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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, 7th August, 1950. The Hon. the Minister of Railways. Sir, — I have the honour to submit my report on the working of the New Zealand ■Government Railways for the financial year which ended on 31st March, 1950.

WORKING RESULTS (WHOLE UNDERTAKING)

RAILWAY OPERATION (ONLY) The revenue and the expenditure of the North and the South Islands respectively were the highest on record but the North Island expenditure in relation to revenue showed up to advantage. The relative figures are given in the table following :

1950 FINANCIAL YEAR

Item. Year. 1 Variations. 1950. 1949. Revenue £ 19,541,184 1 £ 18,597,728 I £ +943,456 Per Cent. 507 Expenditure 20,596,740 19,700,594 +896,146 4-55 Working loss* .. 1,055,556 1,102,866 - 47,310 Interest deficiency 2,768,152 2,710,318 + 57,834 213 * Recovered from vote, ' ' Economic Stabilization." This subsidy is not treated as revenue.

Section of Railway. ] Revenue. Expenditure. ! 1 Net Loss. Ratio of Expenditure to Revenue. North Island main line and branches South Island main line and branches Nelson section .. .. £ 10,408,442 5,633,682 19,942 i £ 10,912,158 6,405,699 43,056 £ 503,716 772,017 23,114 Per Cent. 104-84 113,70 215-91 Total railway operation 16,062,066 17,360,913 1,298,847 108-09