§ MR. W. HOLMSasked the Postmaster General, If in the Contract of July 1874 he has arranged to allow the Peninsular and Oriental Steam Navigation Company to run their steamers with the heavy portion of the Indian Mails through the Suez Canal; and, if so, to what extent the transmission of such portion of the Indian Mails will be retarded; what deduction from the subsidy of £449,000 per annum is to be made on account of the permission thus granted; and, is he aware that his two predecessors in office recommended that a considerable deduction from that amount should be made in that contingency?
§ LORD JOHN MANNERS, in reply, said, that by the new contract with the Peninsular and Oriental Company, which he hoped would be in the hands of hon. Members to-morrow or Monday, it was arranged that the Company might run their steamers with any portion of the mails through the Suez Canal. No part of the mails would be retarded in consequence; on the contrary, there would be an acceleration for both the heavy and light mails to the extent of 24 hours. A deduction of £20,000 a-year had been made from the subsidy on account of this change. An additional saving would be effected in consequence of no premium being paid in future, and there would be a further saving arising from the fact that payments by the Company in respect of overtime would henceforth be compulsory. Altogether, the saving under the new contract would amount to about £24,000 a-year.