Questions on P.O. Contract Pressed T HE question of the termination
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of the General Post Office's contract with McNamara and Co., Ltd., was again raised in the House of Commons last week by Mr. Grimston, who asked whether the company was invited to submit• a tender for •a fresh contract before the decision was taken to dispense with its services.
Mr. Burke, Assistant PostmasterGeneral, replied that the company was not. The discussions with it made clear that it would be prepared to tender only for a period of years, which was not acceptable to the G.P.O.
Mr. Grimston then suggested that the Government's decision was made purely on political grounds. Mr. Burke replied in the negative. The whole matter, he said, had been discussed many times at the G.P.O.
Mr. Joynson-Hieks then asked the number and grades of additional civil servants who would be employed by the G.P.O. in consequence of the terminationof the contract. Mr. Burke answered that no part of the contract was to be taken over until July 1, 1948, and from then transference would be in stages up to September 30, 1949. Adjustments would be made as the transference proceeded, and many of the services would be absorbed by existing G.P.O. personnel. The question of providing staff was, he continued, still under consideration.
Mr. Joynson-Hicks then asked how the expense of running the services by the 'Post Office could be compared with the• contract price obtained from McNamara and Co., Ltd. Every time now a contract was made, replied the Assistant Postmaster-General, an estimate was drawn up and it was found, -on comparing the estimates with the tenders, that the G.P.O. was entitled to a considerable reduction.
Mr. Awberry asked whether any Provision had been made by the G.P.O. to absorb the men thrown out of employment as the result of the taking over of the contract from the company, to which Mr. Burke replied that all questions about the taking over of staff would have to be considered when the contract had fallen through.