TELEPHONE COSTS

Sun (Auckland), Volume IV, Issue 1073, 10 September 1930, Page 11

TELEPHONE COSTS

FARMERS’ REQUESTS TO DEPARTMENT NO REDUCED RENTALS In response to the decision of the New Zealand Farmers’ Union to urge tho Post and Telegraph Department to dispense with the present system of charging for telephones on a mileage basis “as that system is unfair to country subscribers,” and to base its charges on the cost of erection and maintenance, in addition to service, the department has replied saying that, were the union’s request granted, the rates for connections in the country w'oulcl be higher than they are at present. The department states that country ,telephone services are not remunerative to the department. Were it not for the assumption that development in country areas enhanced the value of the telephone to town users, it would be difficult to refute the argument of the business community that country telephones should be placed on a strict basis of cost. The department was showing a loss on nearly every small country exchange and, in many cases, the annual interest and depreciation charges considerably exceeded the revenue received. A reduction in country telephone rentals could not be expected. Arrangements are in view to extend telephone facilities after the ordinary hours at a number of offices, the department replied to the union’s view that public telephone offices in the cities should be available for long-dis-tance calls on Sundays and at nights. In many cases, the cost was prohibitive, the department added. Anwering the opinion that holders of private wires attached to party lines should receive the same consideration in inspections as the other subscribers, the Postmaster-General, the Hon. J. B. Donald, said such a service could not be provided without a general increase in rentals. Concerning the resolution passed by the Dominion executive of the union to the effect that the fee charged for rural delivery mail boxes should be abolished, Mr. Donald stated that the policy governing the delivery could not he continued without fees. By granting the request, the system would be financially sound.