§ Sir N. GRATTAN-DOYLEasked the Postmaster-General whether his attention has been called to the deficit of £1,380,829 on the working of the Post Office telegraphs in the financial year 1927–28; and what steps are being taken, either by reducing expenses or improving the service, to place the system upon a paying basis?
§ Sir W. MITCHELL-THOMSONThere has been a deficit on the telegraph service every year since the introduction of the 6d. telegram in 1885. Expenses are being reduced as far as possible; but in the inland service, which is responsible for the deficit, there has been for years past a continuous decline of traffic, and the consequent falling-off on the revenue side leaves the adverse balance much as it was. Improvements of service are being effected by the introduction of machine telegraphy on a large scale, but I fear that there is no prospect of making the service self-supporting so long as the present inland tariff (with a 1s. minimum) remains in force; and any considerable increase of the tariff would tend further to accelerate the transfer of traffic to the telephone system.