asked the Postmaster-General whether he is aware that since the return to penny postage in New Zealand the number of letters posted increased by 7,500,000 in 1933 and by 5,000,000 in 1934; and whether he has made any estimate of the extent to which the number of letters would similarly increase in this country if a similar reduction in postage were made?

Yes, Sir. The estimated net increase in the first year in the number of letters under penny post in this country is put at a figure which represents nearly the same proportionate increase as has actually occurred in New Zealand. It is on this figure that an estimated net loss of revenue of over £6 million is based.

Mr. VYVYAN ADAMS:

asked the Postmaster-General whether he proposes shortly to reintroduce the penny post?

No, Sir.

Mr. ADAMS:

As the right hon. Gentleman has made his Department so prosperous and profitable, can he give any reason for this refusal?

I referred to the matter in a reply just now. The net revenue involved is £6,000,000. This is a matter in respect of which national taxation and national conditions have to be considered.

Mr. ADAMS:

Might not the return increase if the postage were lowered?

That has been taken into account.

Will the right hon. Gentleman do his level best to re-introduce the halfpenny rate for newspapers?

Is the Department always to be regarded in future as a revenue raising Department?

No. I think we have show that of recent years.