D.—l

(b) South Island Electric-power Supply. The Lake Coleridge-Waitaki-Monowai-Arnold River plants have operated satisfactorily throughout the year, and the revenue shows an increase of £69,900 over that of the previous year. The year's operations resulted as under: — £ £ Capital investment at end of year . . 6,654,048 Revenue .. .. .. 561,451 Operating-expenses . . . . 187,835 Balance .. . . £373,616 The balance has been used in payment of interest (£231,060), £82,617 has been paid to depreciation, and £1,404 has been charged against cost of raising loans. General. The capital invested in the electric-supply systems operating throughout the Dominion totals £37,367,664, which includes £16,364,603 of Government expenditure. The gross revenue received for the year was £6,296,326. After paying working-costs, interest, sinking-fund (except in the case of Government expenditure on which sinking fund is payable out of profits), and depreciation charges, the net profit for the year under review was £1,126,936, as compared with £878,594 for 1938, which indicates that the electric-supply business as a whole is in a healthy condition. The average revenue received by the Government for each unit sold was 0\!58d., compared with 0-366 d. for last year. The average revenue per unit sold by all the retail supply authorities to consumers throughout the Dominion was 0-982 d. This is the first occasion on which the average revenue received has come below the penny, and is, I think, worthy of special mention. In 1925 the figure was as high as 2-12 d., and even in 1935 it was l-17d. When we realize that even in Great Britain, where the density of population is very much greater, and where even yet many sparsely-populated sections have not been supplied, the average return per unit sold was in 1938 over l-3d. in New Zealand currency, there is no question but that we can justly claim, success for our various electrical undertakings. Further details of the different electrical undertakings will be found in the report of the Chief Electrical Engineer attached as an Appendix to this Statement. RAILWAYS. Dargaville Branch Railway. —Work on this line has progressed steadily during the year. The formation and ballasting of the section between Kirikopuni and Tangowahine have been completed, and the goods and passenger service on this length has been continued in operation by the Department. Construction between Tangowahine and Dargaville has been carried on as fast as the men and staff available have allowed. Ballasting operations have been continued over a length of 4 miles, formation was completed over a further length of 3 miles, and excavation is in hand on the remaining length of 1 mile to the new site of Dargaville Station. A contract has been let for the erection of the Awakino River Bridge, the only bridge remaining to be constructed on this line. It is anticipated that the rails will be laid to Dargaville Station by next March, and the whole work will probably be completed within the ensuing twelve months. Paeroa-Pokeno Railway. —Excellent progress has been made with the construction of this railway. Owing to the changed standards of alignment and grading since the line was previously surveyed a considerable amount of time had to be spent on survey and investigations before construction could proceed on an extensive scale. A large amount of accommodation for workmen had also to be built, and plant and material assembled.

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