D.—2

XXII

Train-operating Expenditure.—The total operating expenditure for the year amounted to £6,158,283, a decrease of £6,287 as compared with last year. The particulars of the expenditure on train-operation are as follows

The operating expenditure per train-mile for all lines was 137-82 d., as against 143-37 d. for the preceding year, a decrease of 5-55 d. per train-mile. The expenditure per train-mile on the North Island Main Line and Branches Section was 127-02 d., and on the South Island Main Line and Branches Section 151-90 d. Subsidiary Services Expenditure.—The expenditure in connection with subsidiary services was £332,597, as against £303,858 for the year 1925-26. The particulars of the expenditure in connection with subsidiary services are : — 1926-27. 1925-26. £ £ Lake Wakatipu steamers .. .. .. .. 15,859 15,613 Refreshment service .. .. .. .. .. 119,567 119,585 Advertising service .. .. .. .. 42,509 31,239 Departmental dwellings .. .. .. .. 137,547 129,907 Leases refreshment-rooms, bookstalls, &c. .. .. 8,271 7,514 Road motor services .. .. . . .. .. 8,844 £332,597 £303,858 Net revenue from subsidiary services (including miscellaneous receipts) " .. .. .. £233,364 £208,089 Net Revenue. The Net Revenue Account from all services, after setting aside the sum of £310,542 for renewals and equalization funds and paying interest charges amounting to £2,043,433, shows a deficit of £99,659, as compared with a surplus of £79,023 last year. Particulars are shown hereunder :— £ Net earnings, train-operating .. .. .. .. .. 1,265,189 Net earnings, subsidiary services .. .. .. .. .. 233,364 1,498,553 Subsidy in respect of developmental lines .. .. .. . . 445,221 1,943,774 Interest charges .. .. .. .. .. 2,043,433 Deficit.. . . .. . . .. . . . . £99,659 Renewals and Equalization Funds.—The position as regards payments to and expenditure from the renewals and equalization funds during the year is shown below : —

; Percentage Percentage | 1926-27. of Operating ; 1925-26. of Operating I Revenue, j Revenue. . : __! j I ; £ £ Maintenance—Ways and works .. .. .. 1,074,334 14-47 1,144,385 15-08 Maintenance—Signals .. .. .. .. 100,861 1-36 105,064 1-38 Maintenance—Rolling-stock .. .. .. 1,303,444 17-56 1,311,317 17-28 Examination, lubrication, and lighting of vehicles 60,095 0-81 59,447 0-78 Transportation—Locomotive .. .. .. 1,609,257 21-68 1,577,173 20-78 Transportation—Traffic .. .. .. 1,752,998 23-61 1,743,641 22-98 Head Office and general charges .. .. 82,287 1-11 82,528 1-09 Superannuation subsidy .. .. .. 175,007 2-36 141,015 1-86 6,158,283 82-96 6,164,570 81-23 Net operating revenue .. .. .. 1,265,189 17-04 1,424,704 18-77

previous Year Contributions.! Expenditure. Balance. £ £ £ £ Renewals .. .. .. .. .. 280,836 572,437 216,535 636,738 Fire insurance .. .. .. .. 4,783 10,841 5,180 10,444 Slips, floods, &e. .. .. .. .. 24,205 21,515 35,894 9,826 Workers'compensation .. .. .. 5,316 44,469 34,810 14,975 Betterments .. .. .. .. 60,000 4,778 51,079 13,699 375,140 654,040 343,498 685,682