RAILWAY HALF-YEAR

New Zealand Herald, Volume LXIX, Issue 21333, 7 November 1932, Page 8

RAILWAY HALF-YEAR

A preliminary statement having been made showing the results of railway working for the four weeks ended October 15, the financial position for 28 weeks, or approximately half the year, is known. The public accounts for the first six months of the financial year have just appeared also. The two sets of figures invite examination to determine, if possible, whether the railways are likely to contribute to the Budget as much as has been asked from them. Last year the estimates provided for £930,000 from railway revenue toward the interest liability on capital : for the year before the department had provided only £685,000. The Budget estimate was not realised, but the sum actually made available was £841,720 or £156.720 more than in 1030-31. This year the estimate has been determined in the expectation of a poorer result, for according to the Budget only £740,000 will be forthcoming to pay interest on railway capital. Last year the net revenue for the first 28 weeks was less than £IOO better than in 1930-31 ; yet the year closed with the gain already stated. So far this year the results for 1931-32 have been bettered to the extent of £72,400. If it could be anticipated that the remainder of the year would see an increase in net revenue over that earned in 1931-32 comparable with the progressive improvement shown 12 months ago, the Budget estimate could be dismissed as hopelessly pessimistic, and it would be reasonable to expect a much better result than the forecast. The outlook is not quite so simple, unfortunately, as that would suggest. As has been pointed out before, the first half of this year compares with that period of 1931-32 in which the board's policy

of economy was not operating, and the improvement in net results is almost wholly the product of savings. For tho rost of the year the same comparative scope for saving does not exist. As gross revenue has continued to fall, tho prospect would seem to be of unavoidable deterioration. Recently, however, the department has claimed that signs of an improvement on the working revenue side have been visible. The returns sinco July, with one exception, indicate that the fall has been at least checked. If this position can be held, tho Consolidated Fund may benefit more than the estimates provide for, and there may be a substantial addition to the £IOO,OOO appropriated to September 30 this year from railway revenue, compared with £103,700 received to the same date last year.