Telecommunications Monopolies

Oral Answers to Questions — Industry – in the House of Commons at 12:00 am on 20 July 1981.

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Photo of Richard Shepherd Richard Shepherd , Aldridge-Brownhills 12:00, 20 July 1981

asked the Secretary of State for Industry, in proposing changes to the telecommunications monopolies, what assessment he made of the likely effect on standards of service received by the customer.

Photo of Mr Kenneth Baker Mr Kenneth Baker , St Marylebone

My assessment is that the introduction of competition will lead to a significant improvement in standards of services.

Photo of Richard Shepherd Richard Shepherd , Aldridge-Brownhills

What effect does the Minister expect that liberalisation of the monopoly will have and for instance, on telephone waiting lists, does he know what the waiting lists are?

Photo of Mr Kenneth Baker Mr Kenneth Baker , St Marylebone

One of the first fruits of the liberalisation programme is that BT's marketing edge has already been considerably sharpened. I am glad to say that the waiting lists have come down significantly. If my hon. Friend is interested, I shall let him have the figures, but I can tell him that waiting lists have come down significantly in the two years during which we have been in office.

Photo of Mr Gregor Mackenzie Mr Gregor Mackenzie , Rutherglen

Will the Minister of State comment on the statement made by the chairman of British Telecommunications that an early acceptance of the Beesley report would cost residential telephone sub-scribers an additional extra £300 million a year? How can that possibly assist telephone subscribers?

Photo of Mr Kenneth Baker Mr Kenneth Baker , St Marylebone

Exaggerated claims have been made about the effect of liberalisation on the revenues of BT. In the Beesley report, it was estimated that by 1983–84 the cost, in all, might be about £100 million. Even lower estimates have been made. At the recent conference organised by my Department on the subject of Beesley, BT was taken to task for making such exaggerated claims by the champion of the consumer, Dame Elizabeth Ackroyd.

Photo of Mr Barry Henderson Mr Barry Henderson , Fife East

Does my hon. Friend accept that the full benefits of liberalisation of the telecommunications regime will come about only if British companies accept the opportunities that are presented to develop new products and services that will be of benefit to the customers?

Photo of Mr Kenneth Baker Mr Kenneth Baker , St Marylebone

I entirely agree with my hon. Friend. There is evidence that the three major British manufacturers already engage in substantial cost reduction exercises on their products and are introducing new products. That is what happens when people are given choice.

Photo of Mr Leslie Huckfield Mr Leslie Huckfield , Nuneaton

Cannot the hon. Gentleman accept that while the proposals, as we understand them, may purport to offer a wider range of services to communication facilities between big city centres, whether or not he accepts the precise figure provided by my right hon. Friend the Member for Rutherglen (Mr. MacKenzie), they will inevitably lead to an increase in telephone bills for the vast majority of consumers? Does he further accept that these proposals could potentially pose the biggest threat to those living in rural areas, because of his right hon. Friend's threat to close many sub-post offices?

Photo of Mr Kenneth Baker Mr Kenneth Baker , St Marylebone

These are complicated matters and it will therefore be simpler for me now to refute what the hon. Gentleman said. On another occasion I shall be happy to refute what he says in considerable detail. He should rest content for the moment with the fact that he is wrong.