D.—2.

Operating Expenditure.

The sum charged against revenue for depreciation and provision for renewals was £766,073, and the amount expended from the Depreciation and Renewals Fund was £385,724, for assets written off or renewals effected during the year. The accumulated credit balance in this fund at 31st March, 1931, was £2,067,910. The position in regard to the undermentioned equalization funds is as follows :—

The following table stows the principal items charged against working-expenses in respect of the various funds tabulated below for the six years ended 31st March, 1931 : — £ Reserves accumulated for renewals and depreciation. . .. .. 2,067,910 Reserves against fire, flood, accident, compensation, and insurance .. ' 104'435 Old and obsolete rolling-stock, buildings, and equipment written off .. Superannuation Fund subsidies .. .. .. .. ..1 078'330 Maintenance of Way and Works. Increase, £4,314. _ While a decrease was shown under the majority of the headings of the expenditure of this Branch an increase of £34,607 is shown under Structures. This increase is due to the fact that the contribution of £10,000 per annum to the Renewals Fund in respect of bridges was found to be insufficient and the annual amount was increased to £44,000 from Ist April, 1930. The position is that, while the total debit for the current year increased by £4,314, the renewals and insurance contributions increased by £46,144, and there is therefore an actual decrease of £41,830 in the cash expenditure during the year, principally due to the introduction of economy measures. Taking 1926 as the standard, and fixing the index figure for that year as 100 for the expenditure on maintenance of way and works and the average mileage of line worked, the undermentioned summary shows the position over the past six years :— Total expenditure (including contribution to 1926. 1927. 1928. 1929. 1930. 1931. renewal and depreciation fund) .. .. 100 94 100 97 100 101 Average mileage of line .. .. ..100 102 102 105 106 107 Maintenance of Signals and Electrical Appliances. The expenditure under this heading for the year totalled £104,463, a decrease of £13 114 as compared with the previous year. The principal decrease is in signals and interlocking, £8,486 due to the replacing of mechanical appliances by automatic power and the effect of economy measures.

XI

Per Cent, of Per Cent, of Per Cent, of 1930-31. Operating 1929-30. Operating 1928-29. Operating Revenue. Revenue. Revenue. Maintenance—Way and works 1,150,329 16-97 £ 1,146,014 15-33 £ 1,111,229 14-77 Maintenance—Signals 104,464 1-54 117,577 1-57 112,206 1-49 Maintenance—Rolling-stock .. 1,502,698 22-16 1,680,919 22-49 1,424,165 18-93 Examination, lubrication, and 77,646 1-15 82,711 1-11 67,023 0-89 lighting of vehicles Transportation—Locomotive .. 1,517,026 22-38 1,672,498 22-38 1,583,770 21-05 Transportation—Traffic 1,798,490 26-52 1,883,918 25-21 1,825,965 24-26 General charges 87,700 1-29 96,466 1-29 80,943 1-07 Superannuation subsidy 167,790 2-47 167,923 2-25 169,278 2-25 Totals 6,406,143 94-48 6,848,026 91-63 6,374,579 84-71

— Credit Balance brought forwarc from 1930. Contributions, 1930-31. Expenditure, 1930-31. Credit Balance at 31st March, 1931. Slips, Floods, and Accidents Fund Workers' compensation Insurance £ 17,220 15,502 33,911 £ 21,671 42,267 15,829 £ Cr. 9,965 45,539 6,391 £ 48,856 12,230 43,349 Totals .. 66,633 79,767 41,965 104,435