THE RAILWAYS

Hokitika Guardian, 17 May 1928, Page 1

THE RAILWAYS

DEFICIT OF NEARLY £300,000,

By Telegraph—Per Press Association J

PAPAROA, May 10. Details of the railway earnings and a flic returns of the financial year

to March 31st were supplied, by the prime Minister, Air Coates, in his speech at Paparoa to-night. The gross earnings were £8,032,943, against ,£8.131,651 in the previous

year. The working expenses were £6,085,123 against £6.490,880 in the previous year, leaving a not revenue of £l. 317,820 for the past year, compared with one of £1,913,774 for the proceding; year. The subsidies on developmental lines wero £489.568 compared with £-105,222. and the interest charges wore £2,130,867, against £2,01-1.-133. There was a deficit for the year of £293,479, compared with a deficit of £99050 in the 1927-28 year. Tho Prime Minister said that the revenue showed a small increase ot £43.510, which, taking into account the difficult conditions ruling throughout the year, must lie regarded as satisfactory. The number of railway passengers -decreased by 623,000, and the pasenger revenue fell by £159,000, hut this loss was, to some extent, set off by an increase of 650,000 passengers, and of £24,000 in revenue from the Department’s bus services. The revenue from goods traffic increased by £84.000. The number of cnttlo carried increased by 69.000; and that of sheep and pigs by 402,00; and 'the goods traffic by 114,000. There had been a. decrease ol 93,009 tons in the timber traffic. This was partly attributable to the falling off in the demand for house construction, the abnormal shortage of houses that existed after the war having been overtaken to a very great extent. One of tho most striking features in the goods traffic statistics was the very large increase in the'quantity of fertiliser carried during the past two years. In 1926, Hie total quantity carried was 312,000 tons, while in 1928 it had increased to 586,000 tons, an increase of 88 per cent. 'flic reductions in railage, made as a matter of Government policy, amounted in the. year just closed to £107.000. 'l’ho working expenses of the railways and subsidiary services increased bv £194,000, tlie cliicl contributing factor's .being: Railways. £144,000; the increased number of dwellings provided for employees. £25,000; and bus services, £24,000. The increase in railway expenses was duo very largely to the greater mileage of line worked, tlie provision, of better services and to the handicaps imposed by the construction of new works, which had not- yet been brought into lull use. Tlie interest charges increased by £87,000 the interest burden on works under construction whic-li have not yet become reproductive amounting to £75,000.