§ LORD STRABOLGIasked Her Majesty's Government:
1176WAWhether they are yet in a position to make a statement on their discussions with the Post Office about the rise in the demand for new telephones.
§ LORD DENHAMMy Lords, demand for new telephones is more than 30 per cent. up on last year. The Post Office have greatly increased the rate of installation but, with exchange capacity limited by the availability of equipment ordered in the past, the waiting list is growing. My right honourable friend the Minister of Posts and Telecommunications has encouraged the Post Office to increase investment mainly in exchange equipment to the limit they can achieve and he has recently approved a total addition to their investment of £100 million. Of this, £60 million will be spent in the next three years, the major part in development areas.
The Post Office believe that some increase in tariffs is also necessary if they are to continue to find some 50 per cent. of their rising investment out of revenue and are to deal with rapidly growing demand. They propose to increase the rentals and connection charges, which do not now cover costs, the former by 50p a quarter and the latter from £25 to £35 at the maximum. This would raise users' costs on average by 3 per cent., against the C.B.I.'s 5 per cent. limit. The proposals have been referred to the Users' Council, and meanwhile the Government reserves its position on them.
House adjourned at six minutes before seven o'clock.