D.—2,

1934. NEW ZEALAND.

GOVERNMENT RAILWAYS BOARD (REPORT BY THE).

Laid before Parliament pursuant to Section 21 of the Government Railways Amendment Act, 1931,

ANNUAL REPORT OF THE GOVERNMENT RAILWAYS BOARD. The Right Hon. the Minister of Railways. New Zealand Government Railways, g IR _ Wellington, 27th July, 1934. Pursuant to the provision of section 21 of the Government Railways Amendment Act, 1931, the Government Railways Board transmits herewith the accounts of the Working Railways Department for the financial year ended 31st March, 1934, and, in doing so, desires to submit the following report on the working of the Department for the year : — For the first year since 1929 an increase in gross revenue has been recorded in comparison with the previous year. The total revenue actually exceeded the estimate made in the Board's previous report by £453,911. . , The revenue for the year was £6,332,711, as compared with £6,034,403 m the previous year, an increase of £298,308 (4-94 per cent.). The expenditure increased from £5,183,859 last year to £5,247,153 this year, an increase of £63,294 (1-22 per cent.). The net revenue was £1,085,558, as compared with £850,544 for the previous year, an increase of £235,014. The net revenue has increased progressively over the last three years to an aggregate extent of £396,831, equal to 57-62 per cent., but whereas in the two previous years the improvement in the net revenue was secured solely by reductions in expenditure, this year it is the result of increased revenue. The Board regards this as a satisfactory feature of the year's operations. Further comments on the finances of the Department will be made later in this report under appropriate headings. CO-ORDINATION OF RAIL AND ROAD TRANSPORT. Passenger-services. The Transport Licensing Act, 19-31, is now in its third year of operation, for licensing purposes, with respect to road passenger-services. As mentioned in the last report of the Board the licensing for the first year (1932-1933) was largely an automatic process. In the second licensing year (1933-1934) licensees desiring renewals of their licenses were required by the Act to show sufficient justification for the continued running of their services. Some measure of stabilization in the industry was achieved daring the second year, but the degree of regulation varied according to the particular ideas on the subject of transport held by the various Licensing Authorities. Following the procedure mentioned in its last report, the Board continued the' policy of being represented at the public hearings of the Licensing Authorities in order that full information regarding railway and co-ordinated services might be placed before the Authorities to enable them to give proper consideration to the matters which the Act provides that they should take into account. The Act makes express provision for the submission of evidence and representations by the Government Railways Board and local bodies, and also gives to the Board a right of appeal against the decisions of the Licensing Authorities. The Board found it necessary m the public interest to appeal against a number of the decisions given. In these cases the Board was definitely of opinion that the decisions of the Licensing Authorities were opposed to the best interests

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