P. AND T. RATES.

Press, Volume LVIII, Issue 17644, 22 December 1922, Page 10

P. AND T. RATES.

♦ reductions announced. LETTERS TO 1H; NEWSPAPERS TO id. (press association telegram.) WELLINGTON, December 21. The Postmaster-General (the Hon. J. G. Coates) to-day made following important statement: — I am pleased to be in a position to announce that a reduction is to take place in post and telegraph rates as from February Ist next. In doing so, I desire to refer to the fact that I found it necessary to increase the rates as from August, 1920, in order to meet the increased cost of living to people in thd employ of the State, of which the post and telegraph employees are a very important pait. During the last yea/or two very close attention has been paid to the expenditure of the Department, and with the assistance of the principal Departmental officers and individual efforts of the staff throughout the service, the overhead chargos have been reduced by about £400,000 per annum. This the principal factor which makes it possible to bring about a considerable reduction in the charges for post and Telegraph services. The present rates and proposed rates are as under: — Letters—Present rates: 2d for first 2oz, Id for each succeedifag 2 oz. Reduced rates: lid for first 2oz, Id for each succeeding 2oz. Postcards—Present rates: Single lid, reply 3d. Reduced urates: Single Id, reply 2d. Inland Packets —Present rates: lid for each 4oz up r to lib, 2d each succeeding lb iip to 51b. Reduced rates: Id for first 2oz, lid for over 2oz up to 4oz, lid for each additional 4oz up to lib, and 2d each additional lb up to 51b. Newspapers —Present rates': Id each. Reduced rates: id'each. Telegrams' (ordinary)— Present rates: Is for 12 words, Id each additional word. Beducecl rates: 9d for 12 words, Id each additional word. Telegrams (urgent)— Present rates: 2s for. 12 words, 2d each additional word. Reduced rates: Is 6d for 12 words, 2d for each additional word. Telegrams^ 1 (night letter) —Present rates: Is (id for 36 words, id each additional word. Reduced \ rates: 9d for 27 words, Id each additional three words or fraction thereof. During thp last session of Parliament, when a discussion took place on the Post and Telegraph Estimates, I intimatedfthat if the rates liad not been increased, the expenditure for the year would have exceeded the revenue by the large sum of £750,000, which amount would liave had to be drawn from the Consolidated Fund; or, in other words, the taxpayers generally would have had to pay for tho loss incurred, instead of users of tho Post and Telegraph Department paying a reasonable charge' for services rendered. I further intimated that the question of reducing the rates would receive my serious consideration. At that time Ij felt .hopeful of being able' to reintroduce the penny postage rate, but before definitely deciding the matter, I wish to obtain some further information as to the possible financial result for the current year. While the position is very satisfactory, at the same time I consider it inadvisable to carry out my wishes in that respect, but there is a sufficient margin to warrant a reduction to 14d for letters, and with careful management for a further period it may. be possible to return lo the pre-war rate. Local bodies, Chambers of Commerce, etc., have urged that the rates should be reduced, and expressed the opinion that a great deal more business would go to the Department- if a reduction took place. Now that the rates are to be deduced, I feel sure that the business community and the public as a whole' will make more use of the Telegraph Department, and that let* ters, invoices, etc., will be sent through the Post Office m tho same proportion aa prior to the increase. It must not be forgotten that the Post and telegraph Department is not looked upon as revenue-producing. It is, however, part of my policy that it should pay its way, including maintenance charges and interest on capital cost- And let .me say at this stage that a sum of £400,000 per annum is required for this purpose. The reduction which will take place will mean a concession to the Dublic of over & 300,000' per. annum. The reduced newspaper rrtte, which is largely availed o.f by country settlers and their friends in tho larger towns, means a saving of 50 pei cent, in the cost of postage. Contingent with this reduction I have the best reasons for believing that tho newspaper .proprietors will likewiso reduce Ihe price of-tho daily papers, thus enabling the country settler to be supplied with his current literature at a considerably reduced cost. If the present rates were to remain in force until March 31st next, it is anticipated, judging by tho latest figures available, that a very substantial amount of revenue over expenditure would, be received. It will therefore be seen that the reduction in the cost of the services is not only possible but also desirable, and Cabinet to-day approved of my recommendation to reduce charges. The reduction, us already staled, will f.nlfA fifFflpf no -firkin

Even the present rates in New Zealand are on tlio whole lower than those in Australia, and with the . reduced rates, New Zealand can claim the privilege of enjoying the cheapest Post and Telegraph rates within the Empire.