asked the Secretary of State for Trade and Industry what steps his Department takes to monitor compliance by British Telecom with the provisions of its licence relating to restrictions on the level of increases in charges; and if he will make a statement.

The Director-General of Telecommunications is responsible under the provisions of the Telecommunications Act 1984 for monitoring compliance by British Telecommunications plc (BT) with the provisions of its licence. I understand that the director-general scrutinised BT's recent price increases before they were announced and stated publicly that the increase met the obligations and requirements set out in BT's licence.