THE RAILWAYS

Timaru Herald, Volume CXXXVII, Issue 19632, 28 October 1933, Page 19

THE RAILWAYS

FINANCIAL POSITION IMPROVES BOARD’S ANNUAL REPORT dy relagraph—Press Aasocuuiuu WELLINGTON, October 37. The report of thß Railways Board for the year ending March 31 last was placed on the table of the House of Representatives to-dey by the Minister, the Right Hon. G. W. Forbes. "The revenue for the year was £6,034,403, as compared with £6,508,948 in the previous year, a decrease of £474,545. On the other hand, however, the expenditure was reduced to £5,183,859, as compared with £5,670,955 for the previous year, a decrease of £487,096. The satisfactory result on the expenditure aide was achieved bj the statutory reductions in salaries and wages and by a systematic and careful pursuit of every practical means of economy. “The net revenue for the year was £850,544, as compared with £837,993 for the previous year, an increase of £12,551. The net revenue has increased progressively over the last two years to an aggregate extent of £161,817, equal to 3.50 per cent,” said the report. “The improvement in the net results achieved over the last two years had been secured chiefly by the reductions vhich have been obtained in the expenditure. There 1s a definite limit to which this process can go, and having regard to what has been already done in this direction it will be recognised that further reductions in expenditure will be progressively difficult to obtain. The Board will continue the policy of keeping costs down to the lowest figure compatible with a reasonable standard of service to the public and with due regard to the legitimate interests of its'large staff. Branch Lines. “The grand total of revenue from the branch lines showed a decline of £8,427 on the previous year's figures. This represents a drop of 2.73 per cent, in the branch-line revenue as corncompared with a drop of 7.29 per cent, in the revenue for the whole system. Tha total of expenditure on the branch lines showed a reduction of £65,148, or a 14.03-per-cent, drop, as compared with a drop in expenditure over the whole system of 9.59 per cent. “The operating-loss on branch lines was £98,997 which, with interest £412,126 added, made a total loss of £512,122. The main-line revenue from traffic to and from the branch lines, however, amounted to £418,988, or, in other words, the main-line revenue from branch-line traffic was £319,991 greeter than the operating-loss on the branch lines. It is not reasonable, however, to assume that the whole of this main-line revenue would be lost to the Department in respect of any such line that might be closed, for, no doubt, the mein line would hold on its own section a proportion of it. In the consideration of this [froblem the proportion‘that would be retained can only be assessed according to the best judgment of the Board as applied to the circumstances of each case, and the Board makes due allowance for this factor. “The Board has felt that the improvements which have been achieved in the net results from the operation of the branch lines still justify the policy which the Board adopted of taking no precipitate action on this question, but of working patiently along the lines of endeavouring to secure the best possible net results before coming to judgments regarding the closing of lines. There are still some lines as to which there is a prima facie case for closing but for the reason stated, as well as for the refeson that the ultimate development of competitive road traffic as it will be affected by the operation of the Transport Licensing Act has a material bearing on practically every case, the Board feels that some further patience might well be exercised in the handling of the branch-line situation. Tire development of competitive roaid traffic is very intimately connected with the operation of the "Licensing Authorities which have been constituted under the Transport Licensing Act, 1931, and which have now commenced to function. At the risk of some repetition the Board cannot too strongly emphasise the responsibility which rests with the people in the various localities concerned to interest themselves in the transport problem, because the Bc-.rd must inevitably be largely guided in its decision regarding the branch lines by the attitude of the people themselves, and the Board must take as affording very strong evidence of the sincerity of their desire to Justify the retention of their branch line the steps which the people tike in connection with tire licensing of road services that are competitive with the branch lines and the support which they accord their line. Financial. “On March 31, 1933, the capital invested in the lines open for traffic, including the steamers and plant on Lake Wakatipu and other subsidiary services, was £51,480,949. as compared with £51,424,883 on March 31, 1932. “The additions to the capital account totalled £390,996, and comprised Maintenance Branch, £72,878, chiefly in bridge strengthening and reconstruction; Signals Branch, £20.760, in new telephone lines and extension of train control; Public Works Department, £118,042, expended on Ttjwa Flat deviation; and £179,3.3, expended on the construction of new rolling-stock and workshop machinery. “During the year loan-moneys

amounting to £334,930 were repaid to the capital account, of which amount £323,423 was provided from revenue on account of depreciation. The net addition to capital for year year was therefore £56,066. The financial results of the operations for the year ended March 31, 1933, were as follow: Year ended Year ended March 31, March 31, 1933. 1932 £ £ Gross revenue .. 6,034,403 6,508,948 Gross expenditure .. . . 5,183,859 5,670,955 Net revenue .. 850,544 837,993 Interest charges 2,230,655 2,221,465 Excess of interest charges over net revenue . . 1,380,111 1,383.472 “The gross earnings for tire year were £6,034,403, a decrease of £474,545 (7.29 per cent.) compared with the previous year, and a decrease of £l,537,134 (20.30 per cent.) compared with the year ended March 31, 1931. The shrinkage of revenue was due to the continuance of the depression in trade and industry, “The gross expenditure totalled £5,183,859, a decrease of £487,096 (8.59 per cent.) compared with the previous year, and a decrease of £1,698,951 (24.68 per cent.) compared with the year ended March 31, 1931. Interest charges totalled £2,230,655, an increase of £9,190 compared with the previous Work of Staff Appreciated. In conclusion, the Board expresses appreciation of the good work that had been performed by the railway staff during the period under review. In common with other sections of the community the staff had been called upon to make substantial sacrifices, and the Board desired freely to acknowledge the large part these sacrifices had played in the improved financial results that had been achieved during the year. The Board hopes that the time may not be far distant when the railway staff may share in the renewal of prosperity which must result from the passing of the present depressed conditions in trade and industry. The Board desires also to express its appreciation of the continuance of the friendly attitude had been adopted towards it by the press and the public of the Dominion. It had endeavoured to hold the balance as fairly as possible between all sections Of the community and to view every question that had come before it in the broadest possible light, ever keeping in mind the public interest in its most liberal sense. The track, bridges, structures, signalling appliances, rolling-stock, and other plant are in good order and in every way efficient for the work required of them in carrying on the business of the Department.