§ Sir J. D. REESasked the Postmaster-General what was the loss on the Post Office telephones and telegraphs for the years 1904–5 to 1910–11; and, in estimating such loss, what allowance is made for depreciation of plant and buildings and interest on capital?
§ Mr. HERBERT SAMUELThe information required by the hon. Member is contained in the accounts which I presented to this House on the 24th November, 1911 (No. 328). As far as telegraphs are concerned special provision is made in those accounts for interest on the original capital expenditure up to 1879 when the telegraph capital account was closed and depreciation is met by the provision for the maintenance and renewal of plant included in the voted expenditure. As regards the telephone service, the separate telephone accounts show the amount of the annuities provided for the repayment of the capital2210W which has been expended in the construction of plant and in the provision of buildings. The provision made for depreciation in this way is in addition to the actual expenditure which is incurred from year to year in the maintenance and renewal of plant. The amounts charged against the two services do not include any charges in respect of the use of premises except in so far as telephone buildings have been provided by telephone capital expenditure redeemable by annuities spread over a period of fifteen years. Arrangements are being made to issue new forms of commercial accounts for both services in which full allowance will be made for the depreciation of plant and buildings as well as for interest on capital.