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WEDNESDAY, JULY 24, 1985

GREATER EFFICIENCY DELAYS PHONE CHARGES RISE

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GREATER OPERATING EFFICIENCY ON THE PART OF THE TELEPHONE COMPANY HAD DELAYED BY MORE THAN ONE YEAR THE NEED FOR INCREASES IN CHARGES, THE SECRETARY FOR ECONOMIC SERVICES, THE HON GERRY HIGGINSON, TOLD THE LEGISLATIVE COUNCIL TODAY.

MOVING THE MOTION TO AMEND THE SCHEDULE SETTING OUT THE NEW MAXIMUM CHARGES THAT MAY BE LEVIED, MR HIGGINSON SAID THAT CHARGES FOR LINE RENTALS AND INSTALLATION, MAINTENANCE AND OTHER MISCELLANEOUS CHARGES HAD BEEN LAST INCREASED BY RESOLUTION OF THE COUNCIL, FROM JANUARY 1, 1983.

+AT THAT TIME, A WARNING WAS GIVEN THAT A FURTHER ROUND OF INCREASES, TO MEET RISING COSTS, WOULD PROBABLY BE REQUIRED IN EARLY 1984, HE SAID.

THE TELEPHONE COMPANY HAD SUBMITTED AN APPLICATION IN APRIL THIS YEAR TO INCREASE ITS TARIFFS BY AN AVERAGE OF TEN PER CENT TO COVER INCREASED OPERATING COSTS AND TO ENABLE IT TO MAINTAIN ITS HIGH STANDARD OF SERVICE.

THE APPLICATION HAD BEEN THOROUGHLY EXAMINED AND THE ITEMS IN THE RESOLUTION BEFORE THE COUNCIL WERE CONSIDERED TO BE JUSTIFIED, HE SAID.

MAJOR ITEMS INCLUDE INCREASED RENTALS FOR LEASED CIRCUITS AND PRIVATE PAYPHONES AND INCREASED CONNECTION AND REMOVAL CHARGES.

THE EFFECT ON ORDINARY BUSINESS AND RESIDENTIAL SUBSCRIBERS WAS MODEST THE MONTHLY COST OF A SINGLE BUSINESS TELEPHONE WOULD BE INCREASED FROM $64 TO $71 AND FOR A SINGLE RESIDENTIAL TELEPHONE FROM $43 TO $48. THE CHARGES FOR PRIVATE AUTOMATIC BRANCH EXCHANGE EXTENSIONS AND INTERNAL EXTENSIONS WOULD BE REDUCED.

POINTING OUT THAT THE NEW CHARGES WOULD TAKE EFFECT FROM OCTOBER 1 THIS YEAR, MR HIGGINSON SAID THAT BASED ON CURRENT PROJECTIONS, THERE WAS UNLIKELY TO BE ANY NEED FOR FURTHER INCREASES UNTIL 1988.

THE MOTION WAS APPROVED BY THE COUNCIL.

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