POSTAL RATES

Evening Post, Volume CIV, Issue 150, 22 December 1922, Page 7

POSTAL RATES

REDUCTION NEXT FEBRUARY LETTER CARRIAGE FOR liD TELEGRAPH CHARGES TO COME * DOWN. The Postmaster-General (the Hon., J. G. Coates) announced yesterday that as a result of a reduction effected in the overhead expenses in the Post and Telegraph Department, it will be possible to make certain reductions, as from Ist February next, in charges for letter and newspaper postage and telegrams. In making the announcement the Minister referred to the fact that he found it necessary to increase the rates as from ist August, 1920, in order to meet the' increased cost of living to the Civil servants engaged in the Post and Telegraph Department. During the last year or two, very close attention .had been paid to the expenditure of tlie Department, and, with the assistance of the principal departmental officers,'and the individual efforts of the staff throughout' the Service, the overhead charges had been reduced by about £400,000 per annum. This was the principal factor which made it possible to bring about a considerable reduction in the charges for post and telegraph services. The present rates and the proposed, ratea are as under :— & REDUCED RATES. letters ljdior first 2oz; Id for each succeeding 2oz. Post-cards Single,.ld; reply, 2d. Inland packets Id for first 2oz; \\i for over 2oz lip to 4o«; ' ljd for each additional 4oz up to lib; and 2d ■ each additional lib up to 51b. Newspaper's }(! each Telegrams (ordinary)... 9d for 12 \vord6; Id ■ each additional word. Telegrams (urgent)...... Is 6d for 12 words!; 2d for each additional word. Telegrams (night- -0d for 27 words; Id letter) ." each additional 3 words 1 or fraction thereof. PRESENT RATES. Letters .' 2d for first 2oz; Id for each succeeding 2oz. Post-cards.'. Single, l}d; Reply, Sd. Inland packots Ijd lor each 4oz up to • ""lib; 2d each succeeding lib up to 51b. Newspapers Id each. Telegrams (ordinary) Is for 12 words; ,Id each additional word. Telegrams (urgent) ... 2s for 12. words; 2d each, additional word. Telegrams (night-. Is (id for 3(1 words; id letter) additional word. " During the last session of Parliament, when the discussion took place on the Post and Telegraph estimates," said Mr. Coates, "I intimated. that, if the rates had not been increased, the expenditure for the year would have exceeded the revenue by the large sum of £750,000, which amount would have had to be drawn from the Consolidated Fund; or, in.other words, the taxpayers generally - would have had to pay for the loss incurred instead of the users of the Post and Telegraph Department paying a reasonable charge for services rendered. I further intimated that the question of reducing the rates would receive my serious consideration. " At that time I felt hopeful of being able to reintroduce the Id postage rate; but, before definitely deciding tHe matter, I wished to obtain some ' further information a3 to the possible financial result for the current year. While the position is very satisfactory, at the same time I consider it inadvisable to carry out my wishes in that respect. But there is sufficient margin -to warrant a reduction to lsd for -letters; and, with careful management for a further period, it ma.y be possible to return to the pre-war rate. "Local bodies, Chambers of Commerce, eta, .have urged that- the rates be reduced, and expressed the opinion that a great deal more business would go io the Department if a reduction took place. Now that the. rates are to be reduced, I feel sure that the business community and" the public as a whole will make more use .of the" telegraph, and that letters, invokes, etc., will again be sent' through the Post Office in the same proportion as prior to the increase. , " It must not be forgotten that the Post and Telegraph Department is not looked upon as revenue-producing. It is, however, part of my policy that it should pay. its way, including maintenance charges and interest on capital cost; and, let ma say.at this stage, that the sum of £400,000 per annum is required for this purpose. "The reaction to take place wilj mean a concession to the public of over £300,000 per annum. ■ '-' The reduced newspaper rate, which is largely availed of by the country settlers and their friends in the larger towns, means a saving of 50, per cent, in the cost of postage. Contingent. with this reduction, I have the best of reasons for believing that the newspaper proprietors will likewise reduce th<\ price of the daily paper, thus enabling the country settler to be supplied with his, current literature at a considerably reduced cost.. . • " "If the present rates were to remain in force until 31st March next, it is anticipated, judging by the latest figures available, that a very: substantial amount 'of revenue over expenditure would be received. It will, therefore, be seen that a reduction in the cost of the services is not only possible, but also' desirable; and Cabinet to-day approved of my recommendation to reduce the charges, the reduction, as already stated,, to take effect as from Ist February next. " Even the present rates in New Zealand ars, on the whole, lower than those in Australia, and with the reduced rates New Zealand can claim the privilege of enjoying the cheapest post and telegraph rates within the Empire."