REVENUE STILL FALLING.

New Zealand Herald, Volume LIX, Issue 18173, 19 August 1922, Page 8

REVENUE STILL FALLING.

POSITION OF "RAILWAYS, WORKING PROFIT LARGER, ill :— _. • /: LOSS ON BRANCH LINES, tIS !,:• j' ' . , ■ r^ l MU@=s [BT TELEGRAPH. —SPKCXAt, REPORTE*.} ~t>* ■WELLINGTON, Fri&y, "'' '' A statement of the result® of working S the New Zealand railways for the period of 20 weeks from April 1 to July 22, ®t&* pared with the corresponding period 0 f last year, was read by the Hon. D. H. ' Guthrio, Minister for ißailways, in the House of Representatives this afternoon. He said the receipts and expenses com. pared as follow:— " >r" NORTH ISLAND-

The proportion of working expenses id revenue in the North Island, 89.45 per has declined by 4.84; and in the Soutn Island, 93.95 per cent., by 13.78. For all lines, the proportion was 91.39 pej cent., a decline of 8.38. On the revenue side, all section* in tha North Island showed' a decrease, the aggrefate amount being £139,857 (North Island lain Trunk £132,738), In the South Island the Westport section of railway and thp Lake Wakatipu steamers, showed increases, the remaining four sections of railway showed a decrease, the aggregate decrease in the South Island being £19,15<j (South Island main lino, £11,670). On the expenditure side, there was s decrease on all sections, except Whaaga. rei and the Lake Wakatipu steamers. » - Continuing, the 'Minister said tie loss on the operating had been reduced from • £4770 a day in August,. 1921, to £2753 * day on July 22, 1922. Whereas for th« four-weekly period ended July 23 last year the expenditure exceeded the revenue by £49,125, the revenue for the four weeks ended July 22, 1922, waa in credit to the extent of £384, this withstanding the fact that during tfia four-weekly period the revenue had declined by £38,458, thus reducing the effect . of the very material reduction that tad been made in the expenditure*. In addition to the Whanganei, KsQro, . Gisborne,' and Nelson sections, fchecre *«M> 26 branch lints in the North ana South Islands which were earning irsufficieofc revenue to pay the bare cost of op&raA- k ing, in spite of the rectuciaona that had 1 been introduced to effect economic* These ■ lines had been unprofitable to thi!' depart? - ment for a considerable time, arid would .t.v* continue so for many years, and in some , cases there was not the slightest hope of the traffic on the lines ever attaining sufi. V. cient volume to pay working expenses, ' leaving interest on the capital cost alttf- i; f I get her out of the question. i As to the position generally, the Minis- , ter said the economies which had heap . brought into operation were reflected i«' * 1 the decrease in expenditure. There was, • • however, no indication that the limit il>f|p i," , the decline of traffic had yet been readied,. and until the bottom wag torched in tfi» ; V [ respect, no material improvement in the j results of operating could be expected.

.1922. 1921. Bacrttg, " v&T R-evenue ., £1.113,492 £1,258,279 £138857 Expenditure 1,000,409 1,186.404 165,845 Net revenue ' £117,963 £71.875 ' *£46$® SOUTE ISLAND. Revenue . . £847,328 £8(16,462 £19 m» «- Expenditure 796,103 933.437 137|834 Net revenue £51,225 t£66,375 *£118,20Q DOMINION. Revenue . . £1,965,750 £2,124.742 .1:158 goo Expenditure 1,796,562 2.119,841 323^273 Net revenue £169,188 £4.901 *£164,287 'Increase. tDeficit. ■ ' ' V