D—2

With the exception of minor adjustments, no increases in fares have been made since 1927 in the Wellington - Hutt Valley services, since 1926 in the Napier area, and since 1930 in the Dunedin area. In each case the effect of factors such as increased vehicle capacity, heavier traffic density, and the wartime relaxation of the number of standees allowed, all of which tended to offset the rising costs, has been exhausted. In each case applications for increases in fares to put the services on a proper basis have now been approved. TRANSPORTATION A very substantial increase in traffic is anticipated during the next ten years, but the present and potential deficiencies in staff and locomotive power, and the limited capacity of the North Island Main Trunk line, with its steep gradients, are going to render the task of handling the traffic one of the greatest difficulty and it will be impossible to avoid delays to goods. The requirements of goods wagons to cope with additional traffic over the next few years are to be met largely by importations from abroad, but means will require to be adopted for overcoming staff shortages and insufficiency of locomotive power. Perhaps it is not within my sphere to speak of the prospects of war, but it is my duty to say that war would greatly and rapidly increase railway traffic. However, if the railways could be made sufficiently efficient and adequate for our growing peacetime requirements, then by reason of inherent railway characteristics they would be able to meet a much higher demand. The railway problems of the future could largely be solved by the electrification of the North Island Main Trunk which is the transport life-line of the Dominion. Its traffic constitutes 60 per cent, of the North Island total; 40 per cent, of that of both Islands ; and it is 13 per cent, greater than that of the whole of the South Island. My view is that with electrification of the Main Trunk, a certain degree of Dieselelectric operation, and the use of Diesel mechanical shunting-engines in the principal stations instead of steam locomotives the railways will be revitalized and that their cost of operation will be reduced by a very large sum annually. At the same time passenger schedules, will be improved, the conveyance of goods traffic speeded up, and a smaller operating staff required. A pleasing feature of operations over the past year has been the time-keeping of passenger and express trains. Of 6,314 regular long-distance express trains, 46 per cent, arrived at main centres on time and 61 per cent, were less than five minutes late, compared with 34 per cent, and 49 per cent, respectively in the previous year. The average load of goods-trains was 319 tons, a figure slightly higher than in 1949, and an all-time record. ANCILLARY LORRIES OPERATED BY RAILWAYS DEPARTMENT The ancillary lorry services are road motor goods services operating parallel with the principal rail routes (including branches). The consignments handled are railway freight, moving on railway waybills at the usual railway tariff-rates. In the absence of the ancillary services, the freight would be conveyed by train. The goods handled are lifted and put off at railway premises and sidings only, and comprise the smaller consignments to and from stations all along a route rather than point to point bulk loads. All goods are consigned as for transport by rail, but are despatched by the Railways Department by rail or road as is best in the light of the operating conditions obtaining at the time. One of the results of the operation of the ancillary lorries has been the release of railway wagons for the conveyance of bulk loads. Prior to the introduction of the ancillary services, the smaller consignments (1 or 2 cwt. up to 10 cwt. or so) were despatched either in a lightly-loaded direct wagon or in a " tranship " wagon. In the former case, a wagon was engaged in transporting a few hundredweight when 10 or 12 tons of coal or fertilizer were offering for it, while a tranship wagon for one or more stations was often lost to other traffic for a week, sometimes more.

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