HC Deb 07 July 1980 vol 988 cc9-11
6. Mr. Bruce-Gardyne

asked the Secretary of State for Industry whether he has yet concluded his review of the Post Office monopolies; and if he will make a statement.

Mr. Adam Butler

The reviews of the postal and telecommunications monopolies are nearing completion. My right hon. Friend will make a statement as soon as possible.

Mr. Bruce-Gardyne

I am grateful to my hon. Friend for that reply. I am sure that he will agree that the review of the mails monopoly has been some time in coming. Will he assure the House that, when my right hon. Friend makes his announcement, he will take note of and act on the fact that the Monopolies and Mergers Commission has already found that a monopoly of the mails acts against the public interest?

Mr. Butler

There has not been any undue delay in coming forward with policy statements either on the postal or telecommunications monopolies. We hope that statements will be made before the Summer Recess. The report of the Monopolies and Mergers Commission has been studied and is being taken into account in deciding exactly what we should do.

Mr. Foster

Does the Minister accept that excessively tight cash and borrowing limits are now preventing commercially profitable investment in British communications? Will he consider a more flexible system in this area?

Mr. Butler

The external financing limit covers matters such as investment, but it is conditioned by a number of factors, including the levels of wage costs and settlements in the industry.

Mr. Gummer

Will my hon. Friend ensure that he will take into account, when making a decision, in view of all the pressures for the ending of the monopoly, that rural areas will be very expensive to supply? Does he agree that we want an efficient Post Office service and that if we were to concentrate on that we would get what we wanted?

Mr. Butler

I assure my hon. Friend that we want the efficiency and the service for the rural areas.

Mr. Les Huckfield

Will the hon. Gentleman bear in mind that there is a great concern in rural areas along the lines stressed by his hon. Friend the Member for Eye (Mr. Gummer)? How does he intend to maintain and improve the service that the Post Office provides in rural areas if the service in the inner cities and other profitable areas will in future be subject to competition? Will he also bear in mind that there is great concern about how the monopoly can be preserved, or even diminished, while the service in rural areas is improved even further?

Mr. Butler

The hon. Gentleman will have to wait for my right hon. Friend's statement, but I ask him not to stir up anxieties needlessly.

Mr. Maclennan

Will the Minister undertake that before the review is completed he will consult the Post Office Users National Council for its views on this matter?

Mr. Butler

I assure the House that we have had very wide consultations with the POUNC, the unions and all other interested parties, as far as I am aware.