THE RAILWAYS

Hokitika Guardian, 27 October 1933, Page 6

THE RAILWAYS

THE ANNUAL REPORT.

(Per Press Association, Copyright). WELLINGTON, October 27. The Railways Board report was made available for .publication to-day, .; in which it is stated:— 3 ■ Tne past year has presented many , difficulties in connection with the De- . pertinent's operations the prinicipal , lac cor ,of course, being the prevailing L 1 depression in trade and industry. Not- , wunstandmg this, however, the results obtained from the year’s operations . may he regared as satisfactory when t compared with the previous year’s , figures. , | The revenue for the year was £6,- ; ,as compared with £6,508,948 ' m the previous year, a decrease of . £475,545. On the other hand, however, the expenditure was reduced to £5,183.859, as compared with £5,670,955 for the previous year, a de- ’ ‘ crease of £487,096. The satisfactory result on the expenditure side was | achieved by the statutory reductions in salaries and wages and by 1 a sys- , tematic and careful pursuit of every 1 practical means of economy. The net revenue for the year was £850,455 as compared with £837,993 for the previous year, fin increase of ' £(12,551. The net revenue' lias increased progressively over the last two years to an aggregate extent of ' £161,817 .equal to 23.50 per cent. • The improvement in the net results achieved -over the last two years has | been secured chiefly by the reductions . which: halve' been obtained in the expenditure. There is a definite limit to which this process can go, and having regard to what has been already done in this direction it will be recognised that further reductions in expenditure will be progressively difficult to obtain. The Board will continue the policy of keeping costs down to the lowest figure compatible with a reasonable standard of service to the public and with due regard to the legitimate interests of its large staff. In its report for last year the Board stated that its policy'was. to take no action in the direction of closing nonpiaying branch lines without the most .patient and that- it .would aim to make its decision in each case in the light of, the fullest J information that could be obtained as to the traffic possibilities of each line. .The Board did not, however, delay the bringing into; ■operation of econo- |. mies that could be made in the working of the branch: ■ lines, • and it took .every, practical step to stimulate traffic .over, the lines. . . ■ ■ . . The Board -is now able to report that its-action has resulted in certain mea- j j sines of ■improvement in. the net re- j i suits obtained from the operation of

• several of the branch lines durng the ! past year as compared with the preI vous year, and to that extent has been ' justified. .. ...... f;;. fhe granid" total bf revenue from' the 'braiicli lines showed a decline of £B,427'pn tile previous year’s figures.. This', represents a drop of 2;78 per .cent -in ...the. .hranc.h-lihc :revenue .as compared with a. .drop of 7.29 per cent in revenue-: -for -the• whole-system.-The total" expenditure on the branch lines showed a reduction of £65,148, .or a 14.03 per cent' drop, as. compared with a drop in expendittim, oyer the whoie system of 8.59 .per cent. The operating loss on branch lines was £98.997 which, with interest £412,125 added, made a total loss of £512,122. The main line revenue from traffic to and from the branch lines, however, amounted to £418,988, or, in other words, the main line revenue, from. branch line traffic w T as £319,991 greater than the operating loss on the branch lines. It is not reasonable, however, to assume that the whole.- of this main line revenue would be'Jbst to—the Department in respect of any such line that' might be closed, for, no doubt, the main j

•1 line fWould: holdi.oii ■ "'it's own section a- proportion of -it. In- the cpnsidera- | t-ion. of .this problem the proportion that would be. retained can only he asI sessed according to the best judgment I of tlie Board as applied to the circumi-’ stances of each case',' and.-,the Board ' makes due allpwance for this factor, j The Board has left that the improvements which have been achieved in the net results from the operation of j the branch lines still justify the policy I which the Beard adopted of taking no precipitate action on this question, ! but of working patiently along the I lines of endeavouring to secure the i best possible net results before coming to judgments regarding the closing of lines. There are still some lines as to which there is, a prima . facie case for closing but for the reason stated, as well as for the reason that the ultimate development of competitive road traffic as it will be affected by the operation of the Transport Licensing Act has a material hearing on practically every case, the j Board feels that some further patience might well be exercised in the handling of the branch line situation. The development of competitive road traffic is very intimately connected with the operation of the Licensing Author-

ities which have been constituted under the Transport Licensing Act, 1931, and which have now commenced to function. At the risk of some repetition the Hoard cannot too strongly emphasise the responsibility which rests with the people ,in the various localities concerned to interest themselves in the tranrnort problem, because the Board • must inevitably be largely guided in its decision regarding the branch lines by the- attitude of the people themselves, and the Board must take as affording very strong evidence of the sincerity of their desire to justify the-retention of theirbranch line the steps. -which the people j

take in connection with the? licensing of road services that' are.: competitive, with- the branch lines and the support wMch they accord their line. : '.The. licensing of goods-services has now been taken in hand by the Licens:ing' Authorities- and a large number of applications has already been, dealt, with". Of these,, many, are for services which feed the railways, but- there, are many purely tiomipetitiv . eservices. As in the case of the. passenger-services, provision has been made ih the regulations for the grant of a license automatically to certain operators—name-, ly, to those who have been operating services continuously since the passing of the Act. Accordingly, the task of the Licensing Authorities is a comparatively simple one for the first year. The types of license which may be issued in respect of goods services are (a) a route license—i.e., point to .point —generally granted with the fight to deviate up to a specified distance; (b)

an area license—i.e., the right to run j anywhere within the area specified in j the license. ■ j Generally speaking, • it' may be said | that the licenses so far granted are such as wil enable operators to' carry on substantially the same service as they have regularly carried oh during the period 11th November, 1931, to 3ist May, 1933, but, as in the.case of. passenger services, the test of justification for the continued running of these services will be applied before licenses are granted for the 'goodslieensing year commencing on the Ist June, 1934. The gross earnings for the year were £b,034,403, a decrease , of £474,545 (7.29 per cenf.) compared whih the previous year, and ia decrease of £1,537,134 (20.30 per cent.) compared with the yer.r ended 31st Mrrjh, 1931. The shrinkage of revenue was due to the continuance of the depression in trade

and industry. The gross expenditure totalled £5,183,859, a decrease of £187,096 (8.59 per cent.) compared with the previous year, and a decrease.of £1,698,951 (24.68 per i cent.) compared with the year ended 3lst March, 1931. Tote rest charges totalled £2,230,655, an increase of £9,190 compared with the previous year. During the yen' the sum of £229,835 was charged against revenue for renewals, and the amount expended from t,hi s fund for electric equipment, overhead linos,- and track renewals was £138,779. The (credit balance at 31st. •March,. 1933, in the Renewals Fund was £565,562. During the year the sum of £470,405 was xtharged (against revenue on account of depreciation.