TUESDAY, JUNE 13, 1978
TARIFFS OF THE TELEPHONE COMPANY
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FOLLOWING CONSIDERATION BY THE EXECUTIVE COUNCIL, A RESOLUTION WILL BE INTRODUCED INTO THE LEGISLATIVE COUNCIL ON JUNE 21, PROPOSING ADJUSTMENTS TO TELEPHONE TARIFFS FROM JULY 1, 1978.
A GOVERNMENT SPOKESMAN SAID THAT THE EFFECT OF THE NEW TARIFFS ON SUBSCRIBERS WITH PRIVATE TELEPHONE LINES IN THEIR HOMES WOULD BE AN INCREASE OF $2 PER MONTH. THE MONTHLY RENTAL CHARGES FOR COMMERCIAL TELEPHONE LINES WOULD GO UP BY $4 AND FEES FOR NEW INSTALLATIONS WOULD BE INCREASED FROM $250 TO $300.
ADJUSTMENTS TO MISCELLANEOUS CHARGES WILL ALSO BE PROPOSED TO RELATE THEM MORE CLOSELY WITH PRESENT DAY COSTS. THERE WILL BE SOME INCREASES AND SOME REDUCTIONS.
THE LAST INCREASE IN TELEPHONE CHARGES WAS THREE-AND-A-HALF YEARS AGO, IN JANUARY 1975, AT THE TIME WHEN A COMMISSION OF INQUIRY WAS APPOINTED TO EXAMINE THE AFFAIRS OF THE COMPANY. THE COMMISSION SUBMITTED ITS REPORT IN NOVEMBER 1975 AND SAID THAT THE BASIC RENTAL CHARGES OF TELEPHONE SERVICES SHOULD BE RAISED AGAIN BY AS MUCH AS 15 PER CENT WITH EFFECT FROM JANUARY 1, 1977. HOWEVER, IT WAS THEN FELT THAT IT WAS TOO EARLY TO DECIDE WHETHER AND WHEN SUCH AN INCREASE WOULD BE REQUIRED BUT THE GOVERNMENT HAS KEPT THE POSITION UNDER REVIEW AS PART OF ITS CONTINUOUS FINANCIAL MONITORING OF THE COMPANY.
THE SPOKESMAN EMPHASISED THAT THE ADJUSTMENTS NOW PROPOSED AMOUNT TO AN OVERALL INCREASE OF ABOUT SEVEN PER CENT WHICH IS LESS THAN HALF THAT SUGGESTED BY THE COMMISSION OF INQUIRY. MOREOVER, THE IMPLEMENTATION DATE HAD BEEN POSTPONED FOR 18 MONTHS.
AS A RESULT OF AN ANNUAL GROWTH OF APPROXIMATELY 9 PER CENT IN BOTH 1976 AND 1977 IN THE NUMBER OF EXCHANGE LINES CONNECTED, THE COMPANY HAS REDUCED CONSIDERABLY THE SPARE CAPACITY THAT HAD ACCUMULATED DURING THE RECESSION. THIS, COUPLED WITH THE IMPROVED EFFICIENCY OF THE COMPANY, HAS SO FAR RENDERED IT UNNECESSARY TO IMPLEMENT THE TARIFF INCREASE SUGGESTED BY THE COMMISSION.
NOW.
BUT, RISING COSTS MAKE AN ADJUSTMENT IN TARIFFS NECESSARY
NO FURTHER INCREASES ARE EXPECTED BEFORE 1981, THE SPOKESMAN ADDED.
+OVER THE PAST THREE-AND-A-HALF YEARS THE COMPANY HAS SHOWN A REMARKABLE IMPROVEMENT, BOTH IN TERMS OF ITS OPERATING EFFICIENCY AND FINANCIAL MANAGEMENT+ THE SPOKESMAN SAID. IT HAS REDUCED THE WAITING TIME FOR CONNECTIONS, WIDELY EXTENDED ITS SERVICES TO RURAL AREAS AND REDUCED THE COMPANY'S BORROWINGS BY RAISING ADDITIONAL SHAREHOLDERS' FUNDS THROUGH TWO SUCCESSFUL RIGHTS ISSUES+.
+ IT WOULD NOT SERVE THE BEST INTERESTS OF THE PUBLIC IF THE TELEPHONE COMPANY FAILED TO MAINTAIN THIS IMPROVEMENT OF SERVICES AND MEET FUTURE DEMANDS+, THE SPOKESMAN CONCLUDED.
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