§ Mr. Masonasked the Postmaster-General by what percentages the price for equipment purchased under the Bulk Supply Agreements has been varied since 1st January, 1963, and 1st April, 1963, respectively, to take account of increases in wages and in the price of materials.
§ Mr. BevinsThe prices of equipment have been varied as follows to take account of changes in wage rates and in prices of materials up to 30th November 1963.
per cent. 1.1.63–30.11.63 Telephone exchange equipment nil Telephone apparatus -0.6 1.4.63–30.11.63 Telephone exchange equipment +0.1 Telephone apparatus -0.2
§ Mr. Masonasked the Postmaster-General how many of the companies invited to tender under the reservation clause for receiver insets type 4T and telephone instruments are subsidiaries 62W of, controlled by, or associated with companies who are parties to the Bulk Supply Agreements.
§ Mr. BevinsFour for receiver insets and six for telephone instruments.
§ Mr. Masonasked the Postmaster-General what criteria he uses in selecting firms who are invited to tender under the reservation clauses of the Bulk Purchase Agreements.
§ Mr. BevinsAll firms in Post Office trade lists which are considered to be capable of meeting requirements as to quality of product, delivery date etc. are invited to tender.
§ Mr. Masonasked the Postmaster-General on how many occasions since 1957 a contractor has failed to fulfil an order given under the Bulk Supply Agreements within the time quoted by the Post Office.
§ Mr. BevinsStatistics are not maintained. Not infrequently orders are completed in greater or less time than was originally specified. Relevant considerations may be not only the performance of the contractor but changes in the requirements of the Post Office.
§ Mr. Masonasked the Postmaster-General what effect increased prices, allowed under the variation of price clauses of the Bulk Supply Agreements, have on the average profit margins of the companies supplying telephone apparatus and telephone exchange equipment.
§ Mr. BevinsThe effect of the clauses is that if costs of manufacture go up because of an increase in wage rates or prices of materials the price payable is increased by an equal amount. The profit margin expressed in money terms will therefore be unchanged; expressed as a percentage of cost it will decrease.
§ Mr. Masonasked the Postmaster-General in how many cases materials used in the manufacture of exchange equipment and telephone apparatus are bought by one party from another party to the Bulk Supply Agreements; and whether, in such cases, a variation of price due to change in the price of materials has been or would be permitted.
63W
§ Mr. BevinsI am afraid the information is not available at present. In such cases a variation of price would be allowed in order to reflect any changes in the market prices of the raw materials and in the wage rates applicable to their processing.
§ Mr. Masonasked the Postmaster-General what has been the annual expenditure on research and development in telecommunications since 1958 on Post Office contracts by each of the companies who are parties to the Bulk Supply Agreements.
§ Mr. BevinsI have no detailed information but I would estimate that the prices paid by the Post Office for items purchased under Bulk Supply Agreements reflect expenditure by the companies in question on research and development of the order of £2 million a year.