§ On the telephone side, we propose a reduction of 10s. in the annual rental of ordinary telephone installations and reductions in the annual charge for extension instruments, to extend the free radius outside the London areas from one mile to one-and-a-half miles from the subscribers' exchange, to reduce from 3d. to 2d. the fee for local messages at public call offices, and to make certain minor reductions in the charges for short distance trunk calls. Full details of the alterations will be given in the White Paper in due course. It is proposed to make the postal reductions effective as from the 14th May and the telephone reductions on the 1st July. The net cost of the reductions is estimated at £1,560,000 for the postal concessions and £840,000 for the telephone concessions in a full year, a total of £2,400,000. In the current year they will cost about £1,900,000. I should explain that the figures I have given relate to the cash revenue. The effect of these reductions on the commercial account of the Post Office will be somewhat greater, as they involve corresponding reductions in the sums debited against Government Departments for correspondence carried without payment.