Terse reply
Cheviot County Council has received a terse response: from the Minister of State-Owned Enterprises, Mr Prebble, over its)criticism of the Government’s contribution to ; the rural mail network. I
The council had described the $8 million cross subsidy of rural mail by New Zealand Post as “paltry” compared ( with the $6O million 'Government subsidy to (urban transport.
The council said that New (Zealand Post’s monopoly on mail services was balanced by an obligation to provide an identical service to urban and rural dwellers.
Mr I*rebble said that no commercial organisation would regard ; $8 million! as a paltry sum, and dismissed the comparison with urban transport as “irrelevant.” The cost of delivering to rural areas was far higher) than to more heavily populated areas, and tlie rural delivery fee of is3o per boxholder “in nd way” met that cost, hje said. He ‘estimated that a $lBO. fee from rural boxholders would be needed to break even.
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Press, 12 April 1988, Page 4
Word Count
156Terse reply Press, 12 April 1988, Page 4
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