RAILWAY FINANCE

Nelson Evening Mail, Volume 80, 25 May 1945, Page 4

RAILWAY FINANCE

DROP IN NET REVENUE Wellington, This Day. The net railway revenue for the year ended March 31, 1945. was £ 1,199)473, compared' with £2,567,970 the previous year, according tp. figures published in last ” night’s “Gazette.” The net revenue repre-'’ sents a return of 1.69 per cent! cfh the average capital cost of opened lines, compared with a return of 3.71 per cent, for the previous year. The gross railway revenue for the financial year was £ 14,459,750. Though well in excess of the gross revenue earned during the pre-war and early war years, this figure represents a decrease of £865,556 on the record figure established in 194344. Passenger revenue declined by £771,029, or 18.03 per cent., and goods revenue by £218,300, or 2.57 per cent. One factor in these decreases is the falling off in military fares and freights, fares from this source decreasing by approximately £230,000 and freights by £224,000. The main cause of the decrease, however, was the shortage of coal, wheih necessitated restrictions on services throughout the whole year. Had it not been for this factor jt is. considered that the decline in military fares and freights would have been more than offset. The gross expenditure for the year was £13,260,277, a rise of £502,941, or 3,94 per cent. In consequence of the decisions of the Government Railways Industrial Tribunal, the • total working expenses wages bill rose by £864,247, and the additional cost of increases in salaries, wages and allowances and improved staff conditions granted during the year chargeable to working expenses is estimated to have beep £572,190. Both the revenue and the expenditure of the miscellaneous and subsidiary services showed an increase, mainly by reason of variations in the road service returns.