Sir T. POLSONasked the Postmaster-General how the figure of £18,000,000 per year, which it is alleged would be required as a subsidy if the 1d. per ounce letter rate and the ½d. rate for postcards were reinstituted, was arrived at?
§ Mr. KELLAWAYThe figure of £18,000,000 was based on the assumption that a return to pre-War postal charges would secure an increase in the volume of correspondence to the pre-War level. As, however, the year immediately preceding the War was a year of great trade activity and there is to-day great trade depression it is doubtful whether a reduction in the present postal charges would secure such an increase, in which case the hon. Member's proposal would involve a subsidy of more than £18,000,000 a year.