Postal dispute effects on Government revenue
The Minister estimated that the dispute delayed revenue collection by about £200 million, though some Post Office revenue—perhaps £4–5 million—might be irrecoverable; Exchequer spending was not significantly affected. He said the estimate was tentative and excluded interest charges.
asked the Minister for Finance the effects of the postal dispute on (a) collection of income tax, and other Government revenue and (b) the disbursement of Exchequer payments.
27.
Comment on this
asked the Minister for Finance the total estimated shortfall in Government revenue caused by the postal dispute, to the latest date for which figures are available.
Comment on this
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 25 and 27 together.
The collection of Government revenue and the disbursement of Exchequer payments were held up by the Post Office dispute. It is estimated that revenue was reduced by about £200 million. This backlog will now be followed up without delay with the resumption of Post Office services, but the arrears may not be made good in full before the end of 1979.
Exchequer expenditure as shown in the end-June statement of Exchequer receipts and issues was not significantly affected by the dispute. However, a significant element of the expenditure shown represents payable orders prepared for issue but which, because of the dispute, could not be transmitted to the payee for encashment. These payable orders will be cleared fairly quickly.
Comment on this
That is difficult to estimate. It relates primarily to Post Office services, things like telephone calls not made and telegrams not sent. Any figure I would put on it would be extremely tentative. It might be in the region of £4 million or £5 million.
Comment on this
About six or eight weeks ago there was mention of the figure of £11 million in lost revenue to the Post Office. Would almost the entire sum be irrecoverable at this stage, apart from any further losses which have occurred in the intervening period?
Comment on this
Figures in regard to the Post Office would be quite different. The question relates to non-recoverable losses. The answer I have given is the best I can give at the moment. It is very tentative and I should not like to be tied to it.