asked the Minister for Finance the basis on which the estimate of £100 million post revenue arrears in the 1979 budget was calculated; the reasons for the shortfall of £65 million on this estimate; the grounds, if any, for believing that significant arrears from 1978 will accrue in 1980; and if such significant arrears are expected, the reason why they have remained uncollected for a period of about 18 months.
Written Answers. - Revenue Arrears.
14.
I presume the £100 million mentioned by the Deputy refers to the total 1979 revenue delayed until 1980 as a result of the postal dispute. Up to £53 million of this was tax revenue, £5 million was social insurance contributions and the remaining £42 million was Post Office revenue.
In 1980 Post Office revenue collected was about £65 million below target partly because of a fall in traffic on the postal side and a slower growth in telecommunications business during the recession, partly due to greater difficulties in collecting revenue from business firms for the same reason, but mainly because it was not possible to bring the issue of telephone and telex bills up to date by the end of the year. It is now expected that £39 million of telephone revenue and £3 million of telegraph revenue which was due to be collected in 1980 will fall into 1981.