DEFICIT ON RAILWAYS

Press, Volume LXXXVI, Issue 26120, 24 May 1950, Page 6

DEFICIT ON RAILWAYS

Decrease Shown £821,000 MORE REVENUE (New Zealand Press Association) WELLINGTON. May 23. An operating loss of £1.055,556 was incurred by the railways during the financial year ended March 31 last. This deficit, which is revealed in the Abstract of Public Accounts gazetted this evening, is to be met by a stabilisation subsidy for that amount. The railways operating loss for the previous financial year was £1,102,866. Tlie deficit on last year’s operations was nearly £1,000.000 less than it was expected to be when the estimates were taken out at ’ the beginning of the financial year. A revised estimate of £1,500.000 was given by the Minister of Railways (Mr W. S. Gocsman) when he made a survey of railway finances in the middle of February. The operating loss was therefore £441.444 below the estimate ot‘ the deficit made six weeks before the close of the financial year. The improved revenue position was caused by an unexpected increase in both passenger and freight traffic, more particularly freight traffic, which had been phenomenally heavy, said the General Manager of Railways (Mr F. W. Aickin) in reply to an inquiry to-night. He added that the total revenue was £B2l 000 above the department’s estimate at the time the Railways Statement was tabled in Parliament last year. Of that sum £500.000 came from increased freight tonnage carried by the railways.