§ 16. Mr. David Chaytor (Bury, North)What plans he has to examine standing charges for telecommunications. [77048]
§ The Minister for Small Firms, Trade and Industry (Mr. Michael Wills)Oftel, which has responsibility for setting price controls in telecoms, has required BT to introduce a number of low-cost packages with lower standing charges for residential customers who use the phone less, to ensure that poorer consumers are not disadvantaged.
§ Mr. ChaytorI thank my hon. Friend for that reply. Does he agree that the system of standing charges is inevitably unfair to infrequent users, and that that is a particular problem for single pensioner households? The unit cost for such households is inevitably higher than for more frequent users. Given the introduction of pay-as-you-go mobile phones, does he agree that many, if not most, single pensioner households would be better off by cancelling their BT contract and switching to such a phone? Will he assure the House that he will keep that matter constantly under review?
§ Mr. WillsI assure my hon. Friend that I shall keep the matter constantly under review; if I did not, I am sure that he would ensure that I did so. I acknowledge his long-standing concern for the low paid. I can give him some comfort. BT's licence includes universal service obligations and Oftel has required BT to fund a number of low-user and limited-service schemes.
We are also considering how we can further help low-user, low-income households. In that context, Oftel has made some progress on disconnections—often a problem for such households. Oftel has set BT a target that residential disconnections should fall by 50 per cent. in 1998–99. BT has introduced a new code of practice that gives customers a range of repayment options as alternatives to disconnection. I am sure that my hon. Friend will welcome that because, as he knows, the telephone can be a lifeline for many of the households with which he is most concerned.
§ Mr. Patrick McLoughlin (West Derbyshire)Bearing in mind the comments made by the hon. Member for Bury, North (Mr. Chaytor), what representations will the Minister make to Oftel to ensure that people are informed 524 that they might be better off using a mobile phone system, rather than paying BT's current rental charges—even with the low-user rebate?
§ Mr. WillsI am sure that the hon. Gentleman will realise that it is not for Ministers to advise households on how to spend their income.