OPERATING COST OF RAILWAYS

Southland Times, Issue 23897, 16 August 1939, Page 9

OPERATING COST OF RAILWAYS

Report By General Manager AUXILIARY SERVICES’ RETURNS (From Our Parliamentary Reporter) WELLINGTON, August 15. The expenditure for maintenance ot ways and works for 1939 amoum e £1,375,829, an increase of £9b,»49 U-3' per cent.), stated the General Manager of Railways (Mr G. H. Mackley) m his annual report presented to the House Oi the increase the cost of effecting repairs to the permanent-way caused by slips and floods accounted for £bB,blb. A big part of this increase was due to the unprecedentedly heavy floods which occurred in the upper Hawke s Bay district in the autumn of 1938. Other items of increased expenditure were the payment of wages at higher rates, certain increases to the outdoor staff having operated for the full year in 1939, as compared with seven months the previous year, and increased material debits. The following table showed the

operating expenditure under the main headings, together with appropriate comparisons with the previous years

RAILWAY REFRESHMENTS A considerable increase in the revenue from the railway refreshment service is shown for the year 1939, compared with the previous year. The revenue for 1939 was £167,710 and the expenditure was £163,189, making the net revenue £4521. Last year the revenue was £142,786 and the expenditure was £140,937, making the net revenue £1849. The increased turnover in the refreshment service for the year (£24,924) was due to a number of factors, the chief of which were the adding, as from April 1, 1938, of the Milton refreshment rooms to those under departmental control, the additional revenue arising from the increase of Id in the price of a cup of tea and coffee, and the inclusion of the receipts from Wellington station services for the whole of the financial year under review as compared with approximately a nine-month period in the previous year.

“The number of bookstalls at present being operated by the department is 18, the same as during the previous year,” the report continued. “The net revenue for 1939 was £4460, compared with £3487 for the previous year. The satisfactory result of the year’s working may be ascribed to the improved economic conditions generally and to increased takings at Wellington station, where the advance in receipts over last year amounted to £10,751 (52.21 per cent.).” ROAD SERVICES The report stated that one of the results of Government control of road services previously operated by private interests had been the substantial savings in transport costs which had already been effected following the diversion to rail of traffic which, in other circumstances, would have gone forward to destination by road. This practice would be continued as and when opportunity arose, care, of course, being taken to see that no deterioration in the standard of service offered to the clients of the department was caused thereby. Economies in railway operation and reductions in train-mile-age had also been effected as a result of the co-ordination of Governmentcontrolled, road-passenger services with rail services in various areas. The revenue for 1938 from road passenger and goods services was £505,612 and the expenditure was £480,075, making the net revenue £25,537. The previous year the revenue was £276,525 and the expenditure was £254,553, the net revenue being £21,974. The increase this year, therefore, was £3,563. The revenue from the Invercargill passenger services for 1939 was £14,614 and the expenditure was £13,318, the net revenue being £1,296. Last year the revenue was £13,711 and the expenditure was £14,014, showing a loss of £303. “The reorganized and co-ordinated service that has operated since October 4, 1937, has borne fruitful results,” the report continued. “The revenue, which in 1937 was 10.16 d a mile, rose in 1938 to 11.62 d, and this year to 12.55 d. Superintendence £72, fixed charges £364, and maintenance charges £325 all show decreases when compared with previous year, while running-expenses increased by £65. The fall in fixed charges was due to a reduction in insurance (fire and accident) of £327. “The. decrease in maintenance charges was due to the closing of the repair shop at Queenstown and to high establishment charges for Invercargill garage last year. The increase in running-expenses was the result of higher rent this year and the higher

rate of wages paid to drivers.” The revenue from road goods service in the Invercargill district was £185,454 and the expenditure was £182,117, making the net revenue £3337. Last year the revenue was £15,994 and the expenditure £18,450, showing a loss of £2456. The tonnage carried in 1939 was 101,901 and the mileage 2,804,262 compared with a tonnage last year of 12,035 and a mileage of 225,565. STAFF “The total number of staff employed at March 31, 1939, including those on works chargeable to capital, was 25,138, as compared with 22,963 for the previous year,” the report concluded. “The average number actually at work throughout the year was 24,342, compared with 21,954 the previous year. Of the average number of staff at work during the year 15,627 were permanent and 8715 were casual employees. The average number of men engaged exclusively on works chargeable to capital was 2419, as compared with 1816 during the previous year. During the year 269 members of the permanent staff resigned, 185 retired on superannuation, 56 died, and 66 were dismissed or paid off.” Employees to the number of 1697 were engaged for employment on the permanent staff. Seventy-nine members of the Second Division were promoted to the First Division.

ugures. Operating expenditure Amount 1939 £ 1938 £ Variation £ Maintenance — Way and works 1,375,829 1,278,980 + 96,849 Signals 186,546 178,892 + 7.654 Rolling stock 1,832,615 1,792,562 + 20,053 Examination, lubrication, and lighting of vehicles 85,482 78,727 4“ 6,755 TransportationLocomotive 1,727.375 1,624,383 + 102,992 Traffic 2,208,310 2,090,471 + 117,839 General charges 247,475 247,770 — 295 TOTALS 7,663,632 7,291,785 + 371,847