Manawatu Evening Standard. TUESDAY, FEB. 23, 1932. RAILWAYS FINANCE.

Manawatu Standard, Volume LII, Issue 71, 23 February 1932, Page 6

Manawatu Evening Standard. TUESDAY, FEB. 23, 1932. RAILWAYS FINANCE.

The figures relating to income and expenditure of the Government railways for the 44 weeks of the current financial year, which were announced by the General Manager, Mr P. G. iloussell, a few days ago, bear out the heartening prediction made by the chairman of the Railways Board, Mr H. B. Sterling, a short time earlier in the address on transport problems which he gave to members of the Palmerston North Rotary Club. On that-occa-sion Mr Sterling enumerated the steps that had been taken to check the drift prevailing in railways finance for several years, and said that in addition to effecting a reduction in expenditure —the one side of the operations over which the department can exercise full control —of half a million sterling in the previous financial year, the department expected to show another reduction of a million or more this year. This figure has been exceeded with eight weeks of the year still to run, and it is distinctly refreshing to see the extent to which the accounts have been improved, especially during a time when the economic blight is very bad. The net revenue from April 1, 1931, to January 30 was £530,946, against £439,803 last year, an improvement of £91,143. The working expenses for a similar period last year were £5,833,212, and these have been reduced to £4,759,202 already this year, a difference of £1,074,010. This, when the railways are receiving about £78,000 less a week in custom, shows how well has the drift been tackled, and is a good measure of justification for the setting up of the present board, which has been in office since June last. If the rate of decline in the working expenses is maintained until the end of the financial year —there is every indication that it will be —the results should not be very far short of the Budget estimate of the jeturn from the system, and • this should afford some consolation to the taxpayers'and at the same time provide a pleasant contrast to the long list of deficits which the Consolidated Fund has had to meet in the railways account for years past. An important consideration to be borne in mind in conjunction with these figures is that the large burden of expense created by the necessity for reconstructing the department’s workshops and bringing its rolling' stock up to modern requirements was met two or three years ago, and the system is now in a position to give a higher standard of service, a condition which should reap a fair reward’ when the economic state adjusts itself and goods and passenger traffic increases. The

Railways Board has made splendid progress in setting its house in order, and though the contentious subject of making the railways pay will ever be arguable, the fact remains that the taxpayers are being relieved of part of a load which they have seen steadily increased, and they have evidence that the system is being efficiently handled at lower cost. It is an achievement these days to keep the rate of expenditure reduction ahead of the rate of lowered income.