TELEPHONE CHARGES.

Press, Volume LIX, Issue 17807, 5 July 1923, Page 10

TELEPHONE CHARGES.

BASIS OF THE NEW RATES. "DEPARTMENT MUST PAY ITS . WAY." (SFBCIAX. TO "TBS .PBHS9.'') WELLINGTON, July 4. The new telephone charges were discussed in the House of Representatives this afternoon, many members advocating greater concessions to isolated country settlers. The Postmiister-Oeneral (the Hon. J. G. Coates), in reply, said the Department welcomed criticism. He was somewhat surprised that when some speakers praised the Department, the member for Nelson, and also the Leader of tho Opposition, interjected that it was "slobber." It was right that the < officers of the Department should be given praise, for there was no set of men more anxious to improve the service and to meet the wishes of members and the requirements of the public. The Government insisted that the Department must pay interest on the amount of capital invested, such as borrowed monev that had gone into buildings, telegraph and telephone extension, and wireless plant. While it was in tie-main a revenue-earning Department, yet it was «■ development Department, and ho thought it should; be laid down that it should pay interest and sinking fund. Not only had the Department this year paid working expenses, but also £46,000 in interest, and still showed a - profit of'■about. £IOO,OOO. The year's working, therefore, had been satisfactory.. In view of the fact that telephone services had in the past been bolstered 1 up by other branches of the Department" he contended that the basis of the readjustment of charges wns sound, and that it was progressive. The New Zealand telephone charges were the cheapest in the world, and the Dominion occupied fourth place in the world for the number of telephones per head of population. The new rates had the effect-of increasing the charges for private: telephones within the 1$ miles' base rate areas, and decreasing the charges to a limit of 3£ miles. That meant the four large cities. In regard to country districts, the new _ scale meant no increase to private residences, and in areas of less than 1000 subscribers it involved a reduction. Thosei people were not able to ring up 10,000 subscribers, but only 200, 300, and so. on up to 1000, and accordingly they were asked to pay on the basis of service. Then' came the- exchanges with 10,000 subscribers, and in this connexion the charge for a telephone at' Lyall Bay, for instance, would be lesfs than ever, it had been. In the past four years 10,900 telephones had been connected in city areas, 7000 in intermediate exchanges, and 19,000 in country districts Ihe increase in the city areas was 50 per cent., in the inter-. mediate areas 60 per cent., and in the country districts 70 per cent. Ifc would therefore be seen that telephones in country districts hnd increased at the greatest rate. The extension of telephones to the back-blocks affected th»a whole of the development. Tho argument had been used that because Id was paid for a letter, it should be delivered to the door, no matter where the person lived. That was impracticable. He did not think the Department could go much further" than it went at pre-, sent in respect of telephones for country settlers. The number of people on the waiting list .for 1 telephones was less; now than at any time during past four or five years. During the war the number mounted up to 10,000, but now it was down to StJOO.. Last year, her tween £7C0.000 and £750,000 was spent in telephone construction, and to catch up about £1,000,000 was required. With reference to slot telephones, the Department would provide them anywhere Where the revenue was guararir teed. Touching upon wireless, the Minister said that already 600 licenses had been issued to amateurs. PROTEST AGAINST INCREASES. ACTION BY PROGRE3S LEAGUE. The new scale of increased telephone charges, as announced m th© Budget, came in for severe criticism at tho meeting of the executive committee of the Canterbury Progress League last it was forward a strong protest to the Government. Mr J. A. Flesher (Mayor of Christchurch), said the League had cause for expressing its dissatisfaction with tho attitude of the Government, seeing j that the Government had not yet j deigned to give a reply io the report of the special cormni fctea set up by tho League to go into the' matter of tho proposed increases in the telephone charges. The conclusion of the committee, after investigating the whole matter.most carefully, was that no further increases were warranted, but there ■ had been no reply whatever to that expression of opinion. The findings oi the committee had met with universal approval ail oyer New Zaaland, and vec not one word by way of answer had come from the Government. Ho was surprised that the PostmastoGeueral had uot seen lit to deign, to give a Teply to the report of the committee. The only answer tho League got Io the report of their committee, ] tho annouhoomem, m thb Budget tha£ the telephone charges were to i*s increased by as much-as 62 per cent. in the case of business premises situated within half a mile ofa principal exchange, h seemed to him that the League- seeing that it represented such a large constituency, and that the findings of the committee had bten f,o widely-endorsed all over the Dominion. had- a right to some answer fiom the Department, .some facts which would; appeal to the judgment of tho com r-.v i tee, and which would give reaving sny the proposed increases idiotild hV bro'tight into operation, Hn wov.lt move: "That this executive rsspectfuily requests the Government to give the reasons whicji.have influenced it in j roposing the increased charges for the telephone j>ervice." Mr flesh*,- added that the members of the League were

open to conviction, if the facts co'Jld '■he suppLied, and if trie Department could put up a lxitter ease for the inj creases than they hud so far done, then : bo much the better for the Department. •If they could not, then the public ! wanted to know why it was necessary ." to take off charges iu one direction and i increase them in another. If the finances of tho country were as healthy as they were made out to lie, then there was no reason why increased charges ' of that kind should bo placed on th© , business community, it seemed to him i that the people of the 'a'tit.s md horI oughs were to have to suffer for. the benefit of somebody elso, y&'l the neo.-'e j wanted to know the rea-ms. j The motion was secomlod by Mr W. |-M. Macalpine. the president, who iiaid i the League would not be satisfied with the attitude taken up oy th-i Government. The Government had quite ignored the.representations of the »p«cial committee of the ,ind had brought forward no answer to what was contained in that report. Mr A. 6. Henderson said that, in view of the composition of the Speuial Committee which had investigated the

telephone question, their report wm enroled to some reply from the.Government. Possibly, however, at w.is the Government's desire to aiscounp such investigation* by jygj although he did not suggest that the •present Government had «y swMeaire, for in theory the present Govern, ment was democratic and should 6c glad to welcome •V..« TO J?T the business community. Tha effej however, was the same for no n»l official notice had been taken of t.at verv impressive investigation undertaken by the League's speeial eomi mittee. If seemed' to be -an affront not only to the League, but to ah Chambers of Commerce and otic, bodies throughout New Zealand *h on j had endorsed the report. They h. c. at least, the right to expect that before anv alteration was made m u«. charges "some reply should have oeen made to the document that the cuamittee had produced. It amazed him » to learn that the Postmaster-Genera* had not attempted to reply to :\k statements made in ttie report, it was announced the other day th.ya replv to the report would be found m the" Budget, but what was found in the Budget was the fact that .he ; original proposals had been cut down. That, however, did not afreet the general principle. If a committee or business men gave the time and attention necessary for an investigation of that nature, the least the committee couid expect was the courtesy of a considered answer from the Government. He thought that a strong protest should be addressed by the League to the Government, and that ; the attention of M.P-'s for Canterbury should be directed to the omission sind that if necessarv the League should j circularise all the other oodies that j adopted the report, with a view to having the attitude of the Government j revised. I

Mr W. R. Leadley said the committee's efforts had not been fruitless, for the original increases had not teen carried out. The whole question should be referred back to the Special Committee, with power to act. The report of the committee should not be permitted to be pigeon-holed. Mr H. J. Marriner said that what was done would have to be done quiekly. He suggested that the_ organiser 'should be asked to communicate other local bodies, in order that a united protest might be addressed! to the Government.

Mr "W. M. Tyers said it should be possible for the Department to reply categorically to all the points madij by the committee.

Mr J. H.~ Blackweli said the protest should tome from the execu'live, and details could be arranged later. 'Mr Climie said that all members of Parliament had received a copy of the committee's report, and altogether about 1000 copies had been circulated to influential people throughout New Zealand. Most of the of Commerce had endorsed the-repoirt.

Mr Blackweli said the Government, although reducing charges in somsi directions, were materially increasing the telephone charges. The League certainly had a right to expect a detailed reply from the Government to the report of the Special Committee. Mr Climie said the investigations conducted hv the committee were »d response to an invitation issued by. the Postmaster-General.

Mr Cyrus Williams: That is ;why we are entitled to an answer.

Mr Flesher's motion was carried in the following form: "That this meeting, protests against the telepisona charges being" increased, as now ; proposed, without the criticisms in tha League's rejsßrt heing fully answered." Mr Marriner then moved that; the organiser (should get into toxica with other organisations in New Zealand to promote a-united protest to the Governnient. This was adopted.