§ 23. Sir Harmar Nicholls
asked the Postmaster-General if he will make a statement on proposed methods of improving the costing system of the Post Office.
§ 17. Mr. Michael Shaw
asked the Postmaster-General what steps he is taking to improve the costing system of the Post Office having regard to the criticism of the National Board for Prices and Incomes.
§ Mr. Mason
The comments by the National Board for Prices and Incomes were not primarily directed at the costing system as such but at its use in tariff fixing. It said that the Post Office relied too much for this purpose on fully allocated costs and that the emphasis should be on long run marginal costs. I am adopting its recommendation to under-take further work on this subject.
§ Sir Harmar Nicholls
The right hon. Gentleman will see from the Report which he has had of the investigation that this ought to be looked at in depth, because there is a lot of concern about it, and it is wrong that the Post Office should get a bad reputation because of the lack of attention given to it at administrative level.