Financial Results.

It is very gratifying to notice that the preliminary figures of the financial results for the October four-weekly period show an increase in net revenue as compared with last year of over £22,000. This has been secured in the face of a continued drop in the revenue—a feature of the Department's working that is really beyond the control of the Department, and is due to circumstances that are affecting trade and industry generally. The figures show that the efforts that have been made to curtail expenditure are bearing fruit, the drop in the expenditure for the period amounting to not less than £92,000. It is, of course, too early yet to say that we have “turned the corner,” but it is pleasing to be able to record an increase in net revenue in the face of such adverse conditions as are existing at the present time.

Passenger Traffic.

Another gratifying feature of the returns is that they indicate a swing back to the railways in the matter of passenger traffic. It cannot be doubted that a good deal of the decrease that the railway passenger traffic has been showing of late has been the result of the depression, and although it was hoped that the reduction in fares would ultimately result in an increase in passenger business, it would not have been surprising if, in the face of the depression, the reaction had been somewhat tardy. It has been found, however, that the rate of decrease in the passenger business for the last few weeks since the fares were lowered, as compared with the corresponding period of the previous year, has been much less, and this gives good reason to anticipate that the new level of fares is already bringing about a reaction as regards passenger transport in favour of the railways.

Transport Bill.

An outstanding event in connection with the transport industry has been the Transport Bill, which at time of writing has passed both Houses of Parliament and is now awaiting the assent of His Excellency the Governor-General. This Bill marks a definite stage in the process of adjustment in the transport industry to enable it to emerge from the present chaotic conditions to a position of stability and maximum usefulness to the community. The Bill is almost wholly a machinery measure and its ultimate success will principally depend on its future administration. From this point of view a responsibility rests upon the Railway Department not only to adopt a broad outlook towards its associates in the transport industry, but more particularly to give a service which, by efficiency and economy, will facilitate the conclusions of the Licensing Authorities. The Department is equipped to give high quality service, and I believe that as the days go on and questions arise for settlement by the Licensing Authorities the Department and all its staff will be found ready and willing to give the public a quality of service that will justify its being regarded as the backbone of the transport industry.

General Manager.