N.Z. RAILWAYS

Wairarapa Times-Age, 6 May 1938, Page 10

N.Z. RAILWAYS

FINANCE FOR PAST YEAR. FIGURES ANALYSED. (By Telegraph—Press Association.) AUCKLAND, May 4. The relation between increased railway expenditure and increased revenue in recent years is discussed by the Minister of Railways, the Hon D. Sullivan, in a statement supplementary io that which he issued on Monday reviewing the returns for the 'financial year 1937-38. Taking the grbss revenue and expenditure for the year 1929-30 as 100 in each case, the Minister gives the following index numbers for the four later years: 1932-33 (depth of the depression), 72 and 70; 1935-36. 84 and 81; 1936-37. 93 and 94; 1937-38, 104 and 109.

The increase of £1,114,596 in expenditure between 1936-37 and 1937-38 is analysed as follows: Wages due to improved conditions to staff, £442,250; wages due to increased traffic, £296,750; higher price of coal, £100.000; greater consumption of coal due to greater mileage, £41,000; increased material used in repair to rolling stock, £44,000; expansion of subsidiary services, £88,000; various additional expenditure due to increased traffic and higher commodity prices, £102,596".

“In comparing 1937-38 with 1929-30 it Is found that expenditure increased by £642,530 or 8.73 per cent, and revenue by 4.17 per cent, so that a portion of the higher expenditure was due to the increased business handled,” the Minister stated. “The higher exchange rate operating in 1987-38 accounted for d? 81,000 of the increased expenditure.

“However, by far the most important cause of the rise was legislation affecting hours and conditions of labour. The amount due to the 40-hour .week and other improvements in wages and conditions was £625,000. When this figure is considered in relation to the total increase in expenditure, £642,530,” the Minister remarks, “it is at once apparent that the operations of the department have been conducted in a very sound manner.”

Referring to the comparatively small increase of 5.83 per cent in passenger revenue between last year and the year before, the Minister points out that two Easters fell in 1936-37 and none in 1937-38. This made a difference

of £BO,OOO, and, when allowance was made for it, the increase in revenue became 10 per cent. Total passenger journeys, including season tickets, last year numbered 22,441,212, an increase of 1,205,784.