HC Deb 07 June 1921 vol 142 c1678
38. Mr. ALFRED T. DAVIES

asked the Postmaster-General on whose personal advice the recommendations for increased postal rates were made; whether the person or persons so advising have had business training and experience independent of that obtained as civil servant; whether advice from business men and accountants not in the service of the Government was obtained before these recommendations were made in this House and, if so, who were they; and on what date was it decided by the authorities that an increase of postal rates to cover losses on telegraphs and telephones was the only alternative to a deficit on the three Departments named during this financial year?

Mr. KELLAWAY

The more important of the increases recently announced were authorised by the Cabinet in March, 1920, and were announced by my right hon. Friend, the Lord Privy Seal, in his Budget speech of that year. The decision was confirmed last month after investigations by a Committee of the Cabinet appointed for the purpose. They were recommended by the responsible officials of the Post Office as being the only practicable means of carrying out the decision of the Government that the finance of the Post Office should be placed on a paying basis.