§ LORD SOUTHWARK rose to ask His Majesty's Government whether the Govern- 341 ment has given or will give consideration to the urgent necessity for the immediate reduction of postal charges in the vital interests of the trade and commerce of the country: whether they appreciate the fact that the Post Office has become our greatest commercial traveller, and that high postage is retarding trade, causing unemployment in a large number of trades where orders are obtained by the circulation of printed matter; further, have they considered the following observations uttered many years since by Mr. Gladstone: "I rank the introduction of cheap postage for letters, documents, patterns, and printed matter, and the abolition of taxes on all printed matter in the catalogue of legislation for promoting conditions of abundant employment."
§
The noble Lord said: My Lords, the business men and employers of the country know, and are practically unanimous in saying, that the present high postal charges are crippling and, in innumerable cases, destroying trade and commerce. It is for that reason that I, as a Chamber of Commerce man, desire to ask His Majesty's Government the Question I have placed on the Paper, and to urge that an immediate reduction in postal charges, if not an immediate return to pre-war charges, should be made. In this connection I should like to quote a short, but very interesting paragraph from a speech by Mr. Gladstone, which I did not include in the Question. He said this—
If you want to benefit the labouring classes and to do the maximum of good, it is not enough to operate on the articles consumed by them; you should rather operate on the articles which give them the maximum of employment.
There is no question on which the feeling of the country is so unanimous as that of the reduction in postal charges.
§ As regards this question a conference was recently called by the Association of British Chambers of Commerce, which was attended by between sixty and seventy representatives of the principal trade, financial, commercial, and industrial organisations of the country. That conference was unanimously of opinion that, in the interest of trade, a reduction in the postal charges is vitally necessary. One of those who attended the conference wrote of it that seldom has there been a gathering of men more entitled from intimate knowledge to speak on a subject closely connected with the reconstruction and the permanent prosperity of British trade.
342 Following that conference, a general desire was expressed that the Prime Minister should receive its representatives, but unfortunately, in consequence of great pressure of work, he has been unable to do so. He has, however, made the suggestion that the Chancellor of the Exchequer should undertake the duty for him.
§ What I particularly wish to urge is that this great postal question is a national question and not a Departmental one. The prosperity of the country depends upon it. It is not a question only for the Postmaster-General and the Chancellor of the Exchequer, and I should not be surprised to hear—there are certain rumours about—that the Chancellor of the Exchequer and the Postmaster-General are not quite at one about it; I suppose that one wants the money and the other would like to make the reductions. In my opinion it demands the special attention of the Cabinet as a whole, and I want them to realise that an immediate reduction in postal charges is needed to advance trade and to reduce unemployment. It is not sufficiently realised by some of those who are not business men how important cheap postage is to the country.
§ In the House of Commons on May 24 and June 9 of last year, the Postmaster-General stated in substance that as soon as there was a surplus available from the postal receipts the increased postage rates which were then put on would be taken off, and the public would be given the benefit of any surplus by way of a reduction in postal charges. Mr. Chamberlain, when interrogated on this in the House of Commons not many days ago, said that the Government was prepared to stand by the statement made by the Postmaster-General on May 24, 1921. The question arises as to what that means. The Postmaster-General publicly announced that he anticipated a surplus of £8,000,000 or £9,000,000 during the financial year beginning on April 5 next. In anticipation of that surplus I ask for an immediate reduction. I suggest that the Government should not postpone this great commercial benefit. It is urgent that the reduction should come into operation at the beginning of the next financial year.
§ The business men who understand the question submit that the Post Office is not a revenue-earning Department. If it becomes so it will be another form of indirect taxation, and the whole country will protest against it. We urge that the Post 343 Office expenditure should be reduced as much as possible without loss of efficiency; that it should be made to pay; that there should be no surplus of income over expenditure beyond what is necessary for maintenance and upkeep; and that any income derived over and above that should be utilised towards reducing not only the postal charges but those in connection with the telegraph and telephone. Those who have taken an interest in postal matters must bear the name of Rowland Hill in great respect, and I ask the Government to have a little courage and not be afraid to make an advance. Let them be fortified by the example of what occurred when Rowland Hill brought about penny postage. When he introduced the reform it was stated that there must be a loss to the country, and that it would be a failure. Yet we all know how great was the benefit that this country derived from the introduction of cheap postage.
§ I am satisfied—and this is why I take such an interest in the subject—that if you desire to revive the trade and prosperity of the country there is no instrument that you could use with greater advantage for bringing about that result than that of putting people into close and cheap communication one with another by means of the post. Were that done I do not believe the Chancellor of the Exchequer would lose anything. I understand that when the Postmaster-General was appointed his instructions were to make the two sides of the accounts balance. There was no question as to what policy he was to follow. I am happy to say that he has now assisting him a council of first-rate business men, and I hope the result of the deliberations of that council will be to make such an impression upon the Postmaster-General as will induce him to cheapen postage. The Chancellor of the Exchequer in my opinion would derive considerably more financial benefit from cheap postage than is to be obtained from postage at the present high rate. Moreover, cheaper postage would mean full employment for the employees of the Post Office, and that in turn would aid prosperity. But the most important thing is the improvement that would be brought about in the trade of the country and the consequent benefit to the Chancellor of the Exchequer.
THE EARL OF CRAWFORDMy Lords, I take no objection to the political philosophy of my noble friend. He will, I hope, remember that during the current 344 year there is a deficit on the postal service, not a surplus. Looking to the future, if one calculates upon a commercial basis—if one, in other words, takes credit for services rendered by the Post Office to other Government Departments—the accounts ought to show a surplus of several millions. The question of reducing postal rates as a result of the surplus is at this moment under the consideration of the Government—not under the consideration solely of the Postmaster-General or the Chancellor of the Exchequer, but within the purview of the Cabinet as a whole. The Government, I assure my noble friend, fully recognises the advantages which he has pointed out, to commerce and industry, and to a hundred and one walks of public and domestic life, of low postal charges, but these benefits must be considered in relation to the financial situation of the moment, and they must be taken into account before a large sacrifice of actual cash can be finally decided upon. Lord Southwark, having made his statement, will, I feel sure, appreciate that, at the present stage of the financial year and in anticipation of the Report by the Committee of business men to which he has referred, it is impossible to make any more precise statement of policy.