D—2

WAGES A general wage increase of £l3 per annnm applied to this year's expenditure from Ist June, 1949, and an increase of £22 per annum awarded on Ist July, 1948, applied fully to this year, whereas last year was affected by it only to the extent of nine months. Other improvements in conditions and a new award for motor-lorry drivers also contributed to the increased expenditure on wages. These increased rates of wagea applied to the additional man-hours involved in coping with the increased traffic and accounted largely for the increase of £744,142. As a matter of interest, I may mention that a general increase of 3d. per hour in basic pay costs over £BOO,OOO a year when overtime and other penal rates are taken into account. COAL AND OIL FUEL Coal The following table shows the consumption and cost of coal this year compared with last year :

It will be seen that there was a decrease in the total consumption of New Zealand coal but an increase in the total cost. The decrease in consumption was due to the greater use of oil-burning locomotives in the North Island which more than offset an increase in coal consumption in the South Island. The increase in total cost was due toan increase in the cost per ton ; the average cost of soft coal increased by 3s. 6d. per ton and the cost of hard coal by sd. per ton. On the other hand, the quantity of imported coal increased by 659 tons, while the cost decreased. As a result mainly of the alteration in the exchange-rate, the average cost per ton was only £6 Is. as against £8 19s. sd. last vear; the resultant saving was £184,842. The following table shows the consumption and cost of locomotive coal from the point of view of efficiency and economy and enables a comparison to be made between the 1939 figures and those for the past five years :

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Consumption. Cost. 1950. 1949. 1950. 1949. Native — Tons. 1 Tons. £ £ Soft 287,946 294,513 467,771 426,573 Hard 174,484 186,509 347,345 367,175 Total 462,430 481,022 815,116 793,748 Imported 65,452 64,793 396,328 581,170 Total 527,882 545,815 | 1,211,444 1,374,918

Consumption. Cost. Year Ended 31st March, Per Train-mile. Per 1,000 Gross Ton-miles. Per Train-mile. Per 1,000 Gross Ton-miles. 1939 .. 1946 .. 1947 .. 1948 1949 .. 1950 .. lb. 86 112 113 109 113 115 lb. 392 416 410 409 420 435 d. 14 19 24 34 30 28 d. 64 69 89 127 113 107