D.— 2

VIII

holidays, 1924-25, excursion fares were reduced by 2s. per ticket. This represented a substantial concession on fares for short distances most subject to motor competition. As the revenue becomes more buoyant it will be my aim to restore this concession as far as possible, but, having regard to the obligations to be met during the present financial year, I regret that no further reduction can be made in this direction at present. With the improved statistical data available, I propose to review the matter when next summer's excursion rates are being considered. The availability of tickets has been restored to the pre-war basis, and this has caused satisfaction throughout the Dominion. To obviate queues at busy times, and to enable intending passengers to obtain comfortable accommodation in ample time, the period of reservation has been extended from three to fourteen days. BRANCH LINES. The Board's report on branch lines is a striking illustration of the difficulties that have to be met in endeavouring to reduce losses, and, generally, to improve the financial results and the services, as a glance at the following instances will clearly show : —

It will be seen from the full statement that the loss, including interest, on the branch lines enumerated amounted to approximately a quarter of a million pounds ; but this does not represent the total loss, as an additional £97,000 has to be added in respect of the following small sections :—

The management was actuated by the best motives in curtailing services on the unpayable lines in order to reduce the serious losses incurred over a long period of years. Considerable public dissatisfaction has been expressed because of the action taken in reducing services, but from a purely commercial point of view the running of additional trains cannot be justified. It is equally clear, however, that the service provided on many of these lines at present is not up to the standard required by the public, and that it has been responsible for much of the road competition during recent years.

j osg Average per Mile of Line. Branch Lines. I R w° S ? -° 11 eluding Revenue. Working. Reyen Workingexpenses. £ £ £ £ £ Waitara .. .. .. 2,370 3,938 1,320 1,847 348 Toko .. .. .. 20,424 47,997 279 473 655 Greytown .. .. .. 1,919 2,425 262 901 169 Eyreton and Oxford .. 3,788 10,253 186 256 120 Cheviot .. .. .. 3,142 16,973 316 388 316 Whitecliffs .. .. 705 1,879 315 377 103 Springburn. . .. .. 11,315 14,050 233 259 100 Ngapara and Livingstone .. 3,600 10,420 208 342 254 Lawrence .. .. .. 2,035 14,009 453 512 346 Tapanui .. .. .. 3,729 8,743 286 429 192 Glenham .. .. .. 3,938 7,184 220 644 349 Forest Hill .. .. 3,173 4,350 188 438 93

Loss on Working. j Interest at 4?.- per Cent. Total Loss. £ £ £ Kaihu .. .. .. 153 7,926 8,079 Gisborne .. .. .. (Profit) 1,614 30,792 29,178 Nelson 7,125 18,366 25.491 Pioton .. .. .. 2,099 28,389 30,488 Lake steamers .. .. 2,183 1,827 4,010 27,349 87,300 97,246