POSTAL AFFAIRS.

Taranaki Daily News, 16 September 1922, Page 5

POSTAL AFFAIRS.

EXTENSION OF OPERATIONS. TELEPHONIC DEVELOPMENT. A WIRELESS SCHEME. By Telegraph.—Press Association. Wellington, Last Night. The House went, into Committe of Supply to-night, discussing the Estimates. On the item Post and Telegraph Department (£2,349,268), a general discussion ensued, members for the most part ventilating local grievances and stressing local requirements. , The Hon. J. G. Coates, replying, expressed satisfaction at members’ appreciation of the work of the staff, and said he would have pleasure in conveying to the Post and Telegraph employees, senior and junior alike, the excellent impression their good work had made. Many demands were being made for new postal buildings, but in the present financial stringency the policy of the department was to do as little building as possible, and only the most necessitous cases were being considered. With regard to telephones, he said it was impossible to starve the towns to give to the country districts, because the demands had to •be met. He proposed to spend £60’0,000 this year on telephonic extension, which was greater than in any previous year. Telephone charges could not be reduced, but a readjustment was possible, and something would be done in this direction. He proposed to deal with the whole question of post and telegraph charges, but it could not be done this season, as he was much too busy. Regulations would be framed dealing with the question of broadcasting wireless, but wireless could not be used commercially so safely as telegraphy, as it lacked secrecy. The Government was considering the establishment of a high-power* station in • New Zealand which would give us communication with the outside world. He was not prepared to go into details at present, but the idea was to make us independent of the chain system. He could not say how far this would interfere with cable lines, but it had great possibilities, especially in connection with Press cables. The cost would be between £200,000 and £400,000, but as negotiations were proceeding he did not wish to say more about it at present. It was very necessary that we should do the right thing at this junction.

Continuing, Mr. Coates said there was a gross profit on the year’s working of the department of £327,000. When interest was paid the profit was some £50,000, but when depreciation was taken into account there was a deficit of £148,000. At present the department was doing nothing in the way of mails by air, and the cost of motor traffic has been very successfully reduced.

After further discussion, during which the Hon. J. A. Hanan (Invercargill) wanted to know what was the use of the Minister encouraging people to believe a reduction in rates was possible when, the deficit on the year’s working was £148,000, the vpte was passed.