§ 18. Mr. McKibbinasked the Postmaster-General whether his intention has been called to the unfair incidence of the recent increases in the quarterly telephone rentals on private residences, in that they amount to 50 per cent. for an exclusive and 66⅔ per cent. for a shared line; and what action he proposes to take to remedy the grievance.
Dr. HillThe reasons for the differing incidence of the increases on various classes of subscriber are set out fully in 2091 Section IX of the recent White Paper on Post Office Development and Finance (Cmd. 9576). Our object was to align rentals more closely with costs, and I could not justify an increase in the rebate of 30s. for shared service.
§ Mr. McKibbinWill my right hon. Friend agree that a public-spirited subscriber who helps the Post Office by sharing his line with a friend has a genuine grievance at having to pay a higher percentage rate than a person who does not share a line? While it is admitted that a subscriber pays less for a shared line, will my right hon. Friend bear in mind, in view of the differential, that if he deducted 10s. per quarter from the charge to each subscriber on a shared line, the Post Office would still be making an extra 5s. per subscriber per quarter compared with the revenue from an exclusive line?
Dr. HillBroadly speaking, the sum of 30s. still represents the lesser cost to the Post Office in the case of a shared line, but I would draw the attention of my hon. Friend to the fact that the annual loss on current rental in the case of a provincial residential shared line is still about £3 2s. per year.