subsidy which was not to exceed £10,000,000 to be used to prevent the reduction of adult wages in any district exceeding 2_s._ per shift during July, 2_s._ 6_d._ during August, and 3_s._ during September. £7,000,000 was actually expended under this arrangement. The Failure of Part II of the Act of 1920 Difficulties have arisen in connection with the working of Part II of the Mining Industry Act, 1920, relating to the appointment of Pit and District Committees and Area and National Boards on which owners and workers were to be represented. Section 10 provided that Area Boards should formulate wages schemes, having regard among other considerations to profits of the industry within the area. On the introduction of the Bill for the Act of 1920, the Miners’ Federation announced their intention not to assist in working the Act in view of their objection to the settlement of wages on any other than a national basis. Having agreed to a district wages basis in the agreement of July 1921, they decided, in August 1921, to co-operate with the Mines Department in working Part II of the Act. Meanwhile, the owners who originally acquiesced in the terms of the Act, and through spokesmen in Parliament agreed to work it, similarly changed their minds, and the Mining Association announced about the same time that, as the Agreement of July 1921, had in their view achieved the objects aimed at in Part II of the Act, the re-imposition of any measure of Government control over wages and allied questions would be contrary to the best interests of the industry itself and of the community, and through the administration of Part II of the Mining Industry Act would add unnecessarily to the burden of taxation. The correspondence between the Mines Department and the Association is printed in _Parliamentary Papers_, 1921, Cmd. 1551, and 1922, Cmd. 1583, and deserves consideration. In view of the attitude of the owners, the Secretary for Mines made a report to Parliament as required by Section 17 of the Act, and as within thirty days from February 7 no resolution to the contrary was passed by Parliament, Part II of the Act has ceased to have effect. The statutory right on the part of the workers to a voice in the ordering of the coal-mining industry is therefore at an end, and the position is governed by the Agreement of July 1921. Royalties Reference is necessary to the State acquisition of royalties, on which there was unanimity amongst the members of the Sankey Commission. One of the principal reasons advanced why the State ought to own the coal was that no unreasonable obstacle should be placed in the way of mining coal, and that due attention should be directed to conserving our principal national asset, which is also a wasting asset. The Government accepted the recommendation, but in the present financial condition of the country it is obviously impracticable to give effect to it. Summary of Government Policy