§ Mr. Hefferasked the Secretary of State for Industry what was the outcome of his recent discussions with the trade union leaders and employers in the telecommunications industry; what new plans the Post Office has put to him for cutting back on public expenditure and how many redundancies this will cause in the industry; what effect this will have on the industry in Merseyside; and what plans he has to avoid redundancies.
Mr. Alan WilliamsThe Post Office, after consulting the Government, has given to the telecommunications industry a revised ordering programme for telephone exchange equipment over the period to 1980. Under this programme, expenditure will be reduced by £100 million in the first three years and by £220 million in all. These savings have been made possible by new Post Office studies which have shown that telephone exchange capacity can be matched more closely to demand than before. They have no connection with any Government cuts in public expenditure.
My right hon. Friend discussed the new Post Office ordering programme on 15th November with representatives of management and union in the Post Office and the telecommunications equipment 721W industry. It was agreed that the Post Office would meet management and unions in the industry to discuss further the reasons for the lower level of ordering, and that a further meeting would take place between Government, management and unions in due course.
It will take the manufacturers a little time to assess the implications of the new Post Office programme on employment both nationally and in particular areas including Merseyside. My right hon. Friend has, however, asked both management and unions to co-operate fully with the Government and with the Manpower Services Commission in doing everything possible to mitigate the employment impact of lower Post Office ordering.