61. MARQUESS of TULLIBARDINEasked the Postmaster-General what was the net profit made by the British Post office in the last year of which he has a record, also what is the loss on running the telegraph for the islands of Rhum, Eigg, Muck, and Canna; whether, in estimating this loss, he includes interest on original outlay; if so, what is the amount; and how does he consider that scrapping the whole plant is likely to improve matters?
§ Mr. HERBERT SAMUELThe net profit made by the British Post Office in the year ended 31st March, 1911, was about four and a quarter millions; the figures for 1910–11 are given rather than those for 1911–12, because the latter would include charges in respect of the capital sum payable to the National Telephone Company for the plant, etc., transferred to the Postmaster-General on 1st January, 1912. The loss on the telegraphs is about £1,100,000 a year; for the islands of Rhum, Eigg (including Muck), and Canna, the loss is £449 a year, including £142 for interest on original capital. If the service were abandoned, the net saving, apart from interest, would therefore be about £300 a year.
MARQUESS of TULLIBARDINEMay I ask the right hon. Gentleman whether, remembering that these islands are very poor parts, and as he is making a profit of something like £4,500,000, he might spare £350 a year for telegraphic communication with the islands, which is more than ever necessary after the Report of the Highlands and Islands Committee?
§ Mr. HERBERT SAMUELThat is an argumentative matter, but. I would point out that there is already a loss of £1,100,000 on telegraphs which has to be borne by the taxpayers, and as the Noble Lord is a Scotchman he has not to learn that "many littles mak' a muckle."
MARQUESS of TULLIBARDINEMay I ask the right hon. Gentleman if there is not at least a profit of £2,500,000 on the whole concern?
§ Mr. MACPHERSONIs the right hon. Gentleman aware that a great many fishermen, both, from the East and West of Scotland, go round these islands during the fishing season, and that it is highly important, indeed essential, that there should be a good telegraphic service?
§ Mr. HERBERT SAMUELI am very unwilling to stop the telegraphic service with these islands, but what I am asking is that the proprietors of the islands should do as they have done hitherto, and that is relieve the taxpayers of one-third of the loss. [HON. MEMBERS: "Why?"] Because it is usual when offices are opened in unremunerative districts that guarantees should be provided by the localities to that extent. In this case it is particularly reasonable, seeing that two-thirds, or 60 per cent., of the telegraph traffic is for the lairds or their tenants.
§ Mr. HOGGEIs the right hon. Gentleman aware that the population of a neighbouring island nearly starved last winter because of the absence of telegraphic communication?
§ Mr. HERBERT SAMUELThat is a different matter altogether.
62. MARQUESS of TULLIBARDINEasked whether, in the case of Canna, the Post Office agreed that after seven years' guarantee by the inhabitants of the parish there would be no further call on them for telegraph service; and what is the rent charged to the postal authorities for the local post office by the proprietor?
§ Mr. HERBERT SAMUELNo such undertaking was given. In fact the Guarantee Agreement expressly reserved the Postmaster-General's right to discontinue the telegraph service at any time. No direct payment is made by my Department for rent of the post office to the proprietor of the island. The sub-postmaster of Canna, like other sub-postmasters throughout the country, is required, as a 616 condition of appointment, to provide all accommodation and attendance necessary, his remuneration being fixed in accordance with a scale based on the amount of work done.
MARQUESS Of TULLIBARDINEAm I to understand that the real offence of the landlord is that he has been giving you premises rent free all these years?
§ Mr. HERBERT SAMUELThe real offence is that he is unwilling to continue the guarantee previously given.
§ Mr. WATTMay I ask the right hon. Gentleman whether it is not the case that the loss on the telegraphs is due almost entirely to the Press getting advantages in the shape of cheap rates?
§ Mr. HERBERT SAMUELThe loss on Press messages comes to about £200,000, and is owing to statutory conditions I have no power to- alter. But the loss on the telegraphs is also largely due to the fact that telegraphic facilities have been provided in a great many unremunerative parts of the country.
§ Sir C. KINLOCH-COOKEDocs not the advantage given to the nation by the Press make up for the loss?