§ Mr. Gloverasked the Postmaster-General what proportion of the firms which supply telecommunications equipment to the Post Office are foreign owned; if he is satisfied that their prices are reasonable; and if he will make a statement.
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Dr. HillI assume that by the term "foreign owned" my hon. Friend is referring to Standard Telephones and Cables Ltd. The other firms concerned in the manufacture of the three main classes of telecommunications equipment are wholly or largely British-owned.
Allegations were made in the recent debate on the Post Office and Telegraph (Money) Bill, to the effect that Standard Telephones and Cables had obtained a dominating and privileged position in the United Kingdom telecommunications industry and charged excessive prices to the Post Office. I am glad of this opportunity of stating that these allegations are entirely without foundation.
The company has nothing approaching a monopoly in the supply of equipment to the Post Office, whether under the Bulk Supply Agreements, or other arrangements. As regards prices, I would mention, in particular, that those for transmission equipment, so far from being ten times higher, as was suggested in the debate, are below those charged for comparable American equipment.
I am glad to acknowledge the notable contribution the company has made to the development and efficiency of Post Office services, and of the United Kingdom telecommunication industry, both at home and abroad.