WEDNESDAY, JUNE 9, 1993
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FOR EXAMPLE, PRINTED PAPER
NOW ACCOUNTS FOR OVER HALF THE TOTAL DEFICIT IN THE LOCAL MAIL SERVICE.
THE EXTENT OF THE CURRENT CROSS SUBSIDY TO THE PRINTED PAPER SERVICE IS DEMONSTRATED BY THE FACT THAT DESPITE SIMILAR HANDLING COSTS, POSTAGE FOR LOCAL PRINTED PAPERS AT THE 1 KG LEVEL AT $4.60 IS 62% LESS THAN THE CORRESPONDING LETTER RATE OF $12.
IN ORDER TO REDUCE THE EXTENT OF SUBSIDIES TO BUSINESSES, THE INCREASES FOR PRINTED PAPERS VIS-A-VIS LETTERS FOR LOCAL AND SURFACE MAIL SERVICES ARE COMPARATIVELY HIGHER.
MODEST
ON THE OTHER HAND, THE INCREASES FOR AIR MAIL RATES ARE VERY
WELL BELOW THE RATE OF INFLATION.
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WITH THE PLANNED INCREASES, LOCAL AND SURFACE MAIL SERVICES CONTINUE TO OPERATE AT A LOSS, ALBEIT TO A LESSER EXTENT; WHILE AIR MAIL SERVICES CONTINUE TO OPERATE AT A PROFIT,
MR PAGLIARI WENT ON TO SAY THAT THERE WAS NO GUARANTEE THAT THESE PROFITABLE SERVICES WOULD REMAIN SO.
"EVEN AFTER THESE INCREASES, HONG KONG POSTAL CHARGES REMAIN AMONG THE LOWEST IN THE INDUSTRIALISED WORLD,' ** MR PAGLIARI SAID.
"GIVEN THAT POSTAGE
CONSTITUTES ONLY A SMALL PROPORTION OF OVERALL CONSUMER EXPENDITURE AND BUSINESS COSTS, THE INCREASES ARE UNLIKELY TO HAVE ANY SIGNIFICANT IMPACT ON GENERAL INFLATION.
"THE GREATEST IMPACT WILL BE ON THE BULK USERS OF PRINTED PAPER AS POSTAGE RATES FOR PRINTED PAPER HAVE INCREASED BY A HIGHER MARGIN THAN THAT OF ORDINARY MAIL.
"WE SHALL THEREFORE WORK WITH THE USERS OF OUR PRINTED PAPER SERVICE TO EXAMINE HOW THEIR POSTINGS MAY BE IMPROVED SO THAT THE POST OFFICE MAY ACHIEVE OPERATIONAL COST SAVINGS WHICH COULD THEN BE PASSED ONTO THEM IN THE FORM OF DISCOUNTS," MR PAGLIARI ADDED.
AS REGARDS INCREASES IN MISCELLANEOUS FEES AND CHARGES, THE NOTABLE EXAMPLE IS REGISTRATION FEE WHICH WILL BE INCREASED FROM $9 TO $11.
ALSO, ANNUAL RENTAL FOR POST OFFICE BOXES WILL BE INCREASED, FOR EXAMPLE, FROM $460 TO $570 FOR LARGE BOXES AND FROM $370 TO $450 FOR SMALL BOXES AT THE GENERAL POST OFFICE AND THE TSIM SHA TSUI POST OFFICE.
RENTALS AT OTHER POST OFFICES ATTRACT SMALLER INCREASES.
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