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Questions on McNamara's Contract

7th February 1947
Page 51
Page 51, 7th February 1947 — Questions on McNamara's Contract
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QUESTIONS were asked in the House of Commons last week about the decision of the General Post Office to terminate its contract for the carriage of mails with McNamara and Co., Ltd.. Mr, Grimston asked the Assistant Postmaster-General the yearly saving in road-transport costs which his department expected to effect through the move Mr. Burke replied that the PostmasterGeneral was satisfied that it would make for efficiency and economy if these services were to be undertaken by the G.P.O.

He was unable to state precisely what the saving would be, as it would involve not only estimating departmental costs some years ahead, but comparing those costs with a new contract figure which could only be hypothetical. It was, he said, expected that economies would result from the greater flexibility of the new arrangement.

Mr. Grimston then asked how, if the Assistant Postmaster-General did not know the new contract figure, he could say that his department would make a saving in the future. Mr. Burke replied that the cost was estimated when the previous contracts were fixed. The department knew the profits made by McNamara's, and he said that in other provincial cities where the department ran its own road services there was a saving.

Again Mr. Grimston pressed the question: did Mr. Burke not know that. in the past year, the contract remained with the company because the Post Office could not do it for the same price? Mr. Burke replied that this was not tnte. The change might have been made on business merits many years ago.

Tags

Organisations: House of Commons, Post Office
People: Grimston, Burke

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