Deficit Of Railways Less Than Expected

Press, Volume XCVIII, Issue 28904, 26 May 1959, Page 14

Deficit Of Railways Less Than Expected

(From Out Own Reporter) WELLINGTON, May 25. The deficit on actual railways operation throughout New Zealand is just more than £750,000. This compares favourably with the estimated deficit of £2,800,000 forecast earlier. Operations for the year ended March 31 showed a deficit of £764,441 for both the North and South Islands. This is £380,986, or 33.26 per cent, less than the actual deficit of £1,145,427 in the previous year.

“This highly satisfactory result has been achieved in spite of salary and wage increases, amounting to more than £250.000. and higher electricity charges.” the Minister of Railways (Mr Moohan) said this evening. “What is more important, it has been achieved without anv increase in either fares or freights.

“This could not have been done without the full co-operation of the management, the representatives of the four railways organisations and the staff.” said the Minister.

“Since assuming the portfolio." said the Minister. “I have travelled nractically over the whole railway system. A lot remains to be done. Modernisation and painting of a number of our stations, much better amenities and facilities for the staff are necessary and also better facilities for the public. Many railway buildings and amenities are very old. t and a drive will be undertaken to overcome this backlog in the very near future.” Revenue Exceeds Estimates Figures announced by Mr Moohan show that revenue for the year ended March 31, 1959, exceeded the estimates by more than £500.000. The figures are: estimate. £33.794.000; actual revenue. £34.372.864. Other figures, with the estimates in brackets. - are as follows: expenditure, £35.137.305 (£ 36.582.000 i; net loss. £764.441 (£2.788.000): interest charges, £5.195.683 (£5.135.767)

The goods tonnage for the year was 10.367.000, as against 10.332.000 tons for the previous year. For last year (ended March 31. 1958) the net loss was £1,145,427. “The estimated deficit of nearly £3m was given to me at the beginning of the year by my senior officers in good faith on the assumed revenue and expenditure estimates.” said Mr Moohan- “At the time the revenue estimates were prepared, it appeared that passenger revenue in both islands, and particularly goods revenue in the South Island, would fall according to the then existing trends.

“However, the final figures show that gross revenue was only £69.905 less than last year. Passenger revenue remained more buoyant than expected, and the quantity of goods carried rose by 35.000 tons. “The railways carried 221,000 more tons of timber than last year; 56.000 more tons of agricultural produce; 25.000 tons more of coal: and 23.000 more tons ol livestock. Reduced Expenditure “Gross expenditure showed a reduction of £450.891 on last year. This is in spite of salary and wage increases, effective from October 1, 1958. amounting to £268.000. “In keeping with the emphasis placed on giving good service and attracting business to the railways. a tight control of expenditure was maintained. In pursuing reduced expenditure, so vital to the future of rail transport, attention was directed particularly to savings consequent on more efficient day to day operation. “For instance, the more economical working of traffic by the re-scheduling of services throughout the railways'system and the better utilisation of diesel locomotive power resulted in a reduction of 254,000 train miles (1.69 per cent.) and 559.000 engine miles (2.56 per cent.), although the gross ton miles increased by,

11,473,000 miles (.28 per cent.). These statistics are a measure of improved efficiency in train operation. with a consequent saving in costs.

“Electricity charges rose by £59.000 because of increased charges from April 1, 1958, but lower costs for fuel oil and diesel oil, together with decreased consumption of coal, amounted to £256,000. The net decrease in fuel costs amounted to approximately £200,000,” the Minister said. MINOR FIRES An oven Are at 393 Ham road, the property of Mr E. Symonds, was extinguished at 12.07 p.m. yesterday by a Sockburn fire unit. There was no damage. A detached shed at the Alexander Plating Company, 70 Victoria street, was slightly damaged by fire about 3.25 p.m. A Central unit attended.