§ Mr. Anthony Grantasked the Secretary of State for Industry if the increase of 79 per cent. by the Post Office of charges for internal telephone systems in the current year falls within the terms of his prices policy; and if he will make a statement.
§ Mr. Les HuckfieldI understand that the Price Commission was notified of the intention to increase charges for internal telephone systems and decided to take no action under the Price Commission Act 1977. The internal telephone systems, which are not part of the Post Office's monopoly services, are not a main service and are not therefore covered by the corporation's current freeze on main telecommunications and postal prices.
652WPricing decisions are a matter for the corporation itself, but I understand that this increase, which was the first for three and a half years, was necessitated by the heavy losses which the service was making.