POSTAL RAILS

Nelson Evening Mail, Volume LVI, 23 December 1922, Page 11

POSTAL RAILS

REDUCTION NEXT FEBRUARY LETTER CARRIAGE FOR I'D TELEGRAPH CHARGES TO COME DOWN FULL DETAILS The Postmaster-General (the Hon. J. G. Coates) announced 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 ns 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 the 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 rates arc as under:—

REDUCED RATES

Letters.— for first 2oz; Id for each succeeding 2oz. Post-cards.—Single, Id; reply, 2d. Inland packets. —Id for first 2oz; lid for over 2oz, up to 4oz; l|d for each additional 4oz up to lib; and 2d each additional I.lb up to 51b. Newspapers.—J,d each. Telegrams (ordinary).—9d for 12 words; Id each additional word. Telegrams (urgent).—ls _6d for .12 words; 2d for each additional word. Telegrams (night-letter),—9d Tor 27 words; Id each additional 3 words or fraction thereof.

PRESENT RATES Letters. —2d for first 2ot; ; Id for each succeeding 2oz. Post-cards. —Single, Inland packets.—l-Jl-d for each 4oz up to 11b; 2d each succeeding 11b up to 51b. Newspapers.—ld each. Telegrams (ordinary).—ls for 12 words; Id each additional word. Telegrams■ (urgent).—2s for 12 words; 2d each additional word. Telegrams )night-letter).—ls 6d for 36 words; id 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 mv 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 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 for letters: and, with careful management for a further period, it mav he possible to return to the pre-war rate. “Local bodies, Chambers of Commerce. etc., have urged that the rates' he reduced ,and expressed the opinion that a great deal more business would sro to the Department if ii reduction took place. Now that Ibe 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, invoices, etc., will again be sent throng)) the Post Office in the same proportion as prior to the increase;

“It must not he 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 me say at this stage, that the sum of £400,000 per annum is required for this purpose. “The reduction to take place will mean a concession to the public of) over £300,000 per annnum. “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 post of postage. Contingent with this reduction, I have the best of reasons for believing that the newspaper proprietors will likewise reduce the 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, bo seen that a reduction in the cost of the services is not onlv possible, but also desirable; and Cabinet to-day approved of my recommendation, as already stated, to take effect as from Ist February next. “Even the present rates in New Zealand are, on the whole, lower than those in Australia, and with the ( reduced rates New Zealand can claim the .privilege of enjoying' the; cheapest jpost and telegraph rates within the Empire.