LOSS ON NEW RAILWAYS

Taranaki Daily News, 23 August 1930, Page 11

LOSS ON NEW RAILWAYS

£737,553 A YEAR ESTIMATED the lines under construction. SUMMARY presented in house. (By Wire —Parliamentary Reporter.) . Wellington, Last_ Night. _ A total annual loss of £737,553 is estimated to result from railway lines which are at present under construction throughout the Dominion, according to a summary presented in the House of Representative this afternoon by the Prime Minister in accordance with a promise given the Leader of the Opposition. The return also indicates the anticipated, annual revenue, expenditure and interest charges in connection with the various lines as well as operation losses. The estimated annual revenue and expenditure in connection with the lines under construction is briefly shown in the following summary:— Kaihau-Rangiahua railway, la miles, revenue' .£7OOO, expenditure £BOOO, operating loss £lOOO/ interest charges £34,000i. ; total., loss, £35,000. Kirikopuni-Dargaville, 18 -miles, revenue £9OOO, expenditure £10,170, operating loss, £ll7O, interest £25,500; total loss, £26,670. . Gisborne-Eskdale, 121 miles, revenue £60,876, expenditure, £100,459, _ operating loss £39,583, interest £243,550; total loss £283,133.' 11 ‘ South Island Main Trunk, 76 miles, revenue £112,300,. expenditure £77,140, operating profit £35(160, interest £135,160; total loss,. £lOO,OOO. Westport-Inangahua, 26 miles, revenue £43,000, expenditure £36,000, operating .prq4i .£7OOO, interest :; £43,Bso; .. total, loss £36,850. Kawatiri-Inangahua, 47 miles, revenue £38.200, expenditure £48,800, operating loss £10,600, interest £92,650; total loss, £103,250, ; The totals are: Mileage 345, revenue £270,376, expenditure £320,269, operating loss £49.893. interest £687,660; total loss £737,553. The following statement affords a comparison between lines under construction and lines which have already been opened for traffic: — Average cost per mile (exclusive of rolling stock), new lines, £39,840; open lines, £14,109. Interest charges per mile, new lines, £1992; open lines, £6lO. Operating earnings per mile, new lines, £790; open lines, £2274. Operating expenses per mile, new lines, £936; open lines, £2083. Net operating earnings per mile, new lines, £146; open lines, £l9l. Net loss per-mile, new lines, £2138; open lines; £419.