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1935. NEW ZEALAND.

GOVERNMENT RAILWAYS BOARD (REPORT BY THE).

Laid before Parliament pursuant to Section 21 of the Government Railways Amendment Act, 1931.

ANNUAL REPORT OF THE GOVERNMENT RAILWAYS BOARD. The Right Hon. the Minister of Railways. New Zealand Government Railways, Wellington, 31st August, 1935. Sir, — Pursuant to the provision of section 21 of the Government Railways Amendment Act, 1931, the Government Railways Board transmits herewith the accounts of the Working Railways Department for the financial year ended 31st March, 1935, and, in doing so, desires to submit the following report on the working of the Department for the year:—REVENUE AND EXPENDITURE. —The gross revenue for the year showed an increase of 4-66 per cent., or £295,217 over the previous year. Sixty-four per cent. (64 per cent.) of the Board's revenue is derived from goods traffic. The gross expenditure increased by 5-59 per cent., or £293,284. The total figures are as follows : — £ Gross revenue .. .. .. .. .. 6,627,928 Gross expenditure .. .. .. .. .. 5, 540, 437 Net revenue .. .. .. .. .. £1,087,491 During the year the 5-per-cent. increase in salaries and wages added £149,475 to the Board's expenditure. Reduced revenue from workers' dwellings owing to a concession of lower rentals had a further effect in reducing the net earnings of the system. The revenue result was achieved by the strictest supervision and direction over the diversified interests of the system and by the Board's constant and unremitting efforts to render prompt and efficient railway service to the public in which it has at all times had the steady and consistently increasing support of the staff in all grades of the Service. The entire structure of this great system depends upon its revenueearning power for its support. The Board recognizes that such in turn depends upon the measure of patronage accorded by the public who appear to the Board to be impressed by the increasingly high standard of railway service. While the Board has particularly directed its attention to the preservation of its goods traffic revenue, at the same time the improvement in passenger revenue follows the efforts of the Board to provide cheap, comfortable, and expeditious travel facilities. Nothing comparable to the Government railways for general travel, particularly over the long distances, obtains in New Zealand. The Board emphasizes this for its direct bearing upon the revenue position. With regard to expenditure, wherever the Board could reasonably introduce economies it has done so.

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