HC Deb 22 March 1982 vol 20 cc677-8
14. Mr. Richard Page

asked the Secretary of State for Industry, pursuant to his answer to the hon. Member for Fife, East (Mr. Henderson) of 22 February, Official Report, column 271, on Project Mercury, what is his policy towards use of the reserve powers as regards the placing of obligations on British Telecom and Cable and Wireless.

Mr. Wakeham

We would hope not to have to resort to such powers. So far as interconnect and international access for Mercury are concerned, we believe that they are in the national interest and that it should be possible for BT and Mercury to reach a commercial agreement. In line with our overall policy of telecommunications liberalisation, we will be interested to ensure that the interests of customers come first.

Mr. Page

I thank my hon. Friend for that reply. As BT acts as Her Majesty's agent for both national and international agreements, and reinforcing the concern already voiced by my hon. Friends the Members for Arundel (Mr. Marshall) and for Cornwall, North (Mr. Neale), does my hon. Friend feel that the Secretary of State has adequate powers to ensure that any limitations on competition set by BT will not frustrate such projects as Mercury, especially in international communications?

Mr. Wakeham

My right hon. Friend hopes that an agreement will be reached between the parties that does not require him to intervene. However, he has direction and licensing powers which he could use, if necessary.

Mr. Greenway

Is my hon. Friend aware of the very damaging effect that the sluggishness of British Telecom in installing telephones and switchboards has had on business? Is he aware, further, that on Friday a gentleman walked into my constituency surgery and said that he had been struggling for two years to get British Telecom to install a proper switchboard so that his business could go ahead—without any result?

Mr. Wakeham

My hon. Friend makes a very good case for Mercury being a competing service with BT. With the introduction of competition for BT the position will improve. I am sure that the chairman of BT will attend to my hon. Friend's complaint.