§ 79. Mr. SMEDLEY CROOKE
asked the Postmaster-General whether, in view of the Post Office financial statement just issued, in which it is stated that there is an available balance of £420,529 after deducting the fixed contribution to the Exchequer, he will now consider the advisability of reverting to the ld. postage for letters?
§ The ASSISTANT POSTMASTER-GENERAL (Sir Walter Womersley)
The restoration of penny postage with a half-penny postcard would mean an immediate reduction of about £7,300,000 in the revenue from existing letter traffic and of about £800,000 in that from postcards—a total of £8,100,000. This loss of revenue would probably be reduced by about £600,000, the estimated amount of the net profit on new traffic and on the diversion 1440 of existing traffic to a higher-rated category. My right hon. Friend fully appreciates the general desire for a return to penny postage but he regrets that in view of the sacrifice of revenue involved he is at present unable to hold out any hope of an early restoration.