H.—4o.

10

classifications and speed-restrictions —the two most important factors in road-costs—but many local authorities, particularly in the South Island, decline to classify, and if this classification were done by the Minister of Transport no governmental machinery is available to enforce it, as, obviously, the local authority would decline to do so. In this connection attention is drawn later herein to the matter in respect of the South Island, where nearly the whole of the roading system, including main highways, is unclassified, and therefore available for gross loads up to the full statutory limit of 10 tons on two-axled vehicles and 15 tons on multi-axled vehicles. Add to this the fact that no limitation of speed exists for light traffic, and that at certain speeds ordinary motor-cars do more damage to gravel and macadam roads than the legitimate heavy traffic thereon travelling at regulation speeds, and some idea may be gained of the damage to roads owing to the lack of reasonable regulation. 5. PROTECTION OF ROADS. Whilst local bodies in many areas are complaining of the increasing rate burden due to increased road-costs, a few are declining to take steps to administer existing powers designed specially to reduce road-maintenance costs. As is shown in this report, from the investigations already made it is abundantly clear that the financial position alone in connection with road transport is so serious as to necessitate uniform classification of roads throughout the Dominion, definite maximum-speed restrictions on gravel and macadam roads, and the regulation of commercial traffic to keep road traffic down to reasonable requirements and provide machinery for co-ordination of services. To enforce these proposals would necessitate little additional expenditure so far as the central administration is concerned, but would certainly entail a staff of Transport Inspectors for road duty, including the enforcement of all road-transport powers vested in the Government for the time being. The strength of such staff would, of course, depend on the extent to which the scheme were put into operation, and whether it incorporated all work at present carried out by local bodies and Government Departments. Whilst that would be exceedingly desirable from an efficiency point of view, it is true that the most important sphere of action from the financial standpoint is in rural areas to obtain full observance of road-classifications and speed-restrictions ; and the expenditure necesary to provide such a service would be relatively trifling when compared with the huge savings that could be effected by better preservation of our roading system. Many people resident in the vicinity of the larger cities are apt to judge the necessity for restrictive measures on the standard of roads they are accustomed to use in those areas, but the fallacy of framing a Dominion policy on those grounds is demonstrated by a perusal of the mileage of the various classes of roads. It will be seen that of the 40,000-odd miles of roads less than 1,000 miles are dustless, and that consequently some action to keep the cost down to something more in keeping with actual requirements is definitely essential. The whole position is being impartially reviewed in order to show the actual conditions existing at the present time, and there can be little doubt that that review demonstrates that something must be done to stop the present drift until those responsible can by further examination more clearly weigh up the whole position. A dispassionate survey of the maps attached to this report will clearly show to what extent dual facilities exist for our land transport, and also that if the cost of transport is considered too high a halt mast be called in some directions, either by eliminating in some cases railway lines and services, in some cases by deciding to reduce the use of roads to actual requirements, and in others to encourage the improvement of feeder roads to enable closer co-ordination between road and rail services where economically possible, and in keeping with public- demand. C. ECONOMIC BASIS OF TRANSPORT IN NEW ZEALAND. (a) Economic Structure of New Zealand. The following broad points appear to be fundamental in the economic structure of the Dominion, and must have a definite bearing on our transport requirements : — (i) New Zealand is essentially a primary producing country. We depend for the bulk of oiir immediate necessaries and conveniences upon import from abroad, and upon the export of our products in large quantities to pay for these and to meet our overseas debt obligations. Further, we depend upon the import of capital—that is, the contracting of overseas loans —for development and public works. In so far as it is not made up by borrowing, the interest on these loans is sent abroad in the form of commodities. It is therefore desirable to encourage exports to the greatest possible extent if we are to meet interest payments and acquire further capital. (ii) Our competitors in the market for primary products are nearer these markets. They therefore share a definite advantage, and we have to struggle to hold our own. Moreover, the prices of our primary products, which constitute nearly the whole of our exports, are fixed in the principal world markets, and we cannot control them.