RAILWAY REVENUE

Waikato Times, Volume 122, Issue 20423, 14 February 1938, Page 6

RAILWAY REVENUE

It is to be hoped that the Minister of Railways will make some statement with regard to the returns of his Department. Ten of the thirteen four-weekly periods in the current year have now gone and there has been a very marked drop in the net revenue despite a substantial increase in the receipts. Last year Mr. Sulylivan explained that the falling off in the net revenue over the holiday period—from £168,000 to £119,000 —was largely the result of the outbreak of infantile paralysis, and the restrictions then imposed must have had the effect of reducing the numbers of passengers. This year, however there were no such unfortunate developments, and the railways officials were able to report heavy bookings. The passenger traffic probably was the. largest yet recorded, and it was, handled with despatch. Then the volume of freight passing over the lines has increased substantially. The improved economic conditions have been fully reflected in the returns of the Department. With both passenger and freight traffic so heavy it would he expected that the financial returns would be much more favourable, but the fact is that the four weeks ended .January S—and that covers most of the holiday traffic—gave a balance on the right side of onl.v £57,000, compared with £IIO,OOO for the corresponding period of the previous year and £168,000 in 1935-36. The net revenue for the'ten periods, to January 8, which was £599,000 two years ago and £508,000 last year fell to only £318,000 this year and, if the downward movement should continue to the end of the financial year, the net revenue will be little more than 50 percent. of that recorded two years ago. Business was improvin'* then but it could not be compared with that obtaining this year. The matter is of importance because the smaller the contribution which the Department can make to the interest charges, the larger the sum that has to be taken from the Consolidated Fund for that purpose. Last year the net earnings came to £903,000 and the interest charges were £2,309,000. These are not the results the Minister predicted when he brought down the Bill abolishing the system of control by a board. He was certain that direct ministerial control would prove more, satisfactory, and the test is tlie result of the year’s working. It is apparent that the Department is going to close the year with almost a record revenue, showing the improved conditions, but if the gross earnings rise while the net earnings fall the contributing causes must be explained bv the Minister.