I move:—
That a sum not exceeding £3,366,630 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, 1950, 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 gross Post Office Estimate for 1949-50 amounts to £5,359,452 but, allowing for receipts to be appropriated in aid, the net Estimate is for £5,117,800. This represents an increase of £327,000 over the net provision for 1948-49 after taking into account the provision of £161,180 in Vote 74 for that year in respect of increased remuneration for Post Office employees. I should remind Deputies that towards the end of 1948-49 a special Supplementary Estimate—Vote 74—was taken to cover increased remuneration for all Civil Service employees. The portion of this attributable to Post Office staff (and which otherwise would have had to be provided by the Supplementary Estimate for my Department) amounts to £161,180 as shown under the heading "Increases in Remuneration" on page 340 of the Estimates volume. To get a true comparison between the estimated expenditure for the current year and the actual expenditure last year amounts for 1948-49 under sub-heads A (1) to A (4), I (1) and Q (1) should be increased by the appropriate portion of the £161,180. I have endeavoured to provide for this in my references to these sub-heads which follow.
The more substantial variations (those of £5,000 or more) occur on the following sub-heads:—
Sub-heads A (1) and A (4)—Salaries, Wages and Allowances—There is a net increase under these sub-heads of £170,980 (after allowing for a provision of £146,130 in Vote 74 for 1948-49). Provision is made for additional expenditure amounting to £135,714 in respect of increased remuneration and for £94,253 to meet increased remuneration to sub-postmasters, normal incremental increases, additional staff, etc. Against this additional expenditure there are offsetting decreases amounting to £59,987, due to savings on retirements, reduced provision for temporary staff, etc.
Sub-head C—Rent, Office Fittings, etc.—The increase, £5,770, is mainly attributable to increased consumption of gas, electricity and fuel.
Sub-head D—Purchase of Sites, etc. (Postal and Telegraph Services only)— The increased provision, £5,150, is for the acquisition of additional sites.
Sub-head E (1)—Conveyance of Mails by Rail—The increase, £28,070, is in respect of higher payments to railway companies for additional services, including day mail train services between Dublin and Wexford.
Sub-head E (5)—Conveyance of Mails by Air—The increase, £14,500, is due to the growth of international air mail traffic. The additional traffic leads, of course, to increased revenue.
Sub-head G (1) — Stores (Non-Engineering)—The provision in this sub-head is for the purchase of non-engineering stores. The increase, £21,665, is accounted for by anticipated additional expenditure of £21,580 on motor vans and accessories and of £13,515 for cycles and miscellaneous stores. The additional expenditure is offset by a reduction of £13,430 in the provision for mail bags.
Sub-head G (2)—Uniform Clothing— The increase, £12,690, is mainly attributable to the improved quality and therefore the higher cost of post office uniform serge, the delay in the delivery of serge during 1948-49, and the partial restoration of the normal frequency of issue of certain garments to uniformed staff.
Sub-head G (3) — Manufacture of Stamps, etc.—The increase, £5,195, is due to the replenishment of the reserve stocks of watermarked paper which had been drawn on for commemorative stamps, new denominations of insurance stamps, etc.
Sub-head I (1)—Engineering Establishment, Salaries, Wages and Allowances—Increase £59,705 (after allowing for a provision of £14,325 in Vote 74 for 1948-49).
This sub-head provides for the total pay of the engineering branch staff but the cost of staff time employed on the development of the telephone service as distinct from its maintenance, is defrayed from telephone capital funds.
The increase is attributable to additional expenditure on labour, increased remuneration, additional staff, etc. There is an increase of £70,115 in the relief from telephone capital funds, and of £3,037 in savings due to retirements, leaving a net increase of £59,705 on the sub-head.
Sub-head I (2)—Engineering Establishment Travelling Expenses—The increase, £17,990, is due to the anticipated increase in travelling resulting from an expanded engineering works programme, and to revised travelling and subsistence rates. The gross increase is £30,160 which is offset by increased relief of £12,170 from telephone capital funds.
Sub-head K—Engineering Materials —This sub-head provides for the total cost of engineering materials but the cost of materials used for development of the telephone service, which represents the major part, is met from telephone capital funds. While, therefore, there is an increase of £191,620 in the gross amount of the sub-head, relief from telephone capital funds amounts to £221,590, leaving a net decrease on the sub-head of £29,970.
Sub-head L (4)—Rent, Rates on Wires, etc.—The increase, £7,230, is due to provision for increased rentals on new telephone exchanges, to higher rates on wires and to increased user of electricity due to telephone development. The gross increase is £7,540, which is offset by increased relief of £310 from telephone capital funds.
Sub-head M—Telephone Capital Repayments—Increase, £32,179. As Deputies are aware, funds for the development of the telephone system are provided under the authority of the Telephone Capital Acts (1924-1946), which authorise the Minister for Finance to issue out of the Central Fund sums for this purpose. They are repayable by means of terminable annuities extending over a period not exceeding 20 years. In consultation with the Minister for Finance provision is made each year under this sub-head for the repayment of the instalments of principal and interest on the annuities created. The increase indicates the continuing expansion of the telephone system.
Sub-head N (1) to N (3)—Superannuation Allowances, etc.—The increase under sub-head N (1) amounts to £19,700 and is due mainly to an increase in the number of pensioners (£17,000), increased provision for marriage gratuties (£3,400), and increased grants from the Minister's special fund (£1,700); these and other minor items are offset by a decrease of £4,200 in the amount of retiring allowances payable. The decrease, £3,460, under sub-head N (2), is due to the decrease in the number of Treaty pensioners.
The decrease (£3,000) under sub-head N (3) is due to a fall in the cost-of-living figure applicable in the case of officers who gave notice of retirement under the Treaty prior to 1st March, 1929, and to the decline in their numbers. The retiring allowances in these cases are paid without an overriding maximum in regard to the cost-of-living bonus, and the British Administration repays the difference in respect of the cost-of-living figure at the time of retirement and any higher cost-of-living figure which subsequently may become operative. The repayments are brought to credit under sub-head T (12).
Sub-heads Q (1) to Q (3)—Civil Aviation and Meteorological—Wireless Services.—These services are controlled by the Department of Industry and Commerce but the engineering personnel (technical and labour) is provided by the Post Office and paid for out of this sub-head, which also defrays the cost of providing and installing equipment and the maintenance charges of the radio stations, rent, etc. The amount so paid is charged against the Department of Industry and Commerce in the Post Office commercial accounts as a "Service Rendered."
Sub-head T—Appropriations-in-Aid.— The principal variations are based on an anticipated increase of £7,300 in receipts from the Widows' and Orphans' Pensions Fund for administration expenses; and anticipated decreases of £8,500 in receipts for agency services performed on behalf of other Governments and of £3,000 in the amount repayable by the British Government in respect of Treaty pensioners.
The financial position of the three main services—postal, telegraph and telephone—at the end of 1947-48, the latest year for which complete figures are available, was as follows:—
Postal Services |
deficit, £22,148; as against a deficit of £26,980 in 1946-47. |
Telegraph Service |
deficit, £251,985; as against a deficit of £140,515. |
Telephone Service |
surplus, £161,897; as against a surplus of £253,430. |
There was thus a net deficit of £112,236 on the three services for 1947-48 as compared with a net surplus of £85,935 for the previous year.
While there was a slight improvement in the financial position of the postal services, the position of the telegraph and telephone services disimproved as compared with the previous year. On the telegraph service the increased deficit was mainly attributable to an increase in salaries and wages arising from consolidation, to higher costs of maintenance, etc., and to a decrease in revenue. The reduced surplus on telephones was mainly attributable to an increase in salaries and wages arising from consolidation, to higher costs of maintenance, etc., and increased provision for depreciation, offset to some extent by additional revenue from extra traffic.
The completed revenue and expenditure figures for the three services for the financial year 1948-49 are not yet available, but preliminary figures suggest that there will be a small surplus for that year.
I am glad to say that the improved day mail services introduced in May, 1948, have worked satisfactorily. As a result it has been possible to improve substantially the times of the second deliveries throughout the country and posting facilities have also been materially improved. There are now reasonably good facilities for day mail postings throughout the South and West of Ireland and correspondence forwarded by day mail connects with practically all night mail despatches from Dublin including the despatches by the cross-Channel packet.
As I indicated last year in my speech on the main Estimate, it had not been found possible at the time to improve the day mail services at offices on the Dublin and Wexford line. I am glad to say that, as a result of discussions which took place recently with Córas Iompair Éireann, it has been found possible to provide, as from 31st May, a fairly suitable day mail train to and from Wexford. The resumption of these services will materially improve the day mail deliveries at Wexford line offices and correspondence posted for up day mail despatches will connect with the cross-Channel packet and the night mail despatches from Dublin.
The service provided by the Holyhead-Dún Laoghaire night packet is not nearly so satisfactory as in pre-war days. The Department is seriously handicapped in its mail arrangements by the late scheduled hour (7.0 a.m.) of the arrival of the steamer from Holyhead, with the result that it is quite impossible to secure satisfactory connections for cross-Channel mails with the early morning down day mail trains from Dublin. In present conditions there does not appear to be much hope of an improvement in this position, and it is difficult to say when it can be remedied. The matter is, however, receiving active consideration.
In order to improve the mail service to Great Britain, the surcharge on correspondence intended for transmission by the surcharge air mail service was reduced from 2d. to ½d. per item (as from 1/2/1949). This amount is payable in addition to ordinary postage so that an ordinary letter now costs 3d. instead of 4½d. to go by air mail to Great Britain. The number of despatches has been increased to improve the outlets and obtain quicker delivery, and it is believed that the service is now much more satisfactory than formerly.
Supplementary use is now made of the Rosslare-Fishguard packet service, and this has improved the transmission and delivery of correspondence between certain centres in the South of Ireland and southern areas in England.
As regards the rural delivery services, I mentioned during the course of my speech on the Estimate last year that a complete examination was being undertaken with a view to giving a weekday frequency of delivery throughout the country generally, and with the further object of improving rural posts. As a result of the work so far carried out, a daily delivery has been granted throughout the whole of the Roscommon postal district. A similar scheme has also been introduced in the Ballinasloe district. The services in the Cork and Longford rural districts have also been surveyed and schemes for bettering the services in these districts will be formulated as quickly as possible.
I should emphasise that the reorganisation of the rural services is not concerned solely with the provision of increased frequency of delivery. Not alone is increased frequency being afforded but deliveries are being expedited and posting facilities are being improved. Furthermore, new sub-offices are being established where warranted and postal facilities at existing sub-offices are being extended. For example, in the revision of the services in the Roscommon district, apart from a daily frequency being afforded on 17 restricted delivery posts, the hour of delivery generally was improved by about one and a half hours and posting intervals were extended appreciably, in some cases by as much as four hours.
In the Ballinasloe district three new sub-offices are being established, money order and savings bank business is being extended to five other existing offices, deliveries are being expedited by about an average of two hours and posting intervals substantially lengthened, apart from a daily delivery being given on 33 restricted frequency posts.
In the Cork area it is expected that 16 new sub-offices will be opened and a daily delivery afforded on 39 restricted delivery posts, apart from many other improvements.
Deputies will, I am sure, appreciate that the work involved in the survey of a head office district is very considerable—it entails the planning of motor, cycle and foot routes designed to afford the best service possible throughout the area. In addition it is necessary to consider the effect on existing personnel. It will, consequently, be realised that an appreciable time must ensue before the reorganisation of the whole country can be completed.
During the past 12 months the Department's motor fleet was increased by 13 vans, and it is expected that the reorganisation of the rural services will result in many more vehicles being added. During the past year 19 sub-offices were opened, money orders and savings bank facilities were extended to 28 sub-offices and 55 new letter boxes were erected.
The internal postal traffic during the past year was very heavy. During the fortnight commencing 4/10/1948 almost 3,000,000 new ration books were delivered in addition to the ordinary mail. The Christmas postings reached an all-time record and it is estimated that about 70,000 turkeys passed through the post for delivery in Great Britain. Heavy postings of tinned jam and tinned fruit added to the difficulty of dealing with the traffic, but the number of complaints of delay in the delivery of turkeys received was negligible. In this connection a word of praise is due to Córas Iompair Éireann, the Great Northern Railway and the British Railways for their co-operation and assistance in dealing with the heavy traffic expeditiously.
On the foreign mails side, a big step forward was taken in the introduction as from 1st February, 1949, of air conveyance as the ordinary means of sending, without air-mail fee, first-class mail to European destinations. Despatches are made daily by air service via London to practically all the European capitals, and the introduction of air conveyance has resulted in a big acceleration in the time of delivery throughout Europe as a whole. During the year 1948 the transatlantic air-mail traffic again showed a remarkable increase, the number of items despatched by air to the United States reaching a total of approximately 3,250,000 as compared with 2,500,000 in 1947.
An air parcel-post service to the United States has just been established. In addition, reduced air-mail rates have been introduced for second-class mail to the United States and Canada. The air parcel-post rate to the United States is 6/- for the first ½ lb. with an additional 4/- for each subsequent ½ lb. The air-mail rate for second-class matter is 9d. for the first ounce with an additional 4d. for each succeeding ½ oz.
Surface mails to and from the United States are being shipped regularly via Cobh. It has been found possible on occasions to utilise with advantage the services of Irish Shipping for their despatch.
A matter which has been causing concern is the extent to which correspondence from the public for Government Department is being posted without pre-payment of postage. It has been the practice of the Post Office to accept and deliver all such correspondence, but this arrangement was originally intended to apply only to correspondence which was on the business of the State. It has, of course, been impossible for the Post Office to determine what correspondence posted by the public in private envelopes is on the business of the State, but from a recent examination of correspondence for my own Department, it is clear that many letters which should have been prepaid were posted without postage. It has. accordingly, been decided that letters addressed to Government Departments will have to be fully prepaid by the senders in future, unless, of course, an official paid envelope supplied by a Government Department for the purpose is used.
Telegraph traffic showed a very slight decline on the figures for the previous year, with a consequent decrease in revenue receipts. The loss on the service for the year 1948-49 is, therefore, likely to exceed the loss, already mentioned, of £251,985 for 1947-48.
This is obviously an unsatisfactory situation, and I am taking steps to have the whole position thoroughly examined with a view to securing whatever amelioration is possible. Meanwhile the quality of the service is being improved as much as possible.
A second voice frequency telegraph system between Dublin and Limerick will shortly be available for service, and the substitution of an 18-channel system for the present six-channel system between Dublin and Cork is nearing completion.
So far as the telephone service is concerned the main effort of the Department during the past year was concentrated on the provision of telephones for those people whose applications were on hand on 31st December, 1947. There were approximately 7,000 such applications and before the end of the year the great majority of these had been satisfied. Applicants in the area to be served by the new Cork Automatic Exchange and by a new automatic exchange at Ballsbridge will not be dealt with until the new exchanges are ready later this year.
The total number of additional lines installed in the whole of 1948, including new applications for priority lines dealt with during the year, was approximately 7,000. The greatest number ever previously installed in a year was about 2,600.
The policy of concentrating engineering staff in particular exchange areas to clear off waiting applications there before proceeding elsewhere is being continued during the present year. In the provinces all applications made up to the time the engineering staff move into an area are, so far as practicable, being cleared together. Applications for lines requiring a considerable number of poles have had to be deferred owing to poles shortage, but the supply position in this respect has recently improved and long-outstanding applications will be dealt with gradually during the year. In Dublin, owing to underground cable difficulties, applications made up to 31st December, 1948, are being dealt with before applications received this year and not at the same time, as in the provinces. It is hoped it may be possible to deal with the 1949 applicants in some districts before the end of the year. The principal difficulties to be overcome are lack of exchange equipment and shortage of spare circuits in the underground cables. These are being dealt with as quickly as the supplies and labour position will permit.
The rural call office scheme, under which a public telephone will be provided in every post office which has not hitherto had a telephone, was suspended during the past year in favour of the provision of telephones for waiting applicants. It is hoped to resume work on this scheme later in the year.
Telephone traffic continues to increase. During 1948 the total number of local calls made was 57,000,000, as compared with 54,000,000 in 1947. The number of trunk calls increased from 7,462,000 to 8,111,000.
Because of the concentration of engineering staff on the provision of telephones for new subscribers, trunk construction work had to be restricted during the year. A certain number of circuits were, however, provided mostly by means of three-channel carrier equipment (which enables three additional channels to be obtained from one pair of wires). Three additional circuits between Dublin and Galway have recently been provided by this means.
There is still unavoidable delay, considerable at times, on calls over many of the main trunk routes. Owing to heavy loading of the pole routes radiating from Dublin, the only satisfactory way of giving relief is by laying main underground cable. The scheme to lay such a cable from Dublin to Limerick and Cork with branches to Athlone and Waterford will, it is expected, be completed in two or three years. This cable will provide sufficient circuits to enable a "no delay" service to be given over a large part of the trunk system.
Calls over many of the shorter trunk routes are also subject to abnormal delays during busy periods. The relief of these routes will be given particular attention during the coming year.
In Dublin a new suite of 30 switchboards and ten monitors' desks was installed in the Central Trunk Exchange. This suite adds approximately 65 per cent. to the original capacity of the exchange and enables more operators to answer calls to "O", "30" and "31".
Additional or larger switchboards were installed at Limerick, Sligo, Bray and over 100 other exchanges. At Malahide a new unit automatic exchange was installed in replacement of a smaller-type automatic exchange. Malahide subscribers can now dial directly into the Dublin automatic system.
Work is at present in progress on the installation of an automatic exchange at Bray and this, with the new automatic exchange at Cork, will be opened later this year.
The Department's efforts to provide adequate accommodation to cope with the growth in postal and telephone traffic and the consequential increases in staff have continued to be hampered by the difficulties which beset the building industry.
Plans are in various stages of progress for the provision of new buildings at a number of centres and for reconstructions, alterations, or improvements, at practically all the offices in the remaining centres. A considerable amount of internal alteration and improvement has already been carried out.
Progress has also been made with a number of major projects. As already indicated, building have been completed for new telephone exchanges at Cork and Bray. In Waterford the steel structure for a new telephone exchange has been erected, and we intend to press on with the remainder of the work as quickly as possible.
Work on the erection of the new trunk telephone exchange and public office at St. Andrew Street, Dublin, which I mentioned last year had been temporarily deferred, has commenced. Good progress is being made with the building at the rere of Hamman Buildings, O'Connell Street, Dublin, which is to house the North City Automatic Telephone Exchange and the administrative headquarters of the telephone service.
I regret that it has not been possible to make much progress with the plans for the proposed new central sorting office at Pearse Street, Dublin. We are, however, giving some relief to the present office by the erection of a temporary extension, which we expect to have ready for the Christmas mails. We are also considering how best relief can be given to the overcrowded parcel office at Amiens Street, Dublin.
Other works in hand in the Dublin area include the provision of some additional accommodation at the engineering branch headquarters at Leitrim House, the development of premises at Distillery Road for engineering workmen and motor transport, and the erection at the St. John's Road depot of a new motor repair shop and garage.
The value of contracts placed by the Department's stores branch last year was £1,530,740 as compared with £1,385,970 for the previous year. This increase was mainly attributed to the greater quantities of engineering stores required for telephone development. An improvement which took place in the general supply position during the first half of the year was not maintained; and it was difficult to obtain supplies of steel and other metal products. The lead supply position was very difficult but the Department was fortunate in being able to place contracts for all its requirements of lead-covered cables. Prices, particularly for mentals, showed a tendency to harden during the year.
The amount (including interest) to credit of Savings Bank depositors on 31st December, 1948, was £39,000,000 an increase of £2,134,000 on the amount to credit on 31st December, 1947.
In 1948 the deposits exceeded withdrawals by £1,350,000, as against an excess of withdrawals over deposits in the previous year. This return to a deposits surplus is in the main attributable to the restoration of the 2½ per cent. interest rate from 1st July, 1948, since when the amount of deposits has shown a marked increase.
A comprehensive savings campaign was undertaken by the Department towards the end of 1948. The full effect of the campaign, however, will only be reflected in the accounts for 1949.
The amount remaining invested in saving certificates at the end of 1948 (exclusive of interest) was £11,979,000.
During 1948 the sale of certificates amounted to £1,108,000 and repayments (exclusive of interest) to £815,700. The corresponding figures for 1947 were: sales £960,600, and repayments £680,400. The increase in sales is mainly due to the increase in the maximum holding from £500 to £1,000 per person from 13th May, 1948. The increase in repayments may, no doubt, be attributed to the continuance of post-war spending on goods formerly in short supply.
In pursuance of Government policy, preference for subordinate employment continues to be accorded to ex-members of the Defence Forces. During 1948 116 ex-members of the Defence Forces were appointed as established postmen following their success at the limited examination held in August, 1947.
During 1948 152 temporary and part-time postmen were appointed as established postmen as a result of success at a limited examination held in August, 1947, and 51 part-time postmen in the provinces were appointed as full-time unestablished postmen as a result of revisions. In the same year 30 temporary postmen in Dublin, each with not less than ten years' service, were appointed in an unestablished capacity; this was an exceptional arrangement to meet staff difficulties in Dublin.
The new schemes in the sphere of staff management which were introduced during the last few years, that is to say-review of organisation and methods, training of new entrants, conferences with postmasters and conferences with telephone supervising officers and telephonists—are being continued with very satisfactory results.
In conclusion, I wish to express to all grades of the staff my appreciation of their excellent work during the year in dealing so efficiently with the heavy tasks in all branches of the Department.