Progress has also been maintained in the development of Crown
lands for farming purposes, particularly in the North Auckland and
Rotorua districts. Further financial assistance to enable farmers to
bring undeveloped or partly-developed land into full production has
been provided under the Marginal Lands Act 1950. The extensive
research programme in respect of soils, pastures, and field crops is
being maintained.

Rapid progress has been made in establishing a new pulp and paper
industry to ensure the economic utilization of our softwood resources
and add another primary industry to our economy. The construction
of the necessary mills and ancillary services is so advanced that
production will commence next year.

The products of our manufacturing industries are not only meeting
our own requirements to an ever-increasing extent, but are assuming an
important place in our export trade. My Government is co-operating
with these industries in finding markets overseas, and, as a means to
this end, arranges participation in industrial fairs and exhibitions
whenever this is practicable.

A recent development having considerable significance for this
country has been the withdrawal of the United Kingdom from partnership
in the operation of the trans-Pacific and trans-Tasman air services
linking New Zealand with North America and Australia respectively.
As a consequence it has now been agreed that the trans-Pacific air
service should be operated by Australia alone, whilst the service across
the Tasman and a feeder service linking New Zealand with the trans-
Pacific service at Fiji will be operated jointly by Australia and New
Zealand. My Government has reserved the right to operate an
independent service to North America, but feels that for the present
the new arrangement will make for greater economy and efficiency
without jeopardizing the interests of this country.

Among the railway works now under construction the most
important undertaking which has been pushed ahead during the year
and now nears completion is the tunnel through the Rimutaka Range.
This will assist materially in the development of the Wairarapa district,
from which such a large proportion of our primary production is
derived. It will provide also an additional traffic outlet for the
Hawke's Bay and East Coast area.

Substantial improvement in the country's roading system is
expected to attend the establishment of the National Roads Board
set up in pursuance of legislation passed last session. Local authorities
will enjoy more direct control over the expenditure of moneys on
roading within their areas and in matters of technical design and
construction. The representation of a wider range of interests which
the constitution of the Board permits, including for the first time
municipal and industrial transport associations, will make for greater
economy and efficiency in the construction and maintenance of the
many and varied roads under the Board's control.

The sharp increase in the toll of road accidents accompanying
the rapid expansion in motor traffic has been causing my Government
grave concern. It is satisfactory to record, however, that, partly as
the result of new and somewhat novel measures which my Minister
of Transport has taken, the rising casualty rate on the roads has
not only been halted, but has, more recently, been kept below the
figures of some pre-war years, when the volume of road traffic was
about half the present level.

In the matter of communications, substantial improvements have
been made in the telephone and toll system, and at the same time
the services have been expanded to meet the growing demand
throughout the country. Further extensions to these services are in
hand at the present time.