HC Deb 20 October 1975 vol 898 cc10-2
8. Mr. Gwilym Roberts

asked the Secretary of State for Industry if he will give a general direction to the Post Office Corporation to initiate studies into methods of speeding up postal deliveries and generally expanding Post Office services.

20. Mr. Goodhart

asked the Secretary of State for Industry if he will give a general direction to the Post Office Corporation to initiate studies into methods of expanding Post Office services.

Mr. Gregor Mackenzie

No, Sir. These are matters for the Post Office management, and a general direction would not be appropriate.

Mr. Roberts

Will my hon. Friend discuss with the Post Office some of its present proposals, such as the suggested increase in telephone kiosk charges from 2p to 5p? What will that change cost? Does my hon. Friend agree that it will put a heavy burden on the poorer sections of the community? Does he accept that while we all welcome inquiries into the Post Office we believe that they should be based on the expansion of Post Office services rather than their continual contraction?

Mr. Mackenzie

I appreciate my hon. Friend's concern, which he has expressed before, about the needy. The Government understand his point of view.

The Post Office has a responsibility, of which we are all conscious, at least to break even. This has not been easy. The Post Office is doing its best. I am sure that the Chairman of the Post Office Corporation and his colleagues will take note of what my hon. Friend has said about coin boxes.

Mr. Goodhart

As the recent major increase in postal charges has already led to a massive reduction in the volume of mail, and as major business users of the Post Office are actively seeking ways of reducing their dependence on the Post Office, why has there been a delay in announcing the terms of reference and the membership of the inquiry into the Post Office? Will the hon. Gentleman give an assurance that there will be no further increases in postal charges, including those coming into effect on 5th January, until the inquiry has reported?

Mr. Mackenzie

I cannot anticipate any recommendations which may be made to the Price Commission in respect of the Post Office. That would be unreasonable. I must ask the hon. Gentleman to wait for the terms of reference and the composition of the inquiry to be announced. We are dealing with this matter as urgently as possible and will make a statement as soon as we can.

Dr. M. S. Miller

Does my hon. Friend accept that initiating studies into methods of speeding up the postal services can do nothing but good in this country, which has a history of innovations in such work? Would it not be possible to encourage the Post Office to involve itself in studies of this kind, which would have a greatly beneficial effect on industries, such as some in my constituency, which produce Post Office equipment?

Mr. Mackenzie

The Post Office is never complacent about matters of this kind and is constantly studying methods of improving the services.

Sir John Hall

As the Post Office is constantly stating that the letter delivery service is unprofitable, why continue to maintain its monopoly position?

Mr. Mackenzie

We have argued about this for years. The simple answer is that those who would like to operate these services want to do so on a purely profitable basis, and are therefore prepared to take on only the profitable sectors of the Post Office, leaving the Post Office itself to deal with the rural areas and other areas, which are anything but profitable.

Mr. Tom King

In view of the massive concern about the situation in the Post Office, expressed by hon. Members on both sides of the House, can the hon. Gentleman give a more satisfactory answer about the timing of this review, which is of vital importance to the future of a public service which is rapidly decaying before our eyes?

Mr. Mackenzie

I do not accept that it is rapidly decaying before our eyes. People in the Post Office do a useful job of work, and it comes ill from hon. Members opposite constantly to attack the talents of those people. We are treating the inquiry as a matter of urgency. As soon as we have the terms of reference ready and can announce the composition of the inquiry, I shall be happy to make the announcement.