Post Office profit hits new peak

Press, 29 August 1980, Page 3

Post Office profit hits new peak

V PA’ Wellington The Post Office lifted its j profit to $70.9 million last • year, surpassing its record 7 performance in 1978-79 by • $2O million. t The profit, announced in 1 the Post Office’s annual re-

port tabled in Parliament : yesterday, was achieved in ' spite of a $2O million loss • on postal services. It was ; mainly attributable to the *. increase in telephone, tele- ■ graph, toll, and postal ; charges from 1979. However, the Postmaster-:

. General (Mr Cooper) said ■ that it was also attributable to a continuing high level of • demand for services and

’ careful management Mr Cooper said that the • heavy across-the-board in- ’ creases in postal, charges which would come into ef-

■ feet on October 1, would prevent subsidisation by the - telecommunications side of • the Post Office’s business.

' The department’s perform- - ance, which was achieved * without Government subsidy, allowed the Post Office ’■ to finance capital ex- ' penditure of $69.9 million ■ from its own resources, Mr Cooper said. < The Post Office Savings C Bank returned a profit of $1.3 million compared with r $397,000 in the 1978-79 financial year, > Mr Cooper said that the ? over-all performance showed a return of 12.9 per cent on * the capital invested in the * Post Office business as a u whole. During the year, <540.4

million was spent on telecommunications devel-

opment, $19.5 million was invested in land and buildings, and $lO million on other capital items, such as motor vehicles and plant. Inland mail services decreased by slightly less than 1 per cent over the previous year.

The number of telephone subscribers increased by

27,876, with 5221 fewer applicants awaiting service than at March 31, 1979. International telephone and telex traffic continued to increase substantially, the report said. Over the previous year there was a 40.1 per cent increase in the number of outward international telephone calls, and a 21.05 per cent increase in outward international telex calls.