PAYABLE BASIS

Otago Daily Times, Issue 27390, 16 May 1950, Page 4

PAYABLE BASIS

State Commercial Concerns POST OFFICE AND AIR TRANSPORT Special Correspondent WELLINGTON, May 15. Increases in post office rates and air transport charges are expected soon as part of the Government’s plans to place State commercial concerns on a businesslike and payable basis The intention of the Government to bring charges for services given by such concerns more into line with present-day costs was indicated by the Prime Minister, Mr Holland, in his statement 10 days ago announcing the removal or reduction of subsidies. When the new scale of railway freights and railway suburban concession fares came into force today it left the Post and Telegraph Department and the National Airways Corporation as the only major enterprises financed or controlled by the State whose charges to the public have not yet undergone readjustment. ' In his recent subsidy-removal announcement, the Prime Minister specifically mentioned alterations in the railway tariff and telephone charges, but the Government’s budget-balanc-ing policy for State commercial concerns is expected to extend beyond these two items. The basic twopenny rate of letter postage is most unlikely to be altered in a revision of postage charges, but all-round increases in charges may be made in most other services provided by the Pdst and Telegraph Department. In addition to telephone rental rates, adjustments contemplated will probably affect parcel postage, telegraphic rates, and toll fees. Parcel rates have remained unchanged since penny postage was abolished in 1939. In the past 11 years railway charges for the carriage of parcels have increased on at least three occasions, and there has also been a rise in the cost of despatching this class of mail by the interisland shipping services. The post office wages bill is today estimated at twice the 1939 figure, and a further increase will follow the payment of the cost-of-living bonus to compensate for the removal of subsidies on foodstuffs and household commodities. Equipment costs are now about two and a-half times the pre-war level. No indication has been given as to how the taxpayers’ contribution to the cost of the internal air l services may be reduced, but adjustments in air mail rates, air freight schedules, and passenger fares may be involved.