STATE RAILWAYS

Wairarapa Times-Age, 16 June 1943, Page 3

STATE RAILWAYS

ACTUAL CREDIT BALANCE SHOWN . PRACTICALLY FOR FIRST TIME IN HISTORY. EFFECT OF WAR CONDITIONS. (By Telegraph—“Times-Age” Special.) WELLINGTON, This Day. The financial results of the year’s operations are more than satisfactory, says the Minister of Railways, Mr Semple, in his Railways Statement, which was presented in the House of Representatives today. For the first time since 1926, the net revenue has been more than sufficient to meet the' full interest charges; in fact, it is probably the first time that the railways can be said to have met their obligations in full. In the year ended March 31, 1926, the interest charges were met only by reason of the payment from the Consolidated Fund of a subsidy on branch lines amounting to £359,540. The gross revenue for the past year amounted to £14,128,993, exceeding the record of last year by £2,190,655 (18 35 per cent). The expenditure for the twelve months was £11,302,413, and the net revenue £2,826,580. These figures represent an increase of 12.39 per cent, and 50.17 per cent respectively, compar- / ed with 1941-42. The net return on capital was 4.31 per cent, and the surplus of net revenue over interest charges was £203,867. Interest charges for 1942-43 totalled £2,622,713, a decrease of £133,433, compared with the previous year. Up to March 31, 1942, the interest rate on capital moneys was 4} per cent. As from April 1, 1942, the rate of interest was reduced to 4 per cent, in accordance with the decision of the Minister of Finance under the National Development Loans Act, 1941. This accounts for the reduction in the interest charges. The net revenue for the year was sufficient to pay the interest charges in full, with a surplus of £203,867, stated the Minister. In the year 1941-42 the net revenue fell short of the interest charges by £873,842.