D.—2

The revenue under all heads has shown substantial improvement, the increases being particularly heavy in the case of passenger revenue (43-49 per cent.) and parcels, luggage, and mails revenue (21-86 per cent.). Passenger journeys (ordinary) in 1942-43 exceeded the previous year's figure by 6,065,587 (54-62 per cent.), reaching a new record of 17,171,214. During the major portion of the year under review it was found necessary to curtail civilian travel. A permit system was introduced restricting travel for distances of over one hundred miles to those on essential business or with special reasons. These restrictions were applied in both Islands over the Easter period in April, 1942, and in the North Island from 27th July, 1942, to 12th January, 1943, with considerble intensification during the period of the acute coal shortage between 16th September and 3rd October, 1942. Despite these limitations, the number of ordinary passenger journeys exceeded those in the previous record year, 1920-21, by 1,855,574. The substantial increase was due largely to the diversion of road traffic to rail in consequence of the petrol restrictions and tire shortage, and to the movement of the armed forces. Receipts from the conveyance of goods and live-stock and the tonnage carried showed substantial increases on last year's record figures. The comparative revenue figures are set out in the table above, while the tonnage for 1942—43 was 8,887,089 tons, compared with 8,473,765 tons for 1941—42, an increase of 413,324 tons (4-88 per cent.). The principal increases in freight revenue were in respect of grain, £42,290 ; fresh meat, £56,966 ; butter, £40,259 ; wool, £42,436 ; timber, £132,025 ; cement, £54,994 ; and general merchandise, £555,695. OPERATING EXPENDITURE The following table shows the operating expenditure under the main headings, together with appropriate comparisons with the previous year's figures : —

SUBSIDIARY SERVICES The following table shows the variations in revenue and expenditure for the year as compared with 1941-42

Both the increases and decreases in subsidiary services revenue and expenditure, as indicated in the foregoing summary, are attributable in the main to factors arising from the war and to which reference has already been made.

6

— -l * _ Amount - Percentage of Operating Expenditure. Variation 1943 with 1942. Operating r ox Revenue. 1943. 1942. » ' ' Maintenance — £ £ £ Per Cent. 1943. 1942. Way and works .. 1,829,311 1,615,382 + 213,929 13-24 14-73 15-56 Signals .. .. 271,499 238,169 + 33,330 13-99 2-19 2-29 Rolling-stock .. 2,380,260 2,211,476 + 168,784 7-63 19-17 21-30 Examination, lubrication, 119,213 100,473 + 18,740 18-65 0-96 0-97 and lighting of vehicles Transportation— „ Locomotive.. .. 2,311,134 2,013,445 + 297,689 14-79 18-62 19-38 Traffic .. .. 2,862,653 2,479,852 + 382,801 15-44 23-06 23-88 General charges .. 245,589 243,795 + 1,794 1-32 1-98 2-35 Totals .. 10,019,659 8,902,592 +1,117,067 12-55 80-71 85-73

Revenue. Expenditure. Subsidiary Services. ~ i ~~~ , Amount, Variation. Amount, Variation. 1943. 1943 with 1942. 1943. | 1943 with 1942. £ £ Per Cent. £ £ Per Cent. Lake Wakatipu steamers .. 8,892 + 1,739 24-31 13,384 + 2,033 17-91 Refreshment service .. 363,509 +112,466 44-80 | 318,462 + 90,185 39-51 Bookstall service .. .. 184,866 + 44,002 31-24 178,427 46,267 35-01 Advertising service .. 27,637 — 105 0-38 25,679 + 765 3-07 Dwellings .. .. 153,610 + 6,221 4-22 212,822 - 7,582 3-44 Other buildings .. ■■ 43,271 -f- 4,738 12-30 27,055 858 3-07 Road motor services .. 554,979 + 3,826 0-69 506,925 1,498 0-29 Miscellaneous revenue (non - 377,149 — 13,432 3-44 operating) 1,713,913 +159,455 10-26 1,282,754 +129,312 11-21