DEAR MONEY
Sta,-.--In his article on November 28 your financial correspondent Mr. Davenport suggests that instead of . dear money and restriction 'an -orderly re- expansion of output is the better way to overcome the rise in labour costs.'
Perha;ss he would permit me to quote in support of his vi w the experience of the telephone service?
Alone of the major services and industries the telephone service is still suffering from war-time and post-war shortages--in the sense that there is still a waiting list for telephone service. Although this has fallen from the peak of half a million to 150,009.
there is no sign at present of any endeavour to return to the pre-war situation of service being provided on demand.
Such a return could be secured by allowing the Post Office, over a relatively short period, an increase in the capital which it is allowed to invest. InStead, however, capital allocation has actually been cut —from £101 m. last year to some £96 m. in the current year.
As a union we are, of course, particularly con- cerned about the effects of this upon the staff. There -cannot be any doubt that this restriction on capital investment—which was announced in September. 1957, as a part of the dear-money policy—is actually reducing efficiency of telephone installation and development and, if continued, will imperil the very good staff relations which have been built up in th Post Office.
It is; therefore, much to be hoped that views sue as those of Mr. Davenport will not go unheede..- Post Office Engineering Union. General Sec;e1.2.1
Greystoke House. Hanger Lane, WS
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