POST AND TELEGRAPH RATES.

Otago Witness, Issue 3590, 2 January 1923, Page 6

POST AND TELEGRAPH RATES.

ALL ROUND REDUCTIONS FROM FEBRUARY 1. NEWSPAPER POSTAGE ONE HALFPENNY. _ WELLINGTON, December 22. the Postmaster-General (the Hon. J. G. Coates) to-day made the following important statement: “I am pleased to Ire in a positron to announce that a reduction is to take place in post and telegraph rates as irom February 1 next. In doing so I desire to refer to the fact that I found it necessary TQ9n inCreaSe rates as lrom August 1, 1920, in order to meet the increased cost <x living to the people in the employ of tile State, of whom the Post and Telegraph employees are a very important part. During the last year or two very close attention has been paid to the expenditure of the department, ai\l with the assistance of the principal departmental officers and the individual efforts of the staff throughout the service overhead charges have been reduced by about'£4oo,ooo per annum. This is the principal factor which makes it possible to bring about a considerable reduction in charges for poet and telegraph services. The present rates, and the proposed rates, are as under. Present rates are in parenthesis::— Letters (2d for first 2oz, Id for each succeeding 2oz); reduced rate, l£d for first 2oz. Id for each succeeding 2oz. i Postcards (single reply 3d) . reduced rntns single Id, reply 2d. Inland packets (1 for each 4oz up to lib, 2d for each succeeding pound up to 51b) ; reduced rates, Id for first 2oz, lid for over 2oz up to 4oz, lid for each additional 4oz up to lib, and 2d each additional pound up to 51b. Newspapers (Id each). —Reduced rates, Ad each. Telegrams, ordinary (Is for 12 words, Id each additional word). —Reduced ratea, 9d for 12 words, Id each additional word. Telegrams, urgent (2s for 12 words, 2d each additional word). —Reduced rates, Is 6d for 12 words, 2d for each additional word. Telegrams, night letter (Is 6d for 36 words, id for each additional word). —Reduced rates, 9d for 27 words. Id for each additional three words or fraction thereof. During last session of Parliament, when a discussion took place on the Post and Telegraph Estimates, 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 tne question of reducing rates would receive my 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 ae 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 ljd for letters, and with oareful management for a further period it may be possible to return to the pre-war rate. Local bodies, Chambers of Commerce, etc., have urged that the rates be reduced, and have expressed the opinion that a great deal more business would go to the department if a reduction took place. Now that the 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 through the Post Office in the same proportion as prior to the increase. It must not be 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 the capital cost, and let mo say at this stage that the sum of £400.300 per annum is required for this purpose. The reduction which is to take place will mean a concession to the public of over £300.000 per annum, “The reduced newspaper rate, which Is largely availed of by country settlers and their friends in larger towns, means a saving of 50 per cent, in the cost of postage. Contingent with this reduction I have the beet 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 March 31 next it is anticipated, judging by tile latest figures available, that a verv substantial amount of revenue over expenditure would be received. It will therefore be seen that a reduction in the cost of the services is not only possible, but also desirable, and Cabinet to-day approved of my recommendation to reduce the charges. The reduction, as already stated, will take effect as from February 1 next. Even the present rates in New Zealand are on the whole lower than those in Australia, and with reduced rates New Zealand cap claim the privilege of enjoying the cheapest post and telegraph rates within the Empire.”