8.—2.

The combined service shows a decrease in the revenue per mile of 097 d. when compared with a combination of the services running last year. This is due mainly to the more frequent service in the Hutt Valley, loss of peak traffic and poor loading on the Ngaio-Khandallah run and low receipts during the period of change-over to the electric rail service. Ordinary revenue increased by £358, school by £196, special trips by £1,162, sightseeing by £308, and miscellaneous receipts by £120. Expenditure increased by £6,710. Superintendence-costs rose by £1,337, maintenance by £3,113, and running-expenses by £2,888, while fixed charges declined by £628. The rise in superintendence-costs was due to more staff this year, additional rent for office in station building, and an increase in printing and advertising. The increase in the number of vehicles and the payment of higher wages to repair staff and drivers were the chief causes of the rise in maintenance-costs and running-expenses this year. Napier-Hastings Services. 1939. 1938. Variation. £ £ £ Per Cent. Revenue .. .. 22,058 21,144 + 914 4-32 Expenditure .. .. 18,785 17,741 -j- 1,044 5-88 Net revenue .. £3,273 £3,403 — £130 3-82 Passenger journeys .. 587,266 533,301 +53,965 10-12 Mileage ' .. 373,924 361,714 +12,210 3-38 Ordinary passenger receipts increased by £501, school by £254, parcels by £116, and other miscellaneous items by £42. The increase in ordinary traffic was distributed throughout the year. The improvement in school receipts is due to a new contract undertaken. The principal increases in expenditure were superintendence (£138) and running-expenses (£1,504), while fixed charges (£483) and maintenance charges (£115) showed decreases. The increase in running-expenses was due to rise in wages of drivers, increased cost of fuel, and additional mileage run. Christchurch Services. 1939. 1938. Variation. £ £ £ Per Cent. Revenue .. .. 39,367 7,596 +31,771 418-26 Expenditure .. .. 38,280 7,299 + 30,981 424-46 Net revenue .. £1,087 £297 + £790 265-99 Passenger journeys .. 134,082 18,049 +116,033 642-88 Mileage ' .. 788,048 129,932 +658,116 506-51 In May, 1938, three services were taken over from private operators, which accounts for the large increase in revenue. The inclusion of the additional services resulted in a corresponding increase in mileage. The revenue last year was 14-03 d. per mile, while this year it was 11 -99d. per mile. The increase in wages to drivers and higher cost of repairs and maintenance were the main items of increased expenditure. Westland Services. 1939. 1938. Variation. £ £ £ Per Cent. Revenue .. .. 14,558 12,968 +1,590 12-26 Expenditure .. .. 13,643 10,302 + 3,341 32-43 Net revenue .. £915 £2,666 —£1,751 65-68 Passenger journeys .. 58,435 44,726 +13,709 30-65 Mileage .. .. 172,144 142,596 +29,548 20-72 During the year (30th August, 1938) Harcourt's Hokitika-Okarito passenger service was taken over and co-ordinated with the Department's Hokitika-Weheka service. Ordinary passenger revenue increased by £1,319, mails by £202, and miscellaneous receipts by £69. The inclusion of receipts from Harcourt's service, together with the inclusion of an Easter this year, were the main causes of the increase shown in ordinary passenger traffic. The increase in expenditure was due mainly to the additional mileage run, increase in wages of drivers, higher maintenance charges, and to additional charges for goodwill this year. Dunedin Services. 1939. 1938. Variation. £ £ £ Per Cent. Revenue .. .. 53,550 54,252 - 702 1-29 Expenditure .. .. 52,410 53,963 - 1,553 2-88 Net revenue .. £1,140 £289 + £851 294-46 Passenger journeys .. 457,008 468,103 —11,095 2-37 Mileage .. 1,168,228 1,229,324 —61,096 4-97

XXV