RURAL TELEPHONES

Wairarapa Times-Age, 24 March 1939, Page 6

RURAL TELEPHONES

PROTEST AGAINST INCREASE IN CHARGES

DEPUTATION TO POSTMASTER.

CONTINUANCE OF CONCESSIONS DESIRED.

“We firmly contend that the present time is entirely inopportune to restore the original charges as the farming industry has today fully entered into a period of actual and pending depression, that bids fair to eclipse the slump period of 1931 when the concessions were granted,” stated Mr J. Andrew at a meeting today when representations regarding increases in rural telephone rates were made to the Masterton Postmaster (Mr M. M. Simpson) by a deputation representing settlers in the Tinui-Castlepoint district, freezing interests, Auctioneers’ Association and the Masterton Retailers’ Association.

It was stated that if the increases, some of them as high as 90 per cent stood, all the rural subscribers in the area mentioned would dispense with their telephones. After hearing the various speakers Mr Simpson said he would forward the representations, which asked that the former concessions remain in force to the Post and Telegraph Department. Messrs B. Roberts and J. Robertson, M.’s P„ who were present, also stated that they would give what assistance they could to meet the requirements of the settlers. Mr Andrew said the matter had been raised by the Wairarapa Provincial Executive of the Farmers’ Union and then supported by the subscribers in the Tinui-Castlepoint district. “When interviewing you (Mr Simpson) individually recently,” he added, you stated that there was no increase, but merely a reversion to original charges prior to 1931 when concessions were granted. You also stated that in the opinion of your department that now was deemed to be the opportune time to restore the original charges. In the first place we beg to point out that the new charges represent an increase on the rates paid for the past eight years varying from 66 2-3 per cent on the partv line as a complete unit to as high as 98 per cent in individual cases. We firmly contend that the present time is entirely inopportune to restore original charges as the farming industry is today fully entered into a period of actual and pending depression that bids fair to eclipse the slump period of 1931, when the concessions were granted. “Secondly we would respectfully point out that our telephone service although well-nigh indispensable under present conditions, is nevertheless subservient to our ability to pay for the service, and this is the strong point of our representations to you today. At a fully representative meeting of Tinui and Castlepoint telephone subscribers held in Tinui on Tuesday last a unanimous decision was reached to the effect that any increase in the rates beyond that of last year would force subscribers from an economic point of view to dispense with the telephone service. We are aware that our representations to you today will require to be submitted to your department, and we do not pretend to know whether your department is in economic stress as we are, but in view of the ever increasing burden of costs being placed upon the farmer today, we again respectfully but firmly submit that this is an added burden of costs which we feel is unwarranted in view of the fully recognised economic hardship affecting the New Zealand farmer today. This is merely a local representation to you, but it is the intention of the New Zealand Farmers Union to make this subject one of national representation to the Government.” Mr Andrew went on to refer to a petition signed] by all the rural subscribers in the district stating that if the new rates came into force they would dispense with their telephones. The charges had gone up enormously, some from £lO 18s to £lB 13s 4d, £ll 10s to £l9 Ils Bd, £l5 17s 6d to £27 10s, and from £l6 to £27 10s. The increases had caused considerable alarm.

ENTITLED TO CONCESSIONS. Mr C. S. Hay said the settlers felt that they were justly entitled to have the concessions remain. They were prepared to enter in a spirit of cooperation, and if a flat rate were imposed those paying a smaller rate would be prepared to pay more so as to relieve the man charged a much higher rate. The farmers were not receiving the same measure of prosperity as that of other sections of the community, and they simply could not afford to pay the increased charges. If no relief were forthcoming 40 phones would come out, and that would seriously affect the business people of Masterton. That was not bluff. It was a definite decision to cut off the telephones if the increased charges stood. The extra charges were definitely not warranted. In 1932 his rate was cut from £l5 4s lid a year to £lO, but now it had risen to £l7 8s 2d, while the total cost of the line had increased from £BO to £l5O a year. The settlers greatly appreciated the service and courtesy received at all times from the Postmasters and members of the staff. Mr A. A. Schofield said that in the last seven years the 10 subscribers on his line had paid the department £2327. At their own expense, four of them had carried the line a further 16 miles at a cost of £402, which did not include the cost of their labour. in that case they had been unjustly penalised for having gone further into the back-country. His charge had now been increased from £lO to £l5 3s 4d. IMPOSSIBLE TO PAY. Observing that his telephone rate had increased from £lO to £lB 0s 6d, Mr H. Bennett said that it was absolutely impossible for a man working on wages to pay that amount for the use of a party telephone line. The present policy of the department of loading the cost of the lines on to subscribers when one or more left was most unfair. Mr P. G. Ramsay, speaking on behalf of the Auctioneers’ Association, stressed the inconvenience and added cost to all involved if the rural telephones were discontinued. While agreeing that there was a 100 per cent courtesy service on party lines he said that otherwise the lines were far from being 100 per cent efficient. A possible solution would be to spread the cost of the telephones over the towns where an excellent service was provided at a fairly reasonable rate. Mr H. P. Hugo said that if the telephones were cut off as threatened a considerable loss of business to Mas-

terton would result. He agreed that it might be better to distribute the extra cost over- all the subscribers so as to assist the back-block settlers. The increases certainly appeared to be rather drastic.

Mr L .Connolly referred to the inconvenience that would be caused to freezing companies if the rural telephones were discontinued. Mi’ B. Roberts said he sympathised with the deputation as he knew the sheep farmers were having a difficult time. It was a question of whether the increases should be treated locally or as a national matter. If they were prepared to support a nationalised scheme as policy matter then they might get somewhere. “ON A GOOD WICKET.” Mr Robertson said there was no doubt but that the town telephone subscribers were on a “good wicket” as compared with those in the backcountry. He had long advocated the carrying of essential community services into the back-blocks.

Mr Andrew said that the concessions of 1931 were made nationally, and now after eight years the department was taking a backward step. Mr Hugo: “If these increases were made in town you would lose half the subscribers.”

Mr Simpson said he had listened with interest to the various speakers, and he wished to thank them for their references to the efficiency of the present service and to the courtesy of the staffs. The question of rural telephone increases was being treated as a Dominion matter. The department was a business organisation, and as far as possible was run on business lines. The charges were fixed at the lowest rate possible that would enable the service to be carried on. Special consideration had always been given to back-country settlers. That rural service was provided at a loss. That very definite loss was offset by the results of the services maintained in the larger centres. The rates operating at the present time were fixed in 1923. Apart from the concession granted in 1932 there had been no alteration since then. There had, however, been a substantial increase in the cost of providing the service. During the depression in 1932 the department came to the assistance of the settlers and gave them a 50 per cent concession on the cost of all telephones over £lO a year, with a minimum of £lO. He would be pleased to forward their representations to the Department. Mr Roberts said that he and Mr Robertson would assist as much as possible.

In reply to a question by Mr Hay, Simpson said that 1' concessions were obtained settlers who had paid the increased charges would receive a rebate.