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Dáil Éireann debate -
Friday, 22 Apr 1932

Vol. 41 No. 5

In Committee on Finance. - Vote 62—Posts and Telegraphs (Resumed).

Debate resumed on the following motion:
Go ndeontar suim ná raghaidh thar £1,430,645 chun slánuithe na suime is gá chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh lá de Mhárta, 1933, chun Tuarastail agus Costaisí Oifig an Aire Puist agus Telegrafa agus Seirbhísí áirithe eile atá fé riara na hOifige sin, maraon le Telefóna.
That a sum not exceeding £1,430,645 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1933, for the Salaries and Expenses of the Office of the Minister for Posts and Telegraphs, and of certain other Services administered by that Office, including Telephones—(Minister for Posts and Telegraphs).

Minister for Posts and Telegraphs (Mr. Connolly)

There were various matters raised on the Vote yesterday afternoon, and I would like, as briefly as possible, to cover as many of them as I can. A number of Deputies, including Deputy McMenamin, Deputy Morrissey, and Deputy Gorey, raised a question as to the possibility of a reduction in the cost of telegrams from 1/6 to 1/-. If the reduction asked for were applied in the Saorstát, Great Britain, and Northern Ireland, it would mean a loss of £41,130, and it has to be remembered that we are already losing £100,000 on the telegraph service. In all the circumstances the Department does not feel that the further reduction asked for is possible.

The question of porterage charges was also raised by various Deputies. In anticipation of the matter being raised, we have gone very carefully into it. The actual cost of delivery under this heading is £23,000. I had a long discussion with the official who is chiefly responsible for this end of the business. I asked him to review the position and see if even a reduction in the porterage charge could be made. This matter is at present under consideration, and I think there is a possibility that we may reduce the mileage charge from 6d. to 3d. I am not definitely committing myself to that at the moment. There are a few considerations that have to be taken into account before we definitely decide on it, but my sympathy is with those who want this reduction, and I am hoping that it will be possible in the very near future to effect this reduction.

Am I to understand from the Minister that this sum of £23,000 represents the total charge for the delivery of telegrams within and without a certain radius?

Mr. Connolly

That is the figure that I have got from the Department. The actual amount collected is £11,700.

I take it that would represent the amount collected from those living outside a certain radius.

Mr. Connolly

That is the amount of the collection. My sympathy is entirely with those who are living in areas far removed from telegraph delivery offices, but, like every other problem in the telegraph service, we have got to consider what we can do in view of the fact that we have a very substantial loss each year. As I said here last evening, it is a decaying service, and it is difficult to visualise how greater facilities can be afforded, considering the loss that is already involved.

Deputy Dillon, I think, raised the question of a reduction of staffs and seemed to infer that staffs were being reduced unnecessarily and that this was perhaps affecting the service throughout the State. I am afraid from my limited experience that the very reverse is the case: that we have many redundant officials that we are finding it difficult to place and still have the responsibility of carrying them, as many of them are established officers. It is difficult to assimilate these economically, and it is also going to be costly to dispose of them. We have also very considerable difficulty departmentally in trying to handle the problem of unestablished officers. There are many factors involved in this. One's human sympathy is with the unestablished officer whether he is a postman or an operator, and the inclination is to try and keep him in employment in view of the economic condition generally.

What I look upon as one of the tragedies of the service is that the selection often depends on the Minister. I personally would prefer if that could be obviated, and if the responsibility of making the selection fell into ordinary civil service channels. There is a certain amount of apparent patronage in the hands of the Minister in charge of the Department which causes a good deal of trouble, and I need not tell Deputies what it means to them in applying for preference for different people throughout the State. The main point that I want to come to is that we have redundant officers in the service, and that so far from the staff being hastily or unduly reduced the position is quite the reverse. Deputy Dillon referred to the congestion and faulty service at the General Post Office in Dublin. So far as I can ascertain from the Departmental heads, there have been no such complaints. I would point out to Deputy Dillon that in most businesses such as transport, restaurants, etc., there are what are known as rush hours and on those occasions one has to cope with the rush hour period as well as one can without unduly overloading the service for what might be looked upon as the normal or slack periods of the day.

The question of the reduction of telegram charges to Great Britain has already been dealt with, and I do not think I can add any more to it. Deputy Good referred to the high trunk charges, and to the delays— I think it was he referred to it—in getting connections with cross-Channel centres. I am having the matter of the trunk charges investigated, but I cannot hold out much hope of anything in the matter. With regard to the delays, there has been an undoubted increase in the trunk calls, and particularly cross-Channel calls. The business has grown, it appears, and the only solution would be an arrangement for an additional cable to the cross-Channel ports. That is a matter involving very heavy expenditure, and, under the present turnover, could not be contemplated.

Deputy Good also suggested that we should reduce charges for telephones. I would like to think that, at some future date, or near date, we might be able to consider that, but it will require considerable development yet in the telephone service before it can be contemplated. The people are not yet telephonically minded, so to speak, in this country, but undoubtedly there has been a very considerable growth, and if that growth continues we might be able to arrange for reduced charges. One idea that I have myself is that we should get the American system of monthly charges adopted here. The sum would look very small, and it might be attractive to subscribers, but involved in that would be the extra cost for book-keeping and furnishing accounts. I would also like to mention that our charges are not considered exorbitant in comparison with the charges in Britain. The business line charge in London, Birmingham, Glasgow and Liverpool, is £7, while the Dublin rate is £6 10s. 0d. The private line in these cities is £6, whereas ours is £5, so that we cannot consider that we are being over-charged, particularly when we take into account the proportionately higher number of subscribers there will be on the exchanges in these centres, compared with what we have, even in Dublin. With regard to the congestion in Rathmines and Terenure, so far as I know, most of these applicants have been satisfied, and the services asked for have been fulfilled. I am having further investigation made to see if there are any outstanding cases; if any orders for installations are not yet completed. Deputy Good also raised the question of reducing the postal rate from 2d. to 1½d. I pointed out in my opening statement what the effect of that would be—I think it works out that the reduction in the rate would mean something like £245,000, and, at the moment, we cannot contemplate that reduction, until we show, at least, a margin of profit.

A good many Deputies raised the question of equality of services, and, theoretically, I agree with them; but it is very difficult to see how it can be worked out. A person living in the outlying districts, say, two, three or four miles from a country town, may argue that he is a citizen of the State, and entitled to the same services as a resident of Dublin, and, theoretically, that is sound. But it is a fact that the delivery of letters to the outlying districts far exceeds in cost the postage that is charged. I do not see that we can go very far in regard to giving additional services, when we realise that postmen may have to go a circuit of six miles to deliver three, four or six letters. We certainly are not at the point yet when the economy of the service would allow it.

Deputy Dockrell dealt with the question of the College Green Post Office, and I may say that that matter has been engaging the attention of the Department for quite some time. We are hoping to have reconstruction at College Green. Certain steps are being taken in that direction at the moment. With regard to his complaint about the signs and curtains at that and other offices, I will try to see that such minor complaints as that will be dealt with. Deputy Briscoe raised the question of the savings bank, and the possibility of development in that direction. I may say that the savings bank department belongs properly to the Minister for Finance. However, I want to assure Deputy Briscoe that I am already seeing how the savings bank end of the business can be further extended and improved. It is a big problem, and of course will in the ultimate have to be decided by the Minister for Finance.

Deputy Myles advocates a flat rate for services. This is the old problem again of the man who lives three or four miles outside an area. There is only one aspect of that I should like to point out to Deputies who raised the question, and that is, if the people residing in Dublin have certain services and certain facilities in many directions, they pay for these in another way. The cost of living is probably considerably higher, rentals are considerably higher, and while they have conveniences it is generally felt that they have to pay for these in a great many ways.

Deputy Corish raised the issue as regards co-operation between the local bodies and the Department. I infer from what he said that this is the matter of facilities for erecting poles, brackets and so on. So far as I can learn, this co-operation is sought and generally follows. The Department has no anxiety to work against any interest or any body representing the people or any of the people themselves. I can assure him as far as I am concerned, that I will see that co-operation is always sought and that amicable arrangements are made before anything is done. He also raised the question of the method of compiling the telephone directory. The directory is complied on the alphabetical basis and it is generally believed that this is the most satisfactory way of doing it. I know from my experience in other countries that that is the method universally adopted.

Deputy O'Neill raised the matter of the basis of costs for telephone facilities in outlying districts. I have not had very much time to go into that matter yet. I have already, before I brought forward the Estimate, investigated it to some extent. Naturally, the method is to work out the costs of bringing the telephone to an area —the capital cost, the maintenance cost, and the cost of the engineering work, then take them in proportion to the number of subscribers and fix the cost on the basis of capital and maintenance cost over a certain number of years. I cannot see that any other method can be adopted. An isolated subscriber may want a line to his house and it may cost several hundred pounds to bring it. If he chooses to live in a certain area far removed, say on the top of a mountain, of course the telephone installation can only be made available for him at a certain cost. He also raised the question of superannuation. I was not very clear as to what he was referring, but I think he was talking about the hardship of unestablished postmen not being entitled to an established pensionable position. There are very definite Civil Service regulations governing that and they apply in the Post Office as elsewhere.

Deputy Kennedy mentioned what seemed to him to be an anomaly of a telephone message having to circuit round Dublin and come back to a point within a few miles of the point of origin. It will be obvious that there may be areas where a gap of four or five miles might exist between two points and there would be no justification for the erection either of poles of wires between these two points. If that were the case, the only method of sending a message would be to go right round the circuit. It looks anomalous, but when one realises that here again a cost of £400 or £500 might be necessary to make a direct connection where there would be very few messages perhaps, the situation I think will be obvious to all.

Deputy Norton raised quite a number of points. As he represents the Union looking after the interests of the postal servants I should like to deal with some of these matters. I have already been in contact with the Deputy on various matters affecting the status, position and condition of the service generally. He raised the matter of the Pearse Street office. Whilst the Department will not agree that these charges are entirely justified, and whilst I must frankly admit that up to the present I have not been in the Pearse Street office, I intend to be there next week. The Dáil will be interested to know that already arrangements are being hurried on so that construction work in the Pearse Street office can be carried out. We are very definitely expecting to have this work well under way this year. We want the work carried through for various reasons. It will give a certain amount of employment and I am personally anxious that our staffs should be as well housed and looked after as is possible in the circumstances. Deputy Norton can therefore rest assured that that work will be proceeded with at the earliest possible moment. The Deputy did raise a rather interesting point with regard to what he called the architectural design and structure of the country offices. I suppose we all have certain ideas of the ideal Post Office that we would like to see in every village and town, but unfortunately these are not realisable. We have to realise that in many country post offices we have to take the best available. When we realise further that some of these services only bear a remuneration of £18, £20, £30 and £40, and that for that the services in a small village have to be given, we cannot expect to have a model post office erected there.

The Deputy raised a most important point and one that will require very grave consideration, and that is the question of the closing down of postal services on Christmas Day. There are two points of view about that. In one sense we would all very much like to release all postal servants so that they may be at home with their families on Christmas Day. That certainly is very desirable, and if we feel that the public will stand for that, I would be delighted to see it put through. I understand that all over Great Britain there are almost complete services on Christmas Day. I might mention also that for Christmas Day work post office officials are given double pay, and it appears that some of them would not like to be deprived of that. However, taking the thing on its broad basis, I say that we ought to abolish Christmas Day work if at all possible, and I can assure Deputy Norton that my leaning is that way.

If I can see my way to abolish the Christmas Day deliveries next year, I shall do so, that is, assuming, of course, I am still in the position I am in now. The public, of course, could make that easy. I would point out to the House that every Christmas, appeals are made to post early and to avoid the necessity of employing men on Christmas Day, but, like most notices of that type, they are almost completely ignored.

Deputy Norton raised a most important point with regard to the assistants and to the steps that are possible with regard to making promotion easy or at least available in the postal service. The Executive Council has not yet got to the point of definitely laying down its policy with regard to promotion. But speaking purely personally, my feeling is that all the avenues leading to promotion should be open to every member of the Civil Service. That is not so easy as it might appear. The only method I see possible is to leave the doors open either by limited examination plus selective nomination by responsible supervisors and departmental control so that it would be possible for an intelligent, bright youth to progress from the lowest step in the Civil Service to the highest appointment in his Department. That is fundamentally my point of view from the point of view of justice and the leaving open of the door to promotion. As I say, the Executive Council has not yet dealt with the matter from the complete Civil Service point of view but all my leaning is that way and I hope to see that method adopted.

He also referred to the moral responsibility of the State in its employment, and referred to the responsibilities and onerous work of the postal servants and the question of wages. He stressed the fact that wages would have to come before reduced charges. Here again one would have to approach the matter from the point of view of equity. We do not want any slave-driving or any underpaid workers in the Civil Service. We want reasonable work under decent conditions. That is my attitude of mind, and that will prevail in the postal service so far as I can make it prevail. The question of conditions for the service in the Department being taken before reduced charges will, I fancy, always be taken care of by Deputy Norton and his organisation. These are the main points raised in the debate that follows the Vote, and I think I have dealt with them certainly as fully as my limited experience in the service enables me to do.

There are just a few questions I want to ask. Allowing for the £11,000 collected for deliveries outside a certain area, is there still a loss of £22,000?

Mr. Connolly

The estimate of the cost of telegraph deliveries in 1931 was £23,000. The amount collected in porterage fees is estimated at £11,700. In so far as I understand these figures, the net cost of delivery was £11,300. That is, we recovered £11,700 out of the £23,000 by porterage charges. If we reduce the porterage charge from 6d. to 3d. a mile, it would mean an additional cost of £5,850.

I take it you have a loss of £11,300 within the free delivery?

Mr. Connolly

We have.

And are you satisfied with it?

Mr. Connolly

I would hardly call it a loss, it is the cost.

The other is loss on cost, too. Is it worth while trying to recover this irritating charge of £11,000 outside the free delivery area which is a very considerable burden to impose upon people who are forced to live outside the free area? I have known creameries for instance that have to carry on their business outside the free area who have to pay in many cases 2/6 for each delivery. In some rural areas I know the amount realised from delivery charges outside the free delivery area paid the messenger for all their deliveries in that area. For the sake of this small amount and considering the injustice involved, I ask the Minister to consider the matter now and to do away altogether with this unfair and irritating charge instead of proposing to reduce it from 6d. to 3d. I do not want to use any more adjectives about the matter, but we are suffering from it long enough.

Mr. Connolly

I would ask time to consider that matter and to go into it with the Department. I may say it was a personal urge on my part to get the suggestion tentatively agreed to, but even that is not agreed to yet. The question whether we are prepared to lose £11,700 is a very considerable one. My feeling is that if we approach this step by step it would be a very considerable concession. I can understand that in certain areas the whole wages paid to the boy delivering these telegrams might be met by these charges. We had one Deputy here who said he had to pay six or seven shillings for delivery. If he had three or four deliveries per week it would not only pay the boy's wages, but show a profit. That is very abnormal.

I have not heard of any charge so high as that.

On a point of correction may I say the point I made was that half a dozen telegrams were delivered together at a charge of 1/- per telegram making the whole charge 6/-. For the one delivery 6/- was charged.

Mr. Connolly

I would like time to consider that matter and I shall go into it with the Department. I cannot bind myself down to a figure, but I shall consider the whole matter. All my sympathy is to have the services for every citizen in the State on the same basis and the same cost.

The actual loss on the telegraph service was £94,000 or £100,000.

Mr. Connolly

£100,000 on the telegraph service and this would add £11,000 more.

But you will not then be making a victim of one section of the community.

I wonder could I trouble the Minister for information on one or two points. I think he made the definite statement that there are established officers at the present moment redundant through the service and implied that quite a number of unestablished officers could have their services dispensed with without upsetting the economy of the service in any way. I wonder could we know in what particular branches or in what particular districts there is that redundancy and what are the circumstances in which that redundancy is tending to come about.

The Minister spoke of the difficulty of dealing with cases in which a certain amount of patronage arises. I sympathise very much with his position in that matter. I think the principal line on which patronage arises is in the appointment of sub-postmasters. In such cases is there not in the Post Office service a machine analogous almost to the Civil Service Commission or to the Local Appointments Commission, with the headquarters staff and the local postmasters? Is there not a sound and responsible machinery for recommendation there, and is it not the practice that there is a definite list of preferences put up to the Minister? If it were generally understood that there was that adequate machinery of selecting the best possible person in the opinion of the Department, would it not be possible to get rid of the patronage pressure that is likely to arise in those cases?

I would also like to know from what particular branch of the service the pressure comes for no Christmas Day work. I do not think I ever saw a postman looking unhappy doing his Christmas Day work.

I would like an explanation of the Minister's reply to the query put by Deputy O'Neill yesterday evening. I quite understand the Minister's position in regard to the cost of extending the telephone to a house, say, three miles from the exchange or from a town where there are no subscribers on that line. What I would like to understand from the Minister is that A, who is two miles out the country, gets a telephone extended to his house and the entire capital charge is levied on that man over a number of years. Subsequent to A having got the extension and the entire capital charge being levied on him, B, C and D, on the same line, become subscribers. Are they also charged with the initial cost or is the original subscriber charged with the entire capital cost, while B, C and D receive all the benefit of his initiative in getting the cable extended? If that is so, I think it is a grave injustice, and it is also a handicap on the progress and development of the telephone service.

Mr. Connolly

In answer to Deputy Mulcahy, I cannot at the moment give him the particulars as regards the redundancy in the different Departments of the service. I could however get these and supply it to him. With regard to patronage, undoubtedly there is a machine. There is the system of nomination on departmental advice. That is being followed as far as it is humanly possible to follow it. The Deputy probably knows quite well to what I refer. I think it is undesirable that a Minister or anyone in my position or in a similar position should be in a position to be bombarded by all sorts of pull of one sort or another for positions in a service such as ours.

With regard to the suggestion for the withdrawal of services on Christmas Day, that entirely comes from Deputy Norton who, I think, represents the big Union of which the majority of the members of the service are members. It is from that Union and through Deputy Norton, that the suggestion came last evening. What the result will be I do not know. I mentioned, of course, already that all officers working on Christmas Day are paid double time.

I understood from the Minister that in his own mind he had more or less committed himself so far as he could to do away with Christmas Day work. I hope his mind is still open.

Mr. Connolly

My mind is still open. What I did say was that my leaning was entirely towards the abolition of Christmas Day work. My prejudice may be in that direction. That does not mean to say that having all the facts in regard to the convenience to the public—the departmental view and all the other factors before me—that I would decide that Christmas Day should be a closed day. I hope I will be able to give a judgment, leaving aside my own personal flair for the freedom of employees on Christmas Day.

With regard to the point raised by Deputy McMenamin, I find it somewhat difficult to follow what I might call his algebraic economics with regard to the extension of the telephone service. Of course, if one is a pioneer one pays for it. If A decides to have a telephone two miles from the nearest centre the Post Office cannot be expected to know that B, C, D, E and F will come on afterwards. That is purely a matter of ordinary business adjustment and I think it will be treated in the Department on a purely business basis. I see no other way to do it. This whole question is being closely examined at present—that is all I can promise—with a view to seeing that the very best services that are possible, particularly in the rural areas, will be given as far as the economic position of the service will allow it.

That does not quite clear up the matter that I raised. If additional subscribers come on the line what I would like to know is does the Post Office make an adjustment of the burden on the original subscriber who is paying the capital charge for the entire extension?

Mr. Connolly

I presume the Deputy means does it make a revision of the charge originally made? That, I cannot say, off-hand. It might look justifiable that a refund of the original charge should be made, that if three new subscribers come along three-fourths of the original cost should be refunded to the original subscriber. I do not know what business method is adopted. If the Deputy likes I will investigate the matter and report to him.

I want to refer to three points. The Minister, with some asperity, I must say, referred to my observation about the General Post Office. I conceive it to be my duty, if I have a complaint to make, however unpopular, to make it and let it be contradicted or jumped on. I shall continue to do that. If there are redundant officials in the Post Office I should suggest that some of these redundant ladies and gentlemen should be put in the windows heretofore occupied by the notice "Dúnta" and give them an opportunity of serving the public instead of fattening on the public funds.

So far as the observation I had to make about reducing the cost of telegrams to England, the Minister admits that it is a difficult question. Representations have been made to the Minister for Agriculture again and again by representative bodies with regard to facilitating the export of agricultural produce, to the effect that the 6d. extra tax on telegrams is a serious charge on that very important industry. It may be impossible to remedy it. What I ask the Minister to do, before he puts it out of consideration, is at least to consult the Minister for Agriculture and to look into the merits of the case. If it cannot be dealt with, we can only bear the burden, but if the Minister for Agriculture advises him that it is a matter of serious gravity, then I think it is worthy of more consideration than a brief reference to the permanent officials of the Department of Posts and Telegraphs.

The third point I want to make is this: the Minister said that a person living five miles from a town with which he wants to establish communication through the telephone should understand that it would be more economic to send his message to Dublin and back again than to put up poles and wires between these two towns, between which only one message may travel in the year. I quite understand that, but what we in the rural areas want is that Donegal or Roscommon should be connected with one central exchange in Donegal or Roscommon, and that messages for Donegal or Roscommon should come through the central exchanges in these places. Messages having to be sent a long way to Dublin and back again to the extreme west of the country involve a considerable delay. That could be avoided if there was a central exchange in every county, while messages for more remote parts of the country could go through the central distribution system in Dublin.

Mr. Connolly

I would like to protest against the suggestion made by Deputy Dillon that, first of all, I dealt with this matter of the telegram charges merely by reference to an official or two. That is not the case. I had gone into the matter very closely before I came into the House. I knew it was a burning question with the business population throughout the country and I have investigated it very fully. I have here a minute prepared over two weeks ago on the matter. I would also ask him to believe that I was quite sincere in dealing with his point and that no off-hand manner was intended at all. Actually the position would be if we reduced the minimum telegram charge from 1s. 6d. to 1s., that reduction applied to telegrams originating in An Saorstát for delivery any place in An Saorstát, Great Britain or Northern Ireland, would result in a loss of revenue of £41,130. In regard to the actual loss on the service at the moment, the revenue last year was £197,700 and the expenditure £298,700. The loss on the service at the moment is £101,000. It is entirely a matter for this House to make a recommendation or a decision that they will have telegrams at 1s., 9d. or 6d. and that will be carried out, but the House will have to do that knowing what the loss is at present on the telegram service. Deputies will have to add to that the £41,130, the actual amount that the proposed reduction on the charge for telegrams would add to our loss.

What was the loss on the service when telegrams cost only 1s.? Has the loss increased or decreased since the cost of telegrams was raised to 1s. 6d.?

Mr. Connolly

The loss has been steadily increasing.

Since the cost was raised to 1s. 6d.?

Mr. Connolly

That I cannot say at the moment. But there has been a steady loss on the telegraph services for the period since An Saorstát was established and that loss is increasing. I might further add that I have already examined the telegraph reports of the large cable companies in the United States, and the telegraph services throughout the world are a decaying service. The large cable companies which formerly paid substantial dividends and made enormous profits are facing now a losing period. One large company that had in dividends three years ago paid a million dollars, this year has passed the dividend altogether. That is the telegraph situation throughout the world and we are no different.

I am not sufficiently au fait with the position of the telephone service to say what can be done in regard to telephones being operated from one centre in the county. That will be investigated and, assuming that anything can be done about the matter, the Department will deal with it. On this one would require to have considerably more technical experience than any of us have here, and certainly more than I have got, at all events, to know how the technical position would have to be faced. The issue I was dealing with when I spoke of gaps in the service referred to a particular area which Deputy Kennedy mentioned here last evening.

With regard to the point raised by Deputy McMenamin, I have now a short brief from one of the Departmental chiefs in which he says that if A is a pioneer, if his rental is say £20, and if B, C, D and E come along later, the whole joint cost will be reviewed and fixed on the usual basis, a reduction will then undoubtedly result to A. So apparently what Deputy McMenamin had in mind when he mentioned the matter has already been covered by the method of charge in the Department.

Vote put and agreed to.
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