MR. GIBSON BOWLES (Lynn Regis)I beg to ask the Postmaster General whether he can state on what principle the amount of guarantee is calculated that is required by the Post Office from persons who desire the postal telegraph to be extended to their neighbourhood, in cases where it is anticipated that the revenue from such an extension will be insufficient to meet the expenditure thereon; how the amount of the total sum to be guaranteed is arrived at; whether this sum includes the cost of wires, poles, and other materials, as well as of the labour for setting up the length of telegraph required, or whether this cost is borne wholly or in part by the Post Office; and whether there has been any recent change in the method of dealing with these matters; if so, what the change is, and when it was made?
§ *MR. A. MORLEYThe amount is made up of (1) interest at 3 per cent on the outlay of the Department for poles, wires, and other materials and labour, and (2) an annual provision for the maintenance and the working of the telegraph. The guarantors are not required to pay the amount of the guarantee; but if the Revenue in any year falls short of that amount, they are called upon to pay the difference. A change was sanctioned by the Treasury in August, 1891, when guarantors were relieved of the burden of providing for the repayment of the capital outlay. By the Post Office Act of the same year, Rural Sanitary Authorities were empowered to give guarantees.
MR. GIBSON BOWLESAnd in case the guarantee has to be paid and the Post Office cease the telegraph connection, are the wires handed over to the guarantors?
§ MR. A. MORLEYThe guarantee is only for seven years, and at the end of that time the question arises shall the telegraph service be continued?
In reply to a further question by Mr. GIBSON BOWLES,
§ *MR. A. MORLEYsaid, the new Regulation was not retrospective.