RAILWAYS POLICY

Wairarapa Times-Age, 16 August 1939, Page 5

RAILWAYS POLICY

STATEMENT PRESENTED TO PARLIAMENT MINISTER ON RECENT DEVELOPMENTS RESULTS FOUND TO BE ENCOURAGING. THE FINANCIAL OUTLOOK. “In the three full years of my association with and responsibility for railway administration,” the Minister of Bailways (the Hon 1). G. Sullivan) observes in his animal Statement, •presented in the House of Representatives yesterday, “I have been fortunate enough to see come to successful fruition some portion of the long-range railways policy enunciated by the present Government upon coming into office.

"That policy," lhe Minister goes on to observe, "was one calling for foresight and courage in handling the whole transport situation in the generifl interests of public welfare, and 1 would like to express my appreciation of the co-operation which has existed between my Department and the Department of Transport in advancing that policy—a course which is now seen to react beneficially on the Dominion’s whole economic fab-

"The results of the railway year just ended cannot be properly or fully assessed unless they are credited with service to the Dominion much greater than that revealed in the financial position of the undertaking as a whole,” the Minister goes on to state. This he says has been recognised by successive governments, not only in the allocation of lines to suit productive areas, but in making national considerations paramount over those of railway earning in the arrangement of tariff charges, but is worth emphasising again in view of the Government's general policy of economic development, which includes a better balancing of the scales as regards the Dominion’s primary and secondary industries. EXTENSIONS OF SERVICE. "The railways policy (the Minister continues) also called for a broad survey of the additional possibilities for service which lay open to the national transportation system, and this required a close examination of lhe whole position from the technical and expert viewpoints, as well as from the viewpoint of what might be suitable and desirable in the public interest. I therefore had the whole internal capacity of the Railways Department explored, and plans were evolved which would assist to the greatest possible extent in developing the Government’s aims through a comprehensive and long-range policy applied to the Department’s work” Many projects, it is added, were reexamined in light of the Government’s policy and the country’s need. Steps were taken to carry out such of these projects as were found to be practicable and desirable. At the same time many new projects were planned and put under way. "The result of this large-scale planing for the public welfare in railway matters has been most encouraging,” the Minister states; “in fact, I am not aware of a single major improvement adopted under this policy that has been the subject of adverse criticism. On the contrary, each improvement made has been accorded a warm welcome and has received the best proof of public approval—namely, increased patronage. COMPLETION OF LINES. “Associated with the Government’s railway plans was the decision to complete certain new lines which had been previously commenced and abandoned; and it has already been my happy privilege to see one of these works completed. I refer to the Na-pier-Wairoa-Waikokuptt section of the Napier-Gisborne railway, which my Department took over on July 1, 1939. "An important aspect of this and other lines intended to further the major integration of the Dominion’s transport is the necessity of ensuring the utmost mobility between one district and another for defence purposes. In this connection not only are these new lines essential towards the Dominion’s protection, but the Railway Workshops, which are the most modern and best-equipped engineering plants in the Dominion, are also playing an important part in the country’s defence." EARNINGS & EXPENDITURE. The gross earnings for the year totalled £9,345,387 (exceeding £9,000,000 for the first time in the history of the Dominion) and the gross expenditure £8,644,324, leaving £701,063 of net earnings, an increase of £68,266 over the net earnings of the previous year, after placing £990,495 out of revenue to the credit of the various depreciation, reserves and equalisation accounts The total expenditure of £8.644,324 was £642,935 more than in the previous year, owing mainly to the payment of wages at higher rates, higher prices for coal and stores, and the cost of handling the increased business. The net revenue of £701,063 is equivalent to 1.23 per cent of the railways capital, and the amount set aside for depreciation. £698,678, is equal to 1.19 per cent of the capital. In addition, reserves set aside out of revenue amounted to £291,817.

The improved net financial position was helped by an increase of ten percent in fares and freights in the latter months of the financial year. The Minister anticipates a marked improvement in the net earnings of the Department during the present financial year, for the first sixteen weeks of which the net revenue earned will be approximately £200,000 greater than for the correspondingperiod of last year, notwithstanding that there is a day less in this year's accounting period. The Minister's preliminary estimate of net revenue for the current financial year is £1,250,000.