ROAD MOTOR SERVICES

Press, Volume LXXIV, Issue 22491, 27 August 1938, Page 13

ROAD MOTOR SERVICES

INCREASE IN REVENUE

RAILWAY DEPARTMENTS

OPERATIONS

NET EARNINGS DOWN ON

SEVERAL LINES

[From Our Parliamentary Reporter.]

WELLINGTON, August 26,

Revenue of railway road passenger services during 1937-38 increased by £77,776 on the earnings for the previous year, although net revenue increased by only £276, according to the annual Railways Statement, which was tabled in the House of Representatives to-day. Revenue for 193 S totalled £276,527 and «*«giture £254,553, compared with £189,751 and £177,053 respectively in 1937. Dealing with this branch of the department's activities, the Minister, in his section of the statement, said:— "The Government's policy ot coordination of existing transport on the principal routes throughout the dominion in the national interest has been developed further during the year in the operations of the Kaiiway Department's road services. Additional passenger road services were taken over on the following routes during the year: Hokitika-Rimu, Ham-ilton-Rotorua-Opotiki, Auckland-Ham-ilton, Wellington-Titahi Bay, and Blen-heim-Parnassus-Kaikoura- Waiau. J. he following new services were inaugurated during the year: Hokitika-Grey-mouth, Culverden-Westport via Lewis "During the year the Government set up a tribunal to deal with the purchase of goods road services where such action was considered desirable, and this tribunal has already made recommendations respecting a number of services, which have been approved by the Government. At the end of the financial year arrangements were well in hand for taking over these services by the Railways Department. The first was taken over in May, and the work in connexion with the other services is now proceeding rapidly.

"The revenue of the road passenger services, amounting to £276,527, was an increase of £77,776 over the earnings of last year, and the net revenue of £21,974 was obtained after making full provision for interest on capital, for depreciation, and substantial provision for the writing-off of goodwill. The financial result is in itself satisfactory, but more important still has been the improvement in service and convenience in operation obtained through the co-ordination of road and rail services in those localities where single ownership has been brought about. Revenue and Costs Details of the operating results follow: 1938 1937 Inc. £ £ P.c. Revenue .. 276,527 198,751 39.13 Expenditure .. 254,553 177.053 43.77

Net ' revenue 21,974 21,698 1.27

After providing for interest on capital and for writing down capital by way of depreciation, the operations of this service show a net revenue of £21,974, compared with £21,698 last year, an increase of £276. A comparison of the results obtained on the various services is as follows:

Net revenue 1938 1937 variaProfit. Profit. tion. ■G £ £ Auckland-Rotorua 3.532 Wellington Wanganui 1,491 1.801 —4lO WellingtonJohnsonville 1,768 2,567 —799 Hutt Valley- M Wellington 11.396 9,894 +1,502 Napier-Hastings 3,403 3,405 —2 Christchurch ser- , vices .. 297 105 +192 Hokitika services 129 2,667 —2,538 Dunedin services 370 2,026 —1.656 Waipahi-Edievale *lO9 »78 —3l Invercargill , „„„ services *303 * 789 +486 Total .. 21,974 21,698 +275 •Loss. A comparison of passenger journeys and mileage operated is as follows: Increase. 1938. 1937. P.c. journeys 5,446,339 4.556,316 890,023 .19.53 Mileage .. 4,856,503 3,531,623 1,324,880 37.51 Due to Higher Wages Expenditure increased by £77,500 (43.77 per cent.). This increase is mainly due to higher wages costs and to the improved working conditions now operative throughout the branch and also to the increased cost of fuel, the cost of motor-spirit having been increased twice during the year (Id a gallon from April 27, 1937, and Id a gallon from March 1, 1938). No increase in the fare schedules has been made to meet the increased operating On the Christchurch road services revenue showed an increase of 2.08 d a mile, and expenditure an increase of 1.87 d a mile. Expenditure included full provision for depreciation of vehicles and interest on capital, together with a writing-down of a portion of the goodwill. Other increased charges were for wages due to increased rates and the operation of the 40-hour week for the whole of the year. On the Hokitika routes revenue rose from 18.88 d a mile to 19.25 d, the main increase being in goods revenue, which shows an improvement, of 1.38 d (16 per cent.) a mile over the figures for the previous year. Receipts from ordinary passenger traffic fell from 8.35 d to 7.06 d a mile, due to the non-opera-tion of the service during the slack period of the 1936-37 year, the main portion of the service not being operated until September. The absence of Easter traffic this year also • adversely affected the returns. Expenditure rose from 15.24 d to 19.16 d a. mile, due to increased costs generally; particularly maintenance and driving expenses. With.increased activity in the timbermilling industry in South Westland, it is expected that improved financial results will be achieved by this service in the future, the report states.