Railways loses $9.7m for year

Press, Volume CXI, Issue 32659, 15 July 1971, Page 1

Railways loses $9.7m for year

(New Zealand Press Association) WELLINGTON, July 14. The Railways Department lost $9.7m last year.

.The increase in the Railways expenditure last financial year, compared with the previous year, was $18.7m. This was offset by a $5.5m revenue rise, giving a deterioration of $13.2m compared with the preceding year, said the Minister of Railways (Mr Gordon) today. “After adding interest charges on the 1.8.R.D. loan and buyers’ credit payments, the net loss on the whole undertaking for 1970-71 was $9.7m,” he said. Revenue rose 5.5 per cent to a record $105.2m, largely as a result of increased traffic. The total working expendi-

ture including provision for depreciation, however, rose 19.7 per cent to $112,8m. Although the average number of staff employed during the year was 268 fewer than in .the preceding year, the amount of salaries and wages included in working expenditure rose 20.7 per cent to $69.2m. “There was also a 20.2 per cent increase in the cost of material and contract work, also largely brought about by the effect of spiralling wage costs,” said Mr Gordon. “Although the financial results are disappointing I am satisfied that good progress is being made with improvements to the department’s equipment and services. I am confident that recovery from the severe financial check experienced this year will be accomplished in a relatively short time,” he said.