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5
8.
In other words, it is not until July, 1950, that all subscribers will have felt the full effect of the new rates.
9.
If the proposed legislation is not proceeded with, a rather difficult situation arises in regard to Hull Corporation, which would be statutorily bound under the Act of 1940 to collect the 15% surcharge from their subscribers for the Exchequer. This arrangement has long been felt to be unfair to Hull; in the case of the Post Office, this quantum of surcharge is now absorbed by costs, i.e., it cannot be regarded as war taxation. The Corporation are, of course, aware of the Chancellor's statement in his Budget Speech of the intention to
introduce legislation for raising telephone charges and they have been informed that the Bill would repeal the 1940 Act as it applies to them. I think that we should, in any event, relieve Hull Corporation by a short Bill.
POST OFFICE HEADQUARTERS, E.C.1.,
20th May, 1949..
W.P.
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