§ 63. Mr. Robert Jenkinsasked the Assistant Postmaster-General whether he has considered the statement in the Annual Report of Cable and Wireless Limited, that, after providing for taxation, the company will not be left with any earned surplus for the year 1952–53 and subsequently, unless charges are raised; and to what extent he proposes to make changes in the overseas telegraph rates.
§ Mr. GammansIn view of heavy increases in costs and the consequent serious deterioration of the financial position of the overseas telegraph services; my noble Friend regrets that an increase in overseas telegraph rates is unavoidable. He proposes, therefore, to raise the rates to the Commonwealth and foreign countries; the increase will generally be 139W one-third, the main exceptions being in the services to North America and to a few European countries where the increase will be 50 per cent. The new rates will come into force from 1st September, and full details will be published in the London Gazette and the Post Office Guide.
I would assure the House that my noble Friend has accepted this necessity with the greatest reluctance, but I would point out that there has been virtually no increase in rates since 1929.