D.—2.

Expenditure increased by £4,521 (7-07 per cent.), this being attributed to increased wages and fuel costs and in running-expenses due to the increased mileage operated. Napier-Hastings (Passenger). 1938. 1937. Variation. £ £ £ Per Cent. Revenue .. .. .. 21,144 20,224 +920 4-55 Expenditure .. .. 17,741 16,819 +922 5-48 Net revenue .. .. £3,403 £3,405 -£2 0-06 Passenger journeys .. .. 533,301 533,314 — 13 0-00 Mileage .. .. .. 361,714 343,124- +18,590 5-42 This service continues to give satisfactory results. Receipts from ordinary passenger revenue increased by £153, school by £705, other miscellaneous items by £125, while special trips decreased by £63. The big increase in school receipts is due to an adjustment in rates and consequent improvement in traffic. Expenditure increased by £922 (5-48 per cent.), due to increased staff, increase in salaries and wages, and to higher maintenance and depreciation charges. During the year a Diesel 33-seater omnibus and a Diesel 21-seater de luxe omnibus were added to the fleet, which has been brought up to a good standard. Christchurch Services (Passenger). 1938. 1937. Variation. £ £ £ Per Cent. Revenue .. .. .. 7,596 3,712 +3,884 104-63 Expenditure .. .. 7,299 3,607 +3,692 102-36 Net revenue .. .. £297 £105 +£192 182-86 Passenger journeys .. .. 18,049 11,618 +6,431 55-35 Mileage .. .. ..129,932 74,573 +55,359 74-23 These services operate passenger-vehicles over the following routes : — Christchurch-Akaroa .. .. .. Commenced running Ist May, 1936. Little River - Akaroa .. .. .. Commenced running 22nd June, 1936. KdkourT-Walau 61111 " " running 31st January, 1938. Christchurch - Arthur's Pass (fortnightly service) Commenced running Ist June, 1937. Culverden-Westport via Lewis Pass (thrice weekly).. .. .. .. .. Commenced running Ist November, 1937. It will be noticed that the three last-mentioned services are additional this year. The number of vehicles in use at the close of the year was twenty-five as compared with nine last year. Revenue shows an increase of 2-08 d. per mile and expenditure an increase of l-87d. per mile. Expenditure includes full provision for depreciation of vehicles and interest on capital, together with a writing-down of a portion of the goodwill. Other increased charges were for wages due to increased rates and the operation of the forty-hour week for the whole of the year. Hokitika Services. 1938. 1937. Variation. £ £ £ Per Cent. Revenue .. .. .. 26,933 13,822 +13,111 94-86 Expenditure .. .. 26,804 11,155 + 15,649 140-29 Net revenue .. .. £129 £2,667 — £2,538 95-16 Passenger journeys .. 44,726 12,733 + 31,993 250-87 Mileage .. .. .. 335,690 175,716 +159,974 91-04 This service contains the following groups: — Route. Passenger Hokitika-Weheka - Arthur's Pass (seasonal"] December-April) .. .. .. Commenced running 13th September, 1936. Hokitika - Westland Hospital .. .. J Hokitika-Rimu .. .. .. Commenced running 12th July, 1937. Hokitika-Greymouth .. .. .. Commenced running 7th February, 1938. Goods — Hokitika Cooks River .. running 10th November, 1936. Ross-Weheka .. . . . . . . J Reefton - Lewis Pass .. .. .. Commenced running 13th December, 1937.

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