RAILWAY FARES

Otago Daily Times, Issue 26558, 5 September 1947, Page 4

RAILWAY FARES

ALL-ROUND INCREASE HIGHER FREIGHT RATES EFFECTIVE ON SEPTEMBER 14 P.A. WELLINGTON, Sept. 4. All-round increases of 15 per cent, in railway fares, except suburban passenger fares, and 20 per cent in railway freight, subject to minor variations, were announced by the Minister of Railways, Mr Semple to-day. The increases will operate from and including September 14. Though the Railways Department had faced heavily increased expenditure since fares and rates, were increased in 1938, the Government had deferred as long as possible these new increases which had been caused by higher operating costs, said the Minister. “In my 1946 railway statement, I forecast an increase in expenditure during the year ended last. March without an attendant increase in revenue. This aspect has never been overlooked and. in fact, the position has been constantly under review." As stated by the Minister of Finance in the Budget, the deficit for the current year on railway operations, if no action was taken would amount to £1,800,000 and that, if interest on capital invested in the railways was added, the total deficiency would have amounted to £4,800.000, he said. Although it was expected that an increased volume of both passenger and goods traffic would be offering for transport by the railways during the next two or three years with consequent increased revenue, the fact remained that the railway expenditure rate had increased to such an extent that rates and fares had to be raised in order to maintain the financial stability of the system.