F.—lo.

1911. NEW ZEALAND.

TELEPHONE CHARGES AND REGULATIONS (REVISION OF).

Laid on the Table of the House of Representatives by Leave.

Memorandum. Telephone charges and regulations have now been carefully revised, particular attention being given to the possibility of recasting the rates in such a way ;is to give fanners and other country residents the lowest possible rates for long distances while at the same time maintaining the service on a profitable basis. The attached schedule shows by way of comparative statement the present charges and those proposed. In regard to telephone exchanges not open continuously, it is proposed that the minimum rate foi an exclusive wire of short distance shall remain the same—viz., £5. For two subscribers on a single line of 1 mile in length it is proposed to charge £3 10s. as against £4, while for three, four, five, or six subscribers on lines of I£, 2, 2\, or 3 miles in length it is proposed that the charge be reduced from £4 6s. Bd., £4 10s., £4 125., £4 13s. 4d. to a uniform rate of £3, which shows a substantial reduction in all cases, and should encourage the use of party wires for long distances. Business connections will, according to rule, be expected to pay £1 more. For subscribers beyond 3 miles the present charge for five subscribers on a 5-mile line is £6 each, plus £7 4s. for the first year. It is proposed to reduce this charge to £4 Bs. without any charge for capital cost for the first year. For a line 1\ miles long the present charge is £8 each subscriber, with £24 4s. for the first year for capital cost. It is proposed to reduce this to £6 Bs. without any charge for the first year for capital cost. This shows a workable number of subscribers on the line, but there will, of course, be no objection to the number of subscribers being increased to six, when the rates can be further reduced. It is not proposed that the Department should undertake the erection of lines beyond a distance of 9 miles for six subscribers, 8 for five subscribers, 7 for four subscribers, &c, from the exchange, and any group of subscribers living beyond that distance will be encouraged to erect private wires to connect with the Department's lines at a distance of either 9 miles or 3 miles, whichever is preferred. If, however, it is desired that the Department should do the work for a tance. the following example shows the cost for five subscribers on a 10-mile line : — Present Rales. Proposed Rates. £10 each, with capital cost £41 4s. to be paid for £8 Bs. each, with capital cost £8 10s. to be paid for the first year. the first year. Business subscribers will be expected to pay £1 extra per annum. This, however, is little more than a saving clause, as there are not likely to be any business connections on the majority of country lines. At exchanges having a continuous service, the charges will be slightly higher—as a rule ss. per annum for each subscriber —to cover the extra cost of the all-night service ; but this cannot be objected to, as such lines would as a rule be in thickly populated suburbs. Business subscribers to continuous exchanges will, of course, be required to pay the usual additional rate. Careful calculations have been made which have satisfied me that the proposals are not likely to result in loss of revenue. The receipts in all cases are expected to balance the annual charges. A slight profit will, however, result by striking an average for the whole country, as I have in all cases estimated the erection of a completely new line, which will not always be necessary. Even though the estimates are bare, I consider that farmers and other country residents are entitled to a maximum consideration at the hands of the Department, and it should not be forgotten that all of these new lines will bring in revenue from bureau and other communications from beyond the limits of the farmers' lines.