RAILWAY ACCOUNTS

Wairarapa Times-Age, 10 February 1939, Page 3

RAILWAY ACCOUNTS

POSITION SHOWING SOME IMPROVEMENT

EFFECT OF HIGHER COSTS. STATEMENT BY MINISTER. (By Telegraph—Press Association.) WELLINGTON, This Day. Returns, of railway revenue for the four weeks ended January 7 and for the first 40 weeks of the present financial year were announced yesterday by the Minister of Railways, the Hon D. G. Sullivan. He said that despite the recent setback in short-distance passenger traffic through bad weather interfering with holiday-making plans during the Christmas and New Year period. he anticipated that the total net revenue for the year ended March 31, 1939, would be something over £700,000.

“I have every reason to anticipate from the figures already available, and after a careful examination of the current trends of traffic, earnings and costs,” said Mr Sullivan, ‘‘that the budgetary estimate made at the beginning of the current financial year for net earnings from the railways of £505,000 will be realised, plus an additional £200,000 from the increased rates operative from December 11, last. “The returns for the four weeks ended January 7 show a net revenue of £55,180, which is £32,215 less than for the corresponding period of 1938. These receipts were, however, adversely affected both by the advance bookings in the previous period in anticipation of the 10 per cent increase in fares and freights operating from December 11, 1938, and also by the unfavourable weather conditions.

“For the 40 weeks ended January 7, 1939, the departmental estimates made in April last allowed for a net revenue of £78,836, the amount actually realised falling short of the estimate by £25,911. However, the revenue for the three weeks subsequent to January 7 has shown a total increase of £68,000, which, after allowing for the 10 per cent increase, is much above the estimate and will substantially assist toward making up what is required to meet the budgetary position. “A feature which will favourably affect the comparative returns for the current year is that at the close of the accounts for the March period last year, arrears of salaries and wages due but not paid, amounting to £83,000 were brought to debit, whereas during the present financial year all salaries and wages payments have been made at the increased rates, and no similar debit will appear in the March accounts of the current year.”