REASONS FOR HIGHER RATES.

Press, Volume LXVII, Issue 20173, 27 February 1931, Page 10

REASONS FOR HIGHER RATES.

STATEMENT BY MINISTER. ■ "v i ■ .. ■, r- .■;< • V* (PRESS &SSOCXATIOX THJSOBAJC.) WELLINGTON, February 26. Tho Postmaster-Qeneral (the Hon.. .if. B. Donald), in explaining the reasons for tho increases >in the postage apd telegraph charges) states that the postage increases have been made in order to provido for the Consolidated Fund £900,000 per which the Prime. Minister has already intimated was 'to be obtained by such 'means in to assist in balancing next year's Budget, and that tho telegraph increases had been mado in order to reduco'to a considerable extent tho loss on tho working of that branch. It was hot anticipated that the - increases in postage charges, after allowance is made for the falling-off in business, which was to bo expected as a resiilt ■ of the increases, will, realise more than the amount required for tho Consolidated Fund, and therefore the Minister anticipates that his. Department will not receive anything for itself from the increases, and will still have to bear a loss on the' working of the jpostal branch.

"It will bo observed that the in-, creases have beeh distributed amongst all classes of mail matter, and that in particular, newspapers will now bo charged for according to weight, and parcels in excess of 111b will not be accepted. It has been found that the cost to the Department of the conveyance alone of heavy newspapers and parcels was much in excess of the postage derived therefrom, and .that in regard to parcels weighing abovo 111b their acceptance could not bo continued at charges that would enable business to bo retained. Moreover it is considered that tho Railway Department makes adequate provision for tho conveyance, of parcels over 111b \n weight, which were accepted by. the Post "Office only for places served by rail or sea. 0 Parcel Post. "In this connexion, it is mentioned that the parcel, post was established in order to provide a ready means for the transit of small parcels, and that it might reasonably bo held that this purpose is fully served by fixing the maximum weight at 111b. Regarding the altered rate of postage'on news-, papers, nowadays most newspaper com l panics make their own arrangements for delivery other than through the Post Office except to distant subscribers over a larger area than when the low newspaper postage charges wero fixed, and are issuing a much larger papgrT It ctfn hardly be said that id is an adequate payment for the delivery to any; town in New Zealand uf. a £apcr weighing, from 6oz to 14oz; but for a long time the Post Office has' been paying much more for tho transport of tliesfe papers than was received in postage.' "The parcel rates as now ordered are still very cheap, and I have no doubt that tho public will still find it convenient and economical to send its-smaller . parcels through the Post Office* - - The other postal increases are minor ones.

Telegraph Charges. "As regards telegraph charges, for some years'" past there has been a large increasing loss on the working ,of ''tie telegraph brhnch, due to' the fact that the rates were not nearly commensurate with the eost of operation, 1 As a mattes of faqt, the ordinary "telegram rtftb fo# been the cheapest? in the British Empire, For the year ended on March 31st, l&M?, the loss waa approximately £134,000. For the current year it wiW certsdply be - larger. The average cost of handling a telegram from the point of lodgment until it xeaehes the addressee exceeds the average revenue pef telegram! by approximately sd, Deaipite the Hio«t .rigid economy and the introduction of laboursaving apparatus, it haa found impossible to reduce., f the loss, to £njr ,api» preciable extent. , » '"While tho.Vgreat&p portion.'- ol'Sthft deficit is incurred the commercial ' and' social business/; the, transmission of fteif traffic is sponsible for a heavy loss* It is oiuy equitable, .therefore, that netysgatjfr proprietors as well' as th« general p«l?lio upon to pay a jto* •tion of the increased charges, Wi^t^ the amount news tW£ may be transmitted 'oheap Press rate< "The estiinated additifmal .revenue; that will accrue uhder the amended telegraph charges is tocpectod to reach £BO,OOO per annum, and while this will still leavo a substantial loss it will' place. the in- a mticJt .less nnfavourabls joMtion, and assnress far as possible,tho aa. a whole continues to bi? salf-fuppQrt-"i/l/iV-vr' The Minister explained that the neVr rates were being- introduced' at short notice in March to give Government additional revenue one of this financial year> as a set-off tp extraordinary -ejependiture -and loss of reventte..4n* Bajr pis»• result of the earthquake, ' 1 - ' f ' { 4 *" 1 it > BURDEN ON BUSIPJUSS; ) EXPECTED. '>V BIG I&JCRE4SE THOUGHT UNMKBtY. * [ .tfhat such heavy,increases in postal and telegraphic charges will be a burden on business, and that,-encouraging direct deliveries,' they will not swell the Dei.: partment's revenue as the GOvernjnent oxpects, were . opinions stated« by business men and representatives of the coin-' mercial bodies of Christchurch who were interviewed by The Pbess last evening. (The Postal Conunittee of the 'Canterbury Chamber of 'Commence is immediately to consider the alterations, and will probably make constructive .to the 'Prime Minister (the Bt. Hon. G. W. Forbes). With the increased expenditure of bodies on postage, the public will suffer indirectly as well as directly, -The Christchurch, ;City Council, foir in-, stance, seeds out 20,000 rate notices,'on 6aQh or M?aici it'will now havo to pay an extra halfpenny. Excluding these .notices and the correspondence of the Muuicjpal Department; the Council already spends about £2 a Week 'W*. « 2 will now a "«feek, or £2OO » year, we are concerned, it will S?' - ' f a increasei" said, the' SeaAr £ S - .ffWe !™ y delivery far possible by opr xaiv „ e88e: ?? 0 I s ' RR d these extra changes will mean that we shall hive to do more rrv. dircct delivery." HvVSpSJjS? » r * : 9rter reprosenta"t'm quite .certain tkt V good many STsS £ ot economies. .At It i. not going to hay that th« .Gyvernißsijt i> wroaa in nak-. \ J J" * H k s * ' f *»kf *».*./« * V >

ing the increases. I regard them as more or less inevitable." Mr T. N. Gibbs (chairman of the Chamber's Postal Committee): - "The Government's need-to .obtain revenue is fully appreciated, and criti- , cism which does not take this into ac.count should not bo advanced. The - i suggested alterations, however, involve heavy imposts on commercial houses, i There are also pome phases which wiil be > considered immediately by the Postal I Committee of the Chamber, and probably representations 'of a constructive character will be made to the-jp?rime Minister. Apart, from economiesjn correspondence bound to bo the heavy increase is likely direct deliveries ia cities, to disadvantage of the Post aid Te&graph ' Department, This and other questions which msmbfers ,of tie,; OhambjMr may. wiehto bring before the commitiee will be. considered immediately." if Mr C. P- Agar (a prominejitjnember > of the Chamber): ■ • ' - "■* ' - ' f These matter* .need T iw«ssgating, and I would emphasise opinions are at first sighf. The' ' Governmeafcha* to get Increased ieVr enue, but if We are going to decrease costs by 10 per <»nfc. f And theji aMtheqi on in raohwsys, as these, ' remain, where We were. Thej|psition Been? to economies rather than the%oablmg of the j)08tal Because bt the tfirenQoossitiaii oftjlc Goveminent; tlfere, mp,y Be |punedinte justification' for the scale of charges, there is ifidation for continuipg it |»r mofe' than a year. If ,tfee need, is greit, the heavier charges should lie'- 'Sjapoaed only for a time, since we cannot reach the rial' remedy for the country with.not an increase, in Mr V.jS. the commercial people. -Jiuktwfirfiig' <• by aril, ,f whltlv ft. PtafoaffiTSS. a big feature, revenuo will o®bi*iy drop consxderablyas rates. It simply me&nS that St .will pay firms to majke direetj "delivery through the/ messenger: , b °rt 1 * dT Is%fct*the as »Dch an is anticipated. People aimply tako economy measures, ,have the efCoofc of .balancing" the pensei. tkfliihaWJ altered the night-letter telcgrvffj indu^ftdWonaA crease J f *8 tifeet how' ?jo-«ona«y look is burden on tatttnesj!. Bi^ertjilst REDUCED NEWS SLICES. m. InlTito ed on the srfbieet of iho new ■Pest and Telegraph regulations as af;feeting the president of the Newspaper Proprietors' .Association, Mr C. "W. Earle, aUtod that the effect would ba the general a heaty . 4 ' : "At the recent conference *o{ wvrwiper- proprietors,^; ««it was found t&.tykeimmodfyte eadpavby itt ie'dpee jfte" cost of newspaper* At the same time ifc wifa epiiaeAily necessary ttaantabi nn adequate standard «Mervi<!e to the , ta 1 local and,overseas news. l?lauB tq enable t thetie ideas to be gives effect were in trpin when this bombshell from -the Government .isv J|jte? doubling of ppatsga jneans, an east 1 pf,l9» ! '£ year, to these of the "yublio able tft bear ia, to, those'.living, in outlying triots. It will alao check,, 1 to B<fme extent- at least, t;he sending overseas pt weekly journals, which serve va valutit able purpose. If advertising N?w Zealand and it«'" attraction? abroad.'." .'-♦ The H "t#Sgt^pb, charges, fQ| that I* arndunt to, 1 must necessarOy |nsan heavy curtailment of'existing news- -services. With the charges taoto proposed there WBst be iS -cut telegraphic uewS 'Of ?.t least 50 pferACfnt,; probably,» 4eal more, 1 ? Bai|,3ir * "£,ss&' iMfc had , eeneral rublic,"