§ Mr. Robert Atkinsasked the Secretary of State for Industry if he will report on the examination announced by his predecessor on 8 August 1980, Official Report, column 475, of the Post Office's performance and quality of service objectives and its financial target.
§ Mr. Patrick JenkinThis examination has now been carried out, and I have agreed with the Post Office a new performance objective of reducing its real unit costs by 5 per cent. over the years 1982–83–1984–85, with a reduction of 2 per cent. in 1982–;83. Over the past few years the Post Office's real unit costs have been rising.
In addition, I have been examining the Post Office's quality of service targets and I accept that the current targets, 90 per cent. of first class mail delivered by the first working day after collection—day B— on a Monday to Saturday basis, and 96 per cent. second class mail delivered by the third working day after collection—day D— are as demanding as can reasonably be expected at present. I believe, however, that there is a case also for monitoring the Post Office's performance with regard to delivery of second class mail by the second working day after collection—day C— and when the Post Office has managed to achieve consistently its present targets, I shall be discussing with it the possibility of adopting a day C objective within the day D target.
So far as the financial target is concerned, the current target, which requires the postal business to achieve a return of 2 per cent. on turnover after interest, expires at the end of 1982–83, and I have set in hand a review that should take account both of the nature as well as the level of a possible new target for the Post Office. I shall report on the outcome of that review in due course.