OPERATING COST OF RAILWAYS

Southland Times, Issue 23782, 1 April 1939, Page 8

OPERATING COST OF RAILWAYS

Expenditure Above

Earnings

MR HAMILTON REPLIES

TO MR SULLIVAN (United Press Association) WELLINGTON, March 31. Replying to the Minister of Railways (the Hon. D. G. Sullivan) the Leader of the Opposition (the Hon. Adam Hamilton) said the public was entitled to more than half the story and that was all it had before he brought the facts to the light of day.

“In plain language, the railways are costing more to run today than formerly and they are costing more than they earn.” He asked why the latest Abstract of Statistics on February 27 set out the position as follows:—Percentage of expenditure to revenue for the year ended March 31, 1937, 91.81; to March 31, 1938, 96.05; to January 8, 1938, 98.48; to January 7, 1930, 103.45. On January 8 of last year, says Mr Hamilton, the percentage of revenue to expenditure was only 2.43 per cent, above the average for that year. On January this year the percentage was 7 4 above the average for the previous year. The first month of operation of the increased freights and fares with the Christmas season to back them produced only a little more than half a per cent, in reduction of the excess of expenditure over revenue. • Referring to his statement that before increasing fares and freight charges the cost of earning £lOO was £lO6, with which statement Mr Sullivan quarrelled, he could only refer him again to the Government Statistician’s Abstract for December last showing for the year ended March 31, 1937, 91.81 per cent., for the year ending March 31, 1938, 96.05; for 227 days to November 13, 1937, 100.04 per cent.; for 226 days to November 12, 1938, 106.19 per cent. . Mr Hamilton said he did not join issue with Mr Sullivan in details, but the Minister aimed to side-track the fundamental point that political control of the railways under Labour has increased the cost to the people of this country enormously.