HC Deb 13 November 1978 vol 958 cc15-7
13. Mr. Frank Allaun

asked the Secretary of State for Industry if he will indicate the substance of his reply to the letter from the hon. Member for Salford, East regarding the requirement of deposits on intending telephone subscribers in certain areas in addition to installation charges before a new telephone is installed.

Mr. Huckfield

My hon. Friend will be aware from my right hon. Friend's reply to his letter that the Post Office is seeking ways of bringing this practice to an end.

Mr. Allaun

I am grateful to hear that. Is it not grossly unfair that these blanket deposits of up to £50 per head on every would-be subscriber in whole districts is being imposed, even though they have never owed a penny? Will the Minister tell Sir William Barlow, head of postal and telecommunications services, that it is even worse to refuse to name the districts which are being blacklisted in this way?

Mr. Huckfield

I know that my hon. Friend has, quite rightly, pursued this matter over a period of time. On 25th August Mr. Peter Benton, the managing director of post office telecommunications, said that in the area which my hon. Friend represents less than 3 per cent. of new applicants—the majority of whom were short-term customers—were being subjected to the kind of procedure which my hon. Friend has reported this afternoon. Nevertheless, it is my understanding that the Post Office now intends to go ahead with a series of schemes using credit reference agencies.

Mr. Ward

Does my hon. Friend agree that this further example of inflexible and arbitrary conduct by the Post Office raises the need for a code of practice by which consumers can know precisely where they stand on a whole range of issues? Will he pursue the Post Office on this matter, since it is now 18 months since we were told by the Minister of State, Department of Prices and Consumer Protection that the production of such a code of practice was in hand?

Mr. Huckfield

I recognise my hon. Friend's concern, but he will realise that these are matters which have to be gone into very carefully. They have been the subject of extensive consultations with the Post Office Users National Council and, indeed, with the Post Office unions. Having said that, I can tell my hon. Friend again that it is my understanding that in the near future the Post Office intends to embark on a series of schemes using credit reference agencies.

Mr. Greville Janner

Is my hon. Friend aware that these arrangements for credit reference schemes have begun in certain parts of the country, including the area which I represent? On the other hand, is it not disgraceful that in areas such as that represented by my hon. Friend the Member for Salford, East (Mr. Allaun) about 3 per cent. of new subscribers are still discriminated against because of the area in which they happen to live, rather than because of any failure on their part to meet their debts? When will this stop?

Mr. Huckfield

I hope my hon. and learned Friend will recognise that I said "less than 3 per cent.". I stress that last year there was about £15 million worth of unpaid telephone bills to which the Post Office ought to have regard as well. Nevertheless, I hope my hon. and learned Friend will recognise that in its policy towards the introduction of new schemes involving credit reference agencies the Post Office recognises that there has been a problem and is trying to do something about it.