Need for elaborate P.O. services queried

Press, 24 February 1986, Page 18

Need for elaborate P.O. services queried

PA Wellington Wage rises were being eroded by a Government which used them as an excuse to hike up its own charges, the Democratic Party leader, Mr Beetham, has said. Commenting on Post Office charges which are to go up 22 per cent within the next three months, Mr Beetham said the increases could be avoided if the Government eased its drive to provide sophisticated telecommunication services.

“Such great strides have been made in these areas in recent years that the Government can nowafford to eefee off.” Mr Beetham said IT was now more important to ease the pressure on consumers than to satisfy the demand for sophisticated services.

The president of the National Superannuitants’

Association, Mr Ray Cody, said the increase would have a savage effect on people receiving only a basic pension. Elderly people used postal and telephone services more than the rest of the public. A telephone was vital to aged people and letter writing was an activity they engaged in a good deal more than other people, he said, “A lot of lonely people find refuge in their telephone. It is a tremendous aid and support for aged people,” said Mr Cody. He said the "fairly solid blow” would also be felt by superannuitants not affected by the 25 per cent surcharge on earnings because of their low incomes.

The Consumers’ Institute said the increase showed a “reckless disregard” for the effect on inflation. The Government should “think again” the postal charges, as they

would fuel inflation. “The very large increases will hurt everyone’s pocket,” said the director, Mr Dick Smithies. "But worse still is the foliow-the-leader signal the Government is giving the trading community.” By adding increased costs into postal charges the Government would encourage firms to do the same at a time when everyone should absorb increased costs.

The Chambers of Commerce executive vicepresident, Mr-Alan Simm, described the increases as just one more cost at a time we do not need it.

The chambers were concerned for mediumsized businesses which “haven’t the fat to survive these costs.”

However justifiable the increases, it was an unfortunate thing to happen at this time, he said.