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Cried 18/[email protected] ✓
(THIS DOCUMENge 46 BOPERTY OF HIS BRITANNIC MAJE Prages46 OVEROMMENT)
17
SECRET
C. F. (49) 115
17TH MAY, 1949
CABINET
COPY NO.
31
TELEGRAPH BILL
Memorandum by the Postmaster General
At this morning's meeting of the Legislation Committee (H. P. C. (49) 16th Meeting, Minute 3) fears were expressed that by raising the rental charges for telephone service by Act of Parliament, as is proposed in the Telegraph Bill, a copy of which is annexed. to H. P. C. (49) 46, the Government might be charged with breaking contracts, inasmuch as notice of termin- ation of agreement was not to be given to each individual subscriber. The increase in local call fees does not call for any action under the agreements. It will be made by Statutory Regulation as from 1st July next.
2. The increases of charges and the dates of their application to individual subscribers proposed in the Bill are all such as could be obtained by action in accordance with the terms of the agreement, and the reply to any criticism would therefore be that the breach of contract was purely technical and of no sub- stance, and need cause no damage to the subscriber.
3.
Procedure by legislation has the strong practical advan- tage of a great saving of labour. Some three million agree- ments are concerned and, if the increases of charge are not provided for by legislation, the only alternative will be to give to each subscriber notice terminating his present agree- ment and to ask him to sign a fresh agreement. There are various forms of contract concerned;
(a) about three quarters of a million made before
1st October, 1934, requiring three months' notice;
(b) about two million taken since 1st October, 1934,
whose initial terms have expired and can be terminated at one month's notice;
(c)
and
about a quarter of a million whose initial terms
will expire at varying dates up to 6th April, 1950.
4. The forms necessary to terminate existing agreements and provide new ones could not be prepared, printed, filled in and distributed in time for the Budget increases to come into effect on 1st October; 1st April, 1950 would be the earliest date. Many subscribers would be annoyed by having to enter into fresh agreements; many would not reply and this would lead to an uncertain position at the date when the notice expired.
Long- standing subscribers such as large firms with elaborate installations would be put to much work in checking details of their apparatus which are at present recorded in numerous agreements and correspondence. The additional work thrown upon the Post Office is estimated to be of the order of 25,000 man weeks, requiring the recruitment and training of additional sthage 46a0f366renting of additional accommoRage 46 of 366
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