§ Mr. Banksasked the Secretary of State for Industry what is his estimate of the percentage decrease in the value of postage stamps sold, translated in terms of the numbers of first and second class letters in their present ratio, which would have the effect of reducing income to the level it stood before the introduction of higher postal charges.
§ Mr. Gregor MackenzieI estimate that a fall of about 18 per cent. in the volume of inland letter traffic would be needed to reduce the income from that service to the level obtaining before prices were increased on 29th September. This assumes that the proportions of first and second class mail remain unaltered by this price increase. The Post Office tells me that it cannot yet assess the actual effect of the increase over the whole range of letter traffic, but it has estimated that letter traffic over the 12 months from 29th September will be some 3½ per cent. lower than it would otherwise have been.