I move:—
That a sum not exceeding £6,424,000 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, 1961, for the Salaries and Expenses of the Office of the Minister for Posts and Telegraphs (45 & 46 Vict., c. 74; 8 Edw. 7, c. 48; 1 & 2 Geo. 5, c. 26; the Telegraph Acts, 1863 to 1953; No. 45 of 1926; No. 14 of 1940 (secs. 30 and 31); No. 14 of 1942 (sec. 23); No. 17 of 1951; etc.), and of certain other Services administered by that Office.
The net Estimate amounts to £10,114,000, being a gross total of £10,780,592, less Appropriations-in-Aid of £666,592. The net provision represents an increase of £401,300 on the comparative total shown for 1959/60, but the increase of revenue we expect is enough to offset the increase in expenditure.
On a commercial account basis, it is expected that we shall maintain roughly the same position as during the last few years when Post Office operations showed a profit, though a relatively modest one. However, I shall deal with the general financial aspect in more detail later on.
Deputies may already have noted that the amounts we are now dealing with do not include any of the sums to be voted for the new Radio Éireann and that the comparative figures for 1959-60 do not include the Supplementary Estimate for £10 taken in March to cover the expenses of the Television Advisory Committee. I must, however, mention that, owing to a change in procedure subsequently decided on, we shall not now realise the item of £75,000 in our appropriations-in-aid shown as expenses recovered from broadcasting licence fees. It was not possible to have this change carried into the Estimates volume owing to the advanced stage which had then been reached in the printing. Another late change in Appendix C (No. 48), which could not be effected for the same reason, involves a reduction to £182,200 in the figure for services rendered to the Department of Transport and Power.
Finally, the figure of £9.4 millions for postal, telegraph and telephone revenue quoted at the end of Part II of the Estimate naturally does not include any of the extra revenue we shall earn from the increases made recently in postal and telegraph charges.
There, is however, no extra complication in making a straight comparison between the various subhead provisions this year and last year because adjustments have already been made in the 1959-60 figures to cover the amounts transferred from the Vote for Remuneration and the Vote for Increases in Pensions, totalling £136,700. It is to be remembered, though, that so far as the staff subheads are concerned, the increased pay and pensions operated only for 3½ months of 1959-60, while they have been provided for 12 months of the current year.
Subject to these general observations, I may now comment briefly on the various subheads where there is a variation of £10,000 or more.
Subhead A.1 relates to Headquarters Offices. Half the increase of £59,000 is due to the increased rates of pay. Most of the remainder is for increased overtime in connection with the proposed change over to a mechanised system in the Savings Bank which should not be repeated in subsequent years.
Subhead A.2 provides for Metropolitan Offices and Subhead A.3 for Provincial Offices. The major part of the increase of £103,800 and £227,300 respectively is ascribable to the increased Civil Service pay. In addition, there is provision for higher remuneration for sub-postmasters and an extra pay day in the year for staff who are paid on Fridays.
Subhead H.2 covers Losses by Default, Accident, etc. The extra £11,200 is required to meet known cases of Savings Bank, etc. losses.
Subhead I.1, deals with Salaries, Wages and Allowances (Engineering). The net increase here is at the comparatively small figure of £35,300 but this is because the cost of the extra staff taken on for the expansion of the telephone system is offset by an increased relief from Telephone Capital Funds.
Subhead K. has reference to Engineering Materials. The extra £36,700 is explained by the growth of the Telephone system and is due specifically to increased purchases of Engineering Stores and Motor Transport.
In regard to subhead M., Telephone Capital Repayments, the development of the Telephone System is financed by issues from the Central Fund which are repaid by annuities extending over periods not exceeding 25 years. This subhead contains full provision for the annuity payments to be made during the year. The increase from year to year—the present figure is £100,791 more than in 1959/60—is a natural consequence of the growth in the telephone system, a growth which in its turn leads to increased revenue.
Subhead N.1. relates to Superannuation Allowances etc. Increases under all heads, but principally in pensions and in additional allowances following on an increased number of normal course retirements, make up the increase of £35,900.
Subhead 0.2. refers to Civil Aviation and Meteorological Wireless, provision and installation of equipment, etc. This subhead varies very considerably from year to year and the decrease, as compared with last year, merely indicates a less costly programme of new works.
Subhead T covers Appropriations-in-Aid. Apart from the item of £75,000 for wireless licence expenses to which I have referred already, the main changes here which contribute to the total increase of £109,191 are an increase of £42,100 in receipts from Savings Bank Funds for services given by the Department and a decrease of £13,000 in receipts from the sale of non-engineering stores.
In comparison with the previous year, letters posted increased by approximately 6 million or 2 per cent. and the traffic during the Christmas period 1959 was the highest ever. There was a small, but welcome, increase in parcel traffic.
Some problems of mail operation were caused by the petrol crisis of November and the disruption of Aer Lingus services in March this year but they were overcome with little or no interference with normal services. The closing of the railway system which served South and West Donegal has led us to review mail distribution arrangements in that area. The matter is complex but substantial progress has been made and it is hoped, within the next few months, to introduce there a much improved distribution network with consequential benefit to the public.
Completion of the national scheme of reorganisation, begun in 1948, aimed at giving a better all-round standard of postal services in the provinces and a 6-day frequency of delivery on all mainland posts, is now in sight. The services in the Head Office district of Westport were reorganised within the past year and the new organisation for Portlaoise, the last remaining district, will come into operation on the 23rd May. Under this country-wide scheme, the standard 6-day postal delivery has already been extended to 1,084 posts and the final figure will exceed 1,100 when the Portlaoise area is added. In effect, about 100,000 households to which delivery was formerly given on 3, 4 or 5 days only a week have, over the last twelve years, been given the benefit of a 6-day delivery.
The steady growth of Dublin City and suburbs has made the sorting of mail for delivery there increasingly complex and difficult for our staffs to perform accurately from memory. The number of streets, roads, etc., served by the Dublin and District delivery postmen now exceeds 3,500. In order, therefore, to simplify the sorting processes and reduce the risk of error at an important stage of the handling sequence, an appeal will shortly be made to the public to adopt a new postal address numbering scheme—a zone numbering scheme is another way of describing it—for Dublin City and suburbs. The scheme will be quite simple from the public's point of view, it will merely involve their adding the appropriate zone number after the word "Dublin"—for example, "Dublin 2" in the case of Leinster House, Kildare Street. Similar, or more detailed, numbering schemes for much smaller urban areas than Dublin are operating with conspicuous success in other countries and I have no reason for thinking that the public here will prove to be any less co-operative. Full details of the scheme will be announced later.
On the foreign postal side the new Small Packet service, by which goods not exceeding 2 lb. can be sent by letter post, got off to an encouraging start. Postings are already of the order of 375,000 a year, mostly to the U.S.A. and Canada. The air parcel post service was further extended during the year and parcels may now be sent by that means to all countries which accept air parcels, in effect to most destinations in the world.
A special postage stamp was issued in July last to commemorate the first Arthur Guinness. As already announced, a special stamp will shortly be issued on the theme of the World Refugee Year and a further special issue later this year will commemorate the European Conference of Postal and Telecommunication Administrations, of which Ireland is a founder-member.
Public telegraph traffic continues to decline. About 1,800,000 telegrams were dealt with during the year ended the 31st March last, which was about 4% below the level for the previous year. Foreign telegrams were actually a few thousand more and exceptionally there was a marginal rise in, radio telegrams due to an increased number of gale warnings but these together were insufficient to offset the much bigger fall in internal telegrams and in telegrams exchanged with Great Britain.
As in the last few years, the one bright spot in the telegraph field is the Telex service which is continuing to grow rapidly. Last year I reported that the number of subscribers had increased from 63 in the previous year to 85. The latest figure is 116 and the number of recorded messages during the year ended 31st December, 1959, was 152,000 as compared with 95,000 for the previous year. In view of this increasing demand we are now drawing up plans to convert the whole Telex service to automatic working. This will mean that Telex subscribers here will be able themselves to dial directly to Telex subscribers in Britain and on the Continent.
The reorganisation of telegraph transmission on the basis of teleprinter and telephone working has now been completed. The position is being examined anew to see what further improvements in organisation may be possible but it seems unlikely that any substantial economies can be effected.
The increase in charges which was recently put into effect applies to internal telegrams only and is designed merely to offset the higher costs resulting from the Civil Service pay award and to prevent the telegraph loss from rising again. For 1958/9 which is the latest year for which actual figures are available that loss was £140,144; for 1959/60 the estimated loss is £125,800.
In 1959, there were 117 million local calls and 15 million trunk calls. The corresponding figures for 1958 were 104 million local calls and 15½ million trunk calls. The reduction in the number of trunk calls is more apparent than real as under the new group charging system introduced on 1st August last, many calls which would previously have been charged at trunk rates were treated as local calls. The only comparison possible is, therefore, as between the total number of trunk and local calls which shows an increase of ten per cent. as compared with the previous year.
A record number of 11,600 subscriber exchange lines was installed in 1959, being over 1,000 more than in 1958. Some 10,000 miles of trunk circuits were added to the trunk system; 16 exchanges were converted to automatic working; and 129 exchanges were extended and/or modernised during the year. Fifty-four new telephone kiosks were erected.
Although the number of exchange lines installed in 1959 was a record, it was exceeded by the number of applications during the year. A record total of 13,200 applications were received, some 2,700 more than in 1958. As a result, the waiting applicant list increased; excluding telephones in course of installation, the figure on 1st January, 1960, was 2,700, compared with 1,500 on 1st January, 1959. Provincial applications increased by over 1,500 and this is largely attributed to the concessions introduced last August, namely, extension of distance covered by standard rental to three miles of all exchanges, application of residence rental rate to farmers and enlargement of local call areas. Since these measures were designed primarily to stimulate rural telephone development, the increase in demand is gratifying. We aim at connecting 15,000 new telephones in the current calendar year; for the first four months which have already passed, installation of new telephones has averaged over 1,200 per month.
In the Finglas and Walkinstown areas of Dublin, over 400 applications have had to be held up pending the installation of additional automatic exchange equipment and in Cork city there are about 400 on the waiting list for the same reason. It is expected that it will be possible to provide service for the bulk of Finglas-Walkinstown applicants later this year. In Cork city, two new automatic exchanges have been erected and installation of equipment is in hand; it is expected that these two exchanges will be opened in about four months' time, following which service will be provided for the waiting applicants as quickly as possible.
Last year, I outlined the new plans for future telephone development and in particular, the introduction of the group charging system for telephone calls. Under this system, which came into force on 1st August last, all exchanges were arranged into groups for charging purposes, local call areas were considerably extended and a simplified scale of trunk charges was provided. The total cost to the Department of this and other concessions was estimated at £125,000 per annum. The new system has worked very satisfactorily for subscribers generally. The relatively small number of complaints received referred principally to the non-application of local call fees between certain adjacent areas, or to delays on certain routes arising out of the extension of the local call areas.
On the first point, the simple answer is that we could not have afforded any further concession. On the second point, it is unfortunately the case that arising out of the introduction of the extended local call areas, delay has arisen on several routes. It was not possible to plan against this; we had to wait and see what growth emerged and where it arose. Steps are being taken to provide the necessary additional circuits on the routes affected as rapidly as possible but it will take some considerable time to cater for all the demands because we also have to provide for normal traffic growth and it will be necessary to undertake extensive cable schemes on many routes.
I also mentioned last year the plans being made to extend the full long distance subscriber trunk dialling facility, which is at present available on the Athlone and Cork exchanges only. The necessary equipment has now been ordered, and installation is expected within the next 12 to 18 months, for the introduction of subscriber trunk dialling at Drogheda, Dublin, Dundalk, Galway, Limerick, Mullingar, Naas, Sligo and Waterford. In addition, equipment has been ordered and installation is expected within two years for the conversion of seven groups of exchanges to automatic working with subscriber trunk dialling facilities. The seven groups comprise a total of 50 exchanges in the following areas—Balbriggan, Curragh Camp, Kildare, Midleton, New Ross, Roscommon and Tuam.
I also referred last year to the innovation in this country of providing trunk circuits by means of radio links. The first of these, between Galway and Athlone, is in course of erection and, although it has been delayed somewhat for technical reasons, its completion is expected by the end of the year. A contract has also been placed for a radio link connecting Sligo with Bundoran and Donegal, and contracts will be placed shortly for similar radio systems to link Waterford with Wexford and Enniscorthy, and Dublin with Wicklow.
In concluding my review of the telephone service, I wish to refer to a matter which gave rise to some discussion in this House a few months ago, that is, the small print in the telephone directory. The main complaints were about the thin or light impression of the new type and the smallness of the telephone numbers. At the time I undertook to see whether the objections which were made to the type could be met for the next issue of the directory. I am glad to say that the type to be used in the next issue will give a heavier or thicker impression, the telephone numbers will be larger and the heavy entries and exchange names will be accentuated.
It will be necessary to come to the House with a new Telephone Capital Bill later this year. That occasion will provide a further opportunity to review the position of the telephone service.
Post Office Savings Bank deposits in 1959 amounted, in round figures, to £16.74 millions, an increase of £1.34 millions on 1958; withdrawals at £14.88 millions showed an increase of £.3 millions. Moreover the withdrawals included an amount estimated at £.93 millions which was reinvested in Exchequer Stock, Savings Certificates and Prize Bonds. Estimating interest for the year at £1.95 millions, the total balance due to depositors at 31st December, 1959, was £82,500,000 as compared with £78,750,000 at 31st December, 1958.
Deposits by Trustee Savings Banks during the year amounted to £1.48 millions, an increase of £.62 millions, and withdrawals to £.64 millions, an increase of £.21 millions. At the end of the year, the balance to credit of the banks, including interest, was £13.75 millions, being £1.2 millions over the figure at the end of 1958.
Sales of Savings Certificates in 1959 at £3.04 millions were up by £.35 millions on the previous year's figure and the repayments, including interest, of £2.25 millions were down by £.36 millions, making a total improvement of £.71 millions on the previous year's figure.
So many factors may affect the total net investment in these savings services that it is difficult to point to any particular reason for the overall improvement but we can all be grateful to the Savings Committee for their efforts in promoting the savings habit amongst our people.
The postal order and money order services were extended from the 28th March this year. Postal orders of value £3, £4 and £5 were introduced while the limit for money orders issued and payable within the State was raised from £50 to £100. Certain adjustments in poundage were also made, with the object of placing the services, particularly with regard to low value orders, on a more secure basis economically.
The number of money orders issued in 1959 was approximately the same as in 1958 but the average value increased somewhat from £11 8s. to £11 12s.
There was a decrease in 1959, as compared with 1958, of about 9 per cent. in the number of postal orders issued. This decrease which was due mainly to a reduction in the use of lower value postal orders for crossword and other competitions, had the effect of increasing the average value of a postal order issued from 7/10d. in 1958 to 8/7d. in 1959.
The larger works wholly or substantially completed since last year include the new district sorting offices in Crumlin and in Churchtown, Dublin, the new post office in Letterkenny and the new post office in Galway which is to be opened very shortly. The buildings for the two regional automatic exchanges in Cork city are now being equipped. The first stage of a substantial improvements scheme at Bray Post Office was completed and the remaining work of enlarging and modernising the public office there is in progress.
At the present time work is also in progress on a new post office at Droichead Nua and buildings for automatic telephone exchanges at Athy, Portlaoise, Tullamore and Walkinstown in Dublin. Contracts have been placed for improvement works at Gorey Post Office and for an automatic telephone exchange building at Mallow, whilst tenders have been invited for automatic telephone exchange buildings at An Uaimh and Malahide. Work is also expected to begin before the end of the year on extensive improvements to the public part of Limerick Post Office, and on the building of a new post office and telephone exchange at Wicklow.
When speaking on the Estimates last year I said that the sketch plans for the new central sorting office in Dublin had been approved. The contract drawings are now being prepared and whilst it is rather difficult to give reliable forecasts for such a large project I am hopeful that the piled foundations for the structure, now in the design stage, will have been laid before the end of next year and that the main building contract will be placed not too long afterwards.
The number of staff provided for in the Estimate is 16,321. The increase of 142 over last year is due to an addition of some 170 to the professional and technical grades of the Engineering Branch partially offset by a reduction of 28 in the numbers employed in other grades there and elsewhere in the Department.
Preliminary work is in progress with a view to the introduction of an automatic data processing system in the Post Office Savings Bank in 1961. This system, which will be based on use of an electronic calculator, should lead to substantial savings in the administrative costs of the bank. Some redundancy of staff is likely to arise but it is expected that we can solve this by transfers to other Departments and, while the redundancy lasts, by employing people on work normally performed by other grades. The various staff associations have already been advised of the general outline of the scheme in so far as it will affect the staff and, at a later stage, problems arising out of the redundancy will be discussed with the staff side under the conciliation and arbitration scheme.
So as to keep abreast with progress in the techniques of industrial management representatives of the Department have attended Seminars, Conferences and Instructional Courses organised by the Irish Management Institute and other bodies working in similar fields. These courses covered such subjects as "Work Study", "Transport Management" and "Management through People". The experience and information acquired at these courses and the contacts established there are of considerable value. In purely postal and telecommunication matters the same spread of knowledge is achieved by membership of the specialised international bodies such as the Universal Postal Union and by informal contacts with other administrations whose experience is always readily put at our disposal.
In addition to the normal Engineering Branch training schemes for technical grades, a series of special courses on new exchange techniques was given to engineers, inspectors and trainees by a representative of one of the Department's contractors.
The Commercial Accounts for 1958/59 show that we made a profit in that year of £277,576. So far as 1959/60 is concerned I said, in reply to a Parliamentary Question on 6th April, that on such information as was available it was estimated we would make a net profit of about £265,000. We have not yet got all the data necessary to prepare detailed accounts for 1959/60 and so my statement of 6th April still stands good— for the present at any rate.
I approach the question of a forecast for this year with some reserve because, while we can usually estimate our expenditure closely, we cannot be so certain about our revenue. And it is to be remembered that a variation of even as little as 1 per cent. in revenue implies a difference of over £100,000 in receipts, a very considerable amount in relation to the net profit. However, subject to these remarks, and assuming no unexpected events, I think we should show a profit which will show little change overall from the profit in any of the last few years.
Both our gross expenditure and our gross revenue will however be higher than before. The Civil Service pay award has increased our staff costs by a half million pounds a year. On the revenue side the reduction in telephone charges which was made last August was expected to cost us £125,000 a year. So far as we have been able to judge, that estimate was an accurate one. The increases in postal and telegraph rates which we made at the end of March should bring us in £185,000 a year. It is satisfactory that although our expenses rose so sharply we were able, by making a net increase of only £60,000 in charges, to adhere to the principle that, taking one year with another, the Post Office should pay its way. That is the principle which has been accepted by successive Governments. Its soundness needs no emphasis from me.
This fairly satisfactory position is, as I indicated last year, due to the steady increase in our volume of traffic. People are writing more, they are becoming more telephone conscious and, in both those services, we can handle more business without a corresponding increase in costs. The one black spot is the telegraph service; it is impossible to eliminate the loss there and we must be watchful to prevent it being any more of a financial burden than is possible.
I referred earlier to the relatively small increase of staff provided for in the Estimate. The fact that with this small increase we are able to cater for a greater increase in business is of itself a tribute to the competence and zeal of all grades of the Post Office service. As Minister, I am happy to express in this House my appreciation of their services during the past year.
