~ considered as a motor transport regulation Act regulating traffic
upon roads. The Board must consider the service of a district,
and any general consideration of railway finance, deficits, &c., are
necessarily irrelevant. Under sec. 28 it is provided that certain
conditions should be attached to the licence, and under sub-sec. 2
the Board may attach such other conditions as the Board thinks
desirable in the public interest. The Board is not at liberty to
impose conditions upon the Railways Commissioners requiring them
carry goods at rates specified by the Board, and thus control
ilway services. [He referred to Railways Act 1928, secs. 71, 79,
and 95.) The Railways Act thus gives full discretion to the Railways
Commissioners, and the Board cannot exercise its discretion so as
to conflict with that of the Commissioners. The duty of the Com-
missioners under the Railways Act is not interfered with by the
Transport Regulation Act, which does not deal with railways at all.
_ Here the Board has said that it will grant a licence unless the railway
rates are reduced, but under sec. 128 of the Railways Act rates are
made by by-laws, and have to be approved by the Governor in Council,
and where a discretion has to be exercised, the persons to exercise
that discretion cannot be bound in futwro. The Transport Board has,
in effect, said that the licence will be granted unless the Governor in
Council gives an undertaking that the railway freight rates will be
reduced. If this can be done, the Board can control the whole
tailway system. If the Railways Commissioners gave an under-
taking purporting to bind the Governor in Council, such an under-
taking would be void. The question of the undertaking is significant,
not merely on the aspect of power, but also on the question of