CAB129-45 — Page 126

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biculated 21/3/5/at 8am.

THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT

✓

PagThe2zic&on of this paper has been strictly lihaga.127 of 587

been orman Brook 112

Norman

It is issued for the personal use of..

TOP SECRET

C. P. (51) 90

20TH MARCH, 1951

CABINET

Copy No. 27.

POST OFFICE TARIFFS

Memorandum by the Postmaster-General

At the Cabinet meeting on the 19th March, at which consideration was given to the proposals which I submitted in paper C.P. (51) 71, it was agreed that I should submit to the Lord President's Committee proposals for securing that telephone rentals could in future be altered without revising existing agreements. I am arranging for this to be done (C. M. (51) 21st Conclusions, Minute 4).

2. The view was also expressed that the proposed increases in Post Office charges should be introduced only when, under impending wage claims, substantial awards had been granted. The programme of intro- duction of the increases proposed in C.P. (51) 71 was as follows:-

Inland printed papers

To come into force on 1st June 1951

Money orders and C. O.D. To come into force on 1st July 1951

To come into force on 1st July 1951

Telegraph charges

Charges for local calls

· from public kiosks

Overseas parcels

Exchange line and

special circuit rentals

To come into force on 1st October 1951

To come into force as soon as possible

To come into force on 1st January 1952.

If we were to wait until substantial wage increases had actually been awarded, it would not be possible to announce the foregoing programme before the Budget, and the additional cash yield expected by the Chancellor in 1951/52 could not be included in the Budget figures and might not, in fact, be realised. Apart from this aspect, I feel that it would be unwise, from the purely business point of view, to wait until the Post Office accounts are in deficit before taking steps to increase the charges and ensure that the Post Office finances remain on a satisfactory basis. I consider it would also be unwise politically for the Post Office, the oldest-established nationalised organisation, which has a tradition of service to the public over a long period of years throughout which it has shown successful commercial results, to allow itself to go "into the red" instead of taking prudent action in advance to avoid such a situation. I feel that the best course Wafid be there to the programme of increas