§ 2.51 p.m.
§ THE EARL OF LISTOWELMy Lords, I beg to ask the Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they propose to take action to reduce the deficit in the Telegraph Service shown in the Post Office Commercial account.]
§ THE POSTMASTER GENERAL (EARL DE LA WARR)My Lords, I have certainly been thinking about the telegraph service a great deal. For very many years this has had to be carried at a 1018 loss, as a service needed by the public. As the Bridgman Committee put it, the inland telegraph service, which is the heart of the problem, is between the upper and nether millstones of an expanding telephone service and a postal organisation which offers a 24-hour service to most parts of this country. In spite of technical improvements, and adjustment of staff numbers to the continuing decline in traffic, the costs of the inland telegraph service have been rising so steeply that we expect to lose over £4½million this year
This problem has been looked at repeatedly by my Department, and in February last I appointed a small group to give undivided attention to it. So far as I can see, after making allowance for every possible economy in working, we may well find ourselves faced with a choice between a continuing heavy subsidy from the users of other Post Office services or else higher charges for inland telegrams. Both courses are unpalatable, and I intend to give the matter very careful further consideration before coming to any final decision.