§ Mr. FENBY(by Private Notice) asked the Postmaster-General whether it is the fact that so little use is being made from this country of the new telephone service to New York that unless more business is done a heavy loss to the Post Office will be involved, and what steps are being taken to popularise this service?
§ Viscount WOLMERNo. As my right hon. Friend informed the hon. and gallant Member for Everton (Colonel Woodcock) on the 13th instant, the present revenue from the trans-Atlantic telephone service approximately covers working costs, but not interest, depreciation and amortisation.
§ Colonel DAYHas the Noble Lord considered that if the very high rate charged, which is £5 a minute, were reduced, a great deal more traffic would take place?
§ Viscount WOLMERYes, Sir. The traffic is steadily growing, and the Postmaster-General, as at present advised, is not prepared to reduce the rates. He hopes that as business men more and more realise the great advantages which are to be obtained from using this service they will realise how extremely cheap it is.
§ Colonel DAYHas the Postmaster-General considered reducing the rates after certain hours of the day to give people an opportunity?
§ Viscount WOLMERThe Postmaster-General has had all these suggestions before him and as soon as he is advised—and I would remind the hon. Member that it is a matter which has to be arranged not only in this country but in America; it is a matter of agreement between the two administrations—he will vary the rates as soon as he thinks fit.
§ Lieut.-Commander KENWORTHYIn view of the last answer, will the right hon. Gentleman use the telephone himself to talk to the Postmaster-General in America and try to arrange it, and at the same time try to set an example to the other subjects?
§ Colonel DAYHave any negotiations taken place with America?
§ Viscount WOLMERWe are in constant touch with America on the whole working of this system.