I move:—
That a sum not exceeding £2,108,125 be granted to complete the sum necessary to defray the Charge which will come in course of payment during the year ending the 31st day of March, 1946, for the Salaries and Expenses of the Office of the Minister for Posts and Telegraphs (45 and 46 Vict., c. 74; 8 Edw. 7, c. 48; 1 and 2 Geo. 5, c. 26; the Telegraph Acts, 1863 to 1928; No. 14 of 1940 (secs. 30 and 31); No. 14 of 1942 (sec. 23); etc.), and of certain other Services administered by that Office.
The estimated Post Office expenditure for the financial year 1945-46 amounts to £3,225,125, representing a gross increase of £223,364 on the provision for 1944-45, of which approximately £174,080 is due to increased cost of living and emergency bonus. There are offsetting decreases of £62,894, leaving the net increase in expenditure £160,470.
The principal features of the Estimate are as follows:—Sub-heads A (1) to A (4)—Salaries, etc. The gross increase is £203,526, due in the main to increased bonus, which accounts for £151,815; to normal incremental increases; to additional staff provision necessitated by general growth in various classes of work, including additional remuneration to sub-post masters for increased business; provision for officers resuming from Army service, and increased cost of labour in Post Office factory, etc. There are offsetting decreases amounting to £23,316, the result of savings on retirements and lesser number of weekly pay days at certain offices—leaving the net increase under the sub-heads £180,210.
Sub-head E (2)—Conveyance of Mails by Road. There is an increase of £2,570, due to increases in subsidies to mail car contractors to meet advances in maintenance, etc., costs. Sub-head E (5)—Conveyance of Mails by Air. There is a reduction of £13,869 under this sub-head, due to provision having had to be made last year for arrears of payment in respect of Commonwealth air services.
Sub-head G (1)—Non-Engineering Stores. There is an increase of £4,585, due chiefly to increased cost of mail bags; to the purchase of charcoal for gas producer plants and to higher cycle costs. Sub-head G (2)—Uniform Clothing. The decrease is £9,000. Provision above normal had to be made under this sub-head last year due to an anticipated reduction in credits from other Departments. This was due to difficulty in obtaining raw materials and consequent delay in placing contracts. Sub-head G (3)— Manufacture of Stamps, etc. The increase of £1,630 is due to provision of additional watermarked paper for children's allowances orders and to increased price of paper.
Sub-head I (1)—Engineering Salaries, etc. This shows a decrease of £7,075. The gross decrease is £25,890, due mainly to increased relief from telephone capital, against which there are offsetting increases on account of cost-of-living and emergency bonus—£16,315 —staff increments, etc. Sub-head M— Telephone Capital Repayments. Here the increase is £5,873. The repayments are in respect of annuities created under the Telephone Capital Acts, which authorised the Minister for Finance to borrow moneys for the development of the telephone service. The provision to be made each year is notified by the Minister for Finance.
Sub-head N (1) — Superannuation Allowances, etc. The increase here of £12,765 represents an increase in the total payments to pensioners, due to additional retirements; also increased provision for marriage and death gratuties, bonus, etc. Sub-head O (1) —Savings Bank Salaries, etc. The increase of £2,675 under this sub-head is due mainly to increased cost-of-living and emergency bonus. Sub-head O (4)—Stationery, Advertising, etc. The decrease of £7,570 is due to special provision in 1944-45 for advertising of savings bank facilities not being repeated this year. Sub-head O (6)—Losses by Default, Accident, etc. There is a decrease of £2,050. The saving bank losses were higher in the previous year, necessitating increased provision in that year.
Sub-head Q (1)—Salaries, Wages, etc., Civil Aviation and Meteorological Wireless Services. There is an increase of £3,250, representing mainly the cost of increased technical staff and of labour for new works. Sub-head Q (2) —Civil Aviation Equipment, etc. The decrease is £17,190. A special provision of £17,000 was made in 1944-45 for the payment of outstanding accounts in respect of radio equipment supplied. Sub-head T — Appropriations-in-Aid. This shows a reduction of £7,081, due mainly to decreased receipts from savings bank funds and from other administrations in respect of agency services performed for them, e.g., payment of money orders and postal orders.
The financial position of the three main services—postal, telegraph and telephone—on a commercial basis at the end of 1943-44 (the latest year for which complete figures are available) was as follows: Postal services— surplus £114,621; telephone service— surplus £247,703; telegraph service— deficiency £73,685; showing a net surplus of £288,639 on the three services. This surplus is estimated to have dropped to approximately £89,000 at the end of the financial year just completed (1944-45). Although the revenue of each service increased substantially last year increase was more than counter-balanced by increased administrative and operating costs—mainly cost-of-living bonus.
The past year was one of considerable difficulty for the Department in connection with the maintenance of the internal mail services, by reason of the drastic restrictions in railway transport which became operative in April, 1944, as a consequence of the emergency coal situation and which involved an almost complete reorganisation of the mail arrangements. Passenger services generally, except on certain local lines, were reduced from six days a week or two, and, on the days on which the passenger trains did not run, the Department was dependent for the conveyance of mails upon much less expeditious transport —goods trains, lorries and buses— running at times only moderately suitable for Post Office purposes. Certain branch lines were closed, and, generally, the transmission of correspondence was closed down, especially in areas in which travelling post offices had to be withdrawn. There was, however, no serious dislocation of service, and I am glad to acknowledge that the railway company did everything in its power to meet Post Office requirements in the very difficult circumstances. The position improved somewhat in July, 1944, when passenger train services were increased to four days a week and additional bus services provided. The Department has kept the closest possible watch on the situation, and has availed of every opportunity that presented itself to improve the mail arrangements. So long, however, as the present restricted transport facilities continue, the existing postal services are the best that can be afforded in areas served by Córas Iompair Éireann. As far as the employment of postal staff is concerned, the mail service restrictions have, fortunately, had little adverse effect.
I am glad to be able to report an improvement in the postal services in North-West Donegal. Since 25th November last the night mails for the Letterkenny area have been conveyed by special service from Strabane to Letterkenny, and under the new arrangements it has been possible to have the mails ready for despatch from Letterkenny Post Office at 6 a.m. As a result of the new arrangements, deliveries along the entire Burtonport line have been accelerated and the scheduled time of arrival at Burtonport is now 9.5 a.m. as compared with 12.35 p.m. previously. There has also been substantial improvement in the postal services in the Rathmullen, Milford, Downings and Rossnakill areas.
Postal traffic during the year, apart from the Christmas period, showed little variation as compared with the previous year, the upward trend in parcel traffic continuing. The traffic during the Christmas period was extremely heavy, but the satisfactory response to appeals for early posting, combined with the restoration of normal train services during the fortnight before Christmas, enabled the Department to effect delivery of all Christmas mails before Christmas Day.
As regards cross-Channel mail services, for a period of four months last year the sailings of the Dun Laoghaire-Holyhead Packet were restricted to three days a week in each direction owing to circumstances outside the control of this Administration. By the use of the cargo boats from and to the North Wall it was, however, possible to maintain the cross-Channel mail services without serious impairment. The normal emergency services were restored in July last.
Postal communication with foreign countries generally has undergone little change during the past 12 months. Hostilities in Western Europe last summer caused interruption of the services to France and other European countries, with the exception of Portugal, Spain, Sweden and Russia. Limited services are, however, again in operation with the Vatican City, with Southern Italy (including Sardinia and Sicily) and with France and Belgium. The service to Switzerland which was suspended for a time has been restored. The transmission of foreign correspondence generally is, of course, subject to serious delay.
The various air mail services continue to be used extensively. In addition to approximately 300,000 air-graphs, over 38,000 ordinary air letters were despatched by Commonwealth Air Services last year. Air mail services to the Continent of Europe which had been suspended for some months have now been partially restored. It is hoped to introduce a 6d. Commonwealth air letter service in the near future. Foreign parcel post traffic, which showed a material decline in 1943-44, is again growing. Over 281,000 parcels were received and 4,800 despatched last year, as compared with 111,100 received and 2,600 despatched in the previous year. Events are happening so rapidly that we may anticipate a marked improvement in external services in the near future.
There is little new to be said about the telegraphs. While the service continues to benefit from emergency traffic, especially telegraph money orders, expenditure has grown considerably by reason of increased operating costs. It is estimated that at present the loss on the service is approximately £113,000, as compared with £73,600 at the end of March, 1944. There is nothing the Department can do to improve the position.
The growth of the telephone service continues. Notwithstanding the suspension of the cross-Channel service for five months, there were 686,000 more trunk calls in 1944 than in the previous year; while the increase in local calls was 2,000,000. As an indication of the extraordinary development of the service since pre-war days, I may mention that in 1938 trunk and local calls numbered respectively 3,297,000 and 30,000,000; the figures for 1944 were 6,630,000 and 43,000,000 respectively—representing percentage increases of 101 and 43. With these remarkable figures in mind and taking into account that line construction and other stores are unobtainable, it is not surprising that the standard of service, particularly of the trunk service, is at times adversely affected, especially at peak traffic hours. Everything possible is done to keep delay to a minimum, but as the capacity of circuits is limited, delay at times cannot be avoided. Even so, apart from peak hours, a very substantial proportion of trunk calls is dealt with "on demand", that is, while the caller remains at the telephone.
Lest the Department may be again charged, as it has been previously charged, with a want of foresight in relation to the provision of reserve stocks of telephones and telephone plant, let me repeat what I said on the matter a year ago when presenting the Estimate for the last financial year. I pointed out that, as far back as 1938, when the European situation showed signs of disturbance, reserve stocks to the value of £100,000 had been purchased. At the outbreak of the emergency we had actually a reserve of three years' supply—quite a reasonable provision at the time. But the emergency brought its immediate telephone problems and the huge network of communications that had to be arranged for the Defence services, on a scale that could not possibly have been anticipated by the Post Office, ate rapidly into the reserve. Supplementary stocks, up to the limits obtainable, were subsequently secured, but they had to be drawn upon to meet the requirements of the abnormal traffic which developed from emergency conditions.
In connection with the replenishment of stocks it has, of course, to be borne in mind that the materials employed for engineering purposes have in the main to be imported and that, as they are materials of a type in large demand by the belligerent countries, it has been impossible to procure them for our purposes in anything like adequate quantities. We have managed to keep going during the past few years only by resort to very special expedients, as, for example, by getting the utmost possible life out of spare and recovered materials, expending on reconditioning money in excess of what would be justified if normal sources of supply were still available. I regret that I see no prospect of any material improvement in the supply position at an early date. In the extremely difficult circumstances, however, I think that the service afforded has, on the whole, been as satisfactory as could reasonably be expected.
The total number of subscribers' circuits at the end of 1944 was 32,773, an increase of 1,357 during the year. There was an increase of 1,135 in the number of subscribers connected to the automatic exchanges. The position as regards new subscribers is that, owing to shortage of instruments, of underground cable and of wire for overhead circuits, it has recently been necessary to impose further restrictions on the provision of service. A list of priorities has been drawn up, preference being given to essential and emergency services, hospitals, doctors, etc., and this must be rigidly adhered to until the supply position improves. Meantime, however, Deputies may rest assured that every effort will continue to be made to afford service where there are special circumstances.
At the end of January last, a severe gale, followed by snow and frost, caused considerable damage to the telephone and telegraph plant throughout most of the country, more especially in the south-east, where the damage in the Wexford, Waterford and Kilkenny areas was very extensive. A large number of trunk circuits was put out of service and large numbers of subscribers were cut off. All possible steps were taken to repair the damage as rapidly as possible and normal working was generally restored by the end of the month.
A 3-channel carrier system was opened between Dublin and Clonmel during the year and steps are well advanced for bringing a Dublin-Tralee 3-channel system and an additional Dublin-Limerick 3-channel system into operation in the near future. We have also a promise of delivery during the coming year of a new type of carrier system which will give 10 speaking circuits on the one pair of physical lines. With this new equipment, if delivery is not unduly delayed, a material increase in the long distance circuits throughout the country should take place in the near future. In addition to the circuits to be provided by means of carriers we have, for the coming year, an extensive programme of new overhead circuits. The extent to which the programme can be carried out in practice will, however, depend upon the supply position.
Traffic on the automatic exchanges in Dublin has been very heavy during the past year and continues to grow. In consequence of the impossibility of obtaining additional automatic equipment, the exchanges are working under conditions of considerable difficulty. Schemes for large-scale relief have been prepared and will be put into operation as soon as plant is forthcoming.
I may mention an interesting development in regard to the limitation of calls from call offices in the Dublin area. All automatic coin box installations, including all the street kiosks, have been fitted with equipment which limits the time of local calls to five minutes after the number dialled has replied. A warning of the termination of the call is given by "pips". It is estimated that the number of calls thus restricted is something between 800 and 900 per day, which means that the call offices generally are at the disposal of a much larger number of the public than was formerly the case. The expedient remedies a nuisance which was a source of much public dissatisfaction and one to which attention has frequently been directed during Estimate debates. It is a source of satisfaction to record that the complicated equipment required was designed by our own engineering staff.
It is estimated that, at the present time, the profit on the telephone service is about £247,500, the same as at the end of the year 1943-44. Increased revenue last year of £30,000 was counterbalanced by correspondingly increased expenditure.
In concluding my remarks in regard to telephones, I may say that I anticipate large-scale development of the service in post-war years. The installation of a telephone call office at every post office now without service is intended as part of a five-year plan, and it is also hoped to increase our existing plant sufficiently to cater for double, or even treble, the existing number of subscribers. Preliminary investigations and plans are well advanced.
The value of contracts placed by the Stores Branch last year was £1,431,211, an increase of £53,572 on the figures for the previous year. The value of contracts placed for articles manufactured or assembled within the State was £1,128,235. Difficulty is still being experienced in obtaining tenders for imported stores, or stores manufactured from imported materials, although there have been some signs of improvement in this respect of late, especially in regard to tenders from Great Britain. We have, I may say, left nothing undone, both on our own part and in conjuction with the Department of Supplies, to procure stocks.
The Post Office factory, which was destroyed by fire in November, 1942, has been re-established, and all the shops are at present working. The equipment is satisfactory and the employment given at the moment compares favourably with that prior to the fire. The extent to which this position can be maintained will, of course, depend upon the situation in regard to raw materials and spare parts, which is at present particularly difficult.
With regard to Post Office buildings, final plans for a post office and telephone exchange at St. Andrew Street. Dublin, have been approved but, owing to scarcity of materials, building work cannot yet be undertaken. It will, it is expected, be possible to give the matter early priority after the emergency. It is hoped, too, that construction work on the new district office at Whitehall, Drumcondra, will commence very shortly. In regard to Post Office accommodation generally, I may say that a comprehensive survey is at present being made with a view to effecting improvements as soon as building materials are again available. Serious difficulties for the Department in the matter of accommodation have arisen from the large volume of additional work falling on post offices by reason of the various new social services instituted during the emergency, particularly the children's allowances scheme.
The development of Post Office Savings Bank business proceeds apace. Five years ago annual deposits numbered about 679,000 and amounted to slightly under £3,000,000. In 1944 the number of deposits was in excess of 1,000,000 and the total amount was £8,500,000. Withdrawals, on the other hand, only rose from £2,100,000 to £3,400,000 in the same period. The average amount deposited per transaction five years ago was £4 6s.; it is almost double that amount to-day. One person in every six of the population of the country now has an account, indicating the widespread appeal of the Savings Bank.
In addition to the ordinary deposits a sum of £949,500 was deposited last year by way of investment of moneys received by the Minister for Finance for the credit of trustee savings banks under Section 31 of the Finance Act of 1940 and £31,200 was withdrawn by these banks. Interest credited to the banks during the year amounted to £74,000. The total, inclusive of interest, invested since 21st November, 1940, amounted to £3,143,500. The total amount invested by the public in Savings Certificates during 1944 was £1,511,000, an increase of £336,000 on the figures for the previous year. Withdrawals (principal and interest) amounted to £619,000, leaving a net saving for the year of £892,000.
I have to refer in conclusion to the serious railway accident which occurred on the 20th December last as a result of the night mail train from Dublin having crashed into a stationary cattle train at Straboe, near Portarlington, and which resulted in the death of one of the officers employed in the travelling post office and in serious injury to two others. The regrettable circumstances are well known and it is not necessary for me to refer to them in any detail, but I am glad to say that accidents of such tragic character are rare, both in railway and Post Office history, in this country. In expressing my very deep sympathy with the relatives of the deceased officer and with the officers who were injured—all excellent officials—I wish to pay tribute to the remaining members of the sorting carriage staff whose zeal and devotion to duty on the distressing occasion, under conditions of considerable hardship, were in accordance with the best Post Office traditions. To all concerned, including civilians on the wrecked train and officials from post offices in the vicinity, I return grateful thanks for the valuable assistance so promptly and willingly rendered.
