D.—2.

From the sth January, 1936, the charge for meals in the dining-rooms was reduced from 2s. 6d. to 25., a reduction of 20 per cent. As shown above, the number of meals sold during the current year increased by 32-02 per cent. This increase was no doubt due to the improvement in economic conditions and to the greater volume of passenger traffic handled associated with the reduction in price. The substantial increase in counter sales is mainly due to the improved economic conditions. The decrease shown against miscellaneous is principally attributable to the fact that meals are not now supplied to the staff engaged on the Lake Wakatipu steamers. The expenditure for the year increased by £16,149 (19-00 per cent.), this being mainly due to the restoration of salaries and wages to the 1931 level, to the introduction of the forty-hour week, and to increased purchases of stores and provisions consequent upon the greater volume of catering necessary to meet the' increase in business. The total return to the Department in respect of the operations of the Refreshment Branch for the past five years is as under

BOOKSTALL SERVICE.

The total return to the Department in respect of the operation of bookstalls over the last two years is as follows :—-

The Department controls, through its Refreshment Branch, eighteen railway bookstalls. Increased passenger-traffic and the improvement in the economic conditions accounts for the improved showing as the result of the year's operations. ROAD MOTOR SERVICES. The year's operations resulted in a profit of £21,698, as compared with £8,598 for the previous year, an improvement of £13,100. A comparison of the revenue and expenditure is afforded below : — 1937. 1936. Variation. Per £ £ £ Cent. Revenue .. .. 198,751 103,280 +95,471 92-44 Expenditure .. .. 177,05.3 94,682 + 82,371 87-00 Net Revenue .. £21,698 £8,598 +£13,100 152-36

XIX

1937. 1936. 1935. 1934. I 1933. _ I £ £ £ £ £ Rent .. .. .. .. 9,219 9,230 9,230 9,230 9,100 Commission .. .. .. .. 842 742 667 620 584 Rail fares .. .. .. .. 1,066 1,066 1,066 1,066 1,066 Rail freights .. .. .. .. 2,084 1,790 1,825 1,818 1,851 Interest .. .. .. .. 1,111 1,108 1,102 1,124 1,129 Net profit .. .. .. .. 2,226 4,156 2,132 786 2,928 £16,548 £18,092 £16,022 £14,644 £16,658

1937. 1936. Variation. Per Cent. £ £ £ Revenue .. .. .. 54,417 45,798 +8,619 18-82 Expenditure .. .. .. 51,245 43,042 +8,203 19-06 Net revenue.. .. .. £3,172 £2,756 +£416 15-09

1937. 1936. £ £ Net profit .. .. .. .. 3,172 2,756 Rent .. .. .. .. 5,442 4,580 Railages .. .. . . .. 191 167 Commission . . . . . . . . 381 320 £9,186 £7,823