NEW RECORDS SET BY RAILWAYS

Chronicle (Levin), 3 October 1946, Page 7

NEW RECORDS SET BY RAILWAYS

-Press Assvciation

Tonnage and Revenue Show Increase

By Telegraph-

WELLINGTON, Oct. 2. Inereased revenue from both passenger traffie and goods traffie, the handling of reeord goods tonnage, and a number of passenger journeys well above pre-war years is reported in the annual Railways Statement presented in the House of Representatives by the Minister of Railways (Mr. Semple). The report refers to the completion of negotiations for the purchase of equipment for the Hutt Valiey electrifieation seheme, and to difficult problems created in the Auckland suburban electrifieation project, wliich envisages the first underground railway in this country. A shrinkage in revenue is forecast with the return to normal conditions which, it is stated, still seems some distance away. The finaneial results of the past year vvere a good deal better than was anticipated, states the report. The gross revenue for the year was £15,444,847, which establislies a new reeord for railway gross. revenue. The previous reeord figure was established in the year 1943-44, and this year's total exceeded that reeord by £119,541. The increase over last year's figures was £985,097, or 0.81 per cent. Inereased revenue was received from both passenger traffie (rail and road) and from goods traffie. On the passenger side, although tliere was a deerease in ordinary rail passenger journeys due to the elosing of military establishments and the easing of petroi restrictions, this decrease was in shortdistanee traffie, and was more than eounter-balanced by an increase in receipts from journeys on furlough passes and from long-distanee eivilian traffie. For the year the receipts from uiilitary passenger traffie eonstituted 84.59 per cent. of the total rail passenger revenue. Passenger revenue from road operations inereased substantiallv, due to the reinstatement of services eurtailed for war reasons and tlie establishment of new services. In the ease of goods traffie tliere was a substantial deeline in military freiglit but this was more than offset by other increases, and both tlie goods revenue and tonnage eonstituted new records. Tlie handling of a reeord goods tonnage and a number of passenger journeys well above the pre-war years inust be eonaidered an outstauding performanee when regard is liad to the various operating diffieulties beyond tlie control of the Departnient. Expenditure for the 12 months amounted to £14,384,844, an increase of £1,124,567, of 8.48 per cent., over last year's figures. The increase is due ln the main to two factors: Firstly, the cost of implementing the decisions of the Government Railways Industrial Tribunal, and secondly to the provision of reserves for deferred maintenance and track renewals. As to the first, the decisions of the Trihunal' are esti-' mated to have inqreased expenditure by £304,500 for the 12 months under review. As to the second, tlie positlon regarding deferred inainteuance was tliat £410,500 was set aside in tlie year 1943-44. At the end of the year 1944-45 the position was considered and it was found that arrears of maintenance overtaken liad been balanced by other work deferred. Tlie niattet was again considered this year, and it was found that it liad been iinpossible to overtake arrears, and that further maintenanee work which would ordinarily liave been carried out during Ihe year liad been deferred. Provision of a further sum of £24(5,000 was made to meet this position. This •amount is eredited to the general

reserve. A further item of inerease in expenditure is the inereased coiitribution to tlie reserve for track renewals of £241,989. Tlie rate of annual contribution to this reserve liad remained unchaiiged since 1981, and inereased provision was necessary to meet tlie rising level of wages and materials, the provision of lieavier rails, and the additional mileage of track now operated. The net revenue of £1,060,003 shows a decrease of £139,470, or 11.63 per cent., eompared with 1944-45, tlie net return on average capital being 1.47 per cent., eompared with 1.69 per cent. During the year a number of reports on projects inentioned in last year's revievv .have been completed and considered by tlie Government. Action on these reports is beiiig correlated with and included in the planniug of regional developinent by the Ministry of Works. The actual progress of work on the projects will depend upon tlieir order of priority in relation to supply of manpower, materials and finance. In the case of tlie Hutt Valiey electrifieation, the supply of materials from overseas is a matter of difficulty and uneertaintv, and it was considered tliat tlie only satisfactory metliod of overeoiuing the diffieulties lay in persoual contact. Mf. F. W. Aiekin, stafl' mperiiiteiideiit and cliief legal adviser, a,ud Alr. P. R. Angus, cliief meehanieal Migineer, therefore proceeded to Great Britain, and liave now suecessfully .•ompleted negotiations for the manuL'acture and supply of the necessary. ileetric loeoinotives, multiple-unit stock, Jtc. Underground Stations Tlie Auckland .suburban electrifieation ilso raises difiieult problems, particulary as the project envisages tlie first uidergrouiid railway in this country. L'lie cliief engineer (civil), Mr. H. C. justy, lias therefore gone overseas to nvestigate the problents entailed in uidergrouiid operation and to obtain irst-hand information on the latest levelopinents in underground station ayout and allied problems. The year 1947 will be tlie first full eaeetime year for six years, states the eport. During that time, prineipally ue to wartime influences, gross revenue as expanded enormously, the revenue or 1916 excpedHng tlint oarnpd in 1989

by £6,099,460, of 65.27 per cent.. With the return of normal conditions a shrinkage must be expected in railway revenue. *On present indications, apari from a decrease which must occui during 1947 in Army fares (particularls furlough passes) and freights, tliere are grounds for tlie anticipation of a hig«, volume of traffie during the eurreni liuancial year. Tlius it is lioped tliat a substantial portion of the anticipaLed loss in armed Services' receipts will be tnade good from other sources. Expenditure, however, is expected to increase, mainly due to the granting oi additional concessions to employees, with contributory causes in higher costs of materials and stores and nigner superannuation suosiay. Tlie net rcsult is that it is anticipated tliat revenue will no more than meet expenditure, and tlie question inimediately arises as to wliether or not rates and fares sliould be inereased to meet the interest bill. This probleni has been given full consideration, liaving special regard to tlie present-day situation and tlie lieed to avoid in . flation. Any such increase would liave a widespread effect aiid a tendency to "snowball", resulting in an increase in costs of production and in retaiJ prices. Having regard to all the factors involved, it is considered that the interest bill should at the present time be met from the Consolidated Fund rather than by an increase in rates and fares.