I move that the Bill be now read a Second Time.
This Bill is designed to remove defects in existing Post Office legislation and to give a greater degree of freedom in the conduct of certain types of Post Office business.
The principal piece of legislation governing Post Office activities is the Post Office Act of 1908, which, with relatively few amendments, is in force to-day. I think it is a tribute to the framers of that Act that it has stood the test of time so remarkably well and that the principles laid down in it have provided so satisfactory a foundation for the conduct of Post Office business. However, it is only to be expected that changing conditions and developments would make modifications of the Act necessary. The provisions of the Bill now before the Dáil represent the changes which are required to bring the measure into conformity with modern needs.
The explanatory memorandum which has been circulated explains the various matters included in the Bill, but there are some sections with which I will deal in greater detail.
Section 2.—The 1908 Act gave general power to the Treasury to fix, by warrant, rates of postage and other sums to be charged on postal packets and to regulate the scale of weights and circumstances according to which those rates and sums were to be charged. This power was qualified by certain restrictions as to the maximum amounts which might be charged for certain classes of postal packets, including letters, postcards, book packets (now printed packets), inland newspapers and newspapers for places outside the British islands. These restrictions were all gradually removed by subsequent legislation except that restrictions remained as to the maximum postage which might be charged for newspapers.
In introducing revised postage rates as from 1st July, 1948, I understand that the existence of a limitation on the rate of postage for inland newspapers was inadvertently overlooked and a rate of 1½d. was introduced compared with the permitted maximum of 1d. Section 2 of the Bill is designed to rectify this position.
Section 3 provides for the removal of the limitation of 3d. on the postage which may be charged on a newspaper posted to a country (other than Great Britain) outside the State. This proposal is in keeping with that in Section 2 dealing with inland newspapers and is made in order to permit postage rates for newspapers for foreign countries to be fixed by warrant as is the case with rates for all other classes of postal packets.
Section 4.—It is the general practice of postal administrations to accord special postage rates not only to books and papers for the use of the blind but also to sound recordings, plates for embossing Braille and other articles specially adapted for the use of the blind. The House will, I am sure, have no hesitation in agreeing to the proposed extension of the application of the special postage rate for literature for the blind which is the purpose of this section.
Section 5.—The Post Office Act, 1908, Section 24, lays down that the form in which postal orders are issued must be prescribed by statutory regulation, and limits to 21/- the amount for which a postal order may be issued, and to 2d. the maximum poundage per order which may be charged. Section 5 of this Bill proposes to abolish the necessity for prescribing the form of postal orders by statutory regulation and also to remove the limits of 21/- and 2d. referred to. These provisions are necessary in case, for instance, it should be found desirable to vary the form of the existing postal order or to issue postal orders of a higher value than 21/- or to charge higher poundage.
Section 6 is designed to give power to operate a business-reply service for which a demand exists and which has proved very successful in other countries. This service would enable firms to send an unstamped card, envelope, folder or label of a special pattern with their advertising matter to be returned through the post unstamped to the originating firms who would be responsible for the normal postage, plus an additional fee on the returned items.
Section 7 is designed to regularise the position in regard to the customs examination of "Green Label" packets. The "Green Label" service is an international service governed by the Universal Postal Convention under the provisions of which "Green Label" packets containing goods may be sent by letter post to countries which have agreed to accept them. The "Green Label" serves both as a customs declaration and as authority from the sender that the packet may be opened for customs examination.
Section 8 proposes to extend to aircraft the obligations and duties imposed on ships in regard to mails. This is necessary, because the Post Office is now very considerably engaged in the conveyance of mails by air and because of the likelihood of air conveyance continuing to increase. This section also proposes to abolish the statutory obligation on the master of an inward-bound vessel to sign a particular declaration form relating to postal packets on board. The declaration in question is not now considered necessary in this country.
Section 9 proposes to deal with defects existing at present as regards the proper registration of newspapers to enable them to qualify for the newspaper rate of postage. To qualify for that rate newspapers must, in accordance with Sections 20 and 21 of the Act of 1908, comply with certain conditions, including registration with the Post Office in London. These sections have not hitherto been adapted to provide for the registration of newspapers at the G.P.O., Dublin, and permit their transmission at the newspaper rate of postage although the service has always been operated here. The proposal in this section will remedy this position.
Section 10—The Department is advised that it is doubtful if its existing powers adequately cover the operation of the cash on delivery parcel service and this section is designed to give legislative power to conduct the service in accordance with Post Office regulations.
Section 11 proposes a more convenient and workable method of fixing foreign telephone fees. At present the Department is required to issue a statutory regulation for the purpose. The fees depend largely on the payments and terminal credits which have to be made to the countries through which the calls actually pass. These charges are not within the Department's control and the foreign telephone rates are, therefore, liable to variation from time to time. It is proposed in future to fix them by notice in the Iris Oifigiuil.
Section 12 of the Bill is designed to prohibit without authority the use of certain words, letters or marks associated with the Department's services. The unauthorised use of some of the Department's signs in the past has given rise to difficulties and this section is intended to give adequate power to deal with abuses of the kind.
Section 13 is necessary to enable the Department to deal adequately with telephone offences, e.g., nuisance calls. false ambulance calls, grossly offensive or annoying conduct on the telephone. The Department's existing powers to prosecute for such offences are extremely limited. The only statutory power that can be invoked is that contained in Section 67 (1) of the Post Office Act, 1908, which makes it an offence "whilst in any post office or within a premises belonging to any post office or used therewith" to obstruct the course of business of the Post Office. This section can only be used in cases where the offence is committed from a post office call office or a kiosk. A prosecution cannot be brought under this Act where the offence is committed from a subscriber's telephone. The proposed clause in this Bill will enable prosecutions for such offences to be taken where warranted.
Section 14.—Section 64 of the Post Office Act, 1908, prohibits unauthorised imitations of post office stamps, envelopes, etc., or marks which might lead to the belief that a postal packet bearing them is sent on the service of the State. The section needs to be adapted in order that it may have full force and effect in the State, and Section 14 of the Bill provides accordingly.
Last week, on the Estimate for Posts and Telegraphs, I drew attention to the mounting losses in recent years on the Department's working and said that I was examining certain proposals for increasing postal and telephone charges, designed to ease the situation, which the late Government were preparing to introduce when the general election was announced.
The estimated deficit at the end of the financial year 1950-51 was of the order of £500,000. The increased charges contemplated by our predecessors are expected, in a full year, to yield enough to offset that deficit but, with about a quarter of the present financial year already spent and the difficulty of changing telephone rates for some time, the additional revenue likely to be received in 1951-52 will not be more than £220,000.
The principal changes involved are in the printed paper rate which will be 1½d. for the first 4 oz. instead of 1d. for the first 2 oz. and an increase in the surcharge on telephones from 5 per cent. to 25 per cent. These two items together will give £413,000 per annum. Increases in the poundage on postal and money orders and in the charges for foreign, inland and British parcel post will, it is estimated, add another £72,000 in a full year.
The Government are satisfied that in the circumstances in which the Post Office finds itself these increases are justified and have authorised me to give effect to them as soon as may be practicable. It is, therefore, proposed to introduce the new postal rates right-away and to make the new telephone charges operative as from 1st October in the case of charges for calls and 1st January next for rentals. In justification of the increases, I may say that the wage bill of Post Office employees has increased by 139 per cent. over 1939 (excluding the recent Civil Service Arbitration Board award) while the cost of a wide range of materials largely used by the Post Office has increased in the same period from 200 per cent. to 600 per cent. As compared with 1939, the poundage on postal and money orders has not changed at all, the telephone rates at present in operation are only 5 per cent. higher, most other postal rates have been advanced by from 25 per cent. to 50 per cent. only, while in only two directions have charges gone up 100 per cent.
I should like to emphasise two points—(1) what we are now doing is to give effect to a decision taken before the change of Government, and (2) the increased charges are only roughly sufficient to meet the deficit disclosed at the end of the last financial year. Since that time the Civil Service award has been accepted by the Government, other claims affecting departmental classes are being negotiated, while the cost of materials and services which the Post Office has to buy continued to mount. In these circumstances, and having regard to the Department's policy of paying its way, it is more than probable that further increased charges may have to be announced later.