RURAL ’PHONE FEES INCREASES DEFENDED

Gisborne Herald, Volume LXVI, Issue 20067, 13 October 1939, Page 11

RURAL ’PHONE FEES

INCREASES DEFENDED

DIRECTOR’S ANSWER WAIROA COMPLAINT (Per Press Association.) WELLINGTON, this day. A Wairoa remit from the Dominion -executive of the -Farmers’ Union asking for the maintenance of concessions to rural telephone subscribers, and expressing the view that the recent increases were totally out of keeping in view of the farmers' present financial position, drew a very full reply from the DirectorGeneral of the Post and Telegraph Department. It set out full particulars of the concessions granted to subscribers in rural areas over the past eight or nine years. When the adverse economic conditions began to be felt, two concessions were granted, viz, the suspension of the' regulation requiring rentals or remaining subscribers to be increased following a relinquishment or relinquishments from a party line, and rentals in excess of £lO a year were reduced up to 50 per cent, but not to an amount below £lO a year. The letter pointed out that a decision to eliminate both was due in the first instance to the improvement in economic conditions. They had resulted in a total sacrifice of oyer £120,000, and they were still costing £2OOO a year. The letter stated that it was only possible to maintain the present scale for rural lines by virtue of the metropolitan and provincial town areas.