D.—2

RENEWALS, DEPRECIATION, AND EQUALIZATION RESERVE FUNDS The position with regard to the renewals, depreciation, betterments, and equalization accounts is as under :—

RAILWAY OPERATION The results of railway operation (excluding subsidiary services and miscellaneous non-operating revenue) on the various sections for the year ended 31st March, 1944, were as under :—

OPERATING REVENUE The following table shows the operating revenue under the main headings, together with appropriate comparisons with the previous year's figures. Information regarding receipts from subsidiary services and miscellaneous non-operating revenue appears later in this report.

Passenger traffic was again heavy, the number of passenger journeys (ordinary) being 18,317,323, an increase of 1,146,109 (6-67 per cent.) over last year's record figure. During the year ended 31st March, 1944, civilian travel restrictions operated in the South Island for the last eleven weeks and in the North Island for the last nine weeks of the year, while last year the restrictions were operative throughout both Islands over the Easter period and in the North Island for approximately five and one-half months. There was also an increase in the movement of Armed Forces personnel, including the furlough travelling of soldiers returning from overseas. The comparative figures for the revenue from the conveyance of goods and live-stock are set out in the table above. The tonnage hauled, 9,026,626 tons, set a new record and exceeded last year's figure by 139,537 tons (1-56 per cent.). The average haul increased from eighty-eight miles to ninety-two miles, and this increase of 4-55 per cent, was an appreciable factor in the freight revenue return. The principal increases in freight revenue were in respect of fresh meat, £73,253 ; frozen meat, £24,860 ; root crops, £36,085 ; coal, £44,721 ; and general merchandise, £264,133.

5

Credit Balance r . , ! u j., , Credit Balance Account. broughtforward at 31st March, from 1943. 1943-44. 1943-44. lg44 I j £ £ £ £ Renewals (track) .. .. .. 945,087 226,824 209,513 962,398 Depreciation .. .. .. .. 1,966,613 959,362 870,033 2,055,942 Betterments .. .. .. .. 18,632 1,668 300 20,000 Slips, floods, and accidents .. .. 45,625 21,945 .. 67,570 Workers'compensation .. .. .. 57,699 77,981 76,960 58,720 Insurance .. .. .. .. 84,722 8,195 31,679 61,238 3,118,378 1,295,975 1,188,485 3,225,868

Section. ltevenue. Expenditure. Net Kevenuo. £ £ £ North Island Main Line and Branches .. 8,858,955 7,128,390 1,730,565 South Island Main Line and Branches .. 4,507,164 4,123,354 383,810 Nelson .. .. .. .. .. 15,044 25,560 —10^516 Pioton .. .. .. .. .. 83,816 88,613 — 4,797 _ 13,464,979 11,365,917 2,099,062

Amount. - Per . Ce ? 1 t - of Operating Revenue. Variation 1944 °P e ratmg Revenue. * b with 1943. | 1944. 1943. 1944. | 1943. I £ £ £ Per Cent. Passengers, ordinary .. .. 3,891,146 3,351,832+ 539,314 16-09 28-90 27-00 Season tickets .. .. .. 384,336 358,677+ 25,659 7-15 2-85 2-89 Parcels, luggage, and mails .. 435,928 397,142+ 38,786 9-77 3-24 3-20 Goods .. .. .. 8,479,387 8,044,563+ 434,824 5-41 62-98 64-80 Labour, demurrage, «&c. .. 274,182 262,866 + 11,316 4-30 2-03 2-11 Total operating .. 13,464,979 12,415,080+1,049,899 8-46 100-00 100-00