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at the crossings. This applies to such countries as Italy, where on the State railways there are 13,000 public level crossings ; Holland, nearly 3,000 ; France, 30,000 ; and the United States, 256,000 on first-class lines. The expenditure of several million pounds on unremunerative works, which a programme for the complete elimination of the level crossings in New Zealand would call for, coukl not be justified to the taxpayers. If the rail-users were called upon to pay interest on this expenditure all railway charges would have to be raised, making it still more difficult for the railways to compete for traffic with the roadusers, and throwing an additional burden on the taxpayer through losses on account of railway operations. The Railway Department is now working as a business concern, and must be given an opportunity to carry on its operations under fair competitive conditions. It would not have this opportunity were its present disadvantages of track-cost and upkeep increased by heavy unremunerative expenditure entirely for the benefit of road-users. It must be borne in mind that the roads and the railways of New Zealand were built by the State to meet its transport needs. In nearly all countries where levelcrossing problems exist it is recognized that, no matter whether the lines are privately or State owned, the cost of eliminating any crossing should be apportioned between the Railways and the public authorities representative of the road-users. Each should share the burden of the expense incurred for public well-being at the crossing-places of road and rail. In this regard the Railway Department has always willingly borne its share of the cost of eliminating level crossings at those points where local bodies have agreed to pay their fair proportion of such cost. Since the institution of the Main Highways Board the Railway Department has also been working in conjunction with that body in carrying out proposals for improvements at road and railway intersections. The principle of making each level crossing as safe as possible for careful roadusers is incorporated in the existing policy of the Railway administration, and is being put into effect as finances permit and other interested bodies are willing to co-operate. USE OF NEW ZEALAND COALS ON RAILWAYS. The matter of making more extended use of New Zealand coals on the railways was fully referred to in my last Statement. The Board of Inquiry therein mentioned has concluded its investigations, after taking a great deal of evidence and carrying out a large number of trials, under ordinary working conditions, of various mixtures of New Zealand coals. The Board finds that generally most of the types of New Zealand coals the use of which was advocated are not by themselves suitable for present-day conditions, but that various mixtures of New Zealand coals could be obtained which would satisfactorily meet requirements. It is obvious, as the Board of Inquiry points out, that the utilization of New Zealand coal in place of imported coal would result in a general improvement of the labour and financial situation within the Dominion. This is the objective in view, provided it can be attained without a compensating loss on the operation of the railways. In accordance with the recommendation made that a Fuel Engineer be appointed, applications were called for the position. This officer will require to be technically trained and qualified in the use of fuel on locomotives, and will be responsible for the purchase and economic use of all coal necessary. It will be the policy to utilize New Zealand coals and restrict the use of imported coals to a minimum, and arrangements are already in hand with this object in view. The success of the utilization of New Zealand coals will depend largely upon the co-operation of the mine-owners and miners with the Department, directed towards maintaining regular and adequate supplies of suitable classes of coal at economic prices, and it must be understood that if at any future time it is found that adequate supplies of New Zealand coal are not available as required a reconsideration of this policy will be necessary. The report of the Board of Inquiry is appended to this Statement,

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