asked Her Majesty's Government:Whether they will confirm that Section 11(4) of the Post Office Act 1949, designed to prevent the exercise by the Post Office of "value discrimination", need not "inhibit the adoption of short-run marginal cost pricing" by the postal business.

I am advised that Section 11(4) of the Post Office Act 1969 need not inhibit the Post Office relating prices to the relevant short-run marginal costs. This policy would, however, have to be consistent with the Post Office's other statutory obligations, including its duty to pay its way taking one year with another.