asked the Assistant Postmaster-General the yearly saving in road transport costs which his Department expects to effect through the termination of Messrs. Macnamara's contract for the carriage of mails and the provision of its own road service in lieu.

In my reply of 16th December I informed the hon. Member that my noble Friend was satisfied that it would make for efficiency and economy if these services were to be undertaken by the Department. I cannot, however, strike a balance in such precise terms as the hon. Member asks, since it would involve not only estimating Departmental costs some years ahead but comparing those costs with a new contract figure which can only be hypothetical. It is, however, expected that economies will result from the greater flexibility of the new arrangements.

If the hon. Gentleman does not know what the new contract figure is, how can he possibly say that his Department will make a saving in the future?

We have estimated the cost incurred when we fixed up previous contracts. We know the profits made by the firm. We know that in other provincial cities where the Department runs its own road service there is a saving, and we anticipate that the same thing will happen in London.

Does not the hon. Gentleman know that in past years the contract has remained with this company because the Post Office could not do it for the same price?

No, Sir. As a matter of fact, this change might have been made on business merits many years ago.

Has not the hon. Gentleman got some figure or some sort of estimate of the expected saving from the switching over of the contract from this firm which has efficiently carried His Majesty's mail for about 100 years?

Yes, Sir. We know from the previous negotiations what the estimated cost would be, what price the firm asked, what amount of rebates we were able to get and what profits were made.

Will not the hon. Gentleman look at the advice given to his predecessors?