STARTLING FIGURES

Northern Advocate, 3 October 1930, Page 5

STARTLING FIGURES

BRANCH RAILWAY LINES NORTH AUCKLAND LOSSES. PROSPECTIVE CLOSURE. (From Our Parliamentary Special.) WELLINGTON, This Day. Reporting on branch lines, the RailCommission has the following comments tio make respecting sections in the North Auckland district: — Kaikohe. The operations for the whole of this branch for the last year were as follow: —Branch revenue, £7758; feeder value, £4542; total revenue, £12,300. Working expenses, £14,871; interest, £’15,375; total, £30,240. Total loss, £17,946.

An extension of this branch is now being built through difficult country from a constructional point of view, and although a greater area of land will bo opened up it is unlikely that the line will ever pay more than working expenses, or (that the position will improve as the line is extended.

The services on. this line are now at a minimum, and it appears impossible to operate this /branch other than at considerable loss. The position and 'the results obtained in forking this branch should be Closely reviewed from time to time and a close watch kept on the working. If it is found that settlers do not support the railway, the advisability of closing the branch should be considered. Kirikopuni. The country through which this railway passes is unstable and is difficult from a constructional point of view.

The cost of building was extremely hijgh, amounting to £1,059,350 for a distance of 13 miles 57 chains, equal to £77,325 per mile.

In 1927 the chairman of the Railways Board reported that, from investigations that had been made, he estimated there would be a loss on this branch of £77,000 per annum when it was completed. This loss is arrived at after allowing for a. subsidy of £IO,OOO in respect of the Kaihu Valley line,. There is no prospect of this branch line ever paying. The interest charges, which last year amounted to £45,220, will continue, and will be considerably increased when the Kirikopuni--Tangowahine section is incorporated with .the railway system. The Commission is of opinion that the operating of the line should be ’continued for a reasonable time, the results, being carefully reviewed at intervals of six months, and if, after giving full consideration to itho feeder value, it is found that the loss materially increases, the advisability of closing the branch should be considered.

Kaihn. Po-; the year ended March 31, 1030, the total operating revenue and expenditure .over the whole of this section was as follows: —Total revenue, £6504 • working expenses, £9596; interest, £BI6O. Total loss, £11,252. In view of ithe heavy loss on this section, the Commission recommends that a curtailed train service be put into operation, and unless the loss is decreased in (the near future consideration should be given to the closing of the line.