RAILWAYS FINANCE.

New Zealand Herald, Volume LXIV, Issue 19753, 28 September 1927, Page 13

RAILWAYS FINANCE.

DEFICIT NEARLY £IOO,OOO. / COSTS OF OPERATION LOWER. FAITH IN FUTURE RESULTS. [BT TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Tuesday Although recording a fall in earnings and a deficit of nearly £IOO,OOO for the year 1926-27, the Minister of Railways, Mr. Coaies, strikes a hopeful and confident note in his annual statement. He suggests that railway finauces should not be judged too hardly in a period of general reorganisation, which promises at its close greater earning-power and lower costs. The Minister estimates the revenue for the current year will reach £8,300,000 and the expenditure £6,571,945. The year's revenue includes £445,221 received from the Consolidated Fund in subsidies on unprofitable branch lines. Out of the year's revenue has been set aside £310,544 to strengthen the reserves available for renewals, depreciation, insurance and betterments, while a subsidy of £175,000 has been paid to the Government Railways Superannuation Fund. The sum of £17,574 was also provided out of railway revenue on account of (a) increased superannuation allowances granted to widows and children, and (b) the cost-of-living bonus paid to superannuated members in receipt of allowances amounting to less than £IOO a year. Apart from passenger traffic, there has been an increase of £98,627 in the net revenue derived from goods traffic and other subsidiary services. Railway operating expenditure decreased by £6287, notwithstanding increases in wages and better conditions (estimated to cost £30,000) granted to the staff, and an increase of 4 per cent, made in trainmileage in order to provide improved services for the public. Costs per trainmile were 137.82 d. as compared with 143.37 d last year, and decreased costs were also recorded under all other headings, excepting general charges, where an increase of 0.56 d per mile, due to superannuation subsidies, is shown. Referring to year-to-year comparisons, Mr. Coatee says they are not of great value in a period of comprehensive reorganisation. He agrees with the FayRaven commission in its opinion that by 1934-35, and thereafter, the savings effected by the improvements now under construction should enable the railway system to earn an annual interest return of 4.59 per cent. Mr. Coates records his appreciation of the capable manner in which the employees of the department have carried on the year's work. He feels assured that, given a period of normal progress within the Dominion, the railway position can ba still further improved as the programme of extensions and betterments draws toward completion.

LEGISLATURE BILL. ELECTORAL BOUNDARIES. RECENT CHANGES TO STAND. [BY TELEGBAPH, —SPECIAL BEPOBTEB.] WELLINGTON. Tuesday. The Legislature Amendment Bill was read a third time and passed in the House to-night. In Committee the House agreed to eliminate the clauses dealing with the Representation Commission and the alteration of electoral boundaries. The Minister, Hon. A. B. McLeod, said the effect would be that the electoral boundaries recently gazetted would stand for the next two elections. This would give an opportunity next session for bringing down a separate bill dealing with boundaries, apart from the Legislature Act. In the meantime he proposed to set up a departmental committee to deal with the question.

SALE OF FERTILISERS. NO AMENDMENTS TO BILL. [BY TELEGRAPH.—SPECIAL REPORTER.] WELLINGTON, Tuesday. The Agricultural and Stock Committee recommended to the House to-day that the Fertilisers Bill should be allowed to proceed without amendment. The bill wa,s referred to the committee last week after being read a second time pro forma. RAILWAY DEVIATION. MORNINGSSDE TO KUMEU. [BT TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Tuesday. The petition of C. E. Davis and 630 others, who asked that a survey should be made of the proposed railway deviation from Morningside to Kumeu, has been recommended to the Government for consideration by the Railway Committee. It was suggested by the petitioners that the new route would be shorter and on an easier grade and that it would open up land for settlement.