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Increased Charges (Budget Proposals)

Volume 497: debated on Wednesday 19 March 1952

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61.

asked the Assistant Postmaster-General what estimate he has formed of the additional revenue to be obtained by the reduction of the 100 free calls to 50.

68.

asked the Assistant Postmaster-General what additional charge will be levied on telephone subscribers by the proposed reduction of the 100 free calls per half-year to 50 per half-year.

The estimated additional revenue for 1952–53 is about£350,000. In a full year, the additional revenue would be about£920,000.

62.

asked the Assistant Postmaster-General what additional revenue is expected by the proposed increases in the private telegraph and telephone services.

65.

asked the Assistant Postmaster-General the estimated commercial surplus on the inland postal service for 1951–52; and what additional income is expected from the proposed increases for letter and registered postal packets, respectively.

The estimated surplus on the inland postal service for 1951–52 is£7,400,000. The estimated additional revenue for 1952–53 from the proposed increase in charges for inland letters is£680,000, and for registration£730,000.

67.

asked the Assistant Postmaster-General what is the estimated surplus on civil air-mail packets, including post-cards, Commonwealth and foreign posts, for 1951–52; and what additional income is expected from the proposed increases in these charges.

There will unfortunately not be a surplus, but a deficit for 1951–52 of about£1,100,000. The estimated additional revenue for 1952–53 from the proposed increases in charges is£1,170,000.

69.

asked the Assistant Postmaster-General what are the estimated financial results of the telephone service for 1951–52; and what additional revenue is expected from the proposed increase in rentals.

The estimated commercial surplus on the telephone service for 1951–52 is£4,300,000. The estimated additional revenue for 1952–53 from the proposed increase in exchange subscribers' rentals is£4,850,000 on a cash basis and about£6,000,000 on a commercial account basis.

71.

asked the Assistant Postmaster-General how much of the additional revenue from the proposed increased charges is required for purely Post Office purposes; and how much for the needs of the Exchequer.

The increased charges were designed to convert a prospective deficit on Commercial Account of nearly£2 million in 1952–53 into a surplus of about£8 million which, apart from the current year and the first year of the war, would be the lowest commercial surplus for 25 years.

73.

asked the Assistant Postmaster-General what estimate has been made of the increased costs to the Post Office as a result of the increased price of petrol; and if he will state the amount.

It is estimated that the increase in the price of petrol will raise Post Office direct costs in 1952–53 by£565,000.

74.

asked the Assistant Postmaster-General if he will circulate in the OFFICIAL REPORT a table setting out the annual rental cost of telephones for the various parts of the country; and the proposed rental cost under the proposed new charges.

An amending Regulation, giving full details, will be laid before Parliament as soon as possible. Meanwhile, a table showing the changes in the rentals of exclusive and shared service lines is given below.

EXCLUSIVE EXCHANGE LINE—ANNUAL RENTAL
PresentFrom 1st July, 1952
£s.d.£s.d.
LondonBusiness8341100
Residence5197*800†
Birmingham
GlasgowBusiness7961000
LiverpoolResidence5510*700†
Manchester
Rest of CountryBusiness6158900
Residence4120*600†
SHARED EXCHANGE LINE—ANNUAL RENTAL
LondonBusiness711109100
Residence581*6100†
Birmingham
GlasgowBusiness61808100
LiverpoolResidence4144*5100†
Manchester
Rest of CountryBusiness6427100
Residence406*4100†
* 100 local call units allowed free each half-year
† 50 local call units allowed free each half-year

75.

asked the Assistant Postmaster-General what effect will the proposed increased charges have upon the services rendered, without payment, to other Government Departments; and if he will state the estimated financial consequence.

The postal services to other Government Departments are computed not on a tariff basis but on estimated costs. In the case of telephones and telegraphs the assessment is based on tariff rates, and the estimated additional credit to be taken in the Commercial Account for 1952–53 is£1,150,000.

76.

asked the Assistant Postmaster-General what estimate has been made of the total of the in crease in telephone charges falling upon the commercial account for the Army, Royal Navy and the Royal Air Force; and the constituent amounts.

The estimated additional credit to be taken in the Commercial Account for 1952–53 is£600,000, made up as follows:

  • War Office—£100,000.
  • Admiralty—£80,000.
  • Air Ministry—£420,000.

77.

asked the Assistant Postmaster-General the total amount paid to the air lines for postal work during the year 1950–51; and the estimate for 1951–52 and 1952–53.

The amount paid during 1950–51 to the two British Air Corporations for the conveyance of British mails was£5,633,700. The estimated payment to be made to them in each of the years 1951–52 and 1952–53 is approximately£8 million.

79.

asked the Assistant Postmaster-General the estimated financial results on registered postal packets, Commonwealth and foreign post, for 1951–52; and what additional income is expected from the proposed increase from 4d. to 6d.

It is estimated that this service incurs a loss of about£15,000, which the increase in rates will just about balance.

80.

asked the Assistant Postmaster-General the estimated financial outcome of the postal order service for the year 1951–52; and the additional income expected from the proposed increases.

The estimated surplus on the Postal Order service for 1951–52 is£100,000, but for 1952–53 there would have been an estimated deficit of£130,000. The estimated additional revenue for 1952–53 from the proposed increases in charges from 1st July is£1,050,000.