N.Z. RAILWAYS.

Hokitika Guardian, 15 April 1926, Page 4

N.Z. RAILWAYS.

1’ EVEN LE EX PEND IT l" HE. .WTKLANI). April 13. The Don .1. G. Coates, in the course of a speech at Kiugsiand. stated the railway finances were place, l on an entirely new basis as from April I, 1 !>“•>. With the object. of placing the services, as tar as possible, mi a self-supporting basis: |. to show clearly the results achieved, a separate working railways account: was cslnhluhcd in tlie T roasury. The railway administration is now required to earn sufficient revenue to meet all working expenses; to provide adequate reserves for renewals.

depreciation and insurance; to pay superannuation iund subsidies; and to cover tin- interest charges on capital. All the services rendered to other Government Departments are charged for at- ordinary rates, and a. subsidy is paid from tlie Consolidated Blind to recoup toe railways for the losses sustained in operating isolated sections ami branch lines, winch though they e rni l ibido substantially to the development and prosperitty of the conntrv, jis a who).', cannot bo run as a icinmerein! undertaking. ! Ju* policy oi' subsidising railways operating in sparsely settled districts, by moans of either land grants or guaranteed miniitj.iiin oarniiiES, is practically universal. and the benefits accruing to the State, either directly or indirectly, as the result of that policy, are greatly in excess of tlie cost, 'flic‘railway accounting system has been completely ic»or;.;a nisccl. Separate accounts have been >et tip to show the results ol railway operations, steamer services, refreshment rooms, advertising;. sawmills. and Departmental dwellings respectively. Accounting ami statistical da:a !- vo been recasi to conform to !.!'(* best modern practice, in order that hi ore accurate costing may disclose any sources ol weakness or ineflicioney. The ;i’iii::;i! accounts will be published : • i i)i*■ {■.mu adopted by the railways of the I'niled Kingdom, tin the recommendation of a committee composed of t!• ‘' foremost accounting and economic ant horities.