Post Office (Hansard, 21 April 1993)

§ 7. Ms Eagle
To ask the President of the Board of Trade what is the planned change in the Post Office contribution to Government finances between 1990–91 to 1992–93 and 1993–94 to 1995–96.

§ Mr. Heseltine
The Post Office's external financing limit contributions for the two years 1990–91 and 1991–92 were, respectively, zero and £74 million. The target for 1992–93 is £66 million. For the three years 1993–94 to 1995–96, the target contributions are, respectively, £181 million, £176 million and £158 million.

§ Ms Eagle
Does the Minister agree that seeking to increase the contributions that the Post Office makes to the Exchequer by close to three times in one year will imply a massive increase in postal charges once the price freeze ends in August? When those price increases arrive later in the year to pay for that, will we see the introduction of a Tory post tax to pay for the Government's economic mismanagement?

§ Mr. Heseltine
The hon. Lady may like to catch up with the facts. There has been a price freeze for 18 months and a further six months of freeze was recently announced.

§ Mr. Nigel Evans
My right hon. Friend has said how important the Post Office is to the country. In his drive to improve the postal service, will he assure me that regard will be given to rural post offices and that, if any changes are made, there will be assurances that the service that is currently provided to rural customers will continue to be provided?

§ Mr. Heseltine
My hon. Friend is well aware of the considerable importance of the rural post office network. We have made it clear in the consultation papers that we have produced that the maintenance of a very substantial rural post office network in the private sector, where it now is, is an important part of our policy, just like the universality of delivery and price.

§ Ms Hoey
Will the Secretary of State have a word with his colleague the Secretary of State for Social Security and try to persuade him of the folly of requiring pensions and benefits to be paid through banks rather than through post offices? Does he realise that that would ruin our rural post offices and cause many problems for many pensioners throughout the country?

§ Mr. Heseltine
Many people choose to have their pensions paid through the banking system. There are obvious issues to be explored. The Government have made it clear that automated credit transfer is part of their policy. Of course, we are aware of the complications and implication involved in that, but I would not give the sort of assurance that the hon. Lady seeks.