P.O.’s price rises draw Consumers’ Institute concern

Press, 3 July 1985, Page 3

P.O.’s price rises draw Consumers’ Institute concern

PA Hamilton The Consumers’ Institute says it is concerned about the increase in postal charges this week. “It is certainly a matter of alarm that these increases are still taking place,” said the institute’s director, Mr Dick Smithies. “There was a time some years ago when postal charges were held down by Government decision and then there was a catch-up period. “The question which now arises is whether we are through this catch-up period and whether there ought to be some stability in postal charges.” Among the rises, the cost of posting a standard letter rose 1c to 25c, parcel rates rose as much as 90 per cent, and telephone rentals, toll calls, ahd telegram charges also are up.

The assistant director, Mr David Russell, said the institute would like to estab-

lish “where all the money is going to.” The Post Office was a big business and a service customers used a lot, he said. Therefore it was something the institute had to give priority to in investigations. Mr Smithies said a possible safeguard, should further rises occur, would be independent scrutiny of charges. “Government agencies which trade direct with consumers and which have a monopoly or near monopoly ought to be subject to independent assessment of their prices, performance, and efficiency.” Mr Smithies named the Railways Corporation and the Electricity Division as other bodies falling into this classification.

Britain provided independent scrutiny, of some

Government agencies, he said. In Wellington, the Chief Postmaster, Mr Derek Calver, said the Post Office had millions of 1c stamps in stock to meet demand. Post Offices have reported a run on 1c stamps, and some running out, since the 1c increase on the standard letter rate. The problem for many branches was knowing how many 1c stamps they would need, he said. Extra stocks would go out as soon as possible but he expected no problem meeting the demand. The Post Office handles 500 million standard letters a year, about half of which are stamped. The rest are endorsed by franking machines or other permit methods.