asked the Chancellor of the Exchequer if he is in a position to state whether any actuarial calculations have been made as to the effect on the Post Office revenue of a return to the penny post; what percentage increase in actual business done might be anticipated from the diminution of cost to the letter writer; and what effect on employment in the Post Office service such additional business might be reasonably expected to have.
§ Sir W. MITCHELL-THOMSON
I have been asked to reply. In framing an estimate of the effect upon the Exchequer net receipt from the Post Office of a return to penny post there are numerous factors which have to be taken into account, besides those mentioned by my hon. Friend, and it is not possible to deal with them within the limits of a Parliamentary answer. I may say, however, that the figure of £6,750,000 to £7,250,000 given by my right hon. Friend248W last Thursday is based upon the expected revenue for the year 1929–30, and includes not only the cost of reducing the Imperial letter rate to 1d., but also the postcard rate to ½d., as well as the additional expenditure of all kinds needed to deal with increased traffic.