§ Mr. Lathamasked the Secretary of State for Trade and Industry whether he has issued any directive to the Post Office Corporation requiring it to achieve a break-even financial return on counter services; and whether he wall make a statement.
§ Mr. PattieAs I announced on 24 July, at columns63–64, the Post Office counters business is required to secure a 4.5 per cent. return on turnover on the current cost accounting convention, before tax but after interest, for the financial year 1985–86.
§ Mr. Lathamasked the Secretary of State for Trade and Industry what rate of return he has required the Post Office Corporation to achieve in (a) 1985–86 and (b) 1986–87; and what effect this is expected to have on the income and trading prospects of sub-postmasters or sub-postmistresses.
§ Mr. PattieAs I announced on 24 July. at columns63–64, each of the Post Office mails and counters businesses are required to secure a 4.5 per cent. return on turnover, on the current cost accounting convention, 451W before tax, but after interest, for the financial year 1985–86. Financial targets for mails and counters for 1986 remain to be set. National Girobank is targeted separately.
The effect of financial targets set for parts of the Post Office Corporation on the income and trading prospects of sub-postmasters and sub-postmistresses depends on the success of the counters business in providing an efficient and cost-effective service that meets the needs of its agency customers at a price they are prepared to pay.