Plans for Future Development

These then aresome of the plans for future development—new postal centres and mechanised mail handling in the larger centres, the establishment of an internal telex service, and the extension and further automatisation of the telephone service. It was in recognition of the extent of this development programme and of the need for financing it that the Post Office recently announced increases in its charges.

Although it has, for several years, shown a profit in its operations, only [unclear: t] small portion of its revenue was being directed into capital development, and finance for this was having to be found from loan monies. That this policy is not entirely satisfactory is evidenced by the annual interest bill on loans which now totals something over £3 million; money which could itself be better used for development purposes. In his report to the Postmaster-General, the Director-General of the Post Office, Mr. D. Donaldson, emphasized that expediency in meeting demands for communications services was no longer possible, and that the problems of future growth would have to be met face on. With [unclear: a] greater proportion of revenue being set aside for capital investment, services will be able to be improved and extended.