POSTAL RATES REDUCED

Evening Star, Issue 18156, 22 December 1922, Page 3

POSTAL RATES REDUCED

AND TELEGRAM CHARGES. SINKING TOWARDS PENNY STANDARD. A WELCOME ANNOUNCEMENT. The Postmaster-General (tho Hon. J. G. Coates) yesterday made the following Important statement: —“I am pleased to be in » position to announce that a reduction is to take place in post and telegraph rates as from February 1 next. In doing so I desire to refer to the fact that I found it necessary to increase the rates as from August 1, 1920, in order to meet tho increased cost of living to the people In the employ of the State, of whom tho Post and Telegraph employees are a very important part. During the last year or two very close attention has been paid to the expenditure of the department, and ■with the assistance of the principal departmental officers and the individual efforts of the staff throughout the service overhead charges have been reduced by about £400,000 per annum. This is the principal factor which makes it possible to bring about a considerable reduction in charges for post and telegraph services. The present rates, and the proposed rates, are as under: — LETTERS. New Rate.—l|d lor first 2oz; Id lor each succeeding 2oz. Present Rato.—2d for first 2oz; Id for each succeeding 2oz. POST CARDS. New Rate.—Single, Id; reply, 2d. Present Rate.—Single, l]sd; reply, 3d. INLAND PACKETS. New Rate.—ld for first 2oz; l|d lor over 2oz up to 4oz; l|d lor each additional 4oz up to 11b; and 2d each additional pound up to 51b. Present Rate. —Ijd for each 4oz up to 11b; 2d for each succeeding pound up to 51b. NEWSPAPERS. New Rate.—|d each. Present Rate.—ld each. ORDINARY TELEGRAMS. New Rale.—9d for 12 words; Id each additional word. Present Rate.—ls for 12 words; Id each additional word. URGENT TELEGRAMS. New Rate.—ls 6d for 12 words; 2d lor each additional word. Present Rate. —2s for 12 words; 2d for each additional word. NIGHT LETTER TELEGRAMS.

New Rate.—9d lor 27 words; Id for each additional three words or fraction ol three. Present Rate.—ls 6d for 36 words; -.d lor each additional word.

** Daring last session of Parliament,” continue)! the Minister, “when a discussion took place on tho Post and Telegraph Estimates, I intimated’ that if the rates had not been increased the expenditure for tho 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 tho users of the Post and Telegraph Department paying a reasonable charge for services rendered. I further intimated that the question of reducing 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 as to tho possible financial result for the current year. While the position is very satisJactoiT, 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 for letters, fend with careful management for a further period it may be possible to return to the pre-war rate. Local bodies, chambers of commerce, etc., have urged that the rates be reduced, and have expressed; the opinion that a great deal more business would go to the department if a reduction took place. Now that the rates are to bo reduced I feel sure that the business community and the public .os a whole will make more use of the telegraph, and that letters, invoices, etc., will again be cent 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 pot looked upon as revenue-producing. It is, however, part of my policy that it should pay its way, Including maintenance charges and interest on the capital cost, and let me say at this stage that the sum c! £IOO,OOO per annum is required for this purpose. Tho reduction which is to take place will mean a concession to the public of over £,'£o,ooo per annum. “The reduced newspaper ra:e, which is largely availed of by country settlers and their friends in larger towns, means a saving of 50 per cent, in the cost cf postage. Contingent with this reduction I have the best reasons for believing tint the newspaper proprietors will likewise reduce the price of the daily paper, thus the country settler to be supplied with hia current ‘literature at a considerably reduced cost. If the present rates ’were to remain in force until March 31 i ext it is anticipated, judging by tho latest figures available, that a very substantial amount of revenue over expenditure would be received. It will therefore bo seen that a reduction in the cost of the services is not only possible, but also desirable, and Cabinet to-day approved of my rerormn m lations to reduce the, charges. Ihe reduction, aa already stated, will take effect as from February 1 next. Even the present rates in New Zealand are on the whole Tower than those in Australia, and with reduced rates New Zealand can claim the privilege of enjoying the post snd telegraph rates within tho Empire.”