§ Mr. Hugh D. Brownasked the Postmaster-General (1) if he will give a price index of each of the 40 items mentioned in paragraph 10 of the Comptroller and Auditor-General's Report in the 1965–66 Post Office Report and Accounts for the period 1st April, 1963 to the latest date for which information is available;
(2) if he will give a price index of such of the 40 items mentioned in paragraph 10 of the Comptroller and Auditor-General's Report for which information is available for the period 1st April, 1963 to the present;
(3) what were the 40 items of telephone apparatus for which prices were agreed with the manufacturers by January, 1966; what was the price payable for each of these items on 1st April 1963; what changes have taken place in these prices up to the present; what was the cost price for each of these items in December, 1962; and what were the results of any later costing exercises.
§ Mr. Joseph SlaterThe information is as follows:
432W
Price Index Item 1st April 1963 1st October, 1965 (latest date for which information is available) Bell No. 44 C 100 118¾ Bell No. 56 C 100 105½ Coil Heat "A" 100 141 Coil Heat No. 1 100 124 Converter Ringing No. 9A 100 100¾ Dial Auto No. 21CA 100 84 Dial Dummy No. 6 100 133¼ Fuse Mounting No. 8064A 100 106¾ Fuse Mounting No. 8064B 100 106½ Handset No. 3 100 86 Headset No. 1 (Black) 100 81½ Key and Lamp Unit No. 2A (complete) 100 92¼ Key and Lamp Unit No. 2A (part) 100 92½ Plan Set No. 625 100 91 Plug No. 420 100 93¾ Protector Electrode No. 1B 100 81½ Receiver Inset No. 4T 100 89½ Resistor Coil No. 9— 50 ohms 100 85 2,000 ohms 100 105
Price Index Item 1st April, 1963 1st October, 1965 (latest date for which information is available) Resistor Coil No. 12— 500 ohms 100 100 8,000 ohms 100 90½ 18,000 ohms 100 100 Resistor Coil No. 15— 50 ohms 100 100 500 ohms 100 104½ Resistor Spool No. 6–500 ohms 100 84¼ Section Switch SA 7560 100 126½ Switchboard PMBX No. 2/2A 100 89¾ Switchboard PMBX No. 2/3A 100 96½ Switchboard PMBX No. 2/4A 100 91¾ Switchboard 10+50 N 1070—— 100 120¼ 65 Telephone No. 706L Printed Circuit 100 95¾ Conventionally Wired 100 100¾ Transmitter Inset No. 13 100 100 Transmitter Inset No. 13C 100 90½ Transmitter Inset No. 16 100 82 Unit Auxiliary Apparatus 96A 100 104½ Unit Auxiliary Apparatus 97 100 104¼ Unit Auxiliary Apparatus 98 100 104¼ Unit Auxiliary Apparatus 99 100 104 Unit Auxiliary Apparatus 100 100 104 The prices operative on 1st April, 1963 applied to orders placed under the Bulk Supply Agreement up to and including 30th September, 1965, subject to variation at the dates of individual orders to take account of changes in wage rates and in prices of materials.
The price index at 1st October, 1965 reflects the revised prices applicable to orders placed on and since that date. These prices are also subject to cost variation, the extent of which has still to be agreed for post-1st October, 1965 orders. The foregoing items are those for which prices were agreed with manufacturers by January, 1966. It would be contrary to practice to make public either contract prices or those costs which firms have disclosed in strict confidence.
§ Mr. Hugh D. Brownasked the Postmaster-General how much more money 433W has been paid to the telephone equipment manufacturers as a consequence of the prices indicated from 1st April, 1963; how much would have been paid if adequate information had been available at the time; and why such information was not available.
§ Mr. Joseph SlaterPrices payable under the Bulk Supply Agreements are settled by negotiation in the circumstances, and in the light of the best costing information available, at the time. It is never possible to say how much higher or lower prices would have been had the circumstances, the information available, or the time been different. Assuming that the Question relates to telephone apparatus, the prices payable as from 1st April, 1963 were lower in real terms than those paid previously. Later costing information could not have been used for negotiating the April, 1963 prices without delaying settlement unreasonably.
§ Mr. Hugh D. Brownasked the Postmaster-General which firms were given contracts in 1965–66 for telephone apparatus and exchange equipment, respectively; what was the value of each contract; and which of these firms were either party to the bulk supply agreement or subsidiaries of such firms.
§ Mr. Joseph SlaterThe list below shows the value of contracts placed for items covered by the Bulk Supply Agreements. In order not to disclose the results of competitive tendering, the value of the contracts placed under the reservation clauses is shown in terms of Agreement prices rather than prices actually paid.
434W
Telephone Apparatus £'000 (a) Firms party to the Bulk Supply Agreement Associated Electrical Industries Ltd. 2,155 Automatic Telephone & Electric Co. Ltd. 1,845 Ericsson Telephones Ltd. 1,420 The General Electric Co. Ltd. 1,475 Phoenix Telephones Ltd. 1,860 The Plessey Co. (UK) Ltd. 1,850 Standard Telephones & Cables Ltd. 1,900 Telephone Manufacturing Co. Ltd. 1,545 (b) Other firms A.E.I. Plastics (Aldridge) Ltd. * 1 A. P. Besson & Partner Ltd. 147 Astralux Dynamics Ltd. 62 Ball Plastics Ltd. 3 E.M.I. Electronics Ltd. 604 Ibex Electronics Ltd. 42 Labgear Ltd.† 2 Pye (Scottish) Telecommunications Ltd.† 1,098 Pye Switches Ltd.† 61 Pye Telecommunications Ltd.† 8 Smith's Industries Ltd. 147 The Telephone Supplies Ltd. * 694 Whiteley Electrical Radio Co. Ltd.
Telephone Exchange Equipment (a) Firms party to the Bulk Supply Agreement Associated Electrical Industries Ltd. 11,204 Automatic Telephone & Electric Co. Ltd. 16,442 Ericsson Telephones Ltd. 17,900 The General Electric Co. Ltd. 18,678 Standard Telephones & Cables Ltd. 17,445 (b) Other firms Aeronautical & General Instruments Ltd. 19 Anglo-Swiss Screw Co. Ltd. 1 Birkby's Ltd.‡ 3 Fraser & Glass Ltd. 6 Heath Spring & Notion Co. Ltd. 3 Keland Ltd. 1 Litholite Mouldings Ltd. 7 Mermaid Engineering Co. Ltd. 7 Parmeko Ltd. 1 The Plessey Co. Ltd.‡ 4 Rathdown Industries Ltd. 1 The Speedwell Gear Case Co. Ltd. 2 Speke Telephones Ltd.‡ 433 Telephone Manufacturing Co. Ltd. 516 Vactric Control Equipments Ltd. 35 * Subsidiary of Agreement firm. † Member of the Pye Group which has controlling interest in Telephone Manufacturing Co. Ltd. ‡ Associate of Agreement firms.
§ Mr. Hugh D. Brownasked the Postmaster-General what were the main items mentioned in the Comptroller and Auditor-General's Report, which were purchased in 1965–66 under the reservation clause of the Bulk Supply Agreement for some 18 per cent. less than would have been payable at the revised agreement prices.
§ Mr. Joseph SlaterThe items were:
- Convertor Ringing No. 9A.
- Dial Auto No. 21 CA.
- Dial Auto No. 22 FA.
- Fuse Mounting No. 8064A.
- Fuse Mounting No. 8064B.
- Handset No. 3. Plug No. 420.
- Receiver Inset No. 4T.
- Resistor Coil No. 9.
- Telephone No. 706L.
- Transmitter Inset No. 13.
§ Mr. Hugh D. Brownasked the Postmaster-General what were the few individual items of stores mentioned in the Comptroller and Auditor-General's Report that were published in 1965–66 under the reservation clauses of the Bulk Supply Agreement at prices nearly 21 per cent. below agreement prices.
§ Mr. Joseph SlaterThe items were
Private Automatic Branch Exchanges and associated Switchboards and Relay Sets.Subscribers' Meters.Transformers.Uniselectors and spare parts for them.Spare parts for Selectors.Relay Sets.