RAILWAY BUSINESS

Otago Daily Times, Issue 23332, 26 October 1937, Page 10

RAILWAY BUSINESS

INCREASE IN GROSS RECEIPTS DROP IN NET REVENUE THE MINISTER OPTIMISTIC (Per United Press Association) WELLINGTON, Oct. 25. The railways revenue exceeds tin. estimated amount by £58,000 (4.33 pci cent.) for the period of 171 days ended September 18, says a statement issued to-day by the Minister of Railways (Mr D. G. Sullivan) The receipts for the period totalling £3.802.000 are £392,000 in excess of the receipts for the corresponding period of last year, when adjustments are made because the figures for last year arc for a shorter period—namely, 165 days At the same time because of increased expenditure the net revenue on the same basis of comparison is only £184.000 compared with £353,000 last year, a decrease of £169,000. The figures for the period of 171 days this year, compared with the period of 165 days last year are as follows:

Expend!- Net Revenue. lure. Revenue. £ £ £ This year 3,802,000 3.618,000 184,000 Last year .3,293,000 2,942,000 136,000 Variation 504,000 676.000 172,000 Variation per cent. 15.28 22.97 When adjustment for the differences in the length of periods is made by adding 6-28ths of the October period to last year’s figures the position is slated as follows: Expendi- Net Revenue, lure. Revenue. £ £ £ Last year 3.410,000 3,518,000 353,000 This year 3,802,000 3.618.000 184.000 Variation +392,000 +561,000 -169.000 Variation per cent. 11.50 18.35 The following is given as a comparison between the actual position for this year’s period and the estimated position:--Expendi- Net Revenue ture. Revenue. ££ £ • This year 3,802,000 3,618,000 184,000 Last year 3,644,000 3,518,000 126,000 Variation +158.000 +IOO,OOO +68,000 Variation per cent. 4.33 2.78 - The statement explains the increase in expenditure, after allowing for an increase of £115,000, because of the longer period, as follows: — An increase of £66,000 because the restoration of salaries and wages to the 1931 level dated from July 1, 1936, and was therefore paid for 171 days this year, as compared with 74 days last year. > An increase of £206,000 because of the operation of the 40-hour week from September 1 last year, so that it was in operation for the whole of the 171 days this year, as against 12 days last year. An increase of £289,000 through the cost of handling additional business and the increase in the cost of materials. “Although a most optimistic view was taken of the revenue possibilities when the Estimates wer~ framed, the receipts so far have exceeded all anticipations, and are 4.33 per cent, over the estimate,” the statement continues “The year commenced auspiciously, and an excellent result was obtained in April. In May the position was not so good, due in seme measure to the loss of goods traffic on the day on which the Coronation was celebrated. June showed a quite substantial increase, but the figures for July, August, and September have been little short of phenomenal. In these three periods the increases shown in the gross revenue over the corrresponding periods of last year have been as follows: July, 75,513 (14.45 per cent.). August, £79,145 (15.29 per cent.). September, £70,783 (12.94 per cent.). The three years immediately prior to the recent depression (1928-29-30) were the peak years of railway activity, and a comparison with the average of these three years shows the following position:— Average, Month. 1937. 1928-30. Variation. * £ £ £ p.c July .. 582,251 541,030 41,221 7.5 Aug. .. 596,728 547,233 49,495 9 Sept. .. 617,708 566,621 51,087 10.9 “ The bottom of the slump was reached in 1933, and the upward climb was very slow until March, 1936, when a very definite improvement was shown. This continued for 12 months, and in March, 1937, a further marked improvement occurred which not only has been maintained, but is continuing with increasing momentum. The index figures in which the average of the three years 1928-30 is stated as 100 show the following position for. the last seven periods in 1937:—March, 103; April, 103; May, 97; June, 104; July, 107; August, 109; September, 111.”