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Mr. H. C. TJeays, A.M.I.Mech.E., A.M.N.Z.Soc.C.E., Chartered Mechanical Engineer, is the officer charged with these duties. He was previously Mechanical Engineer to the Public Works Department, and has, therefore, been responsible for this work from its initiation by the passing of the Motor-omnibus Traffic Act, 1926. 4. Transport, Finance, and Statistics: The functions of the Transport Officer and Accountant are broadly as follows : — (a) To conduct economic and statistical investigations into all phases of transport in New Zealand, particularly road and rail services : (b) To estimate or measure the optimum transport requirements of the various economic areas in New Zealand and in the Dominion as a whole, and to report on the existing services in the light of their adequacy or inadequacy : (c) To study all the economic aspects of transport in all forms as it exists in other countries, so that development in New Zealand may be kept in line : (d) To study the economic and social aspects of the problem of motor-taxation and the financing of the roads, so that the necessary capital may be obtained in the most equitable manner, having regard to the recognized principles of taxation and public finance : (e) To act as Accountant to the Department. From May to November, 1929, this position was filled by Mr. R. P. Gillies, Accountant, who was on loan from the New Zealand Railways. As from the Ist January, 1930, however, Mr. H. B. Smith, 8.C0m., A.R.A.N.Z., of the Census and Statistics Office, has been appointed to the position. 5. Administrative and Leyal: The responsibilities under this heading include the following : — (a) The acquisition of information concerning the situation and general laws relating to transport in other countries, and generally such other data on all of the many phases of transport as will keep the Department abreast of the times. Under this heading is included the formation of the transport library, to which reference has already been made. (b) The study of the information on transport matters so obtained, and also the conditions in New Zealand, with a view to advising the Government on transport problems. (c) The framing of legislative proposals and regulations to give effect to Government proposals and to facilitate administration of the law. (d) The correspondence and other administrative and clerical action arising from administration of existing laws and general departmental activities. Under this heading is included the secretarial work entailed by the Motor-vehicle Mechanical Appliances Committee and the conferences to which reference has been made. These duties, in so far as they are dissociated from those of the preceding officers, are carried out by or under the control of Mr. R. T. Dixon, a solicitor by qualification, and formerly belonging to the Public Works Department. This officer has been directly associated with transport administration since the passing of the Motor-omnibus Traffic Act in 1926. All officers at present on the staff of the Department have been drawn from other Departments. In this connection, of course, it is clear that if legislation is enacted to provide machinery to co-ordinate transport some additions to the staff will be unavoidable, as it is not intended to set up expensive clerical machinery in various licensing districts. It is proposed, for uniformity in administration, to have all the preparatory work in connection with applications for licenses done in Wellington. in order to secure the benefit of the services of the expert officers attached to Head Office. 4. ENFORCEMENT OF REGULATIONS, ETC. Another very important question in connection with the organization of the Department is the enforcement of the measures that are laid down by statute, regulation, and departmental procedure for the protection of roads and traffic thereon. From the information that is supplied later in this report it will be made clear the financial savings that can be effected in the cost of construction and maintenance of roads, if reasonable steps are taken to conserve them in the public interest. At the present time there is no definite obligation placed upon local bodies for the enforcement of these measures, and when it is remembered there are over three-hundred local bodies with road-controlling powers it will be appreciated the scope that exists for differential administration and interpretation of the powers conferred upon them. This aspect is so well known that no good purpose can be served by traversing it further here. It is clear, however, that a very far-reaching developmenthas taken place in the sphere of motor transport within the last few years, and although the necessity for central control has been generally accepted with regard to highway administration, local bodies are very slow to appreciate that road transport is now more a national question than a purely local one. This Department has experienced the utmost difficulty in obtaining the co-operation of local bodies to carry out what is considered to be exceedingly valuable work to reduce road-costs. Certain powers exist at the present time to limit the use of roads to actual requirements by means of weight