D.—l

In the annual report of the Transport Department it is pointed out the tremendous increase in traffic on main highways that has taken place in the last three years. The average increase on State highways for this period is approximately 52 per cent. The general increase for all roads would appear to be about 46 per cent. It will be seen, therefore, that increase in expenditure on main highways is quite justified by the increasing volume of traffic using the highways. Increasing power and speed in modern motor-vehicles also call for as much expenditure on improvement of our highways as increasing traffic. We may deplore the desire for speed and power, but we cannot prevent it, and if we are to progress we must meet its demands. New Zealand is a difficult country to road, and standards of construction that may easily be attained in other highly motorized countries are costly to obtain here. Increasing demands for electric power throughout the country call for continued addition to hvdro-electric-generation plants. The revenue from electric supply again shows an increase, and has reached £1,470,043 this year. Work has now commenced for the further development of power by an extension of the Waikaremoana Power Scheme. Owing to pressure of other work, I have not yet been able to make the alterations in the policy of electric-power supply which I have had in mind, but the matter will be thoroughly investigated as soon as time and opportunity offer. In the meantime, a procedure is being adopted that will fit in with future proposals. A vote of £1,440,000 is asked for this year to continue railway-work on four lines now under construction. Further details of this work are given later in this Statement. Excellent progress is being made on all these railways. For settlement and backblock roads a sum of £1,500,000 is proposed this year. The policy of providing a metalled access road to all settlers is being actively pursued. Two large road-improvement works to give adequate outlet roads from Wellington are now well in hand. One, the Haywards-Pahautanui Road, will be completed this year, and the other, the Plimmerton-Paekakariki Road, by the end of next year. The extension of the road through South Westland to link up Otago and Westland is progressing very satisfactorily. The Lewis Pass Road was completed and opened for traffic during the year. I have already drawn attention to the urgent necessity for public buildings to accommodate the Public Service staffs. New public buildings are in course of erection in Wellington and Auckland, which when completed will to some extent ease the position, but consideration must be given at once to further buildings for Departments in Wellington. Plans are now being prepared for the new Printing Office, Broadcasting House, and National Library. Aerodrome-construction has proceeded actively during the year, all money from this purpose being provided from the Consolidated Fund. Details of this work are given in this Statement. Special attention has been given this year to extension of irrigation works in Canterbury. Extensive areas of land will be irrigated, and electric power developed from a large race now under construction to lift water from the Rangitata River. I am still firmly convinced that irrigation is one of the best works that can be undertaken in this country, and the Government will continue to encourage all such projects. It lias still been found necessary to purchase additional plant to economically carry on works in progress. This plant is purchased by calling tenders, and very satisfactory machinery is being obtained by this method. Most of the plant now being purchased is for special purposes. I would like to mention again this year that although a heavy burden has been placed upon the officers of the Department due to the increasing volume of work without a corresponding increase in staff, they have carried out their work well and have worked very hard throughout the year. I would like also to express my keen appreciation of the work done by the Main Highways Board, and the whole-hearted way in which it has co-operated with the Government in carrying out its roading policy. Its fourteenth annual report, which is a valuable one, is included in this Statement.

ii—D. I.

VII