HL Deb 27 January 1983 vol 438 cc462-4WA
Lord Hawke

asked Her Majesty's Government:

Whether, if they wish to reduce the cost of living, they will consider ordering British Telecom to use part of their profits to reduce their charges substantially in order to establish a "benign circle" of lower prices leading to increased turnover and profits.

Lord Glenarthur

Although the Government have increased the incentives for efficiency and lower prices by introducing competition, British Telecom's management are responsible for the level of tariffs. There is no question therefore of the Government ordering British Telecom to take action of the kind referred to. British Telecom are themselves, however, well aware of the importance of low prices, deciding as they have that with half-year profits of £268 million they could further defer tariff increases until at least 1st July ensuring 20 months of price stability. BT have also introduced price cuts since January 1982 which will save customers £340 million in a full year.