YEAR OF PROGRESS

Wairarapa Times-Age, 26 August 1938, Page 6

YEAR OF PROGRESS

REPORTED IN RAILWAYS STATEMENT BUSINESS REACHES RECORD VOLUME. DECLINE IN NET REVENUE(By Telegraph —Press Association.) WELLINGTON, This Day. “The financial year which ended on March 31, 1938, the second since I assumed the portfolio of Railways, has been one of marked progress in everjr feature of railway activity, with notable buoyancy in many of the classes of traffic carried by the Department and some important developments that have been particularly helpful to the people of the Dominion from both the business and the recreational aspects,” the Minister of Railways (the Hon D. G. Sullivan) observes in his annual Statement, presented to Parliament today. “More business has been done by the railways during the past twelve months than in any previous year ,in the history of the Dominion,” the Minister continued. “This fact is attested not only by the record gross revenue earned, but also by the record total of 561,000,000 goods net ton-miles. There was an increase over the previous year of 1,205,784 passenger journeys by train and 890,023 additional passengers were conveyed by railway road services as compared with the year ended March 31, 1937. “The internal activities of the Department have been equally impressive. Never previously have the railway workshops been so fully engaged, their total staff now standing at approximately six thousand, and in no other year- have so many major improvements been introduced into 1 the working railways.” Following are particulars of the gross’ earnings and working expenses of the railways in the-years indicated: Earnings Expenses. £ £ 1935- 7.004,316 5,952,839 1936- 7,790,651 6,886,793 1937- 8,634,186 8,001,389 Following are the net earning, i.e., the amount earned by the railways towards interest on their capital, cost, for the the same years: £ 1935- 1,051,477 1936- 903,858 1937- .... 632,797 The percentage of net earnings to capital invested was 1.15 in 1937-38, compared with 1.65 in 1936-37 and 1.94 in 1935-36. The railways last year fell short by £1,703,011 of earning interest on their capital cost. For the current year (1938-39) it is estimated that the revenue will reach £9,211,605 and expenditure £8,706,207. Pointing out that the expenditure for the year totalled an increase of £1,114,596 upon the previous year’s figures, £8,001,389, the Minister observes that the main items of increase are additional expenditure upon maintenance, rolling-stock and locomotive and traffic transportation, which altogether accounted for £905,163 of this amount. Wages for the year amounted to £4,902,226 or 61.27-'of the total expenditure. The increase in wages last year amounted to £734,185, this - including cut restorations and other concessions to staff amounting to £442,196 and increased wages cost of handling additional traffic, £291,989. As the net revenue was £271,061 less than in the previous year, the improvement in wage conditions, costing £442,196, more than accounted for the decrease in net revenue. The proportion of railway revenue used in payment of wages to a staff of 23,000 now amounts to 12s 6d in the pound. A further Is lOd in the pound is spent entirely in New Zealand for coal and a large proportion of the 2s 5d in the pound for stores and material is also spent in New Zealand. “I feel,” the Minister observes, “that the increasing tide of traffic the railways have experienced in the past two years will continue to flow in their directiori as additional' facilities are provided for the transaction of business with and through the Department, and as public satisfaction is increased by the good, reliable, and inexpensive service given. The Department, naturally, anticipates a greatly increased traffic during the Dominion’s Centennial year and also increased trade and tourist business following the national display of the country’s achieved and potential development. This has been borne in-mind in framing the Department’s construction programme for the immediate future.” The Minister thanks the General Manager, Mr G. H. Mackley, his assistants, and the staff generally for their efficient work and helpful attitude throughout the year. ‘From my own personal knowledge and experience, and from appreciative references not only by New Zealanders but by visitors from overseas,” Mr Sullivan observes, “I am satisfied that during an exceedingly trying year the staff has given excellent service to the public and to the Department.”