VII

1928. NEW ZEALAND.

POST AND TELEGRAPH DEPARTMENT (REPORT OF THE) FOR THE YEAR 1927-28.

Presented to both Houses of the General Assembly by Command of His Excellency.

To His Excellency the Right Honourable Sir Charles Fergusson, Baronet; General on the Retired List and in the Reserve of Officers of His Majesty's Army ; Doctor of Laws ; Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George; Knight Commander of the Most Honourable Order of the Bath ; Companion of the Distinguished Service Order ; Member of the Royal Victorian Order. May it please Your Excellency,— I have the honour to submit to Your Excellency the report of the Post and Telegraph Department for the year ended 31st March, 1928. RECEIPTS AND PAYMENTS. In the conduct of some big undertakings it is not an uncommon experience to find that the securing of an increase of £l in revenue involves an increase of 19s. 6d. in expenditure. Fortunately, this has not been the experience of my Department. Owing to careful and economical management, I find myself in the happy position of being able to report that, while during the last three years the revenue has increased by a substantia] sum, the expenditure has decreased also by a substantial sum. Last year I had the pleasure of placing on record an increase in revenue of £120,270 and a decrease in expenditure of £63,282. This year it is extremely gratifying to me to report a further increase in revenue of £.108,845, and a further decrease in expenditure of £46,703. Thus in two years the total revenue has increased by £229,115 and the total expenditure has decreased by £109,985. Growing capital charges —interest on money borrowed from the Public Works Fund and depreciation on assets —will absorb a large portion of this excess, but I anticipate that the year's operations will yield a net profit of approximately £20,000. The balance-sheet for the year is now being audited, and will be available shortly. Although the Post and Telegraph Department has a monopoly, it is the endeavour of my officers so to conduct the management that even if the Department had competitors it would not lose business through clients finding that they could obtain better and cheaper service elsewhere. My Department aims at conducting its affairs as a business man conducts his, and, judging by results, it is not falling far short of its goal. The results achieved are even the more remarkable when it is borne in mind that the year just past was not a particularly good

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