§ Mr. Trotterasked the Secretary of State for Industry whether, in calculating the figures of the annual loss of the Giro for 1971–72, 1972–73 and 1973–74 in the recent White Paper, account was taken of the losses of £6.4 million, £5.1 million and £4.1 million shown for these years in the Post Office Annual Reports and in the case of 1973–74 also of the figures of £6.5 million shown as a comparative in the Report for 1974–75.
§ Mr. Gregor MackenzieYes. The losses shown in the Post Office Annual Reports up to and including 1973–74 are before (i) charging interest payable on loans to finance past losses and (ii) crediting compensation for price restraint. The loss for 1973–74 shown in the White Paper corresponds to the comparative figure in the 1974–75 accounts, after crediting compensation. The apportionment of interest payable on loans between loans to finance losses and loans to finance net assets, as shown in the White Paper, is on a slightly different basis from that adopted for each year in the Post Office Annual Reports. I am writing to the hon. Member to explain this more fully.