.

Mr. Kaufman

On a point of order, Mr. Speaker. Would it have been in order for the Prime Minister, in answer to my hon. Friends the Members for Newcastle-under-Lyme (Mr. Golding) and Manchester, Openshaw (Mr. Charles R. Morris), to give assurances about the efficiency of telephonic communications between Wolverhampton and Chats-worth?

Mr. Speaker

I do not detect a point of order, or much else, in that.