D.—2

Repairs to steamers showed a substantial advance over last year. This was due to the fact that both steamers on the service underwent heavy overhaul, involving additional expenditure this year. In addition, the boiler of the " Ben Lomond " failed in July, 1933, while the steamer " Earnslaw " was undergoing overhaul, and it was found necessary to install a new boiler. Both steamers being out of commission at the same time, it was found necessary to hire launches to maintain a service, and this factor contributed to the increase in expenditure this year. On the whole, the position of this service for the year must be regarded as satisfactory when compared with losses of £336, £2,055, and £4,898 respectively during the three preceding years. DEPARTMENTAL DWELLINGS. 1933-34. 1932-33. Variation. £ £ £ Revenue .. .. .. ..137,238 137,575 - 337 Expenditure .. .. .. 150,781 145,786 + 4,995 Loss .. .. .. £13,543 £8,211 +£5,332 The slight decrease in revenue was due to natural fluctuation in occupancy of dwellings. During the year the number of dwellings decreased from 3,636 to 3,629. The increase in maintenance charges this year is due to repairs on dwellings having been kept down to an absolute minimum during the previous few years. Essential painting and repairs this year account for the increase over last year. SICK BENEFIT FUND. The operations of the New Zealand Government Railways Employees' Sick Benefit Fund for the year ended 31st March, 1934, show a surplus of £5,306 compared with a surplus of £6,604 for the preceding year. The receipts totalled £24,921,. including the departmental subsidy of £8,000, as compared with £24,914 for the previous year. The total membership at 31st March, 1934, was 10,096 compared with 9,681 in 1933 an increase of 415. Sick-benefit payments totalled £19,615, compared with £18,310 for the previous twelve months, an increase of £1,305. The accumulated funds now stand in the balance-sheet at £26,520. SUGGESTIONS AND INVENTIONS COMMITTEE. The Suggestions and Inventions Committee dealt with 813 suggestions during the year, as compared with 622 during the previous year. Of these suggestions 57 were recommended for adoption in whole or in part, 343 were referred to heads of branches for their information, or were already in operation or related to matters of policy, 362 were not recommended for adoption, and 51 were, at the close of the financial year, under trial or investigation, and were carried forward for future consideration. Of the 57 suggestions recommended for adoption 18 were in connection with improvements to rolling-stock, 2 were in connection with workshop equipment, 13 referred to matters connected with the Way and Works and Signals Branches, while the balance dealt with general matters in connection with railway working. STORES BRANCH. The amount expended in connection with the purchases of stores during the year was £1,277,749 9s. 3d., and was made up as follows : — £ s. d. To merchants, manufacturers, and others in New Zealand .. 449,053 7 11 Payments through High Commissioner in London .. .. 158,565 6 1 Material manufactured in railway workshops .. .. .. 125,614 10 0 Coal and coke .. .. .. .. .. •■ 456,282 9 7 Stationery .. .. .. .. .. 17,829 0 2 Manufactured and used material recovered from other branches .. 36,392 17 4 Timber from railway sawmills .. .. .. •• 34,011 18 2 £1,277,749 9 3 The increase in this year's expenditure in comparison with that for the previous year was £20,120 15s. 6d. (or 1-6 per cent.). The principal variations were : Payments to merchants, manufacturers, and others in New Zealand, increased £50,944 os. lid. ; payments through the High Commissioner, London, increased £65,093 12s. ; material manufactured in railway workshops decreased £29,181 12s. sd. ; manufactured and used material recovered from other branches decreased £30,950 12s. 6d. ; payments for coal and coke decreased £46,246 9s. 7d.

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