HC Deb 02 November 1966 vol 735 cc124-5W
Mr. Whitaker

asked the Postmaster-General whether he will now order all Post Office equipment and apparatus solely by competitive tender open to all firms.

Mr. Edward Short

The greater part of what the Post Office buys already is ordered competitively. Telephone apparatus will be ordered competitively after the Bulk Supply Agreement expires in March 1968. I am still considering the future arrangements for telephone exchange equipment which is at present bought under a Bulk Supply Agreement also expiring in March 1968.

Mr. Whitaker

asked the Postmaster-General for how long Post Office equipment and apparatus has been ordered only from firms in a ring; and what he estimates to have been the total additional cost to his Department of this arrangement, in view of the fact that five firms in the ring have made a profit of £25 million in the last 2½ years.

Mr. Edward Short

A series of Bulk Supply Agreements for telephone exchange equipment and telephone apparatus have been in force since 1928 and 1934 respectively; but since 1960 a proportion of Post Office orders has been placed with other suppliers.

It is impossible to say what the Post Office would have paid for its supplies had they been ordered differently over the years.