EXPLANATION BY DEPUTY CHAIRMAN OF BOARD

Chronicle (Levin), 13 July 1946, Page 7

EXPLANATION BY DEPUTY CHAIRMAN OF BOARD

-Press Association

I By Telegraph—

j W LLL I N GT( )N , .May 12. I Tlie ileputy cliairman of tlie Wai j Assets Benlisation Board, Mr. J. G. i Young. released a stateiuent toda\ , stating that in view of tho criticisni of 1 tho sale of sui'i>lns motor vohiolos nt | Seaview Park, Petone, made in tlie I press and in the House of Representatives, it found it should give tlie facts ! to the publie. Tlie vehicles consisted of 1231 G.M.C l rueks, -120 Dodge trucks, three h-Mjr I rucks, foiir Diamond T t rucks, 54> joeps, 3o cars and a quantity of serno motai. ()n Ootober 24, 104."), tho ITiited States .Toint Burcliasing Board made a declaration to tlie War AssetI Reaiisation Board tliat. these vehicles j wero surplus to requirements and avail I able for disposal. in maldug such n declaration tlie .Toint Purcliasing Board said: "The following Hs.t of- -vehicles has been shipped to tliis sectiou from tlie more forward areas for complete teardown and robttild. All vehicles are used and recpiire 111a jor repairs. Bnoi to the termination of the war these were considered economically re]uiiiable. Overall, the United States supply situation following the eiul of the war now renders these vehicles surplus and unecononiically repairable. " Subseciuentlv, as part of the deal be twoen the New Zealand Gnvernment , and United States authorities, these vehicles were purclmsed by the New Zealand Government at an all-in priee 1 of 50,000 dollars, approximately

£15,000. The deal liaving been coinpleted, the War Assets Kealisation Board was instructed to take over the vehicles ancl arrange for their disposal. During negotiations it was ascertaineil that the average cost of recondition ing shnilar vehicles 011 behalf of tlie United States authorities, was as follows: — :G.M.G. trucks £000. Dodge trucks £302, jeeps £332. Tlie board considered disposal of the vehicles by private treat.v, by tendcr land by jmblic auction. I11 regard to tlie lirst metlioil inquiries made of leading motor lirms indicated that, although oue in the lirst instance was interested 111 the purcliase of up to 50 G.M.C. trucks, they finally withdrew their oifer aml all lirms indicated they were not in lerested in tlie purcliase of any of the vehicles at any price. These lirms had been employed previously by tlie New I Zealand Governnient 011 behalf of tlie : Americaii authorities. to overhaul and | roconstruct similar vehicles. { The general manager inspected the 'vehicles 011 the board 's behalf and 'strongly reconimeiided that they lie sol.l j by tenders in lots. His recommeiula1 tions were adopteil and tenders invited I accordingly. Mr. Young 's stateiuent gave details j of tlie tenders submitted and added i tliat tlie board decided to accept an I oll'er of £(i.3,252 for tlie Dodge and jeep ! trucks and an oll'er of £21,010 for tlie i G.M.C. trucks, as these gave tlie liighest returns to tlie board. The successful i tenderers were notilied and commenced ' uperations. After they luul been | working 011 tlie disposal for two to I three days, tlie tenderers who had i oll'ered £(i3, 252 for tho Dodges and j jeeps, with their lawyer, npproached j i lio general manager a-sking to be re j leased from their contract and 011 tlie ! general manager \s reconimcndat ion, the j board agreed to relcase tliis lirm con iditional 011 their forfciting a (leposit of |£31(J.'), fresli tenders to be called for the ) vehicles from wliicii they had been j released. ()n tlie recoiiunendation of i tlie general nuuuiger Ihe board accejit- ' ed a tender for tlie Dodge trucks in tlie j ! siun of £2(5, OnO and for tlie jeeps in tlie i suin of £20,150, these being the liighest t enders in eacli 1 ase. ! In aildilion to vehicles sold after j i tenders, certain vehicles were sclected j j by tlie Publie Works Departnieut an.l j 1 ran.->ferrcd to tlieni at £5025 and also a i I nuniber of cars were sold for a total of' ■£71S(). Tlie sale of cars £71.S(5, sale ofi ! G.M.C. trucks £21.010, sale of scrap, '£500; deposit forfeited by origiual ! tenderer for Dodges and jeeps £3105, i saies of Dodges £20.050, sale of jeeps : | £20,150, made a total oi' £S3,14ii wliich, J ! less ihe cost £15,50(1, left as net returu j ! to Ihe Governnient of £)7.04(i. The general manager expressed t lio j ; o-piniou tliat, in general, tlie condition 1 of the \ ehi'des and tlie way they were I parked, preeluded Ihe possibilitv of the | vehicles being valucd independently. ! Thi.'j. , opinion , )vaiL bornji out by the jspecial Board of Valuers, who were 1 asked to report particularly 011 tlie Dodges and jeeps. This Board of i Valuers conqirised Mr. 11. Benge,

superintendeiit of tlie New Zealand Railways road trans])ort services, Mr. j W. Couk. plant inspector, Publie Works' Depai t ment, Wellington, and Mr. W. P. ( Warner, enqdoycd as an indiqiendent i valuer by tlie Board. In their report I tiiey estiiuated tliat the timo rcquireii | to cairy out a complete valualion of the| Dodges and jeeps would be six monllisj with adequate stalling. They furllio1" reported that a cursory exami nation ' could be made in tliree- nionths or :i j purely estiiuated bulk value of the . vehicles as a wliolc could lie given | fairlv ipiickly by viewing tlicni as thiwj stood, but sueli estimatc would mereB I be guesswork. They reported also tliat i niany of tlie veliicles were very badlyi corroded with lieavy rust aiul that aj ronsiderable nuniber of tyres wero! i perislied and tliat rapid deterioration ! in all parts of tlie vehicles could be ex- p pceted From tlie tinie of their report or.- i ! uanls as winter was seltiug in. 'J'liey I ! strongly ndvised tlie board to sell t lio { : vehicles in oue lot and not indi vidually. \ ! In the liglit of tlie above facts. said | 'Mr. Voung, and remcnibering particnl Jarly that — lirstly, tlie board's jiolicy j was to i-fTecl the disjiosa! of all surplus i ! assets to tlie best advantage in tlie, i sliorlest space of timo; secondly, that tlie 1 i United States authorities declared tliat ; tlie reeouditioiiing of the.se vehicles wa- j j ecouomic ouly for war purposes; tliird j iy, tlie liigli cost of repairs as containml j j i'u tlie report*to tlie board; fourthly, tlie j ! exnert valuers' report 011 tlie condition j

jof tlie vehicles; liftlily, the disposal in wliole lots by lender was preferable to I the sale of small lots by auction or i private treaty; sixthly, after Doiuinion • widc ad veftising tlie iiigliest tender was | accepted for eacli lot — tlie board feel.i con lideut tliat all fair-minded persons | (will agree it made a satisfactory deal! ; in ihe counlry 's ' interests.