A STRONG POSITION

New Zealand Times, Volume L, Issue 11650, 15 October 1923, Page 7

A STRONG POSITION

PENNY POST NO BAR P. AND T. FINANCE IS SOUND, SAYS -Mil COATES. LARGE PROFIT EXPECTED. That the Post and Telegraph Department will .show a profit of about £450,(tOO for the year ending March 31st next, notwithstanding the return to panny postago, w.ls the opinion expressed by the Hon. J. G. (Joat-c« yPos-it-i'irr:)ter-(»t»neral) during the course of a survey of the recent history of the dopa.riment. Healing with the economies and retrenchment* that had taken place, Mr Co. .-aid that three years ago the department showed a deficit of £I3OO on the ycai’s working, and this the secretary considered a blot on the history of the department, which had never he' orc n.adc a loss. The next year, cf?/»r further retrenchments, the service was able to pull itself together and eho'jw an excels of revenue over expenditnre .CREDIT WHERE IT IS DUE. Last year the department earned revenue amounting to something like three-quarters of a million over the expenditure. The position enabled them to ivdtico Iho postage by a quarter, and thisi rear they were able to get bock to the old penny postage. The policy of the department was that all profit they could make above the cost of interest and sinking fund on the capital invested should be handed back to the people. Very great credit was due to the secretary, Mr A. T. Markman, and the people owed him a debt of gratitude. , WHAT FIGURES TELL It might be said. continued Mr Coates, that the telephone charges had been increased to make up the difference, but this contention was disproved by revenue figures. There waa 6ome complaint about the revised telephone charges, but there were many who did not understand the position. The business people wore asked to pay more foi their ’phones, especially in the large cities, and the revisions should have the support of all fair-minded people. Previously business firms had their ’phones for about £9 a year, while ?rivate people had to pay about £B. he department adopted the principle that the user should pay. If the charge fell too heavily upon the email business neople there was no reason why they should not go in for party ’phones. The revision would mean a great relief to • those living a distance from the exchange, the previous charges b»ing obviously unfair. TELEPHONES OR ROADS? The old charges had the effect of making the people concentrate in the thickly populated areas. As far as the country people were concerned, the object was to give them the telephone at a reasonable rate. He personally believed that telephone connection should come even before roads. It was a wonderful comfort, especially to the women, and Tendered a sense a of security. It was the policy to give assistance to those people who were game enough to go “out back.” The same thing applied to the rural mail service. This service was increasing every year, and it was hoped to extend it still further. In future years the rural mail service would become one of the most popular services in the country. “VERY SATISFACTORY.” This year had so far been very satisfactory for the department, and if they went on ns at present they would he able to show a profit of £450,000 at the end of March, even in the face of the reduction of postage to one penny. In the telegraph branch they had made up the leeway, but there was little improvement in the volume of business. “Generally speaking,” continued Mr Coates, “postal finance is buoyant and encouraging. A close watch will have to be kept on the business, but the position is satisfactory. 1 only wish the railway finance was oa buoyant.”