§ Sir N. GRATTAN-DOYLEasked the Postmaster-General whether he is aware that it is the practice of the telephone department to demand from subscribers making increased use of the telephone service a larger deposit; and whether he will consider a cessation of this demand in view of its effect in discouraging subscribers from making additional use of the service?
§ Sir W. MITCHELL-THOMSONPrior to the revision of the telephone tariff in 1921 local calls were paid for in advance arid trunk calls, against which a deposit was held, monthly in arrear. The present system, which is more liberal to subscribers, provides for both local and trunk calls being paid for quarterly in arrear, a deposit being held to cover the extended period of credit of which the subscriber gets the benefit. The deposit is calculated at approximately two-thirds of the quarterly charges for calls and is therefore subject to increase when greater use is made of the service. Deposits are required partly as security against loss but mainly to help in financing the service during the period of credit, and I regret I am unable to recommend a reduction.