DROP IN PROFIT

New Zealand Herald, Volume 82, Issue 25211, 25 May 1945, Page 9

DROP IN PROFIT

THE RAILWAYS YEAS UNFAVOURABLE FACTORS The net railway revenue for the financial year ended March 31, 1945, was £1,199,473, ns against £2,567,970 the previous year. The net revenue earned represented a return of 1.69 per cent on the average capital cost of opened lines compared «with a return of 3.71 per cent for the previous year. Results for two years are: 1914-45 , 1913-44 Variation J. £' £ Revenue 14.tiH.TM 15,325,306 *865.556 Exp'tur* 13.260,277 12,7.17,336 +502,941 Net rev. 1,19!), 173 2,507,970 '1,368.497 •Decrease, tlncrease. The cross revenue, expenditure and net revenue of the department for the past five years have been: — Revenue Expenditure Net rev. i- £ i' 1910-11 11.100,299 9,465,575 1,094,724 1911-42 11,938,338 10,050,034 1,882,301 1942-43 14,128,993 11,302.413 2.826,580 1943-44 15.325.300 12,757,330 2,.">67,970 1944-45 14,459,750 13,200,277 1,199,473 The gross railway revenue for the year of £14,459,750, although well in excess of the gross revenue earned during the pre-war and early war years, represents a decrease of £865,556 from the record figure established in 1943-44 Passenger revenue declined by £771,029, or 18.0.'5 per cent, and goods revenue by £218,300, or 2.57 per cent. One factor in the decreases was the falling off in military fares and freights. Fares from that source decreased by approximately £230,000 and freights by £224,000. The main cause of the decrease, however, was the shortage of coal, which necessitated restrictions upon services throughout the whole year. Had it not been for this factor it is felt in the department that the decline in military fares and freights would have been more than offset. The increase in gross expenditure was mainly due to the decisions of the Government Railway 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 and chargeaide to working expenses was estimated to have been £752,190. Both the revenue and expenditure of tlie miscellaneous services showed an increase. For the four weeks ended March 31 gross railway earnings were £1,097,465 and expenditure £1.054.050, showing a net profit of £43,415. For the corresponding period of last year gross earnings were £1,031,733 and expenditure £1,393,073, showing a loss of £361,340.