RAILWAYS STATEMENT

Kaikoura Star, Volume LXIV, Issue 64, 17 August 1944, Page 2

RAILWAYS STATEMENT

PRESENTED BY THE MINISTER OF RAILWAYS (HON. R. SEMPLE).

In presenting the Railways Statement for the year 1944, the Hon. R. Semple said:— This is the fourth Railways Statement it has been my pleasure to present, and I am gratified to be able to report another very good performance on the part of the railways. FINANCIAL. <

The financial results of the year’s operations may be regarded as entirely satisfactory. The gross revenue, £15,325,306, set a new record, exceeding last year’s revenue by £1,196,313 (8.47 per cent.) Expenditure for the twelve months amounted to £12,757,336, an In crease of £1,454,923 (12.87 per cent). The net revenue of £2,567,970 showed a decrease of £258,610 (9.15 per cent.) compared with 1942-43, and on a percentage basis the net return on capital was 3.71 per cent., as compared with 4.31 per cent, last year. A factor in the increased expenditure which warrants special mention is the provision of £410,500 for deferred maintenance. During the war period the extraordinarily heavy volume of traffic has meant abnormal wear and tear on the rolling stock, track, and equipment generally, while the shortage of material due to war requirements, coupled with the difficult man-power situation, has necessarily infant that less renewal and replacement work could be done than would have been the case in time of peace. In such circumstances it is better, while railway finance is buoyant, to charge to working expenses an amount estimated to meet maintenance expenditure which would have been in* curred but for wartime conditions rather than to make a more favourable showing for the present and load such costs on to the post-war period.

TRAFFIC. The amount of traffic handled during the year was greater than ever before in the history of the railways. The number of ordinary passenger journeys exceeded last year’s record by 1,146,109 (6.67 per cent.), and the tonnage hauled also set a new record of 9,026,626 tons, an increase of 1.56 per cent, over last year’s figure. Both the traffic handled and the revenue would have been substantially greater had it not, unfortunately, been necessary to impose restrictions on both goods and passenger traffic in January of this year. Up till that time the results showed much greater increases over the comparable figures for last year than obtained at the end of the year.

COAL POSITION. Following the mention of the restrictions which had to be imposed, it is of interest to note the heavy increase in the purchases and consumption of coal by the railways since the outbreak of war. For the year ended Alarch 31, 1940, the purchases of New Zealand coal amounted, in round figures, to 490,000 tons, while for the year under review the purchases reached 615,000 tons; the consumption figures for coal used by the locomotive branch in the same years were 492,000 tons, as against 634,000 tons, an increase of nearly 29 per cent. STAFF. The staff position has been cased somewhat by the return to railway duty of the 16th and 17th Railway Operating Companies, which had given splendid service overseas. There are still, however, 5440 railwaymen serving with the Armed Forces, and the staff is still short of its pre-war strength by 2123, or 8.24 per cent. While this gap remains, heavy demands will continue to be made on the railway employees, but with the easing of the situation they have been able to overtake at least some of the overdue leave and enjoy a well-deserved rest.

PROSPECTS. One cannot, overlook the fact that the phenomenal increase in railway traffic during the last four years has been largely brought about by the wartime conditions, resulting, as they have, in a shortage of tires and petrol, a shortage of coastal shipping, longer haulages due to the centralisation of shipping, and the heavy movement of Armed Forces personnel and military stores and equipment. During the year under review the revenue from both military fares and freights showed substantial increases, and fares from this source provided 34 per cent, of the total goods revenue. Under present conditions, and apart altogether from the present restrictions, it cannot be expected that the existing high level of traffic will be maintained. The war has departed farther and farther from our shores, and a substantial decrease in military fares and freights be anticipated. / No doubt some increase in production may be expected, but Ido not think it can be nearly sufficient to counterbalance the loss. In view of these conditions, it would not be prudent to expect anything but a substantial reduction in net revenue for the coming year.

EXECUTIVE PERSONNEL. Since my last Statement a considerable number of changes in executive personnel have taken place. Among those who have retired on superannuation are Mr E. Casey (General Manager), Air A. L. Smith (Transport Superintendent), and Mr W. Bishop (Chief Accountant). To these and to all those who have retired during the year I express mjy appreciation of the excellent service they have rendered. I should like particularly to thank Mr E. Casey for his unfailing courtesy and consideration during the years I have held the portfolio of Railways, and to pay a tribute to the splendid work he has done during an extremely difficult and trying period. As from February 1, 1944, Mr J. Sawers (Assistant General Alanager) was appointed General Alanager, and Mr C. R. Riesop was appointed Assistant General Alanager. CONCLUSION.

In conclusion, I should like to say that the relationships between the Minister, the management, and the employees have continued to be thoroughly harmonious throughout the year, and I shall like to record my appreciation of the splendid way in which the whole staff has responded to the special calls made upon then} in handling a record traffic. SUMMARY. For the current year it is anticipated that the revenue will reach £13,782,000 and the expenditure £12,282,000. Interest charges totalled £2,765,724, an increase of £143,011 compared with the previous year, and the net revenue fell short of the interest charges by £197,754. MILEAGE OF LINES OPEN FOR

TRAFFIC. The mileage of lines open for traffic on Alarch 31, 1944, was 3504, being an increase of 44 miles 18 chains over the figure for the preceding year. The increased mileage is due to the Railways Department taking over the section between Inangahua and Te Kuha on December 5, 1943, and the section between Clarence and Kaikoura on March 13, 1944. Details of the additions made during 1943-44 are as follows: Alileage of lines open for traffic,

March 31, 1943 .. .. 3459 Mileage opened for traffic during 1943-44: InangahuaTe Kuha .. .. 21 Clarence-Kaikoura .. 22 44 Mileage of lines open for traffic as at Alarch 31, 1944 .. 3504 On Alarch 31, 1944, the capital invested in the lines open, for traffic and subsidiary services was £70,999,125. This represents an increase of £2,314, 062 as compared with the previous year. The increase in payments are due to the receipt of heavy shipments of munition materials and to higher prices for railway material. The total issues to all branches (including coal and munition material (for the year amounted to £5,364,602, as against £3,870,859 for the previous year, an increase of £1,493,743.