D.—2.

On the important Marton - New Plymouth section of the main-line system a major deviation is being made between Turakina and Okoia to obtain greatly improved grades in place of those which now restrict train-loads on this section. This deviation will reduce the maximum grade to 1 in 70 and will save 4 J miles distance. The effect of this change will also be to reduce the running-time of trains by approximately thirty minutes. Another major grade easement is being made on the Palmerston North - Marton section of the North Island Main Trunk line. The effect of this will be to bring the maximum gradient down to 1 in 70 on this section. At Palmerston North, one of the two principal junctions of the North Island railway system, a deviation which was approved in 1921, and upon which work ceased in 1929, has been again put in hand. Considerable congestion is being experienced at the present time in dealing with the increasing traffic passing through Palmerston North, and it has been found that a satisfactory remedy cannot be provided on the present site. It is necessary in order to efficiently deal with the business to relocate the Palmerston North Station and shunting-yards, and it is found that the best position will be on the site upon which work was previously undertaken. The deviation will extend from Longburn to a point between Terrace End and Bunnythorpe, a distance of about seven miles. A double track will be laid from Longburn to the new Palmerston North Station yard. An entirely new station and buildings will be provided to replace the present inadequate facilities. One desirable feature of the deviation is that it will eliminate eighteen level road-crossings. A duplication of great importance is also now being carried out on portions of the Main Trunk line near Wellington between Plimmerton and Paekakariki, which is to be the terminus of the electrified section of line from Wellington via the recently completed Tawa Flat deviation. Work has been in progress for some time on several grade easements between Jackson and Stillwater on the Midland line with the object of allowing increased train-loads for east-bound traffic. The ruling gradient in future will be 1 in 80 between these stations. The Sawyer's Bay - St. Leonards duplication will complete the double line between Sawyer's Bay junction and Dunedin and will greatly facilitate the working of the main-line traffic, as well as that between Port Chalmers and Dunedin. The building of a modern garage and bus-station has been commenced at Dunedin. All the Railway Department's activities relating to road traffic in this area will be centralized at the new building. Owing to several large bridges (such as those over the Rakaia and Rangitikei) being under reconstruction, the Department's bridge-reconstruction programme this year is particularly large, the total estimated cost being £180,000. CHRISTCHURCH NEW STATION AND YARD. Work has been commenced upon the rearrangement of the passenger section and the enlargement of the goods section of the Christchurch yard, which will be followed by the construction of a new station building in order to provide the modern facilities required for dealing with traffic at Christchurch. The work will take about three years to complete. HOUSING PROGRAMME. The building of over three hundred houses for railway staff at various localities throughout New Zealand has been commenced. The work will be spread over two to three years, and will cost approximately £310,000. LEVEL-CROSSING ELIMINATIONS. The Railway Department is co-operating with the Main Highways Board in a programme of main-highway level-crossing elimination. The total expenditure during the current financial year is estimated at about £400,000, of which amount the Railway Department will find £70,000.

VI