FINANCES OF RAILWAYS

Press, Volume LXXIV, Issue 22521, 1 October 1938, Page 18

FINANCES OF RAILWAYS

“BECOMING CHARGE ON

TAXATION”

MR HAMILTON ANALYSES FIGURES (PRESS ASSOCIATION TELEQSAM.) INVERCARGILL. September 30. The latest returns of railway revenue and expenditure under Labour Ministerial control showed that the railways had ceased to show a profit towards interest charges and were now becoming a charge on taxation for running costs, declared the Hon. Adam Hamilton, Leader of the Opposition, in an address at Waikaka. He also gave a denial to the complaint of the Minister for Railways that the previous Government had failed to maintain rolling stock in a proper state of repair. In 1938-39 the revenue of the railways was £7,500.000, showing an increase of £1,350,000 on the figure two years previously. In the same period expenditure had increased by £1.768,000 to £7,250,000. Most businesses, said Mr Hamilton, were expected to make greater profits when they secured more business: but for every £I3OO of extra business obtained by the railways the cost had been £I7OO. In the years before the Labour Government took office the usual expenditure for each £IOO of revenue had been £BB. Thi- had gradually gone up to £96 in the last financial year. For the first four months of the present financial year, to July 23, 1938, revenue was £2,322,000 and expenditure £2,379,000. All the revenue had been absorbed by expenditure, and their was a shortage of £55,000 to be found by the taxpayers. Who was going to pay the interest on the railways? he asked. For every £IOO earned by the department the cost of management' was £IOB 2s. “If the people of New Zealand are not interested or alarmed about the management of the railways, they cught to be,” he said. "This position is the result of Ministerial Labour control, It is no wonder that heavy taxation is required. In the past the railways have found a substantial amount for interest: now they are not even paying management expenses.” The Minister for Railways had always said that the last Government had left the rolling stock in a dilapidated condition and that more expenditure had been required to bring It up to a proper state of repair. The facts showed that the previous Government had neglected neither rolling stock nor track. In 1935 the number of engines repaired for every 100.000 engine-miles was 2.93, and in 1938 it was 2.42. The number of cars and vans repaired on the same basis was 8.68 in 1935 and 8.45 in 1938; and the number of waggons repaired was 12.33 in 1935 and 10.54 in 1938. There had been no complaints about the condition of the rolling stock in 1935. The General Manager was required to certify as to the condition of the rolling stock each year, and he had not said it was not efficient in 1935.