D.—2.

South Island Improvements. Good progress litis been made on the Picton Section in preparation for the completion of the Christchurch-Picton Main Trunk Railway. At Christchurch the preliminary work in connection with the provision of the new station has progressed substantially. Repairs and additions have been made to the Oamaru foreshore works and substantial progress has been made in the grade easements at Bushey and Clarendon, and on the duplication works in the vicinity of Dunedin. General. A further 80 new dwellings were completed during the year, and 167 additional railway houses were provided with liot-water services. There have been many improvements to station buildings, particularly at Wellington Station, where a new wing was added and increased accommodation provided for refreshment purposes. The new building for the Stores Shipper at Wellington is now practically completed. Preliminary work was undertaken for the building of a new outward-goods shed and an extension of the inward-goods shed at Auckland, and for the reorganization of the station-yards at Otahuhu and Westfield. NEW LINES OPENED. The Parnassus—Hundalee section (12 miles) on the South Island Main I runk Railway was taken over by the Railways Department on 27th November, 1939, for goods traffic, and on the 11th December, 1939, it was opened for passenger traffic. Work on the remainder of the connecting section to Wliaranui is proceeding satisfactorily. The Napier-Wair oa-Waikokopu (97 miles) portion of the East Coast railway, opened on Ist July, 1939, has been doing satisfactory business. EXECUTIVE PERSONNEL. Since my last Statement a number of executive and administrative officers have retired on superannuation, including Mr. G. H. Mackley, C.M.G., General Manager, and Mr. H. Valentine, Second Assistant General Manager. Other executive officers who retired from the Service during the year were : Mr. G. T. Wilson, Transportation Superintendent; Mr. A. Urquhart, Staff Superintendent and General Inspector ; Mr. A. S. Wansbrough, Designing Engineer ; and the following District Traffic Managers : Mr. A. Clark (Dunedin), Mr. W. Rodgers (Christchurch), and Mr. W. M. Cole (Wanganui). I wish to place on record my appreciation of the excellent service rendered to the country by these officers through a lengthy and vital period of the Dominion's transport development. As from the Ist February, 1940, Mr. E. Casey (Assistant General Manager) was appointed General Manager, and Mr. J. Sawers (District Traffic Manager, Auckland) was appointed Assistant General Manager. CONCLUSION. I wish, in conclusion, to express my warm appreciation of the efficiency with which the management and staff of the Department have performed their duties during the past exceptionally busy and trying year, and my thanks to the public for the support they have given the Department's services. Large numbers of railwaymen have already answered the call to arms, and more enlistments during the current year will still further deplete the staff of trained men. This adds to the burdens of those remaining in the Department, but I know that the staff are in good heart and the organization in good condition to face whatever demands may be made upon them by the stark realities ol the present wax. There has been splendid co-operation throughout the Department with every branch of the country's fighting Forces, and this has been, and will continue to be, of vital importance in New Zealand's war effort.

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