§ Mr. Bruce-Gardyneasked the Secretary of State for Industry what discussions he has had with the Post Office regarding its investment programme in the current financial year; what is his latest estimate of the economies to be achieved as a result of the public expenditure restraint programme announced in November 1973; how this compares with the original estimate; and what are the reasons for any changes.
§ Mr. Gregor MackenzieDiscussions with the Post Office about the level of investment in this financial year are nearing completion.
§ Mr. Bruce-Gardyneasked the Secretary of State for Industry what is his estimate of the cost to public funds of price subsidies to the Post Office, at an annual rate, following the increase in postal tariffs.
§ Mr. Gregor MackenzieThe aim of the increase in postal tariffs is to hold the loss of the postal business, as far as practicable under the deficit containment provisions of the Price and Pay Code, to the level that obtained in 1972-73. The actual outturn, which will be taken into consideration in assessing compensation under the Statutory Corporations (Financial Provisions) Act 1974, will depend on the movement of costs and other factors during the rest of this year.