D.—2.

TRAFFIC TRANSPORTATION. The expenditure under this head was £2,208,310, as against £2,090,471 last year, an increase of £117,839 (5-64 per cent.). The increased expenditure was due to the regrading of clerical positions, the operation of the higher wages schedule for the outside staff, the increased cost and consumption of stores, and the additional train-miles run. The following analysis shows the increase in various statistics of traffic transportation for 1939 over the previous year : — Increase. Per Cent. Man-hours .. .. .. .. 602,662 4• 25 Train-hours .. .. .. ..32,429 3-70 Train-miles .. .. .. .. 392,732 3-03 Gross ton-miles (thousands) .. .. 58,820 2-13 Net ton-miles (thousands) .. .. .. 17,012 2-54 The cost of traffic services per train-hour increased by 10-68 d. (1-86 per cent.), per train-mile by 0-97 d. (2-51 per cent.), and per thousand gross ton-miles by 6-24 d. (3-43 per cent.). Taking the year 1926 as the standard, and fixing the index figure for that year at 100, the following table shows the position in respect of traffic transportation expenditure over a period of five years : — 1926. 1935. 1936. 1937. 1938. 1939. Total expenditure .. .. 100 78 84 103 120 127 GENERAL CHARGES. No detailed comment is called for in respect of expenditure under this head, the figure for 1939 being £247,475, as against £247,770 last year, a variation (decrease) of £295 (0-12 per cent.). SUBSIDIARY SERVICES. The following table shows the variations in revenue and expenditure for the year as compared with 1937-38 : —

The particulars of revenue and expenditure in connection with subsidiary services over a period of three years are as follow :— 1938-39. 1937-38. 1936-37. £ £ £ Revenue .. .. .. 1,340,328 1,042,361 887,047 Expenditure .. .. 980,692 709,604 548,408 Net revenue .. .. £359,636 £332,757 £338,639 LAKE WAKATIPU STEAMERS. 1939. 1938. Variation. £ £ £ Per Cent. Revenue .. .. .. 7,168 7,624 —456 5-98 Expenditure .. .. 11,313 11,144 +169 1-52 Loss .. .. .. £4,145 £3,520 +£625 17-76

iv—D. 2.

XIX

Revenue. Expenditure. Subsidiary Services. Amount, Variation. Amount, Variation. 1939. 1939 with 1938. 1939. 1939 with 1938. £ £ Per Cent. £ £ Per Cent. Lake Wakatipu steamers .. 7,168 — 456 5-98 11,313 + 169 1-52 Refreshment service .. 167,710 +24,924 17-46 163,189 + 22,252 15-79 Bookstall service .. .. 92,604 + 15,885 20-71 88,144 + 14,912 20-36 Advertising service .. 40,071 + 2,674 7-15 35,134 + 2,507 7-68 Dwellings .. .. 133,945 + 3,262 2-50 187,193 + 4,011 2-19 Other buildings .. .. 23,888 + 3,596 17-72 15,645 + 1,716 12-32 Road services—Passengers.. 320,158 + 59,625 22-89 297,958 + 61,855 26-20 Road services—Goods " .. 185,454 +169,460 1,059-52 182,116 +163,666 887-08 Miscellaneous revenue (non- 369,330 + 18,997 5-42 operating) 1,340,328 +297,967 28-59 980,692 +271,088 38-20