HL Deb 01 May 1975 vol 360 cc6-7
Lord CAMPBELL of CROY

My 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 satisfied with the finnancial position of the Post Office Corporation and its effects on modernisation and services in Scotland.

The MINISTER of STATE, DEPARTMENT of INDUSTRY (Lord Beswick)

My Lords, the financial position of the Post Office Corporation is not satisfactory. There is no reason to believe that the effect on Scotland will differ from that on any other part of the United Kingdom.

Lord CAMPBELL of CROY

My Lords, I am grateful to the noble Lord for that Answer. Can he confirm or correct reports in the Press earlier this week that a recent reassessment had shown a much larger deficit for this year than had previously been budgeted for?

Lord BESWICK

Yes, my Lords; it appears that an updating of information indicates that the deficit will be larger than that originally thought. The exact amount is not known for certain, but I think that it will not be of the order mentioned in the Press. Discussions about this and what to do about it are now taking place.

Lord CAMPBELL of CROY

My Lords, can the noble Lord give any indication as to whether it is intended to meet this higher deficit either by higher charges or by reduction in services?

Lord BESWICK

Not at the moment, my Lords. So far as the subsidy is concerned, in view of the experience we had under the previous Administration when deficits were met by subsidies and problems mounted up, I should have thought we had to learn from that experience and I hope we shall not lightly go back to it.

Viscount MASSEREENE and FERRARD

My Lords, can the noble Lord say whether this deficit will be reduced by greater efficiency in the Post Office? Is the noble Lord aware that, in the last fortnight, letters in the newspapers have given several instances of very great inefficiency?

Lord BESWICK

My Lords, I am not sure whether the noble Viscount was here last week, but I referred then to inquiries which have been held into the workings of the Post Office and which indicated that the state of efficiency was not that to which the noble Viscount refers.