D.—2

XVI

At the present time the position may be summarized as follows : — Approximate annual cost of £ Reductions recommended by the £ additional four hours per Board . . . . ..15,360 week per man .. .. 230,000 Cost of amount of time worked Cost of concessions recommended between forty-four and fortyby Board . . . . 25,172 eight hours per week prior to strike . . . . . . 63,500 Estimated value of increased Balance in favour of Department 17,008 output of work-Permanent-way .. .. OS,OOO Locomotive and Maintenance Shops .. .. .. 96,600 Traffic and miscellaneous .. 28,720 £272,180 £272,180 It is anticipated that most of the surplus staff will be absorbed in a year. In the case of the locomotive and maintenance staff absorption would extend over a longer period, but the services of the surplus will be utilized in connection with railway-improvement works which are being put in. hand in various parts of the Dominion. Based on conservative estimates, the position from the point of view of expenditure may be expected to be somewhat as follows : — Cost of additional, four hours per week per £ £ man . . .. . . . . 230,000 Cost of concessions recommended by Board 25,172 ■ 255,172 Less — Estimated cost of time between fortyfour and forty-eight hours that would have been worked under forty-four-hour week . . . . 63,500 Savings resulting from recommendations of Board . . . . 15,360 Estimated saving by absorption of extra staff during year, say .. 50,000 ■ • 128,860 Actual increased expenditure during year .. .. .. .. £126,312 As has already been stated, the position so far as actual outlay is concerned will be a constantly improving one until all the effects of the alterations become fully operative. In addition, the Department will obtain service for the increased expenditure —in fact, it will receive an excess as shown in the first statement above. The estimated total cost of all the claims made by the A.S.R.S. and placed before the last Board was slightly under £600,000. The above statements have been worked out on the basis of Second Division men affected, including the workshops men, who are to be given an opportunity of deciding by ballot whether they will accept a forty-four-hours week with fortyfour hours' pay, or a forty-eight-hours week with forty-eight hours' pay. Should they accept the forty-four-hours week the figures shown above would require to be amended accordingly. COMMERCIAL BRANCH. With the advent and rapid development of motor transport in the Dominion, and the steady increase in sea-borne traffic, it has become abundantly clear that if the Railways are to hold their own in open competition for traffic, commercial methods would have to be adopted so far as that may be possible in a State-owned enterprise.