asked the Postmaster-General whether he proposes to institute any further inquiry into the continuing deficit on the working of the Inland Telegraph Service?

Yes, Sir. I have decided to set up a small Committee with the following Terms of Reference: To examine the possibility of effecting substantial economies in the working by the State of the Inland Telegraph Service. The Committee, accepting the scales of pay awarded by the Industrial Court, will report what changes, if any, in the tariff would be necessary in order to extinguish or substantially to reduce the continuing deficit on the service. The Committee, which will start its inquiry in the Autumn, will be composed as follows:—

• Sir Hardman Lever (Chairman).
• Lord Ashfield.
• Sir Harry McGowan.

Will the inquiry by this Committee extend to seeing whether the Press telegrams could be put on an economic basis?

Most certainly, yes. The whole field will be open for review by the Committee, but my hon. Friend will appreciate that the task of the Committee is not to report on policy, but on the actual facts. When those facts are before the Government, it will be for them to say how far this or that particular recommendation is consistent with public policy.

What was the deficit last year?

On commercial account, £1,400,000.

Do we understand that labour conditions also will be within the Terms of Reference to these people?

No. I assume that the Committee will accept the scale of pay awarded by the Industrial Court.