D.—2

CONCLUDING REMARKS AND FORECAST.

In ascertaining the results of working, the capital cost of the open lines has been taken as £19,081,735, and the net earnings £630,623 gives a return of 3 - 30 per cent. The capital cost, as represented by the figures quoted, does not however include that portion of the lines now incorporated in the Westland and Nelson Sections, and which originally formed what was known as the Midland Railway Company's line. It has been ascertained that the capital cost to the colony of these lines was £576,413, and adding that amount to the £19,081,735 quoted above, gives a total of £19,658,148. The net earnings for the year— viz., £630,623 —give a return of 3 - 21 per cent, on the capital cost as ascertained in the manner indicated. Good progress continues to be made in connection with the installation of safety appliances. The electric tablet train-signalling apparatus has been fitted up at stations between Longburn and Turakina, Masterton and Featherston, Addington and Rolleston; and the interlocking of points and signals at Rolleston, Studholme Junction, Cattle-yards, Green Island Sidings, and Mosgiel; and a temporary scheme at the north end of Dunedin Station. The working of the appliances fitted at the stations named, and at other stations fitted during the preceding years, has been eminently satisfactory. The equipment of the lines with proper safety appliances of this nature tends greatly to increase the safety of the travelling public. It is therefore essential that this important work should be proceeded with as rapidly as possible. I am pleased to be able to record the fact that the employees are giving practical demonstration of their appreciation of the Government Railways Superannuation Fund Act, which was passed during the last session of Parliament, and came into operation on the Ist January last. Participation in the scheme was entirely optional as regards employees in the Railway Service at the time of the passing of the Act, and such persons were given a period of six months from Ist January last within which to determine whether they would become contributors or not; but, notwithstanding this fact, no less than 3,586 of the members of the service, representing 57 per cent, of the total permanent staff, had given their adherence to the scheme up to 31st March. By joining the fund thus early, those members have taken upon themselves a liability for 'the payment of contributions which they were not necessarily compelled to do. By so doing they, however, not only became entitled to the benefits derivable under the Act, but proved in a practical manner that a very considerable proportion of the staff was ready and willing, even at some personal sacrifice, to avail itself of the undoubted advantages afforded by the Act as a means of providing against want in old age, or compulsory retirement in consequence of infirmity or disablement by injury or sickness. In this connection I would again emphasise what I stated to the House last session, viz. : that as the Government has now placed on the statute-book a measure, "The Government Railways Superannuation Fund Act, 1902," which affords the members of the railway staff an opportunity of making proper provision for themselves, wives, and families, no payment of compassionate or other allowances will in future be made to them. It is therefore desirable that the employees should embrace to its fullest extent the opportunity which has been afforded them of securing themselves from want in case of old age, disablement, or sickness. The balance-sheet submitted to the House by the Board of Administration shows that the amount to the credit of the fund on 31st March was £7,056. In November last the Government acquired the steamers and plant of the Lake Wakatipu Steamship Company, and since that time the lake service has been run under the supervision of the Railway Department, and in conjunction with the train services. During the summer season, week-end rail and steamer excursions were run. These trips were much appreciated by the public, and will be reinstated next summer. The steamers at present running on the lake are somewhat out of date, and unequal to meet the requirements of the large passenger business which, I am confident, there will be on the lake at no distant date; and, in order that the business may be satisfactorily catered for, it will be necessary to procure a new steamer capable of carrying 1,000 passengers, and of steaming up to eighteen knots per hour.

ii—D. 2.

V