RAILWAY DEFICITS HEAVY

Hawera Star, Volume LI, 20 February 1932, Page 7

RAILWAY DEFICITS HEAVY

HEAVY BURDEN IN AUSTRALIA. FACTS FROM NEW SOUTH WALES (Special to "Tho Star.”) WELLINGTON, Feb. 20. This week’s announcement that- the accumulated deficits of the Australian railways since 1914 now total £68,000,000 liais caused no surprise in tlie Commonwealth, because these concerns have not shown a good balance-sheet for some years. In 1926, taking them as a group tlieir loss on capital wits 2.42 per cent. Then a slight improvement was obtained, but tlie year 1930 again proved disastrous, the general loss equalling 2.41 per cent, on a capital in all States of over £314,000,000.

The last annual report of the NewSouth Wales Railway Commissioners shows how difficult were the conditions during 1931. Earnings on this system decreased by £2,620,000. but the expenditure, though heavily diminished, failed to meet this figure to tlie extent of £558,174, and the result was a profit of only 1.76 per cent., though the average rate of interest required to be earned is 4.33 per cent. It- is significant, m view of exchange controversies, that the Commissioners make special reference to the fact that the cost of exchange on interest remittances to London was £737,633.

Heavy retrenchment of staff was necessary, and the working hours of those remaining had to be extended. Altogether the Commissioners were able to reduce the wage and salary bill during the year by £1,395,000. Rationing of work was adopted, the report explaining that although the average staff on the books was 43,352, work was available only for 38,290, and to avoid dismissal of about 5000 men working time was reduced on a rationing basis. Tlie Commissioners point out, when discussing the serious reductions in goods and passenger traffic, that while in 1929 the average number of unemployed in the State was 27,500, it had grown in the year under review to 130,000. “The reaction of such conditions on railway revenue should be fairly obvious,” they -state. “But the persistence of uninformed criticism as to the causes of falling off in railway revenue makes it necessary to emphasise the plain fact that less trade means less goods traffic, less employment and reduced purcliaing power mean less travel, and these factors react upon one another ;so as to make a whirlpool of depression into which the railway is drawn.”

Despite the long record of adverse finance, the construction of railways was being continued, details being given of six new lines which were in band, involving an additional mileage of 252 miles.