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Victorian Railways 1960 VICTORIA VICTORIAN RAILWAYS REPORT OF THE VICTORIAN RAILWAYS COMMISSIONERS FOR THE YEAR ENDED 30TH JUNE, 1960 PRESENTED TO BOTH HOUSES OF PARLIAMENT PURSUANT TO ACT 7 ELIZABETH II. No. 6355 BY AUTHORITY : A. C. BROOKS, GOVERNMENT PRINTER, MELBOURNE No. 7-('ls. 9d,)-10230/60 CONTENTS PAGE COMMISSIONERS' REPORT 1 HEADS OF BRANCHES 24 APPENDICES~ APPENDIX Balance-sheet 1 26 Financial Results (Totals), Summary of 2 28 Financial Results (Details), Summary of 2A 29 Reconciliation of Railway and Treasury Figures (Revenue and Working Expenses), &c.... 3 30 Working Expenses, Abstract of 4 31 Working Expenses and Earnings, Comparative Analysis of 5 32 Total Cost of Each Line and of Rolling Stock, &c. 6 34 General Comparative Statement for Last Fifteen Years 7 40 Statistics : Passengers, Goods Traffic, &c. 8 43 Mileage : Train, Locomotive, and Vehicle 9 44 Salaries and Wages, Total Amount Paid 10 46 Staff Employed in Years Ended 30th June, 1960 and 1959 ll 47 Locomotives, Coaching Stock, Goods and Service Stock on Books 12 48 Railway Accident and Fire Insurance Fund .. 13 50 The Chalet, Mount Buffalo National Park, Results of Working, &c. 14 51 New Lines Opened for Traffic or Under Construction, &c. 15 52 Mileage of Railways and Tracks 16 53 Railways Stores Suspense Account 17 54 Railway Renewals and Replacements Fund 18 54 Depreciation-Provision and Accrual 19 54 Capital Expenditure in Years Ended 30th June, 1960 and 1959 20 55 Passenger Traffic and Revenue, Analysis of . .. 21 56 Goods and Live Stock Traffic and Revenue, Analysis of 22 57 Traffic at Each Station 23 58 Arrival of Her Royal Highness Princess Alexandra at Spencer Street, 16th September, 1959. REPORT OF THE VICTORIAN RAILWAYS COMMISSIONERS FOR THE YEAR ENDED 30TH JUNE, 1960. VICTORIAN RAILWAYS, Commissioners' Office, Spencer Street, Melbourne, C. 1. 2nd November, 1960 To the Honorable the Aiinister of Transport. SIR, In conformity with Section I05 of the Railways Act, 1958 (No. 6355), we have the honour to submit our Report for the year ended 3oth June, 1960. Despite a sharp increase in working expenses, mainly due to the general rise in marginal wage rates from 13th December, 1959, increased superannuation charges, workers' compensation payments and payroll tax, additional revenue earned by the Department during the year enabled the greater portion of the increased costs to be absorbed. Revenue from all sources amounted to £39,240,397-an increase of £993,512 in comparison with the previous year. Approximately £4oo,ooo of the additional revenue was attributable to the increase of 10 per cent. in passenger fares and 7i per cent. in freight rates from 6th March, 1960, and the balance to an overall improvement in goods traffic. Although the truckings of wheat, barley and other grains declined by 251,ooo tons, representing a decrease of 16 per cent. compared with the 1958-59 grain traffic, the total tonnage of goods carried increased by 440,000 to 9,28 I ,ooo tons. Of the increased tonnage, about 7 5 per cent. consisted of traffic in the more highly rated cate­ gori~s, and this was secured in the face of intense competition from other transport services. Working expenses, at £39,616,378, were £1,348,666 higher, so that the loss on current operations was £375,981 compared with last year's loss of £2o,826. Interest charges and expenses, exchange on interest payments and redemption, and contribution to the National Debt Sinking Fund totalled £4,017,823, an increase of £2o1,50I, so that the result of operating the railways and road motor services under our control was a deficit of £4,393,804. More detailed information is given under the heading ''Financial Review''. Operations during the year were unfortunately marred by the prolonged indus­ trial dispute over service grants. Following the decision of the Commonwealth Con­ ciliation and Arbitration Commission declining their application for service grants, the unions concerned resorted to direct action to enforce their claim instead of exercising their dght of appeal against the Court's decision. Initially, this took the form of a so called "Work to Regulations" campaign, which was in fact a "go slow" campaign. During November and December, 1959, this caused considerable dislocation of train services and consequent inconvenience to pat­ rons. However, the measures taken to counter these tactics resulted in a sharp dimin­ ution in their effect on traffic operations. The unions thereupon imposed a restriction on the amount of overtime which their members may work each fortnight. 2 This had the immediate effect of exaggerating the chronic shortage of operating staff, and to maintain essential week day services during the overtime limitation it was necessary, from 14th February, 1960, to suspend all Sunday train services, with the exception of interstate and Mildura expresses, and to cancel the majority of Saturday afternoon country services. In addition, a number of week day country trains were can­ celled in cases where reasonable alternative services were available. Several offers have been made to the unions as a possible basis for settlement of the dispute, but up to the present these have been rejected. Country Passenger Traffic. The completion of additional air-conditioned carriages enabled the use of this type of vehicle to be extended. Apart from holiday periods and infrequent occasions when traffic is exceptionally heavy, it is now the usual practice to include at least one first and one second class air-conditioned carriage on each of the longer distance country trains. In October, 1959, diesel-electric traction was extended to the South-Eastern Line, with consequent acceleration of the daily passenger service between Melbourne and Yarram. The country passenger traffic statistics for 1959-60 indicate a further substantial decrease in patronage compared with the previous year. However, the results were affected in no small measure by the reduction in country services in consequence of the industrial dispute over service grants and by the decline in patronage which custom­ arily follows fare increases. Moreover, the curtailment of services inevitably restricted the solicitation of pas­ senger business, especially in the expanding field of organized party travel at weekends, and, until such time as it is practicable to restore all regular services, there is little prospect of any marked improvement in country passenger traffic. Suburban Passenger Services. The downward trend in suburban train travel continued during the year, the number of passenger journeys decreasing from 158·6 million to 153·6 million compared with 1.958-59. As with country services, the decrease was partly attributable to the cancellation of Sunday services from 14th February, 1960, whilst it is reasonable to assume that the increa:;e in fares from 6th March, 1960, also contributed to the decline. Additional track facilities provided during the year enabled services to be improved on various suburban lines, and electrification was extended from Fawkner to Upfield, and also from Thomastown to Lalor, to meet housing and industrial developments in those areas. Goods Traffic. The total revenue received from all classes of goods traffic, with the exception of livestock, amounted to £zi,479,JI2-an increase of £690,829 compared with 1958-59· As already mentioned, there was a substantial fall in the volume of grain traffic in comparison with the previous year, and this represented a decrease of just on £8oo,ooo in revenue. The decrease would have been more keenly felt if important gains had not been achieved in other classes of traffic, most of which comprised items highly favoured by competitive transport. The principal increases in revenue were from iron and steel (£30J,OOO ), cement (£I o9,ooo ), petrol (£I o4,ooo ), timber (£ 66,ooo ), motor cars and bodies (£ 6o,ooo ), L.C.L. containers (£53,ooo) and some other highly rated goods (£64,ooo). In con­ sequence of an increase in briquette and fertilizer traffic, revenue from these items rose by £6oi,ooo and £r47,ooo respectively, but was partly offset by a decline in brown coal (£156,ooo). 'Whilst livestock tonnage declined by I o·6 per cent. compared with the previous year; the revenue derived from this traffic increased by £59,ooo, or 4·4 per cent., due to the increase in rates from 6th March, I96o, together with an increase in the average length of haul from 155 to I8o miles. 3 Improved Painting Scheme for Suburban Parcels Coaches. Financial Review. The results of operating the railways and road motor services under our control were as follows :- £ s. d. REVENUE 39,240,397 4 6 WORKING EXPENSES 39,6I6,378 I3 I I DEFICIT ON CURRENT OPERATIONS 375,98I 9 5 Interest Charges and Expenses (including Loan Conversion Expenses) 3,635.904 IS 6 Exchange on Interest Payments and Redemption I73,88I 18 11 Contribution to National Debt Sinking Fund 208,035 IS IO TOTAL INTEREST, EXCHANGE, ETC. 4,017,822 10 3 DEFICIT The deficit of £4,393,804 was £556,655 more than that of the prevmus year. This was brought about as follows £ Increase in Earnings 993>SI2 Increase in Working Expenses 1,348,666 Net Increase in Working Expenses Plus-Increase in Interest etc. charges Net Increase in Deficit ss6,6ss The revenue increase was the result of the following variations :- Increases: £ £ Passengers-Suburban . 312,591 Parcels 42,22S Goods 690,829 Livestock s9,296 Refreshment Room Services 13,219 Advertising I I,I76 Bookstalls I5,73 1 Telegraphs, Rentals, etc. 83,7I9 4 Decreases: £ £ Passengers-Country I73> I98 Mails 8,652 Road Motor Services 3,887 Dining Cars 7,242 Kerang-Koondrook Recoup 5,240 Tramways (closed 28th February, 1959) 37,055 235,274 Net Increase .. 993.5 12 ---- The increase in revenue from suburban passenger traffic was attributable to the increased fares applicable from 6th March, 1960, although the number of passengers declined in comparison with 1958-59.
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