D.-2.

1940. NEW ZEALAND.

RAILWAYS STATEMENT (BY THE MINISTER OF RAILWAYS, HON. D. G. SULLIVAN).

Mr. Speaker,— In submitting the fifth of the Railways Statements it has been my pleasure and privilege to present, I am fortunate in being able to report that New Zealand's -Centennial year has also proved to be a year of notable achievement in the railway history of this country. The financial year which commenced on the Ist April, 1939, promised to be one of rejoicing, with patriotic displays and demonstrations of achievement and progress in the arts of peace throughout the country. Accompanying this, considerable augmentation of inward overseas tourist traffic was expected, as well as a great additional volume of trade and travel within New Zealand because of the many Centennial functions planned for every district of the Dominion. But the outbreak of war in September called for an immediate recasting of plans in every part of the Empire. It saw an almost complete cessation of New Zealand's overseas tourist traffic and demanded a first call on national resources for the most effective prosecution of the war. Faith was kept with those engaged in Centennial undertakings and all commitments were met, but no activity of the Railways Department in this or any other direction was permitted to interfere with the special transport needs created by the war situation. In this respect it was particularly fortunate that, in addition to the Government's long-range programme of railway rolling-stock improvement, substantial additions to the numbers, power, and carrying-capacity of locomotives, cars, and wagons had been planned and provided to meet the anticipated requirements of Centennial year. Without these special additions to the normal developmental programme the Department would not have been so well placed at the outset to assist the war effort (transport of troops, &c.). RECORD REVENUE. The gross revenue, £10,199,070, is the highest amount ever earned in one year by the railways. It is pleasing to observe that whereas in 1935 the gross earnings amounted to £6-6 millions, the figures, in millions, for the succeeding years have been £7-0, £7-8, £8-6, £9-3, and £10-2. An increase in railway earnings from £6-0 millions to £10-2 millions in five years would be notable under any conditions ; certainly there is nothing proportionately comparable with it in any previous quinquennial period since the railways were unified under one control, seventy years ago. I must say here that this phenomenal rate of increase cannot be expected to continue, as there will be a number of factors which will operate to curtail railway traffic ; the chief of these will be the decrease from the peak created by the special traffic associated with Centennial year, while the war must cause a dislocation of normal trade.

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