§ I am glad to be in a position to make one modest, but immediate, contribution to a policy of the modernisation of our industries. There is no doubt that the railways have much more to give to the revival of industry, and especially of basic industries, than the roads. Heavy traffics, bulky agricultural traffics, and, above all, mineral traffics, have no other transport comparable for economy or efficiency with railway transport. Last year we inaugurated a reduction of railway freights upon selected heavy traffics. This is the first instalment of the policy of rate relief to come into force, and it has already amply justified itself. Now we have another contribution to propose, which should make for the greater efficiency of railway transport. For nearly a hundred years there has been a Railway Passenger Duty levied upon the railway companies, yielding to the Exchequer nearly £400,000 a year. The railway companies have repeatedly sought relief from this tax, which they regard as an invidious survival. Subject to the approval of Parliament, I have offered to meet their wishes, but only on one condition, namely, that the capital equivalent of the whole of this relief from taxation, amounting to £6,500,000, should be used as an additional stimulus for the development and modernisation of railway transport. The works contemplated will include such items as port equipment, terminal facilities, marshalling yards, 59 and the adaptation of the railway system for dealing with heavier rolling stock. If Parliament approves of these proposals, the principal railway companies have undertaken to submit a list of schemes which will be put in hand forthwith, and upon which work will be effectively begun within the present financial year. That is all that I have to say at the moment on the problem of railways, but it is by no means all that can be done in that field. The repeal of this Duty will cost £300,000 in the present year.