§ Mr. Lightbownasked the Secretary of State for Trade and Industry what progress has been made by the Post Office on the implementation of the recommendations made in the report of the Monopolies and Mergers Commission on the letter post service of the Post Office in the head post office areas of Glasgow, Belfast and Cardiff and in the numbered London postal districts, published on 12 September 1984; and if he will make a statement.
§ Mr. PattieI stated in my reply to my hon. Friend the Member for Cardiff, West (Mr. Terlezki) on 28 February, at column241, that I had received the initial response of the Post Office to the report of the Monopolies and Mergers Commission, published in September last year, and that my Department had begun discussions with the 242W Post Office on the commission's recommendations. Subsequently a detailed implementation plan, with provision for progress checks and a timetable for full and rapid implementation of those recommendations accepted by the Post Office, was agreed.
I have now received from the Post Office a report on progress in the year to September 1985. I am placing copies of the report in the Library of the House.
I am glad to say that the report indicates that the Post Office is working to the implementation plan and that good progress is therefore being made in implementing the commission's recommendations. A number of these had major industrial relations implications and it is therefore significant that the Post Office has successfully negotiated a far-reaching business efficiency package with the Union of Communication Workers (UCW). A prime aim of the agreement (when fully implemented) is to reduce the dependence of the mails business on voluntary overtime, which will be achieved mainly by using part-lime and casual labour to cover work peaks. In addition, there are further improvements in productivity schemes and incentives. The agreement also provides for the speedy introduction of new technology, and the UCW has lifted its embargo on the extension of mechanised sorting of inward mail. The Post Office's report points out that the local implementation of this agreement has led to a number of unofficial industrial disputes, but the board remains committed to securing the improvements agreed with the UCW, even at the cost of temporary setbacks in quality of service.
The Post Office report indicates that progress is continuing to be made on the commission's recommendations for improving budgetary control and forecasting methods, and developments in financial control are being supported by the increased recruitment of qualified accountants at head post offices. The team of mails network inspectors is being trained for full introduction by March 1986, and the innovation of dedicated matrix" transport systems has begun to make an impact on mails performance, with the national first-class delivery performance in August coming to within 0.5 per cent of its target of 90 per cent. of first-class letters delivered the working day following collection.
Although the Post Office has made good progress towards implementing almost all of the commission's recommendations, there is still more to be done, and my Department will be continuing to monitor the Post Office's adherence to the implementation plan.
I should like to take this opportunity to convey the Government's thanks to the commission for its wide-ranging and stimulating investigation.