RAILWAY FINANCES

Poverty Bay Herald, Volume LXV, Issue 19625, 9 May 1938, Page 16

RAILWAY FINANCES

YEAR’S FIGURES ANALYSED EXPENDITURE INCREASE The relation between increased railway expenditure and increased revenue in recent years is discussed by the Minister of Railways, the Hon. D. G. Sullivan, in a statement supplementary to that which he issued recently reviewing the returns foi the financial year 1937-38. Taking the gross revenue and expenditure for the year 1929-30 as 100 in each case, the Minister gives the following index numbers for the four years: 1932-33 (depth of the depression), 72 and 70; 1935-36, 84 and 81; 1936-37, 93 and 94; 1937-38, 104 and 109. The increase of £1,114,596 in expenditure between 1936-37 and 193738, is analysed as follows: Wages due to improved conditions to staff, £442,250; wages due to increased traffic, £296,750; higher price of coal, £100,000; greater consumption of coal due to greater mileage, £41,000; increased material used in repair of rolling stock, £44,000; expansion ol subsidiary services, £88,000; various additional expenditure due to increased traffic and higher commodity prices, £102,596.

Increased Business

“In comparing 1937-38 with 1929-30 it is found th at expenditure increased by £642,530 or 8.73 per cent, and revenue by 4.17 per cent, so that a portion of the higher expenditure was' due to the increased business handled," the Minister stated. "The higher exchange rate operating in 1937-38 accounted for £BI,OOO of the increased expenditure.

"However, by far the most mportant cause of the rise vas legislation affecting hours and conditions ol labour. The amount due to the 40hour week and other improvements in wages and conditions was £625,000. When this figure is considered in relation to the total increase in expenditure, £642.530,” the Minister remarks, “it is at once apparent that the operations of the department have been conducted in a very sound manner ”

Referring to the comparatively small increase of 5.83 per cent in passenger revenue between last year and the year before, the Minister poind out that two Easters fell in 1936-37 and none in 1937-38. This made a difference of £BO,OOO, and, when allowance was made for it, the increase in revenue became 10 per cent. Total passenger journeys, including season tickets, last year numbered 22,441,212, an increase of 1,205,784.