H.—4o.

Even in the relatively prosperous year of 1928-29 the estimated national land transport costs represented no less than £36-22 out of every £100 of the estimated value of national production, as compared with £29-59 in 1913-14. Over-capitalization in transport, and the shrinkage in the value of national production in 1930-31 due to the decline in the prices of primary products, are the principal causes for national land transport costs representing no less than £45-23 out of every £100 of the national volume of production in that year. This increase immediately directs attention to the farreaching changes that have taken place in the whole field of transport in the Dominion, and the marked relative disproportion that now exists between transport costs and the annual value of national production. In so far as the additional costs represent definite gains in the conquest of time and space in the transportation of human beings and commodities they must be regarded as part of the fair cost of progress, but in so far as they are the result of wasteful duplication or triplication, of facilities they represent a serious and unnecessary obstacle to economic development. The figures relating to the estimated capital cost of the land transport services are of interest, although they are reflected to some extent in those relating to annual cost. The following figures show the summarized figures relating to the estimated capital cost of the various facilities at 31st March, 1931 :—

Regular Motor Freight Services. The official statistics relating to organized freight services during the months of July, 1931, and January, 1932, have been used as the basis for estimating the figures for twelve months. These statistics point to a slight decrease in the number of vehicles used in these services, and declines of 28 and 14 per cent, respectively in the tonnage of freight carried and receipts. In spite of this fallingofE in business, the vehicle mileage remained at the same level as for the previous year—viz., ] 1,700,000 miles. The following summary shows the principal information relating to the operation of trucks on organized services during the years ended 31st March, 1930, 1931, and 1932 : —

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Estimated Capital rr . ; i o ■ cost at 31st March, Kind oi Service. 931 (000,000 omitted.) £ (1) Railways .. .. .. .. .. .. 61 (2) Electric and cable tramways .. . . .. 5 (3) Roads .. .. . . .. .. . . 65 (4) Motor-vehicles (including estimated value of garages and 53 repair shops, &c.) (5) Horse-drawn vehicles* Total .. .. .. .. £184. * Less than £1,000,000.

Year ended 31st March, Percentage. 1930. 1931. | 1932. Increase. ! Decrease. Vehicles .. . • Number 965 1,160 1.117 .. 4 Vehicle mileage Miles 9,800,000 11,700,000 11,700^000 Freight .. .. Tons 876,000 1,038,000 749,000 .. 28 Receipts .. .. £ 653,000 708,000 607,000 .. 14 Average miles per vehicle Miles 10,000 10,000 10,500 5 per annum Average number of tons of Number 907 894 671 .. 25 freight per vehicle per annum Average receipts per £ 677 610 544 .. 11 vehicle per annum Average receipts per ton d. 179 164 195 19 of freightAverage receipts per d. 16-0 14-5 12-5 .. 14 vehicle-mile