THE RAILWAYS

Hokitika Guardian, 28 September 1927, Page 4

THE RAILWAYS

REPORT FOR YEAR. (Per Favour of Government.) WELLINGTON. Sept. 20. Rt. Hon. J. G. Coates this exening submitted his annual statement as -Minister of Railways. He said:— ilr Speaker,—ln the following annual Railways Statement, the fifth that it lias fallen to my lot to present, T have tiie honour to report substantial progress in most phases of railway activity. even though the financial results of the year’s work are not so gratifying as were those recorded in the special circumstances obtaining last vear.

The net revenue amounted to Ll ,910.77 I. which is equivalent to a return of 3.99 per cent on all the capital invested in lines open lor traffic. This represents a decrease of £48.5(50 compared with last year, hut is higher by £1(59.(540 than the forecast contained

in my statement for 192(5, upon which the railway estimates for this year’s Budget were based. The revenue includes .£440.221 received from the Consolidated Fund '.in terms of the Government Railways Amendment Act, 15)25) for services performed in working such branch lines as. although beneficial for the development of the country, are not in themselves reasonably remunerative railway assets.

Out of the year’s revenue has been set aside the Slim of , £.‘110,544 to strengthen the reserves available for renewals, depreciation, insurance, and betterments, whilst a subsidy of £!75,090 has been paid to the Government Railways Superannuation Fund. £17,574 was also provided out ol railwav revenue on account of (a) increas-

ed superannuation allowances granted to widows and children, and (hi cost-of-living bonus paid to superannuated members in receipt ol allowances amounting to less than £IOO per annum. This charge has hitherto been borne hv the Consolidated Fund.

In the pre-reorganisation period each of these three items would have (either immediately or ultimately) constituted a charge against the Consolidated Fund. They require, therefore, to he taken into account in any comparison between one year and another, and their total (£503,118) may reasonably be regarded as an offset against the branch-linos payment relerrcd to above.

fn comparison with last year, the increase of £85.(531 required as payment on account of branch lines and tiie decrease of £13.5(50 in net revenue and together less than the amount ol shrinkage in passenger receipts following the inllation caused by the Dunedin and South Seas Exhibition of tinprevious year, and the combined elleet of an increased number of private motor-cars added to augmented motorbus competition. Apart from passenger traffic, there has been an increase of £93.(527 in the net revenue derived troll) goods traffic and other subsidiary services. Interest charges increased by £130,132, this sum including .£55,(500 paid out of revenue on account of rail-way-improvement works under construction .

Railway operating expenditure decreased by £(5.237, notwithstanding increase.-. in wages and better conditions (estimated to cost £30,000 1 granted to tiie staff, and an increase of four per rent made in train-mileage in order to provide improved services lor the public. Costs per train-mile were 137.52 das compared with 143.37 d last year, and decreased costs were also recorded under all other headings, excepting general charges, where an increase of O.olid per mile, due to superannuation subsidies, is shown. The loss on the year’s working was £99,(559. This, after deducting the unappropriated surplus of £21,023 from last year, leaves the deficit at £78.63(1. The Minister went on to deal with the Royal visit, impressions from abroad, commercial and operating aspects of the service, and publicity. Ten years hence the railway system of the Dominion will be much more homogeneous than at present. For instance, loose ends of sections like those at Dargaville, Stratford. Gisborne, Tauranga, and Westport will he linked up with the main lines. The PokenoPeroa railway will he an accomplished fact, as will the northern rail outlet from Auckland and the Westfield and Tuva Elat deviations. All these improvements will make possible increased standardisation oi i olling-stm-k and equipment, with consequent reduction in production, operation, and upkeep costs, and favouring increased mobility for loeomofives, cars and wagons, with consequent increase in their operating efficeney as revenueearning units. In ten years’ time it may therefore he expected that a definite line of demarcation will exist between the kinds of work that railways and load services are performing (the most suitable in each case having been selected after practical and searching tests), and that there will he an absence of wasteful competition between them in their respective spheres, such competition as now exists being replaced by a sensible co-ordination of work between private operators and rail-owned services by train and road, equally applicable in its usefulness to the requirements of the most distant farm and the the most crowded city area. The fine terminal facilities for giving quick despatch to overseas vessels, which large scale business at the principal port has justified the Harbour Boards concerned in supplying, is reacting oil the attitude of shipping companies. These naturally appreciate the opportunities for expeditious terminalport work, and are in consequence tending to concentrate their visits on the principal ports. As this movement develops further the Railways will ho required to undertake port haulage for goods over much longer distances than at present and a new development of haulage at special shipping rates may he expected as a corollary to the general trend of transport evolution.

The restless energy of our people may naturally !>o looked to as a potent agency in stimulating change in the methods of production distribution, and consumption in the years ahead, and such changes prevent forecasting with precision in any given direction ; hut certain general deductions may he made from past experiences, and I am hopeful that in a decade the country’s position in regard to her transportation enterprises will lie much stronger tha nthey can he in the present transition stage. POLICY. The work now under way in connection with administrative policy relative to present'and future activities may he summed tip as under: I. Early completion of Tatra Flat and Westfield deviation routes, with improved stations and terminal facilities at Wellington and Auckland.

2. Full decentralisation under the divisional-control system of administration. 3. Improvement of procedure in. relation to management. 4. Amalgamation of the operations side of departmental activities, with separation of passenger and freight work, to permit of more concentrated personal attention to tourists, excursionists, and general passenger traffic, and to the requirements of

primary and secondary producers. 6. Establishment of a Publicity Branch to make fully known the advantages and activities of the Department. 7. Fuller use of Advertising Branch artists in coping with general Government advertising. 8. Exchange system of New Zealand railways officers with the officers of other railway organisations. 9. Co-operative plan for improving working conditions in workshops. 10. Increased facilities for passengers’ comfort and convenence, and modern equipment at principal stations and on trains. 11. Action to eliminate smoko nuisance. 12. Further utilisation of rail-cars. 13. Investigation of new methods to make further use of soft coals. 14. Uniformity tribunal to place staffing matters on the same footing in all Government Departments. 15. Extension of facilities for holiday concessions to scholars and students.

16. Mail-exchanges to he employed for exoress trains to expedite mailwork.

17. Further separation of “goods” and “passenger” traffic by the elimination of “mixed” trains, 18. Introduction of train-control on principal sections of line. 19. Further extension of Railway Conference facilities in"tfie direction of assisting standardisation ns between Australia and New Zealand. 29. Trial of improved locomotives types to reduce operating costs. 21. Further tariff adjustments to assist nriinarv and secondary industrial development.

22. Workshops reorganisation in accordance with the most modern practice.

24. Yard and grade improvements where .such will assist reduction in operating cost. 25. Extension of automatic signalling systems and of railway electrification where warranted. 26. Further development of departmental housing activities. 27. Belter amalgamation of trauspori services throughout the Dominion lo produce bettor operating conditions ami improved economic effort. CONCLUSION. In conclusion 1 desire to place on record my appreciation of flic capable manner in which all employees of the Department have carried on the year’s work. Every emergency has been met with good judgment and in the right spirit of practical helpfulness. The year has been one in which t lie generallv low prices received f r the country's exportable surpln; of products have reacted unfavourably upon what might he termed “pleasure travelling” within (he Dominion. Yet it is lo the building-up of this class of business that the Railways, as such, must look if they are to make up (he leeway in passenger traffic resulting from defections to the road by so many business travellers in the suburban areas The general outlook is now more promising; and with continued co-operation of Railway affairs, supported by further effort and new on(er"rise in the directions suggested earlier in this statement. 1 feel assured that, given a period of normal pro-

gress within the Dominion, the Railway position can ho still further improved as the present programme of extensions and betterments draws towards completion. RESULTS! OF "WORKING. The following is a summary of the working for the year ended March 31st. 1927. as compared with 192(5, the figures for which hitler are in parenthesis: Total miles open for traffic 3.164 (3.133) ; average miles open for year 55.157 (3.10:1); canital cost of opened and unopened lines £5(5.028,477 (£53.716.455): canital cost of open lines £49.183,91(5 (£47,008,675); capital cost per mile of open lines £15,545 (£15.172); gross earnings £8.431,654 (£S.460.762) ; working expenses “£6,490.880 (£0,468.428); net earnings £1.943.774 (£1.992.334); interest charges £2,043,433 (£1.913,311); appropriation or betterments, nil (£21,023); deficit for 1926. £99,659. Percentage of total working-expenses to gross * earnings 76.95 (76.45); pereenage of net earnings to capital invested, 3.99 (4.35): railway operating earnings £1,205.189 (1.424,704); percentage of railway operating expenses to earnings, 82.96 (81.23); operating earnings per average mile open, £2,351 (£3,44(5); operating .expenses per average mile open, j £1,931 (£1.987); net operating oarn- ! nigs per average mile open. £4OO | (£459) ; operating earnings per train mile 166.14<1 (176.01 d) ; operating ex- [ ponses per train mile, 137.82(1 (143.37c1) net operating earnings per train mile, 28.32 d (33. l id) ; passengers, ordinary. 10.3p0.0G0 (11,813,480); season tickets 585.094 (600.292); total passenger jour- | neys, 20,022,137 (27,653,414); goods j tonnage, 6,833,430 (G. 505,003) ; livc--1 stock tonnage 475,013 (447,539) ; ' train mileage 10,723.804 (10.319.407); engine mileage, 15,212,080 (14.057.039). For the current year I anticipate the revenue will roach £8.300,000 and the expenditure £6,671,945.