HC Deb 18 December 1967 vol 756 cc331-2W
Mr. Blaker

asked the Postmaster-General what will be the additional annual running cost incurred by the Post Office as a result of adopting the two-tier postal system in the autumn of 1968, assuming no increase in postal charges.

Mr. Edward Short:

I do not expect any significant change in running costs as a result of introducing two-tier service but until we know how postings will divide between the first and second class services a reliable forecast is not possible. As mechanisation of the sorting system proceeds the two-tier system should produce cost benefits by spreading sorting work over longer periods and so making for more economical use of machines and labour.

Mr. Blaker

asked the Postmaster-General what will be the capital cost involved for the Post Office in adopting the two-tier postal system in the autumn of 1968, assuming no increase in postal charges.

Mr. Edward Short:

There will be no capital costs arising directly from the introduction of two-tier service.