asked the Minister for Posts and Telegraphs if he will make a statement regarding the recent increases in postal and telephone charges, with particular reference to the manner in which the new rate of charges was determined.
Ceisteanna — Questions. Oral Answers. - Postal and Telephone Charges.
119.
The need for increased charges was foreshadowed by the then Minister when speaking on the Estimate for Posts and Telegraphs on 19th March, 1970, columns 924-926 of the Official Report, and again was mentioned in the Budget Statement on 22nd April, column 1730 of the Official Report.
The principal factors taken into account in determining the new rates included the heavy losses incurred on postal services in recent years; the effect of steep rises in costs, mainly for staff remuneration; the impossibility of effecting any substantial reductions in costs in the short run; and the desirability of securing a reasonable return on capital investment in the telephone service. The new rates decided upon were the least that could be regarded as realistically necessary having regard to the policy that the costs of the post office services over the years should be paid by the users rather than by the taxpayer and in fact they fell short of what was needed to secure the attainment of this objective in the current year and in 1971-72.
Can the Minister tell us why it was necessary to increase the postal charge for a letter from 6d to 9d? The Minister's colleague has been shouting around this House for the last fortnight about a group of workers who asked for a 50 per cent increase. It seems to me only yesterday since young members of my family said "When we went to school first we could post ten letters for 2s 6d; when we left school we could only post six". Now one could only post three letters for the same amount——
The Deputy appears to be making a speech.
Can the Minister explain how the Government can stand over this kind of talk in the Bill relating to prices and incomes and yet increase postal charges by 50 per cent?
I have given the Deputy sufficient information in my answer. However, if the Deputy wishes me to repeat my answer I shall do so.
The information was of such a generalised nature that it was valueless.
At least now we have a courteous Minister who will answer our questions. I do not think we will now have the arrogance that has been displayed by the Minister sitting on my right. How do our postal charges compare?
I have that information here. At the moment the only countries which have higher charges than we have are Sweden and Finland. Norway's charges are the same as ours. Greece is .6d behind us, Denmark one penny behind us, Germany .8d, Italy one penny, Austria 1.3d behind us.
What about Britain?
The charge in Britain is 7d.
The high rate?
The Minister for Posts and Telegraphs there is not pleased with the charges and is looking for an increase.
When do the new British rates come into effect?
I do not know. I think they are in operation. I am not sure.
The Minister saw that an attempt was made to bring letters up north and to redeliver them from there. Is that legal?
That is a separate question.
The scheme fell flat. The people concerned apologised afterwards saying they had not consulted their legal advisers.
Would the Minister tell me whether it is not the intention to charge four new pence next February for posting letters? That is another increase of .6 pence. It is 20 per cent increase on the rate of yesteryear.
There is a separate question on the Order Paper dealing with that. If the Deputy remains he will hear the answer.
120.
asked the Minister for Posts and Telegraphs the date on which the decision to increase postal and telephone charges was taken.
The answer is 18th August, 1970.
121.
asked the Minister for Posts and Telegraphs whether postal charges will now be reduced as a result of the wages freeze imposed by the Government.
The answer is "no." The effect of the freeze in relation to the costs of the service is small. There will be a substantial deficit in the current year and in 1971-72.
122.
asked the Minister for Posts and Telegraphs if, in view of the hardship caused to old age pensioners and other elderly persons living alone in similar circumstances, he will arrange that the recent increases in the charges for postal and telephone services will not apply in such cases.
The answer is "no". Postal and telephone charges are at standard rates of general application. I may add that I do not accept the suggestion that the recent increases will cause hardship to the classes referred to in the question.
What happens when people are sending certificates to the Department of Social Welfare? Disabled people must send in certificates, as must people on disability pensions. What happens when they are sending these certificates to the Department of Social Welfare?
I understand that these people are allowed free postage in cases like that. This has always been the practice.
Many of them thought that was the case and I hope they can continue to avail of this.
It would not be my function to make a decision on this matter. I understand this is a service freely provided to people who want to get in touch with the Department of Social Welfare.
123.
asked the Minister for Posts and Telegraphs if, in view of the hardship imposed on the less well off citizens by the recent big increases of postal rates, he will allow Christmas cards to be posted at a special low rate; and if he will make a statement on the matter.
Christmas cards may be sent in unsealed envelopes at the lower rate applicable to printed papers. It would be impracticable, for operational reasons, to introduce an additional category to cover Christmas cards only and apart from this the financial position of the postal services is such as to preclude a concession of the kind sought.
(Cavan): Has the Minister taken into consideration the considerable increase which these postage increases will mean to the Ministers and Parliamentary Secretaries who flood the country with Christmas greetings in sealed envelopes?
I would love to think the Deputy was talking from previous experience. I am not sure that he is. I do not think that has anything to do with this question. I would not do a thing like that.
(Cavan): Does this mean we will have higher standards in high places?
Let us keep it friendly and courteous.