20-OCT-1993 16:50
DEPUTY IC'S OFFICE (GS)
+852 521 7058
P.07
CONFIDENTIAL
4. POSTAGE RATE INCREASE
Present_Position
6
New postage rates will come into effect on 1 November. The new rates represent an average increase of 20% since the last rate revision on 1 April 1991, against an inflation rate since then of over 23%.
An announcement was made in
in June of the coming increase in postage rates, following ExCo's consideration of the issue on 8 June. Public reaction was generally low-key, although publishers and direct mailers
mailers were critical of the increase in printed paper rates (of some 40%). This service is already heavily subsidised and will continue to run at a loss even after the increase.
A press release will be issued on 29 October to coincide with the gazetting of new miscellaneous postal fees and charges. The press release will remind the public that the increase in postal rates will take effect on 1 November.
Line to take
(for use after the gazetting of the new charges on Friday, 29 October)
1
Postage rates need to be increased to keep pace with rising costs, otherwise the Post Office will run at a loss.
The rate of increase is reasonable when set against the rate of inflation since the last increase (over 23%).
Hong Kong postage rates will still remain
CONFIDENTIAL
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