NO REDUCTION IN TELEPHONE CHARGES

Rotorua Morning Post, Volume 1, Issue 153, 20 February 1932, Page 5

NO REDUCTION IN TELEPHONE CHARGES

("Post" Special Commissioner)

OFFICiAL STATEMENT MINISTER SAYS DECREASE IMPOSSIBLE AT PRESENT DECREASE" IN SUBSCRIBERS

WELLINGTON, Friday. In view of the many requests being received hy the Post and Telegraph Department for a reduction in telepkone rentals, particularly in country districts, the Postmaster-General (Hon. A. Hamilton) has issued a state1 ment covering the general position. It had been stated, said the Minister, that some . hundreds of people were finding payment of telephone rentals too heavy a burden and were relinquishing their connections. The actual position for the Dominion during the last nionth showed that there » had been 610 new connections and 935 relinquishments, representing 335 copnections which had been given up. Taking* the whole of the Dominion from April 1 last, the cumulative loss of subscribers amounted to 2,688. This represented a percentage loss of some 2 to 3 per cent. of the' total number of subscribers, which in the present difficult times could not be • regarded in any way as disastrous. Earthquahe Losses In this number was included a rtrge number lost in the earthquake area, which had not yet been restored, but which would no doubt be reconnected as the position in that areabrmrovpd.

The Minister pointed out that while the department appreciated the present eeonomic position as it affected telephone exchange subscribers, par-« ticularly in rural areas, the fact was that none of the small country exchanges represented a payable pro- - position, and the department lost on ■ almost every rural line in the Domin- 3 ion. Moreover, the average cost of furnishing service in the country districts greatly exceeded that of the cities, this being accounted for by the longer lines necessary in the country districts and the relatively lower density of population. Low Cost Level "It is desired to stress the fact that the telephone service is at present operated on the lowest possible basis consistent with a very small nai*gin of profit," said the Minister. "The department gives to the public , the most efficient apparatus and plant ? nd the general encomiums that are * rassed on the service by those having an opportunity of comparing it with other parts of the world, leads to the belief that New Zealand is well in the van of progress in the quality of' the service provided. To reduce rentals as is repeatedly urged upon the department would possibly he the rreans of retaining some subscribers who would otherwise give up the service, but the ultimate loss to the derartment would he a very serious matter." From General Purse In this connection, it was pointed out that any loss sustained would ultirrately require to be made good by Ihe taxpayers in general, and this would result in much criticism. It must not be overlooked that the rrofits of the Post and Telegraph Derartment were, by the law passed last year*, required to be paid into the Consolidated Account to assist the Government in its present financial difficulties. As there are some 130,000 subscribers in New Zealand, even a small concession in the rentals, which are already as low 01* lower than in any other part of the world, would be a very serious tbing at pres- 0 ent."