The Post Office, Mr. Chamberlain continued, had been worked at
a loss of £3,000,000 last year, and higher wages for postal servants would cost £8,000,000 more this year. To meet this heavy deficit, he must increase the letter postage to twopence for three ounces, the newspaper postage to a penny for six ounces, the minimum telegram rate to a shilling, and the postcard rate to three-halfpence, if the other members of the Postal Union agreed to a similar increase for foreign postcards. The telephone charges would be raised so as to produce £2,750,000 more yearly. These taxes on communications are very serious indeed. Mr. Chamberlain also announced his acceptance of the new Motor Taxes, recently proposed by a Departmental Committee. They will begin next January, when the Petrol Tax will cease. In a normal year the Road Fund will receive £8,400,000 from the new taxes on motor vehicles.
