D.—2.

The increase in revenue of £8,640 (13-26 per cent.) was due to the general improvement in economic conditions and the establishment of further motor industries and other factories in the Hutt Valley, causing a growth in the local population. The increase in expenditure of £4,729 (7-99 per cent.), was due to normal causes, the restoration of salaries and wages, the introduction of the shorter working-week, and the employment of extra staff. Wellington-Johnsonville-Khandallah. 1937. 1936. £ £ Revenue .. .. .. .. .. .. 21,296 Expenditure .. .. .. .. .. 18,729 Net revenue .. .. .. .. .. £2,567 Passenger journeys .. .. .. .. .. 848,554 Mileage .. .. .. .. .. .. 298,319 This service consists of the Wellington-Ngaio-Khandallah and the Wellington sight-seeing passenger-service licenses which were acquired from the Bell Bus Co., Ltd., on Ist July, 1936, also the Wellington-Johnsonville passenger-service license purchased from Mr. S. A. Crichton on 10th August, 1936. Sixteen vehicles are in operation in this service and the revenue and expenditure per mile since the two services were taken over by the Department are 17-13 d. and 15-07 d. respectively. The ordinary passenger revenue was £18,168, special trip revenue £1,649, and sight-seeing revenue £1,406, while the revenue per passenger journey was 6-02 d. Christchurch Services. 1937. 1936. £ £ Revenue .. .. .. .. .. .. 3,712 Expenditure .. .. .. .. .. 3,607 Net revenue .. .. .. .. .. £105 Passenger journeys .. .. .. .. .. 11,618 Mileage .. .. .. .. .. .. 74,573 The passenger-service license operated by Ramsay's Motors, Ltd., between Christchurch and Akaroa was purchased by the Department on 18th May, 1936, and the license for a service operated by Mr. J. A. Read between Little River and Akaroa was taken over on 22nd June, 1936. Nine service cars are operated by the Department, the revenue per mile being 11-95 d. and the expenditure 11-6 Id. The services have now been co-ordinated with the rail between Christchurch and Little River, and it is anticipated that the returns from the road and rail operations will improve considerably as the result of this co-ordination. Dunedin Services. 1937. 1936. Variation. Per £ £ £ Cent. Revenue .. .. 42,897 8,470 + 34,427 406-46 Expenditure .. .. 40,871 7,768 + 33,103 426-15 Net revenue .. £2,026 £702 + £1,324 188-60 Passenger journeys .. 380,600 272,531 108,069 39-65 Mileage .. .. 1,008,188 150,712 +857,476 568-95 The Department has for some time operated road services between Dunedin and Port Chalmers, Oamaru and Tokarahi, and Dunedin ancl Eglinton Valley. The following additional services operating in the Dunedin district were taken over during the year : —

All the above are passenger services with the exception of the Dunedin-Balclutha service, which is also used for the carriage of goods.

XXI

Previous Operator. Service. Date purchased. Read and Smith .. .. j Dunedin-Invercargill . . .. .. 3rd May, 1936. Earl's Motors . . .. Dunedin -Roxburgh . . .. 24th May, 1936. Hope's Motors .. . . Dunedin-Palmerston . . . . . . 24th May, 1936. Wanaka Motors, Ltd. . . Dunedin-Timaru . . .. • ■ 1 Dunedin-Pembroke . . . . ■ ■ 11 + t i qqc Palmerston-Cromwell-Pembroke . . | s une ' ' Pembroke-Makarora-Cardrona .. . . J Hunters' D.O.T. Motors, Ltd. .. Dunedin-Timaru .. .. • • 1 Oamaru-Waitaki Hydro .. .. 22nd June, 1936. Oamaru-Kia Ora-Cormacks .. .. j O'Fee's South Road Services .. Dunedin-CIinton-Tahakopa . . . . i ,, „ , , , Dunedin-Balclutha .. .. .. j 20th September,1936.