POST OFFICE SURPLUS.

New Zealand Herald, Volume LX, Issue 18348, 14 March 1923, Page 8

POST OFFICE SURPLUS.

The Postmaster-General has forecasted a surplus in the Post and Telegraph Department for the present financial year of £700,000. The achievement of such a result will reflect the greatest credit upon the Minister and his officers, for it is apparent that it has been secured only partly by expansion of receipts and mainly by greater economy and efficiency within the department itself. The figure named by Mr. Coates is impressive. It is nearly double the working profit of the previous year, and it greatly exceeds the previous record surplus, which was £438,507 in 1916-17. Moreover, £700,000 will be more than sufficient to cover the capital charges apportioned to the department. Two years ago, the Postmaster-General led the way in having accounts prepared in commercial lorm. The nominal profits had then fallen to £163,000, and when interest at 4 A per cent, on capital investment was taken into account, the year's result appeared as a loss of £359,000. Remedial measures were promptly inaugurated, and their effect appeared in last year's accounts, which showed a surplus on working of £360,000, while the deficit in the balance-sheet was reduced to £148,000. This year there will be a substantial margin above the halfmillion in capital charges. Policy for the future, an instalment of which has already appeared in the February concessions, and a hint of which is given in the Minister's reference to penny postage, will be determined upon a closer examination of the financial results. Though it is debatable whether postal services should be selfs.ipporting, th* paradox exists that last year the Post Office earned profits in excess of capital obligations, while for three years the telegraph and telephone, services, did not even pay working expenses.. However, experience demonstrates that high charges have been Jargclj responsible for these unsatisfactory results, and it is reasonable to expect that the concessions recently made will assist in restoring revenue, while other adjustments combined with internal economy will enable the department to maintain the sound position it has gained under the able direction of Mr. Coates.