P.O. charges unbelievable —Mr McLay

Press, 21 February 1986, Page 4

P.O. charges unbelievable —Mr McLay

Wellington reporter The Government’s in-

creases in Post Office charges are absolutely unbelievable, says the Leader of the Opposition, Mr McLay. “The Labour Government is leading the inflationary charge. It is setting a shocking example to everyone else,” said Mr McLay yesterday. “These increases are well ahead of the rate of inflation — as indeed were some of last year’s Post Office increases.” The Government was obviously desperate to try to keep next year s Budget deficit down to a tolerable level. “More than half these increases—s2 per cent in fact — result from (the Minister of Finance) Mr Douglas’s high Interest rates. He has no-one but' himself to blame,” said;MrMcLay.

It was ridiculous for Mr Hunt to talk about “the lowest achievable future cost structure” when he had increased charges to the public by an average 22 per cent. The public would not be fooled by talk of “average increases.” Many of the rises were much higher, for example, Christmas card postage had increased 39 per cent, telephone installation charges 30 per cent and toll charges 20 per cent after rising 15 per cent last July. Mr McLay noted that Mr Hunt and Mr Douglas did not disclose the infla- ■' tionary impact of the increases. “I know that the Treasury will have advised the Government of the inflationary effect. Mr Douglas should disclose that figure,” Mr i McLay said.