That is correct. The postage has
not been raised. But my colleague the Minister of Finance has required extra money for the war expenditure. It'was estimated that something upwards of $8 million could be raised by an additional one cent on letters and post cards. It was not that the Post Office Department required more money for operating. In fact our surplus as shown in the report has increased substantially in the last few years, from some $3,250 to upward of $4,500,000, with every indication that it will be still higher, although the final figures for the fiscal year are not yet in.
The point I wish to make is that when the postage on letters was boosted first from two cents to three cents, and then later to
Post Office Act
four cents it was made clear by the Postmaster General and by the minister of finance of that day that that four cents was not all postage; it was two cents postage and two cents tax for purposes of war revenue. Today, without much notice being paid to it, we have had laid before us a proposal which builds that two cents, which has been on during these years as a matter of tax, into the postage rate structure. It may be that increased costs make this change necessary. It may be that the idea of penny postage, in view of what has happened to the value of money, is gone. But I felt that before we passed this last section we should know what we are doing. We are changing the basis of our four cent postage rate from what it has been for years, two cents postage and two cents tax, to four cents postage-
Topic: II, 1951