74. Captain A. Evansasked the Postmaster-General whether, in view of the 33 record profit made by the Post Office during 1937, he will consider the reintroduction of penny postage?
§ Major TryonIt is estimated that, on the basis of the existing traffic, the re-introduction of penny postage would result in an immediate reduction in revenue of over £7,500,000 for letters and nearly £1,000,000 for postcards—making a total of about £8,500,000. After making full allowance, based on past experience, for the probable increase in postal traffic in consequence of the cheaper rate, the net cost would be over £7,500,000. Much as I would like to reintroduce penny postage, I regret that the financial situation would not warrant the sacrifice of revenue involved.
§ Mr. MacquistenAre not these the very arguments that were adduced when Rowland Hill first proposed penny postage?
§ Major TryonIt has been suggested that, if we lowered the postage by ½d., there would be no loss of revenue and the Postmaster-General would earn eternal gratitude; but, as a matter of fact, when we reduced the postage by ½d. in 1922, the Chancellor of the Exchequer lost several million pounds and the Postmaster-General lost his seat.