COSTLY SCRAP METAL DEAL

Chronicle (Levin), 8 October 1947, Page 6

COSTLY SCRAP METAL DEAL

r press AssociatiunJ

GOVERNMENT TO COMPENSATE PURCHASER8

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WELLINGTON, Oct. 7. Hon. W. Nash, replying to inquiries raised by several members in the Houso of Representatives, said the settlemeni of claims based 'on the alieged breach of contract with an American corporation through the overrestimation of the dump of scrap steel at Woburn, was under negotiation. He would announce the terms of the settlement as soon as it was made and would facilitate'a full debate on "the question. Mr. Nash admitted that the matter was an unfortunate oue but similar thing's had occurred in other^countries. The estimate of 75,000 tons was. not the highest oue made in this case. Of two ships chartered to take away the steel, onc was used and one was compensated for by the War Assets Realisation Boafd. Other scrap steel was being found for the contractors to handle but the Government would still have to pay a fairly substantial sum. " . To further questions Mr. Nash said the- Government 's liability would be less than £100,000. The Government had taken full legal adviee on the matter. Up to tlie end of March last, tlm proceeds from the sale of war assets were £25,000,000, said Mr. C. M. Bowden (Karori) when discussing the vote for the Treasury Department in the Estimates. He added that there was no doubt a tremendous amount of goods still held for disposal and he suggested it was time for the Government to indicate its policy in regard to the disposal of the remaining stocks. Mr. Nash replied that while prices realised on the sale of surplus war assets were sometimes disappointing, it was eutirelv impractical to sell most surpliis goods in small lots to in'dividual buyers but there were certain organisations through which direet saies were made to exservicemen and others. He personally lioped that the disposal of surplus war assets would be conipleted as soon as possible con sistent with obtaining reasonable prices. Mr. R. G. Gerard (Ashburton) said tliat vear aftei- year tliere had been the sanie trouble of goods being sold tou clieaply by the War Assets Realisation Board. Complaints were made but the trouble * continued. Mr. ,T. J. Maher (Otaki) .suggested tliat bread and butter lines such as wheelbarrows, lawnmowers and shovels sliould Ijc parcelled up in small lots and sold through stoek and station agent.s t'or the benelit of fanncrs who needed such articles. Mr. Bowden urged tlie clearing of stores as rapidly as possible as store space was scarce and . urgcntly needed. IMr. Nash said several large stores had already l)een vacated by Government departments.