D.—2

1941. NEW ZEALAND.

RAILWAYS STATEMENT (BY THE MINISTER OF RAILWAYS, HON. R. SEMPLE).

Mr. Speaker,— The financial year 1940-41 had a little more than two months to run when, on the 21st of January last, I took over the portfolio of Railways from my colleague the Hon. 1). G. Sullivan. This, therefore, is my first Railways Statement, and I am fortunate in. being able to report that the year has been one of achievement unprecedented in this country's railway history. Prior to its commencement there was an assumption that without the stimulus of the Centennial Exhibition, an improvement on the 1939-40 revenue would be unlikely. Restrictions in the use of petrol, increased output of primary and secondary industries, and transport of troops —three abnormal factors —have combined, however, in causing greater use to be made of the railway facilities' than ever before. Had my Department been less efficiently organized, this year's very satisfying result could not possibly have been accomplished, As it was, officers and staff, although severely depleted by the imperative release of trained personnel for war services here and abroad, faced up to their heavier responsibilities with confidence and vigour. Prosecution of the war, allied with difficulties in procuring material, has necessitated some readjustment of the Department's expansion programme. Rollingstock output, as a consequence, did not reach the estimated volume, but the situation was so adequately compensated by the effects of the Government's long-range policy of extending and improving rolling-stock, facilities, and services that the efficiency of the transport operations was in no way prejudiced or impaired. Nor has the productiveness of the railway workshops diminished ; the adaptation of a considerable portion of our workshops establishment to the manufacture of large and increasing quantities of vital war material lias given further proof of the tremendous value nationally of this country's railway organization. RECORD REVENUE. The gross revenue, £11,160,218, was the highest in the history of the Department, and exceeded that of the year 1939-40 by £961,148, or 9-42 per cent. The highest gross revenue in pre-depression years was earned in 1930 and amounted to £8,288,116. This figure was passed in 1938, when the gross earnings amounted to £8,634,186. The very substantial further yearly increases to £9,345,387 in 1939, £10,199,070 in 1940, and £11,160,218 in 1941 reflect the general improvement that has taken place during the last few years. The net revenue of £1,694,644 for the year provided a further record in exceeding the previous year's net revenue by £505,613, or 42-52 per cent.

I—D. 2.