Post Office loss $38.7M last year

Press, 17 September 1976, Page 18

Post Office loss $38.7M last year

The Post Office ended the last financial year with a deficit of 538.7 M. The loss, revealed in the Post Office’s annual report to Parliament, was recorded in spite of revenue’s reaching a record level of $262.9M — an increase of 826.4 M over the vear ended March 31, 1975. “The increase is attributed mainly to the growth in demand for Post Office services and partly to the increase in telegraph, toll and postal charges from February 2,” the report said. Expenditure increased by 844.3 M to S3OIM “The result was an operating loss of $38.7M, which was covered by transers from vote stabilii

The report pointed to a $19.1 M increase in general salaries as being a major factor in increased expenditure. In the financial year ended March, 1975, the Post Office's operating loss was 520.774 M. Last year virtually all Post Office services grew. Savings with the Post Office Savings Bank increased $78.8M to $1266M. There was a 1.1 per cent increase in articles posted, and a significant growth in both internal and international toll calls. But the 4.3 per cent growth in the demand for telephone services compounded the continuing problem of supplying connections. While 38,879 subscribers were added during the year, the waiting list grew by 4584 to 27.013

rrovrtung tetepnone service for new subscribers cannot be achieved in isolation from the growth in the whole system.” the report said, adding that there must be a corresponding increase in the toll network as well as exchange equipment and line plant. “In the face of heavy demands on the department’s financial, manpower and material resources, some works cannot proceed as quickly as desired." There was every indication the trend would continue, the report said. The number of telephones connected at March 31 was 1,610,433, giving a density of 51.4 telephones per 100 population. Post Office Savings Bank revenue amounted to $70.7m and. after providing for interest and expenses, a profit of SI.7M was available for transfer to the Consolidated Revenue Account. Bonus bonds continued to attract investors, savings held in this way totalling $128.1M at the end of the year. The report said the vear was notable in terms' of development. Major projects included the laving

of the Tasman submarine telephone cable, the introduction of computers to the Post Office Savings Bank, and the ‘ bringing into operation of the new zone centre toll exchanges in Auckland, Hamilton, Wellington, and Christchurch. In a statement accompanying the report, the Postmaster-General (Mr Templeton) said the Post Office was facing major development needs. “Achieving a balance between public demand and limited resources at a time of financial restraint is causing difficulties,” he said.