THE TELEPHONES.

Star (Christchurch), Issue 17189, 5 November 1923, Page 7

THE TELEPHONES.

REDUCTIONS IN CHARGES. STATEMENT BY MINISTER. A deputation from the Canterbury Progress League waited.on the Hon J. G. Coates. Postmaster-Genera I. to-dav. and urged that, there was no necessity t ) increase the telephone charges over the rates in form on October I. Mr \Y M. Tyers said that a select committee appointed by the league felt that no increase was necessary in the telephone charges as a whole, for the following reasons: The ’comrrtittee's finding, after careful consideration of the farts and figures made available to it. was that no increase whatever was necessary in telephone charges ns a whole, because : (1) The Department’s estimate of deficiency was based on the prices of a year in which the costs of labour and materials were at their highest, ami since then the cost of labour had decreased by 10 per cent, and the cost of materials, to a. much larger extent(2) The progressive installation of automatic telephones would still further decrease operating costs. (3) Depreciation apparently had been made good by renewals and repairs (4) The full earnings of the.telephone branch of the Post and Telegraph Department had not been credited to it, as the . revenue from toll communications. operated entirely by the telephone branch, had not been credited to it. but had been credited wholly to the telegraph branch. That, revenue had always been a large one. For the year ended March 31. 1922. it amounted to £268.753. For the year ended March 31, 1923. it had increased to £294,874. It- represented nearly half of the revenue which actually had been credited to the telephone branch. “ No reply has so far been received from you. answering the various points raised by the committee.” Air Tyers said. “On April 25 last, however, you issued a brief statement to the Press Association advising an amended proposed increase in telephone charges a© a whole of £BO.OOO per annum. This was a reduction of £1*20,000 per annum from your original proposal, and it is assumed that the % increased charges which we now pay yield approximately an additional revenue of £BO.OOO per annum. The league and the public of Canterbury are firmly under the impression that no increased charges as a whole are necessary above those in tore© up to October 1 last, and that the department is using its power of monopoly to secure additional revenue, for which there is no justification. If the league is right in its opinion, it asks that the present increased telephone charges should be promptly reduced . If the league is wrong, it to be shown for what reasons it 13 wrong, as it desires to be entirely fair, ami only asks for reasonable action based on ascertained facts. So far, tho commercial balance-sheet of the Post and Telegraph Department for the year ended March 31. 1923, has not been made available to the league. On September 25 last, the organiser of ’tho league wrote to the secretary of the Department askiug lor a copy of this balance-sheet for the consideration, of the Select Committee, and on C>« tobev 8 last the secretary replied that it will Ixi necessary to present it to Parliament lief ore the contents can I>© made available for public information. In tho ordinary course, this balance sheet would have been presented to Parliament last session. Parliament may not meet again till June, 1924. The league asks that this balance sheet may be forthwith made available to its Select Committee.”

THE MINISTER’S REPLY. The -Minister said that the increased telephone revenue was about £120.000. It was quite possible for small business men to combine iu party telephones. A sum of £300,000 of the Department’s revenue had been lost'by the reduction to tho penny postage. The telephone revenue could not be used to make up the deficiency caused in that way. because the accounts would not balance. 'J hero was no doubt that the readjustment of the telephone charges was on the basis that the user should pay more. He was quite satisfied that the increased rate, which was most unsatisfactory. could not be considered. The telephone rates in New Zealand compared very favourably with those in other countries. It should l>e remembered that at least the interest charges must be paid on the capital invested in the Post and Telegraph Department. To do that, about £400,000 a year was required. As long as that sum was earned, he was prepared to hand back any balance to the community. If. at the end of twelve months, he found that a readjustment of charges was possible, he was prepared to go into the question of making a reduction. Accounts must be made up for the twelve months. As soon ns they were printed, and it was possible to make them available, he would be pleased to do so; but if they were regarded avS a Parliamentary paper they would not be available until Parliament met.