PUBLIC RECORD OFFICE
سلئس
Reference :-
C.O
882/12
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BT REPRODUCED PHOTOGRAPHIC-
COLYRIGHT PHOTOGRAPH—NOT TO
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C. 93945/32 [No. 10].
No. 77.
The Governor of Mauritius to the Secretary of State for the Colonies. (Received 7th September, 1932.)
(Confidential.)
SIR,
[Answered by No. 78.]
GOVERNMENT HOUSE,
PORT LOUIS,
26th July, 1932.
I have the honour to acknowledge the receipt of your Con- fidential despatch (2) of the 4th May, 1932, dealing with the pro- posals of the Financial Commissioners in respect to the Railway and Harbour Works.
2. In my despatch of the 4th November, 1931. I said that my first impressions were that the Financial Commissioners' proposals for the reduction of the Railway to a goods line with possibly a suburban passenger service between Port Louis and Curepipe might have to be accepted on financial grounds, but that I considered that the process of retrenchment should be spread over two or three years. Further examination of the position and the experience of the first stages of retrenchment confirms the view that it is in- advisable to proceed too precipitately in the reduction of the railway services and establishment, and suggest that it may be found by experience that the most economic level in the working of the Rail- way may prove to be at an earlier stage in the process of reduction than the Commissioners' proposals contemplate.
d
3. In their examination of the position in paragraphs 6 and 7 of Chapter X of their report, the Commissioners based their comparison as to the costs of present working and operation only on a goods basis on average working charges of Rs.2,256.459 and revenue of Rs.1,904,800, showing a deficit of Rs.351,659, without allowance for depreciation and pension charges totalling Rs.359,000. This estimate of Revenue was greater than the circumstances justified and if this be reduced to the estimate for the current year, viz., Rs.1,610,000, the working" deficit exclusive of pensions and depreciation becomes Rs.646.459. The Commis- sioners, however, did not take into account the possibility of operat- ing the Railway with a smaller reduction of services but at a much reduced cost. This has in fact been provided for in the current
† C. 93945/32 [No. 2]: not printed.
* No. 68.
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estimates, where the working charges exclusive of pensions (Rs.185,000) have been reduced to Rs.1,625,758, or Rs.630,701 less than the " average figures taken by the Commissioners, and the "working deficit brought down to Rs.15,758. This has been done with only a moderate reduction in the services provided and is based on the experience of actual operation during the past four months.
4. This figure compares not unfavourably with the actual esti- mates given on page 128 of the Commissioners' report for the results of working the line on a goods basis only, viz., working "' work- expenditure Rs.1,168,534 and revenue Rs.1,152,578, or a ing" deficit of Rs.15,956. It is true that the Commissioners in subsequent paragraphs revise the figures both of revenue and ex- penditure and on page 133 quote as possible figures a working expenditure of Rs.1,027,530, and on page 134, a goods revenue of Rs.1,292,500, a difference in favour of revenue of Rs.264,970, which is sufficient to cover the estimated outlay on pensions given on page 128 (Rs.227,000) but not sufficient to cover charges for depre- ciation or renewals. As explained below, however, I doubt whether the revised figures given by the Commissioners can be accepted with confidence. The omission in both estimates of all depreciation charges cannot in any case be accepted as a permanent arrangement, and it seems to me possible that the retention of some passenger services may give a better prospect in future of covering these charges if it turns out, as seems possible, that the limit of decline in passenger revenue may have been reached. This point is further dealt with below.
5. The position of the Railway is more fully discussed in the enclosed memoranda by the General Manager, of which the first, dated the 11th April, accompanied the draft Estimates for the current year, and the second dated the 20th July was written after the receipt of your despatch under reply. It will be seen from memorandum B that Mr. Austen, after so:ne nine months' ex- perience of actual working, is of opinion that the most economical stage in working is probably that represented by scheme B of the programme forwarded with my Confidential despatch of the 4th November, as revised in detail in the light of actual experience. This stage allows for the continuance of passenger services over the whole system on a somewhat reduced scale as at present, and in Mr. Austen's view is likely to be less disadvantageous economically than the Commissioners' proposal for reduction to a goods basis only. It has already been explained in previous correspondence in connexion with the Estimates that the programme of economies in the Railway had been mitigated for the moment for reasons of policy, but it will be seen from the annexure to memorandum B (Statement I) that while the adoption in full of the economies represented by scheme B produces a further saving of Rs.33,640,
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