asked the Minister for Posts and Telegraphs if he will indicate the method by which a rental of £10 per year chargeable to rural phone users is arrived at.
Ceisteanna—Questions Oral Answers. - Rental on Telephones.
I assume that the sum of £10 mentioned by the Deputy is that which will, from the 1st October next, be the annual rental for an exchange line payable by all business subscribers whether situated in urban or rural areas. This figure is the minimum average contribution which, having regard to the greatly increased wages and materials costs to which I have referred elsewhere, is required of the subscriber towards the Department's annual outlay comprising interest, depreciation and maintenance charges on such lines.
The Minister has not given the reason for the figure of £10, or stated how that figure has been arrived at.
It would take a considerable time to give an analysis of the telephone finances, but perhaps Ican give the Deputy some idea of the cost of providing services in rural areas. The construction of one mile of whole route costs roughly £170 on which it may be taken the annual charges, depreciation, interest and maintenance, etc., are about £17. This figure of £10 does not include the cost of actually making calls.
Is the Minister aware that thousands of telephone subscribers have decided to cancel their phones and does the Minister think he is going to increase revenue by having a lesser number of subscribers? People accustomed to having telephones for years are cancelling them simply because the cost is too high.
The number of applicants for telephone services is very satisfactory at the present time, particularly in rural areas and also in regard to applicants who are business subscribers.
I did not mention anything about them but people who have had the telephone for years past are now finding it too costly. The applicants will get to know all about it in due time.
Mr. Collins
Would it be possible to make available in post offices for the information of people some of the facts in relation to the cost as it might serve to alleviate a feeling of overcharging? I make this suggestion so that this information might be readily available where people who were applying for telephones in rural areas would see what the charges are.
I think the Deputy's suggestion is fairly good and I will consider it. A good deal of publicity has been given in regard to the telephone services and in particular to the fact that the increases in the telephone charges are lower than that in the case of any other commodity.