D.—2

Of the gross decrease (£735,230), the sum of £377,427, equal to 51-33 per cent., represents the decrease in wages and salaries. Stores decreased £332,258, equal, to 45-19 per cent. ; and miscellaneous services decreased £25,5-1-5, equal to 3-18 per cent. The sum of £238,942 was expended, in the Maintenance Branch and. charged to capital under the head " Additions to open lines." These comprise additions to station-buildings, extension of sidings, bridge-work and subways, additions to workshops, tablet, telegraph and telephone facilities, signalling and interlocking, and purchase of land. In the Locomotive Branch £923,027 was expended in the provision of additional rolling-stock, tarpaulins, Westinghouse brake, steam-heating, electric lights for engines, and workshops machinery. The rolling-stock in respect to which the charges were incurred comprised twenty-six locomotives, six cars, eleven bogie brake-vans, five bogie and 2,127 four-wheeled wagons completed on 31st March, 1923, and forty-two locomotives, 120 carriages, three brake-vans, 166 bogie and 501 fourwheeled wagons incomplete but in hand on that date. Wages Expenditure. Year ended Year ended 31st Much, 31st March, Decrease, 1922. 1923 £ £ £ For time worked between 6 a.m. and 10 p.m. .. .. 3,946,768 3,651,798 294,970 For time worked between 10 p.m.. and 6 a.m. .. .. 189,327 151,175 38,152 For departmental holidays and Sundays .. .. .. 69,208 74,915 +5,707 For night allowance paid to members of Second Division .. 55,775 50,872 4,903 Totals .. .. £4,261,078 £3,928,760 £332,318

The following figures indicate the advance in wages and salaries, exclusive of additions to open lines and railway improvement authorization works, since the Ist April, 1914 : —

It will bo seen that the increase in the wages-bill for 1923 compared with 1914 is £1,482,074, representing a sum sufficient to pay 3-68 per cent, interest on the capital cost of the working railways —namely, £40,275,161, while the increase of £I,l7l,Boo—representing the difference between the wages expenditure for 1919 and 1923 respectively —is sufficient to pay 2-91 per cent, on the capital cost. The reduction of £332,318 in the wages expenditure for 1923 as compared with, that for the. previous year represents the result of the operation of the Public Expenditure Adjustment Act, together with the economies effected in. the train-services. I desire to emphasize that the sum of £1,171,800 mentioned above as being the increased wages expenditure for 1923 as compared with 1919 represents the cost (after deducting the sum of £332,318, which was the amount of the reductions in wages expenditure consequent on the operation of the Public Expenditure Adjustment Act and the agreements made thereunder) of giving effect to the recommendations of the Wages Boards, which in 1919 and 1920 dealt with the wages and conditions of the Railway staff. The gravity of the position from the financial point of view will, however, be made clearer by my stating that the increase in the total receipts for 1923 as compared with 1920 amounted to £975,315, and the increase in the wages expenditure consequent upon the findings of the Boards absorbed the whole of the increased earnings and £196,485 in addition. The complexity of the problem of making both ends meet becomes apparent when these facts are considered together with the high prices which have been ruling for all necessary stores and material. (See page xviii.) Stores. The amount expended in purchasing general stores and other materials required for departmental use during the year was £1,865,212. Of this amount the Department, in pursuance of its policy of giving preference to New-Zealand-made goods, expended in the Dominion the sum of £1,245,477, which represents a very substantial benefit accruing to traders in New Zealand from the operations of the Department. When it has been necessary to obtain imported goods preference has invariably been given to British manufacturers, and in respect of such goods the sum of £619,734 has been paid through the High Commissioner in London.

ii—D. 2.

IX

Year. Increase Gross Amount. Ovor 1914. Over 1919. Amount. Per Cent. Amount. Pe >r Ce Tor Cent. 1914 1919 1922 1923 £ £ 1,966,868 2,277,142 310,274 15-8 3,826,369 1,859,501 94-5 1,549,227 3,448,942 1,482,074 75-4 1,171,800 I 68-03 51-46 68 51