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ANNUAL REPORT OF THE GENERAL MANAGER OF THE NEW ZEALAND GOVERNMENT RAILWAYS New Zealand Government Railways Department, General Manager's Office, Wellington, 18th August, 1947. The Hon. the Minister of Railways. Sir, — I have the honour to submit my annual report on the working of the New Zealand Railways for the financial year ended 31st March, 1947.

WORKING RESULT (Whole Undertaking)

REVENUE Details of the operating revenue under the main headings, with comparisons with the previous year's figures, are set out in Statement No. 3. Passenger revenue decreased by £658,761, or 16*84 per cent. Taking into consideration the decrease of £697,758 from Armed Services receipts, there was, in civilian passenger revenue, a slight increase, which would undoubtedly have been more pronounced had it not been necessary to reduce still further the North Island passenger services for five months of the year consequent upon the shortage of coal-supplies. The strike by Waikato coal-miners at the close of the financial year necessitated the cancellation of all special trains during Easter, 1947. Consequently, £16,000 of the advanced passenger bookings for Easter were refunded. Passenger-train steam mileage in the North Island decreased by 11-86 per cent, from last year's figure. It must be realized that the restrictions which it was found necessary to impose during the year were restrictions upon an already reduced timetable. The effects of the coal shortage can be gauged from the fact that in the year ended 31st March, 1944, a year which was not entirely free from coal troubles, the passenger-train steam mileage in the North Island was 3,080,456 miles, compared with a mileage of 1,878,744 for the year ended 31st March, 1947. The number of passenger journeys also decreased substantially from last year. Passenger journeys (ordinary) decreased by 3,330,758, or 24-58 per cent., while journeys on season tickets decreased by 217,782, or 1-15 per cent. Of the decrease in passenger journeys (ordinary), 2,740,820 occurred in the North Island.

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— 1947. 1946. Variation, 1947 with 1946. Per Cent. Revenue £15,680,057 £15,444,847 +£235,210 1-52 Expenditure £15,944,270 £14,384,844 +£1,559,426 10-84 Net revenue £264,213* £1,060,003 -£1,324,216 Return on average capital Nil 1-47 -1-47 invested in open lines, per cent. Interest charges £2,992,900 £2,889,195 +£103,705 3-59 Excess of interest charges £2,992,900 £1,829,192 +£1,163,708 over net revenue * Loss recovered from vote, "'. Sconomie Stabilization."'