HC Deb 11 May 1994 vol 243 cc304-6
5. Ms Hoey

To ask the President of the Board of Trade if he will give the Post Office more commercial freedom.

The President of the Board of Trade and Secretary of State for Trade and Industry (Mr. Michael Heseltine)

This is one of the issues being considered in the Post Office review.

Ms Hoey

It is about time that we had the results of that review. Why is the President of the Board of Trade conducting such a vendetta against the Post Office? Why are not the Government prepared to give it the commercial freedom that would make it an even more profitable business than it already is? What does the right hon. Gentleman have to say about the recent Post Office survey in which 77 per cent. of those asked wanted to keep letters, counters and parcels together as one business and wanted that business to be given commercial freedom?

Mr. Heseltine

The hon. Lady will have read the Select Committee report, as have I, and will have welcomed the fact that it unanimously advocates change. The Government are deeply aware of the significance and importance of the Post Office and we wish to give the Select Committee report and a wide range of other representations proper consideration. As soon as we have concluded our review, we will make our results public.

Sir Donald Thompson

Is my right hon. Friend aware that the Post Office is begging for privatisation? Will he explain the advantages that privatisation would bring to small and rural post offices?

Mr. Heseltine

My hon. Friend and the House will know that 19,000 of the 20,000 post offices in this country are already in the private sector, so they have considerable opportunities to trade commercially. They are interested in acquiring further opportunities and the Government are considering that. All these matters would be better considered when the Government respond to the review that we are now conducting.

Mr. Robin Cook

Did the President of the Board of Trade see Monday's report to the effect that the chief executive of the Post Office has had talks about privatisation with Warburg in the City? As there is no Bill before the House dealing with the privatisation of the Post Office and as there has not even been a statement to the House about the Government's intentions for the Post Office, who gave the Post Office authority to have talks about privatisation? Was it the right hon. Gentleman? [Interruption.] The House will note the contempt in which its procedures are held by Conservative Members. As no statement has been made about the Post Office review in the two years since it was set up, will the President take some time off from his canvassing work among his Back Benchers to tell the rest of us whether the Post Office will remain where it belongs, providing a public service in the public sector?

Mr. Heseltine

There we have it—we are begged by the hon. Member for Vauxhall (Ms Hoey) to let the Post Office be more commercial and urged by a Labour-chaired Select Committee unanimous report to make it more commercial, yet the official spokesman for the Labour party will not even let the chief executive use the word. That is the best example of socialist suppression and totalitarian attitudes that I have ever heard.

Sir Anthony Grant

Did my right hon. Friend note that the all-party Select Committee report unanimously observed that if the Post Office is to meet increasing overseas competition, it is essential that it should have commercial freedom? The report left open the question whether privatisation or any other method should be used to achieve that objective.

Mr. Heseltine

My hon. Friend played a distinguished part in the Select Committees's unanimous report, which I have read and to which we shall respond. The open-minded approach of hon. Members of all political parties to that report contrasts with the clam-like attitude of the spokesman for the Opposition.