RAILWAY FINANCE.

Auckland Star, Volume LXIX, Issue 225, 23 September 1938, Page 6

RAILWAY FINANCE.

Railway revenue, in accord with the better conditions following the easing of >the world slumps shows a very substantial - increase for the first five months of this year, but unfortunately for the general public the expenditure has risen in an even higher ratio and the period has involved the Department in a loss of £6492. For the same months last year the net credit was £170,805, half the total of the previous year and only a little higher than the worst years of the slump. This year the Minister budgeted for a 'net credit balance of £505,398, the revenue being estimated at £9,211,605 and the expenditure at £8,706,207. The best months are yet to come, but on the basis of last year's returns the credit in hand for the twenty weeks should have been £140,000. Instead there is a loss of £6492, so that the expeetation that the railways will not only pay "their way bu£ will take up part of their own interest burden is not likely of realisation. Five major railway extensions are under way, and it is certain that some of them will make further heavy demands on the taxpayer. Mr. Savage said last night that our railways were going to be among the best in the world. The system has a long way to go before that boast is made good,' and substantial additions to the expenditure will be neeessary. These, again, must come not from the users of the railways, but from the general taxpayer, since there will be no margin above operating costs. .