D.—2,

The excellent showing made by the Refreshment Service during the year is attributable to a number of factors, all of which had a favourable effect on the provedoring and other services controlled by this Branch. National and local celebrations in connection with the Dominion's Centenary resulted in increased patronage of the departmental catering services. This was particularly the case at Wellington during the period the Centennial Exhibition was open. Other factors which favourably affected the turnover for the year were troop movements, the falling of two Easter holiday periods in the financial year under review, and the adding as from June, 1939, of the Waipara refreshmentrooms to those under departmental control and the opening of new rooms at Napier. The refreshment and other facilities provided at Wellington station continue to command substantial patronage, the turnover representing 21-41 per cent, of the total turnover from all rooms in the financial year just closed. The actual return to the Department from the operation of the Refreshment Branch for selected years since 1930 is as under : —

BOOKSTALL SERVICE. 1940. 1939. Variation. £ £ £ Per Cent. Revenue .. .. .. 112,855 92,604 +20,251 21-86 Expenditure.. .. .. 106,241 88,144 +18,097 20-53 Net revenue .. .. £6,614 £4,460 +£2,154 48-30 The number of bookstalls (18) at present being operated by the Department is the same as during the previous year. The advance in receipts shown by the bookstall service reflects the favourable conditions under which the whole of the operations of the Refreshment Branch, including the bookstall service, and to which reference has already been made, have been carried on during the year. ADVERTISING SERVICE. 1940. 1939. Variation. £ £ £ Per Cent. Revenue .. .. .. 36,417 40,071 -3,654 9-12 Expenditure .. .. .. 34,061 35,134 — 1,073 3-05 Net revenue .. .. £2,356 £4,937 -£2,581 52-27 Conditions arising from the outbreak of war and in connection with the general trading conditions have adversely affected the trading operations of the Advertising Branch, the revenue from which shows a decline of £3,654 (9-12 per cent.) compared with the previous year. An analysis of the revenue for the year under review is as under:— 1940. 1939. Variation. £ £ £ Outdoor advertising .. .. .. 28,499 31,172 — 2,673 Publications.. .. .. .. 4,830 5,220 — 390 Miscellaneous .. .. .. 2,656 3,316 — 660 Buses .. .. .. .. 432 363 + 69 Total .. .. .. .. £36,417 £40,071 -£3,654

18

1930. 1932. 1934. 1935. j 1936. 1937. 1938. ! 1939 1940. 1 I ! . £ £ £ £ £ £ £ £ £ Rent .. .. .. 11,170 9,100 9,230 9,230 9,230 9,219 9,817 10,309 11,837 Commission on cash col- 970 715 620 667 742 842 1,130 1,327 1,584 lections Rail fares .. .. 1,287 1,066 1,066 1,066 1,066 1,066 1,066 1,066 1.125 Rail freights .. .. 3,234 2,349 1,818 1,825 1,790 2,084 2,443 2,423 2,554 Interest .. .. 1,099 1,291 1,124 1,102 1,108 1,111 1,230 1,465 1,638 Net profit .. .. 6,981 1,681 785 2,132 4,156 2,226 1,849 4,520 14,243 Total .. .. 24,741 16,202 14,643 16,022 18,092 16,548 17,535 21,110 32,981