§ Now I must call the Post Office to my aid, as my predecessors did in the last war. My right hon. Friend the Postmaster-General, though naturally reluctant to increase Post Office charges, and especially in the year which marks the centenary of the penny post, appreciates the necessity in the present circumstances for the steps which I now propose. It should be made quite clear 73 that these increases are forced upon us solely as a means of supplementing war-time revenues. Full details will be found in the White Paper and I will confine my statement to the main items.
§ The general scheme is to increase certain initial postal charges but to leave charges for excess weight untouched. The initial rates of the Inland post will be increased, for letters, by 1d. per packet, which will mean 2½d. instead of 1½d. for letters up to two ounces, and for postcards from 1d. to 2d.; for printed papers by ½d. per packet; and for newspapers by a ½d., with a reduction in the steps of the existing scale. There will be similar increases for letters and postcards in the Imperial post, except that the present rates will be retained for correspondence with the Forces overseas. For the foreign post the rate for letters will be increased by a ½d. a packet—3d. instead of 2½d.—and that for postcards also by ½d. Neither in the Imperial nor in the foreign post are any increases proposed for other classes of mail. It was considered right to refrain from increasing the charges for services which are so important in the development of our export trade. It follows that there will be no increased charge on Air Mail.
§ It is also proposed to make some changes in the poundage charged on postal orders; full details will be found in the White Paper. These increases in the postage rates and on postal orders will take effect from 1st May, with the exception of the increased newspaper rates, which will come into effect after the passing of the necessary legislation. They are estimated to increase the revenue by £10,400,000 this year and by £11,400,000 in a full year.
§ In the Inland telephone service there will be a general increase of 15 per cent. of all charges to subscribers with exchange facilities and to users of coin box telephones. These increases will take effect as from 1st May, in the case of trunk calls and all calls from public call offices, and from 1st July in the case of rentals and miscellaneous charges. The increased charges for subscribers' local calls will apply to all calls made after the date on which subscribers meters are read towards the end of June. For private telephone services the increase will be 25 per cent. and will operate from 1s.t July. These increases are estimated 74 to yield just over £2,000,000 this year and £2,850,000 in a full year.
§ In the case of the inland telegraph services, there will be a fixed additional charge of 3d. on each ordinary, priority or greetings telegram, on each night telegraph letter and on each page of press telegram. These additional charges will operate as soon as possible after the passing of the necessary legislation. Charges for private telegraph services will be increased by 25 per cent. as from 1st July. These increase in Inland telegrams and telegraph services are estimated to produce £160,000 this year and £240,000 in a full year.
§ The overseas telegraph and telephone services are necessarily limited during war-time and, in view of the difficulties and restrictions imposed upon the business user of these services no increase in the current charges is proposed. These considerations do not apply with the same force to the services to Eire and for particulars of the increases proposed in this case I refer hon. Members to the White Paper.
§ All the increases in Post Office charges taken together are estimated to yield about £12,500,000 this year and about £14,500,000 in a full year. I will not delay the House with more explanations. A large part of these changes will be effected by Warrant or Regulation under existing powers. Some will obviously require statutory authority.
§ The Committee will begin to see how very difficult it is to make up a great additional figure even by the most exacting and formidable increases of taxation.