§ At this stage I am obliged to ask the Committee to look at the position of the Post Office. In 1913–14 the Post Office revenue, after defraying all charges, yielded a net surplus revenue of £6,500,000. To-day there is a loss of £3,000,000. To this I have to add an estimated further loss of £8,000,000, as the probable cost of settling the outstanding claims of the postal service for additional wages and bonus. The increased wages of staff over the level of 1913–14 would then absorb no less than £29,000,000 a year. We are thus faced with a deficit on the Post Office of £11,000,000. It has become a subsidised service. I trust the Committee will support the Government in the determination that at least, if it yields us no net revenue, it shall not involve us in a loss. We, therefore, propose an increase in postal rates and charges. It will be found in detail in the White Paper. These increased charges are estimated to produce £6,500,000 this year, and enough when they are fully complete to balance the Post Office expenditure in a full year.
The main increases are as follows:—In the letter postage an increase to 2d. for 3 ounces and ½d. for each additional ounce. In the newspaper postage, now resulting in a heavy loss, there will be a postage of 1d. for 6 ounces, or less, instead of id., with id. for each further 6 ounces Parcel post will follow the increases already made in the rates for the carriage of parcels by rail. The minimum charge for telegrams will be raised to one shilling, with one penny for each additional word over twelve words. Proposals will be made in respect of telephone charges to the Select Committee to be appointed, and it is estimated that they will produce at least a further £2,750,000 a year. Charges for postcards and printed papers 82 will also be raised. The inland rates for these cannot be put up until the foreign rate is increased, and the foreign rate depends upon the decision of the International Congress which meets at Madrid in the autumn. We propose, however, to take power now to increase the charge for postcards to 1½d. and for printed papers proportionately, but not to bring these changes into force until after the Conference. There are other minor changes set out in the White Paper, and legislation will be necessary for these purposes