THE RAILWAYS

Otago Daily Times, Issue 27275, 29 December 1949, Page 6

THE RAILWAYS

SUBSIDIES FOR LAST THREE YEARS It was announced last week by the Prime Minister, Mr Holland, that the Minister of Railways, Mr Goosman, had already started to investigate the whole railways situation. Mr Holland said there would be a complete survey of the railways which would go far beyond railway transport. It would also include the road transport and railways refreshment departments. A preliminary statement would be issued as soon as possible. Subsidies totalling £2,007,104 have been necessary over the last three financial years to balance the losses of New Zealand’s railways. The estimated loss for the current financial year is £2 million. This estimate was made in September of this year by the former Minister of Railways, Mr R. Semple, and excludes interest charges, which last year amounted to £2,710,318. The actual loss last year, excluding interest was £1.102,866.

Increasing losses have been a feature of post-war railway finance in the Dominion, because of a rapid rise in the rate of expenditure. An increase in fares and freight charges was made in September, 1947, and since that time only three four-weekly periods have shown profits on net operations. The increases amounted to 15 per cent, on fares, other than on suburban lines, and 20 per cent, on freight charges. The gross revenue and expenditure and the net revenue of the department since 1939-40 compare as follows:

Insufficient production of coal in New Zealand lias been a large factor in the increased expenditure of the last two years or so. In 1947 and 1948 it was necessary to import large quantities of coal at a price exceeding £lO a ton, and also to convert several locomotives to oil fuel. Last year, coal imports totalled 63,793 tons, costing £581,170, and oil fuel imports'amounted to 51,330 tons, costing £516,475.

Rev. Exp. Net Rev. Year £ £ £ 1939-40 .. 10,199,070 9,010,039 1,189,031 1940-41 .. 11,160,229 9,465,475 1,694,724 1941-42 .. 11,938,388 10,056,034 1,882,304 1942-43 .. 14,128,993 11,302,413 2,826,580 1943-44 .. 15,325,306 12,757,336 2,567,970 1944-45 .. 14,459,750 13,260,277 1,199,473 1945-46 .. 15,444,847 14,384,844 1,060,003 1946-47 .. 15,680,057 15,944,270 *264,213 1947-48 .. 17,070,872 17,710,897 *640,025 1948-49 .. 18,597,728 19,700,594 *1,102,866 * Deficit covered by subsidy.