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Government Railways and Tramways, 1929-30

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Government Railways and Tramways, 1929-30 1630. LEGISLATIVE ASSEMBLY. NEW SOUTH WALES New South Wales Government Railways and Tramways. REPORT 0¥ THE COMMISSIONERS FOB THE YEAR ENDED 30TH JUNE, 1930. Ordered by the Legislative Assembly to be printed, 3 December, 1930. SYDNEY: ALFRED JAMES KENT, I.S.O., GOVERNMENT PRINTER. ... 1930. *46420 19—a [5*. 3d.] 1930. NEW SOUTH WALES. NEAV SOUTH WALES GOVERNMENT RAILWAYS AND TRAMWAYS. HE TOUT OF THE COMMISSIONERS EOR THE YEAR ENDED 30TH JUNE, 1930. Office of the Railway Commissioners for New South Wales, Sydney, 25th November, 1930. To THE HONORABLE THE PREMIER AND COLONIAL TREASURER. Sir, In accordance with the provisions of Section 40 of the Government Railways Act of 1912, as amended by the Government Railways (Amendment) Act of 1916, and as subsequently amended, we have the honor to submit, for the information of Parliament, our report upon the working of the Railways and Tramways for the year ended 30th June, 1930. The financial results for the Railways compared with the previous year are as follow :— Year ended 30th June. i .... 1930. 1929. £ £ £ EAfffilMS 17,826,692 19,615,616 1,786,924 decrease WORKING EXPENSES 14,962,423 14,978,050 15,627 BALAOTfi—NET EARNINGS kIl ... £ 2,864,269 4,637,566 1,773>297 „ CAPITAL.—The total capital expenditure on Railway lines opened for traffic on 30th June, 1930, was £126,318,236 (see Appendix VIII), of which £1,988,814 was added during the year under reviews PROFIT ON CAPITAL.—The Het earnings show a profit of 2.28 per cent, on mean capital for the year, which amounted to £125,352,630. RATIO OF WORKING EXPENSES TO EARNINGS.—The ratio of working expenses to earnings for the year was 83.93 fret cent., as against 76.36 per cent, the previous year. The result of working the Railways, after providing for all statutory obligations, was as follows :— £ Net Earnings 2,864,269 Contributions from Government towards losses on Working of Country Developmental Lines 800,000 £3,664,269 Interest 6,420,643 Loss on Year's Working £2,756,374 *46420—A teW SOUTH WALES GOVERNMENT RAILWAYS AND TRAMWAYS. EARNINGS.—At the commencement of the financial year it was estimated that the earnings would amount to £18,564,072, or £1,051,544 less than in the previous year. This estimate, however, was upset by the decline in business which set in soon afterwards, and developed at an increasing rate throughout the year. Thus, in July, 1929, the revenue was £78,626 above July, 1928, but August showed a drop of £41,106, September a drop of £87,772, making a decline for the first quarter of £50,252. The decline for the second quarter was £455,277, for the third quarter £563,421, and for the last quarter £719,974. The decline in revenue is obviously an indirect result of the depression, which has affected practically the whole of the State, and which has, in particular, touched Railway earnings in the following ways :~ 1. Goods Traffic.—Transportation of goods has been restricted by :— (a) The bad season (reflected mainly in a decline of wheat traffic); (b) The dislocation of the coal industry ; , (c) Reduced trading in ordinary commodities ; and (d) Reduced capital expenditure by both Governmental and private enterprises. The total net decrease in goods tonnage was 2,365,679 tons, the outstanding freight groups affected being: — tons. (i) Wheat, &c 557,000 (ii) Coal and Coke ... 1,040,000 (iii) Gravel, Metal, &c. 377,000 (iv) Miscellaneous Group 245,000 (v) Ores 51,000 In all the groups abovementioned the rates are relatively low ; in the higher rated groups, viz., " A," " B," " C," " 1st" and " 2nd," the decline in tonnage was 107,084 tons, but this affected the revenue more adversely than a much greater decline of tonnage in some other groups. Thus, the desline in the Miscellaneous group above referred to, viz., 245,000 tons, meant a loss of £172,300 in revenue, while the decline of 107,000 tons in the groups from " A " rate to " 2nd " class, meant a loss of £282,000. 2. PASSENGER TRAFFIC—Unemployment, intermittent employment, and reduced spending capacity from other causes, all a natural corollary of the general trade depression, had an increasingly unfavourable effect on passenger revenue during the course of the year, the position reached being there­ fore better indicated by the figures of the last quarter than those for the full year. The two main features were :— (a) General falling off in passenger journeys during the last quarter of 1929-30 from 37,943,293 passengers in 1928-29 to 34,830,244 passengers in 1929-30, or 8.20 per cent. (b) Diversion from 1st to 2nd class travel; the decline in 1st class passenger journeys was 11.72 per cent., and in 2nd class 7.77 per cent. The issue of first-class ordinary tickets for the year was the lowest for ten years, the decline having been partisularly sharp during the past four years. Apart from inroads made by motor bus and motor coach competition, first-class train travel has been reduced by the growth in the number of private motor cars. There has also been a serious diversion from first-class to second-class train travel due in a great measure, no doubt, to the unfavourable industria conditions. The issue of first-class season tickets during the last quarter fell from 22,768 in 1928-29 to 18,286 in 1929-30. This is partly explained by transfers from first to second class, as with ordinary tickets; but there is also evidence that owing to the trade depression many business firms did not renew season tickets for their representatives, and this in turn contributed to a decline in sleeping-berth revenue, which fell during the year from £224,000 to £197,000, a decrease of £27,000. The number of second-class season tickets issued during the last quarter of this year was not quite one-half of 1 per cent, less than for the corresponding quarter of the previous year, but the revenue from such tickets decreased by 8| per cent., showing that the average length of travel was considerably less this year. ANNUAL REPORT OF THE COMMISSIONERS. 3 The number of workmen's weekly tickets issued for the last quarter of this year was 206,159 Iei« than in the same period of last year. For the twelve months ended 30th June, 1930, 394,000 less were issued than in the previous year, when there were 438,000 less than in the year before; so-that a sharp decline has taken place over three years. While some, such tickets may have been replaced by periodical weekly tickets (which are classified as second-class season tickets), the unsettled industrial and financial position has certainly affected very seriously this class of business. WORKING EXPENSES.—The working expenses amounted to £14,962,423, which is £15,627 below the previous year's total. Rolling stock was written down by £162,658. The Commissioners were involved in increased expenditure from causes beyond their control as follows :— £ Increases in Wages and Salaries under Commonwealth and State Awards, and consequential adjustments approved by the Commissioners 238,731 Increased Contribution to the Government Railways Superannuation Account ... 74,200 Increase in Amount of Family Endowment Tax 74,503 £387,434 * NET EARNINGS.—The net earnings for the year (that is, gross revenue less expenditure, but without charging interest) amounted to £2,864,269, as compared with £4,637,566 in the previous year, a decrease of £1,773,297. These earnings represent a return of £2 5s. 8d. per cent, on the mean capital, as compared with £3 16s. 5d. per cent, in the previous year. INTEREST.—Interest on capital amounted to £5,420,643, as compared with £6,150,000 for the previous year; an increase of £270,643. Of the total, £1,800,444 is on account of capital expended on certain non-paying lines, listed on page 9. DEVELOPMENTAL LINES.—The Commissioners again draw attention to the substantial losses incurred on a number of branch lines, some of which, although described as "developmental lines," have not only proved a burden on the Railway accounts but have failed to bring about any material increase in production. • The railway accounts are credited with a Government contribution of £800,000 per annum for the losses on those lines; but during the period of twelve months covered by this report such losses totalled approximately £1,950,000. The Glenreagh-Dorrigo line is a striking example not only of over-capitalisation and loss but also of non-realisation of the development which was expected. This line was opened for traffic on the 23rd December, 1924, and the revenue during the five complete years of operation has been :— Year ended 31st December. Revenue. 1925 11,838 1926 12,843 1927 14,480 1928 11,029 1929 10,742 The capital cost of the line at the 31st December, 1929, was £1,381,187. For the year ended on that date the interest was £71,001, and working expenses £27,381, making a total debit of £98,382. As the revenue was only £10,742 there was a loss after charging working expenses alone of £16,639, and including interest a total loss of £87,640. Extensions from Uranquinty to Kywong and from TJngarie to Naradhan were completed during 1929. The losses on these lines, including interest on capital, amounted to £15,711 and £18,029 respectively for the twelve months ended 30th June, 1930. The line from Booyong to Ballina is almost complete : the capital cost is approximately £400,000, Involving an annual interest charge of about £22,000.
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