INCREASE SEPT. 14

Gisborne Herald, Volume LXXIV, Issue 22426, 5 September 1947, Page 4

INCREASE SEPT. 14

FARES RAILWAY STATEMENT MEETING HIGHER COSTS (P.A.) WELLINGTON, Sept. 5. All-round increases of 15 per cent in railway fares except all suburban passenger fares, and 20 per cent in railway freights, subject to minor variations, were announced by the Minister of Railways, Mr R. Semple. The increases will operate from and including September 14. Despite the fact that the Railways Department had been faced with heavily increased expenditure since fares and rates were increased in 1938. the Government had deferred as long as possible these new increases, which had been caused by higher operating costs, said the Minister.

“In my 1946 railway statement I forecast an increase in expenditure during the year ended last March without. an attendant increase in revenue. This aspect had never been overlooked and. in fact, the position has been constantly under review.

"As stated by the Minister of Finance in the Budget, the deficit for the current year on railway operations if no action is taken would amount to £1.800.000 and that if the interest on the capital invested in the railways was added the total deficiency would have amounted to £4.800,000.

"Although it is anticipated that an increased volume of both passenger and goods traffic will be offering for transport by the railways during the next 2 or 3 years, with consequent increased revenue, the fact remains that the railway expenditure rate has increased to such extent that rates and fares must be raised in order to maintain the financial stability of the system.”