§ MR. SALTasked the Postmaster General, If the statement is correct that "A public meeting has been held in Capetown, at which the new Postal Contract entered into by the Home Government with the Union Company was unanimously condemned;" whether that Contract was negotiated in accordance with the regulations usually observed at the Post Office; and, whether it is so far concluded that it cannot now be amended or revoked?
§ MR. MONSELLNothing is known here as to a public meeting having been held at Capetown beyond what has appeared in the newspapers. It is the usual practice of the Post Office, when a mail packet contract is about to expire, to advertise for tenders, and this course would probably have been adopted in the case of the Cape mails, if the contract made in 1868 with the Union Steamship Company had gone on to its termination. But in January, 1872, when that contract had still four years and a-half to run, the company made an offer to increase the frequency of the service; to accelerate the speed, and thus to shorten the time occupied in the voyage; and to forego a certain portion of their remuneration, in consideration of the contract being extended for three years and a-half. This offer was considered an advantageous one, both for the public and the Government, and was accepted. The fact that cases might sometimes occur in which it would be desirable to renew existing contracts was fully admitted by the Select Committee on Packet and Telegraphic Contracts of 1860, who, in their first Report, stated that they were not prepared to lay down any general rule on the subject. The contract was executed on the 19th December last, and the Postmaster General has now no power to amend or revoke it. It is, however, subject to the approval of the House of Commons.