P. & T. HIGHER CHARGES

Greymouth Evening Star, 27 February 1931, Page 7

P. & T. HIGHER CHARGES

TO COMMENCE NEXT WEEK MINISTER’S DEFENCE [PEB PBESS ASSOCIATION.] WELLINGTON, February 26. The Postmaster General (Mr. Donald), in explaining the reasons for the increases in postage and telegraph charges, sates! — “The postage increases have been made in order to provide for the Consolidated Fund an amount of £900,000 per annum, which amount the Prime Minister has already intimated was to be obtained by such means in order to assist in balancing next year’s budget. The telegram increases have been made in order to reduce to a considerable extent the loss on the working of that branch.” He states it is not expected that the increases made in the postage charges, after allowance is made for the falling off in the business that is to be expected as the result of the increases, will realise more than the amount required for the Consolidated Fund. Therefore, the Minister anticipates that his Department will'not receive anything for itself from the increases, and that it will have to bear any loss on the working of the postal branch. It is to be observed, he says, that the increases have been distributed amongst all classes of mail matter, and that, in particular, newspapers will be charged according to their weight, and that parcels in excess of lllbs., will not be accepted. It has been found that the cost of the Department of the conveyance alone of heavy newspapers and parcels was much in excess of the postage derived therefrom, and that in regard to parcels weighing above 111 b., their acceptance could not be continued at charges that would enable this business to be retained. Moreover, it is considered that the Railway Department makes adequate provision for, the conveyance of parcels over lllbs. in weight, which were accepted by the Post Office only for places that are served by rail or sea. In this connection, it is mentioned that the' parcel post was established in order to provide the ready means for the transit of small parcels, and that it might reasonably be held that this purpose is fully served by fixing the minimum weight, at 11 pounds. Regarding the altered rate of postage on newspapers, nowadays most of

the newspaper companies make their own arrangements for delivery other than through the Post Office, except to distant subscribers. The newspaper companies at the four centres are now serving subscribers over a larger area than when the low newspaper postage charges were fixed, and are issuing a much larger paper. It can hardly be said that a half-penny is adequate payment for the delivery to any town in New Zealand of a paper weighing from 6 to 140z5., but for a long time the Post Office has been paying much more for the transport of these papers than it has received in postage. It is pointed out that the rates,- as now ordered , are still very cheap. The Minister states: —

“I have no doubt that' the public will still find it convenient and economical to send its smaller parcels through the Post Office. The other postal increases are minor.”

LOSS ON TELEGRAPHS. As regards the increased telegraph charges, the Minister says:—“For some years past there has been a large aiid increasing loss on the working of the telegraph branch, due to the fact that the rates were not nearly commensurate with the cost of operation. As a matter of fact, the ordinary telegram has been the cheapest in the British Empire. For the year ended March 31, 1930, the loss was approximately £134,000. For the current year it will certainly be larger. The average cost of handling a telegram from the point of lodgment until it reaches an address exceeds the average revenue per telegram by sd. Despite the most rigid economy and the introduction of labour-saving apparatus, it has been found impossible to reduce the loss to any appreciable extent. While the greater portion of the deficit is incurred in the handling of the commercial and social business, the transmission of Press traffic is also responsible for a heavy loss. It is only equitable therefore, that newspaper proprietors, as well as the general public, should be called upon to pay a portion of the increased charges. With this in mind, a limit is being imposed on the amount of Press news that may be transmitted under the cheap Press rate.

It is estimated that additional revenue that will accrue under the amended telegraph charges will reach £86,000 per annum, and while this will still leave a substantial loss, it will place the telegraph branch in a much less unfavourable position, and will assure as far as possible, that the Department as a whole con'be self supporting; The Minister explained that the new rates were being introduced, at short notice, on March 1, in order to give the Government the much needed additional revenue for one month of this financial year as a set off, to some extent, to the extraordinary expenditure and serious loss of revenue in Hawke’s Bay as the result of the earthquake.

NEWSPAPERS HARD HIT.

PRODUCTION COSTS INCREASED.

WELLINGTON, February 26.

Interviewed on the subject of the new Post and Telegraph regulations as affecting the Press of the Dominion, the President of the Newspaper Proprietors’ Association, Mr C. W. Earle, stated the effect would be very prejudicial to the general public as well as imposing a heavy burden on newspapers. At the recent annual conference of newspaper proprietors it was found necessary to take immediate steps to endeavour to reduce the cost of newspaper production, and at the same time it was felt to be eminently necessary to maintain an adequate standard of service to the community in local and overseas news. Plans to enable these ideas to be given effect were in train when this bombshell from the Government was exploded. The doubling of the postage on newspapers meant an additional cost, of 13/- a year to those of the public, at present least able to bear it; that was in the main, to those living in out-

lying districts. It will also check to some extent at least the sending overseas of weekly journals which served a valuable purpose in advertising New Zealand and its attractions abroad. He continued: —“Increased Press telegraph charges, for that is what the proposals amount to, must necessarily mean a heavy curtailment in existing news services, and community interest between different parts of the Dominion, which depends very largely on knowledge of one another’s affairs, and a. wide and general circulation of news of happenings as between, different centres of population, is an important, factor in promoting an understanding of one another’s problems and in breaking down parochial barriers which impede national progress. With the charges now proposed there must be a cut in telegraphic news at least of 50 per cent, and probably a good deal more.

Mr Earle added: I have not had time to examine fully the effects of the increased charges as affecting newspapers, but judging from protests which, have already reached me, they are regarded as .being very far-reach-ing, and likely to be prejudicial to the general public.