D—2

At regular intervals throughout the year discussions have taken place between the national executives of the various service organizations and myself on a wide range of subjects arising out of the deliberations of the meetings of the national councils of the organizations. The atmosphere of mutual confidence and friendly understanding which has characterized these discussions, no less than the results achieved by them, has made a real contribution towards stability and harmony in industrial relationships within the Department. The close contact which has been maintained almost continuously between officials of the organizations and officers of the Department on matters pertaining to the welfare of the staff has also proved of great assistance in staff administration. MILEAGE OF LINES AND CAPITAL ACCOUNT The mileage of lines open for traffic remained the same as last year —i.e., 3,527 miles 63 chains. The only alteration of any importance during the year was the institution of double track between Waterloo and Naenae, the working of which was• commenced on Ist December, 1946. This does not, of course, affect the route mileage. The Capital Account on 31st March, 1947, stood at £75,354,243, an increase of £887,512 over last year's figure, representing miscellaneous capital works throughout the Dominion. CONCLUSION Various operating difficulties already mentioned in this report have necessitated an extra call upon all employees of the Department. They have responded in the manner traditional of the Service, and it gives me great pleasure to place on record my appreciation of their close co-operation and assistance. General Manager.

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