N.Z. RAILWAYS.

Hawera Star, Volume XLVII, 17 May 1928, Page 4

N.Z. RAILWAYS.

FINANCIAL OPERATIONS.

REVIEW OF YEAR’S WORK.

ttl > rtO-iEGUAdI PHESS ASSOCIATION. 1 PAPAROA, May 16. Details of the railway earnings and traffic returns -of the financial year ending March 31 were supplied by the Prime Minister, R-t. Hon. J. <3-. Coates, in his speech at Paparoa to-night. The gross earnings were £8,032,943, as against £8,434,655 in the previous year. The working expenses were £6,685,123, as against £6,490,880, leaving a net revenue of £1,347,820, -as against £1,913,774.

Subsidies on developmental lines totalled £489,568, as compared with £445,221, and interest charges -were £2,130,867, as against £2,043,433. -The deficit for the year was £293,479, as compared with £99,659 in 1927.28. The Prime Minister said the revenue shelved a small increase of £43,510, -which, taking into account the difficult conditions ruling throughout the year, must be regarded- as satisfactory.' The number of railway passengers decreased -by 623,000 ‘and the passengers ' revenue by £159,000, but this loss -was to some extent set off by an increase of 650,000 passengers and £24,000 in revenue from bus services. The revenue from goods traffic increased iby £84,000. The number of cattle carried increased -by 69,000, sheep and pigs by 402,000, and goods traffic by 114,000 tons. A-decrease of 93,000 tons in timber traffic was partly attributable to the falling off in the demand for house construction, the abnormal shortage of houses that existed before the war having been overtaken to a very great extent. One of the most striking features in. -the goods traffic statistics was the very ■large increase in the quantity of fertiliser carried during the past two years. In 1926 the total quantity carried, was 312,000 tons, while in 1928 it had increased to 586,000 tons, an increase of 88 per cent. The reductions in railage made as a matter of Government policy amounted in the year just closed to £107,000. The ■working expenses of the railways and subsidiary devices increased- by £194,000, the chief contributing -factors being: Railways £144,000, the increased number of dwellings provided for employees £25,000, and bus services- £24,000. The increase in railway expenses ■was -due very largely to the greater mileage of line worked, the provision of better services, and to the handicaps imposed by the construction of new works which had not yet been brought into full use. Interest charges increased •by £&7,000, the interest .burden onworks under construction which have not yet become reproductive amounting to £75,000.