D.---2

XIV

opposition to our buses, and these have accounted for a decrease in the revenue in this service of no less than £7,239. But for this circumstance our bus business would have shown a very substantial improvement on last year. The foregoing comments are not intended to be a full treatment of our working under the various headings above named, but are mentioned as being the principal factors that require to be taken into account when comparing the position for 1929-30 as disclosed in the Revenue and Expenditure Account with that disclosed by the same account for the previous year. (Each of the various phases of our operations will be treated in fuller detail hereunder). As I mentioned last year, in order that proper comparison may be made as regards Revenue and Expenditure Account for any two years the differentiating factors are required to be taken into account. Summarizing the items mentioned above, the following sets out the position : — Decrease in revenue due to two Easter periods being included in 1928-29, and £ practically no Easter traffic in 1929-30 .. .. .. .. ..107,000 Increases in expenditure— Maintenance of way and works .. .. .. .. . . .. 34,785 Maintenance of signals and electrical appliances .. . . . . .. 5,371 Maintenance of rolling-stock .. .. .. .. .. .. 256,754 Locomotive transportation— £ £ Drivers'and firemen's wages .. .. .. 19,021 Fuel .. .. .. .. .. .. 80,255 99,276 Less saving in cleaning-costs .. .. .. ..12,120 87,156 Examination and lubrication of rolling-stock . . .. .. .. 9,298 Traffic transportation .. .. .. .. .. .. 57,953 General charges .. .. .. .. .. .. .. 14,168 Subsidiary services— Departmental dwellings .. .. .. .. .. 13,991 Road-motor services .. .. .. .. .. 2,088 16,079 £588,564 It will be seen that the foregoing items alone more than account for the increase in the deficit on account of revenue and expenditure that remains to be accounted for after allowing for the alterations in the financial arrangements of the Department as I have previously set out. All of these items are due to more or less fortuitous circumstances over which the administration could have little or no control, such as the incidence of the Easter traffic, the increased expenditure associated with extension of the services, overtaking of arrears of maintenance of rolling-stock, and such-like causes as are mentioned under the various headings above. The foregoing is intended to be by way of elucidation of the main factors affecting the Revenue and Expenditure Account, and is not directed to the question of the efficiency of the working of the Department. In this latter connection I would draw particular attention to the comment in my last annual report under the heading of " Statistics," and under this heading in this report I again, give some figures which are more truly significant as regards the operating efficiency of the Department than are the figures of the Revenue and Expenditure Account. The sum charged against revenue for depreciation and provision for renewals was £699,177, and the amount expended from the Depreciation and Renewals Fund was £339,635 for assets written off or renewals effected during the year. The accumulated credit balance in this fund at 31st March, 1930, was £1,687,562. The position in regard to the undermentioned equalization funds is as follows :- —

The following summary makes a comparison of the principal items charged against workingexpenses in respect of the various funds tabulated below for the five years ended 31st March, 1925, and 31st March, 1930, respectively : — . Five Years . Five Years ended ended 31st March, 1930. 31st March, 1925. Reserves accumulated for renewals and depreciation .. .. 1,687,562 Reserves against fire, flood, accident, compensation, and insurance .. 66,633 Old and obsolete rolling-stock, buildings, and equipment written off .. 635,772 94,425 Superannuation Fund subsidies .. .. .. .. .. 892,701 80,000 £3,282,668 £174,425

§ Credit Balance p t? i brought Contributions, Expenditure, } , , a r an ? e forward from 1929-1930. 1929-1930. at 3 \ s *„^ aroh ' 1929. lydU ' £ £ ! £ £ Slips, Floods, and Accidents Fund .. .. 26,902 21,647 31,329 17,220 Workers'compensation .. .. .. I 18,498 44,894 47,890 15,502 Insurance .. .. .. .. 24,819 15,964 6,872 33,911 70,219 82,505 86,091 66,633 I I