D.—2

From the consideration it has been possible for me to give to the subject, I feel" however, that a comprehensive revision of the tariff would be a much more desirable course of action to take, and this will be one of the first matters of importance that I intend to go into at the termination of the session. I have already given some thought to it with the idea of appointing a small committee to assist and advise me with regard to the many complex details that will arise. Just exactly what the personnel should be I have not yet been able to definitely decide —that is, whether the users should have representation, or whether the committee should consist entirely of experts, with power to afford persons interested every opportunity to make suggestions. In conjunction with the revision of the tariff must be considered the question of the wages and working-conditions of the staff. Representations are continually being made by the various organizations for improved wages and conditions, and there can be little doubt that the question of deciding just what constitute equitable rates of wages and liberal conditions of employment, having regard to existing conditions, must be very carefully and thoroughly examined when the operations of the Department are being revised. I am entirely in accord with the view that the State should extend to its employees the best possible consideration with regard to wages and workingconditions, but obviously there is a point beyond which we cannot go. Excellent conditions are, in my opinion, extended to the whole staff, in the way of a large annual subsidy to the Superannuation Fund, in leave of absence, sick and accident pay, free railway passes, privilege tickets, the payment of overtime, and to the Second Division in a forty-four-hour week with special rates for night-work and overtime, and other concessions. In addition the Department's housing policy will result in a great improvement in accommodation for the staff, and extend the benefits of cheap rents. There is the point, however, that if the Department is to hold its own with the very real motor competition, which is increasing, concessions both to the users of the railways and to the staff will have to be subjected to very close investigation. It is clear that any consequent increase in freight rates at this juncture, to enable the Department to earn interest charges, would tend to divert more traffic to the roads. MOTOR COMPETITION. The subject of competition from road-motors with the railway is one that calls for some comment. It is well known that motor-owners are not charged with any contribution to the construction and maintenance of the roads ; also that the railways carry road-metal for the repair of these roads at a rate which involves a loss of £50,000 per annum. Already some of the local bodies have found it necessary to take more or less drastic action in regard to motor traffic. There is ample scope for useful work for road-motors without their coming into competition with the railways. They undoubtedly have a legitimate field, which I think is supplementary to, rather than competitive with, the railways. They should work in close touch with the railways and act as feeders thereto, thereby enabling rapid and regular transport to be provided in districts where the construction of a railway would not be justified. In pursuance of this idea the Department itself has had under consideration proposals to obtain some motor-vehicles for use in conjunction with the railways. These would be obtained and worked at first as an experiment in selected districts, and further operations in this direction would be guided by the experience thus gained. In addition, contracts might, I think, be made with those now engaged in the motor carrying trade to work in co-operation instead of in competition with the Department. In view of the damage done to the roads by the heavy motor-vehicles used for carrying goods, it seems inevitable that something will have to be done by the local bodies and others interested in the upkeep of the roads in the direction of determining under what conditions these motors can be permitted to use the roads. TRAIN SERVICES. I have given some attention to the matter of improving the train services in the direction of providing limited through express trains. In regard to the through express trains,' I think that something may be done to give more consideration to long-distance passengers, and so encourage people to extend their journeys.

III