D.—2.

ROAD MOTOR SERVICES. The year's operations resulted in a profit of £8,598, as compared with £5,672 for the previous year, an improvement of £2,926. A comparison of the revenue and expenditure is afforded below : — 1936. 1935. Variation. Per £ £ £ Cent. Revenue .. .. 103,280 90,278 +13,002 14-40 Expenditure .. .. 94,682 84,606 +10,076 11 -91 Net revenue .. £8,598 £5,672 +£2,926 51-59 In the expenditure provision has been made for interest on capital, depreciation on vehicles and plant, and the establishment of necessary reserve funds. A comparison of the results obtained on the various services is as follows : —■ Profit, Profit, tt . 1936. 1935. anation. / £ £ £ Napier-Hastings .. .. .. .. 1,419 1,158 + 261 Wellington - Hutt Valley .. .. .. 5,983 3,760 + 2,223 Wellington-Wanganui* . . . . .. 400 90 + 310 Oamaru-Tokarahi . . .. .. 10 25 — 15 Dunedin - Port Chalmers .. . . .. 692 588 + 104 Waipahi-Edievale .. .. .. 94 51 + 43 Total .. .. .. .. £8,598 £5,672 +£2,926 * The Wellington-Wanganui service was commenced on Ist September, 1934. A satisfactory feature of the year's operations is that a profit has again been made on each of the services, the Department's road services in common with other business concerns having benefited by the general improvement in economic conditions. The Department now operates fifty-six omnibuses and ten service cars, the latter being used to maintain the Wellington-Wanganui service. Seven of the omnibuses are de luxe vehicles, the design and upholstery of which have occasioned favourable comment. These vehicles are often used for *' contract work," and since their introduction there has been a substantial increase in revenue, particularly in long-distance traffic. The results of operating the various services are shown below Napier-Hastings. 1936. 1935. Variation. Per £ £ £ Cent. Revenue .. .. 17.986 16,559 + 1,427 8-62 Expenditure .. .. 16,567 15,401 + 1,166 7-57 Net revenue .. £1,419 £1,158 + £261 22-54 Passenger journeys .. 512,292 481,691 +30,601 6-35 All classes of traffic showed steady increases during the year, the revenue from special trips undertaken for tourist, picnic, and sporting parties showing an appreciable increase. Hutt Valley. 1936. 1935. Variation. Per £ £ £ Cent. Revenue .. .. 65,180 59.489 +5,691 9-57 Expenditure .. .. 59,197 55,729 + 3,468 6-22 Net revenue .. £5,983 £3,760 + £2,223 59-12 Passenger journeys .. 2,437,868 2,264,257 +173,611 7-67 The returns from this service for the year's operations are very satisfactory, revenue increasing by 9-57 per cent, and expenditure by 6-22 per cent. All classes of traffic show increases, and the revenue per passenger journey ncreased from 6-31 d. to 6-42 d., this being due to a greater proportionate increase in the number of longer-distance trips. Wellington-Wanganui. 1936. 1935. Variation. Per £ £ £ Cent. Revenue .. .. 10,448 5,438 + 5,010 92-13 Expenditure .. .. 10,048 5,348 + 4,700 87-88 Net revenue .. £400 £90 + £310 Passenger journeys .. 10,707 6,229 + 4,478 71-89 This service, which now consists of ten vehicles, was taken over from the S.O.S. Motors, Ltd., and commenced running as a departmental service on Ist September, 1934. Revenue per passenger journey increased by 24-67 d., and expenditure by 19-17 d. Ordinary passenger revenue showed a distinct improvement during the year, as also did the revenue from special trips. It is anticipated that the latter class of traffic will show an even better return during the next tourist season.

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