RAILWAY FARES AND FREIGHTS INCREASED

Chronicle (Levin), 5 September 1947, Page 4

RAILWAY FARES AND FREIGHTS INCREASED

Press Association)

(Per

WELLINGTON, Aug. 4. fAll-round increases of 15 per eent. in railway fares, exeept all suburban passenger fares, and 20 per aenf. in railway freights, subject to minor variations, were announeed by the Minister of Railway^, Hon. R. Somple, today. The inereases will operate from and ineludlng >September 14. Despite the fact that the Railways Department faees heavily-inereased expenditure since fares and rates were increased in 1938, the Government de-

ferred as long as possible these new inereases which have been caused by higher operating costs, said the Minis ter. "In my 1946 railway statement 1 forecast an increase in expenditure during the year ended last March without an attendant increase in revenue. "This aspect has never be"en overloohed and, in fact, the position has been constantly under review, " he said. "As stated by the Minister of Finance in the Budget, the deficit for the current year on railway operations, if no action is taken, wo\ild amount to £1,800,000 and that, if interest on the capital invested in the railways was added, the total deiiciency would have amo'unted to £4,800,000. Although it is anticipated that an increased volume of both passenger ' and goods traffic will be offering for transport by the railways during the nexj; two to three years, with a consequent increased revenue, the fact remains that the railway expenditure rate has increased to such an extent that rates and fares must be raised in order-to maintain the financial stability of the system."