PHONE CHARGES

Timaru Herald, Volume XCVIII, Issue 18029, 18 January 1923, Page 7

PHONE CHARGES

mm WELLINGTON.

THE MINISTER SPEAKS.

COMPREHENSIVE SCHEME.

OFFICE INCREASES LIKELY (Special Official Despatch.) The Postmaster-General (Hon J. G. Coates), has announced in a special telegram his proposals for revised telephone rates. They are extremely far-reaching proposals, and probably will not all be acceptable to subscribers throughout the Dominion. WELLINGTON, January 17. On several occasions during the pass year or so, the question of altering the rating system for telephone exchange connections has been referred to m the House, and I intimated last session that I proposed to place the matter before Cabinet as soon as possible after the prorogation of Parliament. As announced a few days ago, the Goveminent approved of the proposed new system being submitted to chambers of commerce and other organisations interested for an expression of opinion thereon. I now propose to deal with the scheme which I mist wiu on the whole be acceptable to all concerned. First of all I must refer to the departments’ commercial balance sheet for the year ended March 31 last. " The telephone branch showed a loss of £73,528 and the telegraph a loss of £346,958. On investigation, I now find that the telegraph branch has been debited with an unfair allocation of workmen’s wages, etc., and for this reason the telephone branch will be debited with a further £IOO,OOO for the current year and the telegraph branch correspondingly credited with a similar amount. Taking last year’s figures as a basis, the position is, therefore, that the loss' on the telephone branch should be £175,943 and the loss on the tele, graph branch £244,543. Not Avoidable. The latter loss cannot bo avoided; the rates for telephone service proposed in the new schedule will it is estimated "just about recoup the loss on telephone business. It is lecognised in most countries that Government telegraphs are generally run at a loss and I am looking forward to the loss on the telegraph service in New Zealand being reduced if the. people make greater use of the service at the recently reduced rates. The position as > regards the tele, phone is entirely different, and the present telephone charges must be increased so that users of the telephone will pay subscriptions which will permit of this branch becoming self-supporting. Last year a sum of £750,000 was voted on the Public Works Estimates for telegraph and telephone extension. £350,000 of this amount has already zeen expended on telephone extension while the small sum of £2OOO has been expended on telephone extension Naturally with this heavy expenditure for the development of the ielephono service in the country as well as in the city a large amount of interest on capital oost is required and as already intimated the proposed increase in the charges is being made in order, to place the telephone service on a self-supporting basis. The proposed charges are designed to reduce the telephone deficit as revealed in the accounts. They are further designed with a view to being a reasonable charge against the user instead of the general taxpayer bearing a portion ot that loss and at the same time to encourage the use of telephones. If the postal side of the Department is to continue, to make up the loss on telephone extension, so much longer will we bo in getting back to Id postage. Finally are we justified in spending capital moneys to the extent of £750,000 per annum when the income from this 'expenditure does not pay the interest on capital? Generally speaking I believe the public have had the impression that the telephone service is a profitable one to the State. This is not the case and the fact that a continual loss has been shown will not be surprising when I state that the present schedule of rates in Ne>v Zealand is ridiculously lower than that of any other country in the world. Even the proposed tariff will be lower than that of any other country even in pre-war times. The average initial cost of providing a subscriber with a telephone exchange connection in 1913 was £32 whereas to-day it is not less than £SO. It may be said that if the number of subscribers under the present rates lias more than doubled over a given period the cost of the telephone service may be expected to fall. As the system expands there should he a relative reduction in cost and therefore that the present high prices should be tho means ,of stimulating the development of the service instead of causing the tariff to be raised. THE CHARGES.

The following table will giro a fairly clear indication of the charges under the new system: MONTHLY RATE PER SUBSCRIBER. No. 1 Class multi office exchanges— Wellington, Auckland, Christchurch, and Dunedin, and exchanges within multi office areas: Business (one party), 30s. Business (two party) in same town block, 20s. Residential (one party), 15s. Residential (two party), 12s 6d. Residential (four party), 11s 3d. No 2 Class (of over 150 paying Subscribers. Single office exchanges, examples Gisborne, Hamilton, Hawera, Napier, Wanganui, Dannevirke:

Business (one party), 21s Bd. Business (two party), in same town block, 15s. Residential (one party), 18s 4d. Residential (two party), 11s. Residential (four party), 10s. No. 3 Class, single office Exchanges with restricted attendance. Ex- ' amples Foxton, Greymouth, Levin, Milton, Paeroa, Waihi: Business (one party), 15s. Business (two party),-in same town block, l2s Gd. Residential (one party), 10s. Residential (two party), 7s Bd. Residential (four party), 6s Bd. In addition to tlio above, there will be a small monthly rental for miscellaneous services and extra equipment for instance extension telephone within the same building, and wiring up to a length of 110 yards —2s. 6d per month. Extension bell of an ordinary type including ordinary wiring up to a, length of 110 yards, within tho samet building 9d per month. Head receiver as auxiliary to hand receiver 9d per month and so on. Under tho scheme, it is proposed to collect subscriptions monthly in a way similar to say the gas and electric light, accounts. In addition to the subscription an account will be rendered for tho amount duo for toll calls; in the event of tho toll account for the preceding month not being paid with tho amount for the current month’s rental, the telephone will be disconnected. In other words credit for one month will he given for toll calls, but the amount duo therefor must ho paid at tho same timo as the current subscription, or the subscriber will be deprived of the rise of tho telephone. 'While on this point I may mention that a number of subscribers neglect in spite of repeated requests, to pay their toll accounts, and a great deal of timo and effort is spent in endeavouring to obtain payment. Within a reasonable spaco of timo New Zealand subscribers can expect- an. exchange service at least equal to that in tho United States of America, which is recognised as the most efficient service in the world. It is desired to bring about the altered conditions at an early date. In order to place tho matter before those interested, I am telegraphing this statement Ireo to. all newspapers throughout tho Dominion, and if any further information is rennired representations should ho made to my’ Administrative. Officers in Wellington, who will assist tho public in every possible way.