H.—4o.

taking into account adjustments between the insurance concerns and the insured on account of extra premiums and refunds due to changes in the classification of the vehicle and the cancellation of registrations. The commission of the Post and Telegraph Department, at the rate of 6d. per transaction, amounted to £5,624 7s. id., leaving a balance of £235,006 10s. sd. Claims settled during the year, including costs, amounted to £84,959 18s. 6d., while the liability in respect of outstanding claims at the 31st May, 1930 (including costs), was estimated by the concerns carrying on the third-party business at £97,950 Bs. 6d. Assuming that this estimated liability will eventuate, this means that the total payments on account of compensation (including costs) will amount to £182,910 75., or 77-83 per cent, of the net total of premiums received. Attention is specially directed to the fact that the statistics cover the period of one year only, and must be interpreted with the utmost caution. It is quite impossible to state to what extent they represent normal or abnormal conditions. Experience over a longer period is the only way of ascertaining figures that will be typical of the third-party business in all its ramifications. The developments of the scheme are being closely studied with a view to ensuring that due equilibrium is maintained between premiums and benefits, but definite conclusions cannot be reached until more experience has been recorded. It is of interest to note that the percentage ratio of claims actually paid (including costs) to premiums for all classes of insurance undertaken in accordance with the provisions of the Accident Insurance Companies Act, 1908—accident (including motor accidents), disease, employers' liability, &c. --was 51-75, 49-32, 54-03, 57-98, and 60-62 per cent, respectively for the five calendar years ending with 1928. As the outstanding claims for any particular year would be paid during the succeeding or subsequent years, these figures are comparable, up to a point, with those for the third-party business alone, which show a corresponding percentage ratio of 77-83 per cent. Owing to the short period covered by the third-party figures, too much should not be inferred from this comparison, beyond a broad indication, that may be disproved by further experience, that the premiums as they stand to-day are not too high. PUBLIC WORKS ACT, 1928 (SO FAR AS IT RELATES TO HEAVY TeAFPIO OR MoTOR-VEHICLES). Apart from the action in connection with road-classification, which is dealt with in another part of this report, the chief work under this statute has been the complete review of the Motor-lorry Regulations. The aim generally has been to bring the regulations into line with modern conditions of motor traffic, at the same time bearing in mind the vital necessity for the conservation of roads. A draft consolidation of the regulations has been circulated for criticism, and will be considered, together with the criticisms, before being gazetted, by a conference of experts representative of local bodies and others directly affected. TRAMWAYS ACT, 1908. In accordance with a Cabinet direction, all proposed tramway Orders in Council are reviewed by this Department. Several have been dealt with during the year, and of matters of significance one ha"s been the replacement of the North Beach line, Christchurch,'by a trackless trolly service. This is a case where the lines of a long and sparsely settled line of tramway came to a stage when heavy repair of them was necessary. The route has been unprofitable for trams, and by using trackless trolly vehicles the overhead equipment is available without the necessity of expensive repairs to the rails. As the trackless trolly vehicle has become a much improved transport unit in the past few years, particularly in speed and comfort, it seems that the action in Christchurch indicates a tendency likely to grow in this country. This type of vehicle is further discussed in another part of the report. MOTOR-OMNIBUS TRAFFIC ACT, 1926. During the year ended 31st May, 1931, the District Engineers of the Public Works Department, who act for the Transport Department as Inspecting Engineers under the Motor-omnibus (Constructional) Regulations, 1929, received 494 applications for examinations of omnibuses, and issued 476 certificates of fitness in respect of omnibuses. The provisions of the Motor-omnibus Traffic Act, 1926, continue to be taken advantage of by the municipalities operating electric-tramway undertakings in protecting the public investment in these undertakings. There are signs of growing competition on both electric tram and bus routes from the smaller types of vehicles (carrying less than eight persons) which do not come within the meaning of the term " omnibus " as used in the Motor-omnibus Traffic Act, 1926, and are not, therefore, subject to its provisions. Out of the 476 omnibuses licensed under the Motor-omnibus Traffic Act, 1926, approximately thirteen were scrapped during the year. It is not anticipated that there will be much expansion in the number of omnibuses coming under the provisions of the Act during the coming year. LEGISLATION. New Zealand. Comprehensive legislation dealing with the position in New Zealand was prepared during the year. _ This legislation is based on the results of investigation by the Department into New Zealand conditions, and also on the experience of other countries.

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