Railways Made £l.2m Profit Last Year

Press, Volume CIV, Issue 30739, 1 May 1965, Page 3

Railways Made £l.2m Profit Last Year

(New Zealand Press Association)

The Railways Department made a working profit of £1,184,907 for the year ended March 31 last. Revenue for the vear totalled £42,658,753, and expenditure £41,473,846.

The biggest working surplus again went to the rail-road ferry service. It earned £794,995 in net revenue, compared with £535,060 in 1963-64.

General rail and road operation resulted in a working

surplus of £389,952, compared with £3722 for the previous year.

The tonnage of goods and livestock hauled reached 11,971,634 tons. After adjustment of this figure for an item of local haulage—now included in total tonnage to facilitate better costing—the resultant 11,726,978 tons compares with 11,090,174 tons carried in the 1963-64 year. The Minister of Railways (Mr McAlpine) said today that the substantial increase in tonnage carried was evidence of the ability of a modernised railway system to give service which would attract increasing business. “The greater patronage and the moderate tariff increases made last September have assisted the department to

meet heavier expenditure incurred mainly in wages—which, with increased rates and arrears payments—were higher by £l.B million.” Mr McAlpine said the railroad service was being particularly well patronised and the Aramoana made 571 return crossings in the year compared with 505 in the previous year.

He said the earnings to date from this service—while substantial —had to be viewed in relation to the cost of a second ship under construction, and to the cost of providing a greater number of new steel box-waggons to cater for the goods traffic carried on this service.

Mr McAlpine said the over-all results for the year were most encouraging. “Progressive modernisation of plant and equipment is making the railways an increasingly effective asset in the country’s economic life," he said.