RECORD RAILWAY REVENUE

Press, Volume LXXIX, Issue 23976, 17 June 1943, Page 3

RECORD RAILWAY REVENUE

“Obligations Met In Full” | OPERATIONS IN 1943 fiom Oui Pai liumcntary Reporter WELLINGTON, June 16. Record gross revenue of £14,128,993, exceeding last year’s record by £2.1110,655 <18.35 per cent.) has been shown by Now Zealand railways for the year'ended March 31, 1943. Expenditure was £11,302,413 (an increase of £ 1.2-16.379, or 12,39 per cent,), and net revenue was £2,826.580 (an increase ol' £944.276, or 50.17 per cent.), fhc ne; return on capital was 4.31 per t til.. and the surplus of net revenue | o vcr interest charges was £203,867. These figures were given in the Rail- ,. . *';jvs Statement for 1943 presented to ' l ine House of Representatives by the ;Minisler of Railways (the Hon. R. S-ingle >. For the lirsl time since 1926, he said, the net revenue had been more than < ulTicienl to meet the full interest charges. "In lad." he said, “it is probably the first time that Ihe railways can be said to have met, their obligations in full, tor in I lie year ended March 31, 1926, the interest charges were met only by reason of the payment from the Consolidated Fund of a subsidy on branch lines amounting to £359.540, while before the reorganisation of the accounting system on April 1, 1925, no provision was made for depreciation, renewals, and reserves, and no annual contribution to the railways superannuation fund was required.” The Minister stated that for the current year it was expected that revenue would reach £14,130,000 and expenditure £11,204,000. The following comparative figures of were given by the Minister as follows; 1939. Total miles open lor traffic . . 3,319 Average miles open for year 3.319 Capital cost of opened and unopened lines .. .. £67,075,908 Capital cost a mile of open lines £17,679 Net earnings .. .. £701,063 Interest charges .. £2,418,116 Percentage of total workingexpenses to gross earnings .. 92.50 Percentage of net earnings to average capital invested in open lines .. .. 1.23 Net railway operating earnings £341,427 Percentage of Railway operating expenses to earnings .. 93.73 Net operating earnings an average mile open .. £lO3 Net operating earnings a trainmile .. .. 6.26 d The following figures showing increases in the five years, give 1943 totals first and 1939 comparisons in parenthesis:—Total passenger journeys, 36,133,268 (23,265.768); goods tonnage, 8,035,046 (6,917.257); livestock tonnage, 852,043 (621,755); train mileage (revenue), 15.139,882 (13,072,615); engine mileage, 20,736,574 (17,817,799). General Manager’s Report War conditions were mainly responsible for the increased revenue, stated the annual report of the general manager (Mr E. Casey), which was incorporated in the Minister’s statement. Factors were restricted petrol sales, movement of armed forces, carriage of war equipment and supplies, and longer haulages because of the centralisation of shipping. To these had been added the tyre shortage, a large increase in export and import trade, and a general increase in industrial activity connected with the intensified war in the Pacific area. Increased expenditure, he said, was chiefly caused by the cost of handling the additional traffic. Other causes were the payment of the second cost of living bonus, the payment of Id an hour more to lower-paid employees for the full year as against three months in the previous year, and the payment of higher overtime rates from October I. The satisfactory net revenue was achieved notwithstanding the setting aside in the year of £1,751,599 from the revenue account for depreciation, , renewals, and other reserves, and i superannuation subsidy. The net reve- / mte of £2,826,580 was the highest-ever !■, earned in the history of the department. Interest charges for the year were £2,622,713, a decrease of £133,433, To March 31, 1942, the interest rate on capital moneys was 4] per cent.,-arid the rate of 4 per cent, since then accounted for the reduction in interest charges. Mr Casey’s report on results of railway operation (excluding subsidiary services and miscellaneous nonoperating revenue) gave the revenue as £12,415,080. (South Island main line and branches. £4,170,356), and expenditure as £10,019,659 (South Island £3,628,250), the respective increases being £2,031,200 and £1,117,067. Increases in passenger revenue had been particularly heavy (43.49 per cent.), and in parcels, luggage, and mail revenue (21.86 per cent.). Principal increases in freight revenue were grain, £42,290; fresh meat, £56,966; butter, £40,259; wool, £42,436; timber, £132,025; cement, £54,994; general merchandise, £555,695. Values of purchases made by the stores branch were 3,787,790, the increase of £873,968 in payments -being caused by the receipt of heavy shipments of munition materials. Total Issues to all branches (including coal) amounted to £3,870,859, against £3,120,190 In the previous year.