§ Mr. Arthur Lewis
asked the Secretary of State for Industry whether, in support of the Government's policy of cutting inflation and the fact that the Post Office has declared that it has made a profit of £96.2 million in 1981–82, which is almost double that of the profit target set by the Government, he will take whatever action may be open to him to reduce the Government's profit target.
§ Mr. Butcher
The profit for the postal business of the Post Office in 1981–82 was £91.6 million The current profit target of the business, which expires at the end of 1982–83, is a return of 2 per cent. on turnover after interest. The additional profit over target achieved in 1981–82 was a result of better than expected mails volume and savings in costs and is not attributable to the target agreed wih the Government. Discussions are in progress on the form and level of a new target to take effect after 1982–83. Among the factors to be taken into account in setting the new target will be the implications for postal tariffs.