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Sir Thomas Gardiner chaired a departmental committee tasked with the applying the increased decentralisation recommended by the Bridgeman Committee report of 1932 which advocated that the Post Office should be organised along more commercial lines. The Gardiner Committee's recommendations, published in its report of 1936, led to eight regions being established in the provinces, each in the charge of a Regional Director responsible for the control and co-ordination of all Post Office services within his region. Additional to these eight provincial regions, two further regions were set up in London - one for Posts and one for Telecommunications. The provincial regions were divided into Head Postmasters' districts for the management of the postal and the telegraph services (in practice these were already in existence).
The telephone service regions were divided into telephone Areas under Telephone Managers, of which there were ultimately 57 for the provinces and nine in London. Telephone Managers, with Head Postmasters acting as their agents on certain matters, were to be responsible for the day-to-day control of all aspects of the telephone service (engineering, traffic, sales and accounts). They were also to be accountable to the Regional Director for the overall efficiency of the telephone service in their territory.
The first two regions (Scotland and North East) were set up in 1936, followed by the two London regions (Telecommunications and Postal), and the changes throughout the country were in place by 1940. (The records note that Midlands telecommunications region was due to be established in 1940 but its formation was formed in haste on 2 September 1939, the day before the declaration of the Second World War.)