POST OFFICE CHARGES

Press, Volume LXXXVIII, Issue 26886, 12 November 1952, Page 8

POST OFFICE CHARGES

Increases Said To Be Likely

HIGHER COSTS OF SERVICES

(New Zealand Press Association) WELLINGTON, November 11.

The Press Association today learned from an authoritative source that increases in Post Office rates are likely. These increases are considered inevitable to meet the Post Office deficit resulting from higher costs, including greatly increased payments for equipment obtained from overseas.

In his recent report to Parliament, the Postmaster-General (Mr W. J. Broadfoot) said that there was a loss on last year’s operations of about £200.000. This is small in relation to the large capital investment in the Post Office, but increases in costs continue. Within the last few days, further salary and wage increases for State employees, including those of the Post Office, have been announced. These will further increase Post Office costs. It is understood that unless Post Office rates are increased, a much heavier loss is likely this year. The Governinent has the alternative of increasing rates or allowing the loss to be met out of the Consolidated Fund. The latter course would mean placing the burden on the general taxpayer, instead of requiring the full cost to be borne by the user. The oresent Government’s attitude towards State trading undertakings has been clearly stated; rate increases are therefore likely.