THE move to increase the Post Office's commercial independence would not bring higher postal charges, the Government said yesterday.
In a submission to legislators, the Economic Services Branch stressed that the creation of the Post Office Trading Fund on August 1, which would allow the department to become self-financing, would keep postal increases broadly in line with inflation in future.
Legislators fear charges may jump after the office switches to the new system.
The target rate of return of 12 per cent in the year 2000, announced last week, would give a clear goal for the Post Office Trading Fund management.
The 12 per cent goal would be achieved through new and expanded services, cost cutting and productivity improvement, rather than price increases.
The branch said the plan would help reduce the pressure for future postage rate increases, enable the Post Office to respond effectively to changing customer demands, support loss-making but essential services, and allow it to improve its services such as the introduction of parcel delivery service to the New Territories.
