§ 2.41 p.m.
§ LORD THOMASMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
The Question was as follows:
To ask Her Majesty's Government whether they are aware of the reduced tempo of business in the United Kingdom resulting from the inadequacy of all forms of communication; and in particular what steps are being taken to improve the telephone system.
§ LORD DENHAMMy Lords, Her Majesty's Government do not accept that there is a reduction in the tempo of business. Indeed, the latest industrial production statistics show an increase. So far as the telephone system is concerned, it certainly compares well with other countries in Western Europe and the Post Office continues to give high priority to the improvement of its services.
§ LORD THOMASMy Lords, while I am grateful to the noble Lord for that would-be helpful Answer, is he aware that letters posted in St. James's before 5 o'clock on a Friday frequently do not get delivered to a place 40 miles away until Monday mid-day? Also, is he aware that, as an ardent dial-yourself telephone user, my average of calls to connections is about 2¾ to 1? And does he not agree that the frustration and 1112 unreliability of posts and delays on the telephone system takes the cutting edge off business enterprise, and destroys the fire and spirit that should be present in a business community?
§ LORD DENHAMMy Lords, I am sorry that my noble friend has been experiencing difficulties with both the postal and the telephone services; but I must say to him that these are complaints that should be addressed to the Post Office as they concern matters that are for the day-to-day running of the Post Office and not for Her Majesty's Government. Her Majesty's Government have no knowledge of any widespread complaints of the efficiency of both services.
§ LORD STRABOLGIMy Lords, in view of the undertaking he gave before Christmas, may I ask the noble Lord when the Government hope to be able to announce the Post Office's decision about further orders for TXE 4 equipment?
§ LORD DENHAMThis afternoon, my Lords. My right honourable friend will be making that announcement in another place this afternoon, and it has been arranged through the usual channels that this report should appear in your Lordships' Hansard.
§ LORD SLATERMy Lords, is the Minister aware that I regard the Answer he has given to the Question on the Order Paper by his noble friend as a most adequate answer, dealing with the situation as it exists and as it has existed over the last ten years? Is the Minister aware that the Post Office has come under serious attack for something of which it has not been guilty, because of lack of equipment going into the building of new exchanges? In many instances it takes at least five years for the erection of a telephone exchange.
On the telecommunications system, may I ask the Minister whether he would pass on to his right honourable friend the Minister for Posts and Telecommunications, that the rental charges, standing at the moment at a very high figure, have just about reached zenith and ought not to be increased any further? If application should be made from the Post Office Board for further 1113 increases in rental charges of the telephone to subscribers, will he definitely not grant it in any case?
§ LORD DENHAMMy Lords, I am most grateful, as always, to the noble Lord, Lord Slater, for his supplementary questions. I think your Lordships must bear in mind that the Post Office handles an enormous bulk of traffic, some 30 million letters and some 38 million telephone calls on average every day, most of which occur during the peak hours. Even if it were practicable to produce an infallible system to handle this size of traffic, the cost would be tremendous and would involve charges that no one would be prepared to pay. The Post Office is, however, always striving to improve the standard of service it provides to its customers.
§ LORD SLATERMy Lords, is the Minister aware that when the Post Office Bill was put through it was most definitely laid down that the services would be run on a separate basis, that telecommunications would be run on its own, just as the postal service would be responsible for its own particular services. The telecommunications side has been making a profit which goes back into the business. There is nothing to stop the Post Office Board from borrowing money on the open market for the extension, if need be, of its services.
§ LORD DENHAMYes, my Lords, of course the Post Office has increased borrowing powers; and I agree with the noble Lord that the two services are separate.
§ LORD MERRIVALEMy Lords, as my noble friend has stressed that the Post Office is keen to improve services, particularly the telephone system, now that we are a member of the European Economic Community is my noble friend satisfied that the number of telephone lines between London in particular and the West European capitals—I am thinking particularly of Paris—is sufficient? Would he not agree that during business hours it is extremely difficult to put a call through to Paris, whether for business or social purposes?
§ LORD DENHAMYes, my Lords, of course the Post Office is always extremely keen to improve and keep up the standard of its own services. With regard to 1114 international calls, of course there are certain matters that are not within its own control.
§ LORD MERRIVALEMy Lords, who is responsible for laying the lines? Could there not be some consultation with the French postal system for more lines to be laid?
§ LORD DENHAMMy Lords, there is consultation. But I will certainly draw to the attention of my right honourable friend what my noble friend has said.
§ Following is the report referred to:
§
MODERNISATION OF TELEPHONE NETWORK
On February 7 I informed the House that the Post Office had submitted plans for modernising the telephone network.
These envisage first, a gradual replacement of Strowger equipment by more modern systems capable of providing not only improvements in service quality but also additional customer facilities; second, the early participation of the established suppliers in the production of a new large electronic exchange known as TXE 4; third, depending on further discussions with industry, the development of both electronic and Crossbar systems, both to meet future domestic requirements and to assist exports; and last the eventual development, in close collaboration between the Post Office and industry, of even more advanced exchange systems for introduction in the 1980s.
In consultation with the other Departments concerned and with the fullest co-operation from the Post Office these proposals have been thoroughly examined. Possible options, comparative costs, effects on overall capital investment and other aspects, including in particular the industrial, export and employment implications, have been investigated. I am satisfied that it is right to introduce TXE 4 into the network. It is a modern system capable of meeting economically all current requirements, and capable of progressive development for the future.
The Post Office plans are accepted by the main firms in the supplying industry who are now anxious for their early approval and implementation. The Post Office have fully consulted the Post Office Engineering Union and other Staff Associations, who have expressed their support.
The export prospects for British manufacturers should be improved by this further move into electronic equipment. For the future a high level committee is to be established under the Managing Director, Telecommunications, to work closely with industry in ensuring that export considerations are borne fully in mind in the further development of exchanges for domestic use.
In terms of jobs, the Post Office's proposals mean that the supplying industry will employ at least as many people on the manufacturing of exchanges for the British network as they would have done under existing plans. But
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the gradual changeover from electro-mechanical to electronic production is bound to mean, in time, a shift in the type of skills required and conceivably some changes in the distribution of manufacturing facilities. Production will, as now, be largely concentrated in the development areas. And the Post Office will collaborate closely with the manufacturers with a view to minimising any local employment difficulties.
In the light of all these factors, not least the prospects they offer for improved service to telephone users, I have therefore approved the Post Office's proposals within the context of their total investment programme which will, of course, continue to be subject to annual review by the Government. The Post Office and industry will also keep me informed and consult me as necessary about the progress of these plans, about the pace of modernisation, about the progress of technical development and generally about any major industrial, employment and export matters.