RAILWAY FINANCE

Otago Daily Times, Issue 24422, 7 October 1940, Page 6

RAILWAY FINANCE

HALF-YEAR REVIEWED GRATIFYING INCREASES HIGHER COSTS ANTICIPATED (Per United Press Association) CHRISTCHURCH, Oct. 0, Reviewing the approximate., returns of railway revenue and- expenditure, the Minister; of/ Railways - (Mr/ D. G. Sullivan) stated to-day that the position was satisfactory, the net revenue for the four-week : y period ended September 14 being £64 424, compared with a deficit of £7814 in the corresponding period last year, and that the approximate net receipts for the 24 weeks of the current year amounted to £583 919. against£l69,s6B for the first 24 weeks of 1939.

Mr Sullivan drew special attention to the fact that, while the revenue for the past four weeks showed an increase of £72 845. the expenditure had increased by on'y £607. “ Dunng the four, weeks ended September 14.” said the Minister, “ there was a substantial increase in passenger traffic, due largely to the transport of troops, and traffic in coal, manure, lime, and general commodities also showed a considerable expansion, while the net resuß of all operations for six four-weekly periods of last year was a deficit of £7814. Operations for the relative period of this year have produced a surplus of £64,424. the gross revenue being £773.698, against an expenditure of £709.274. There is good reason for congratulation in the fact that this total of expenditure was only £607 in excess of the. expenditure incurred during the corresponding fourweekly period of 1939. An examination of the accounts from April 1 to September 14 (24 weeks) provides opportunity for a fuller appreciation of the improved state of the railway finances.” continued Mr Sullivan. “The gross revenue to date is approximately £4.885,552, compared with £4.306.401 received during the first 24 weeks of last year, an increase of £579,151. Expenditure was £4.296,633 this year, exceeding last year's figures by £159.800. The net revenue from all, operations of the department for the 24 weeks of the current year was, therefore, approximately £588.919. compared with £169.568 for the corresponding' period of 1939, an increase of £419,351. “There will be additional charges, however, for the balance of the financial year to meet increased costs arising from the inevitable increase in the cost of imported raw materials,” he concluded. “ while further provision will reemire to be made for the cost-of-living allowance, granted to the lower-pa’d employees of the public service, including employees of the Railways Department