H—27a

11. During the reconditioning contract approximately 10 per cent, of vehicles were scrapped. It is estimated that for commercial purposes the number for scrap would be approximately 25 per cent.

Statement showing Approximate Number of USED Motor-trucks available from New Zealand Sources and Authorized Importations of NEW Trucks

In view of the supply position and the deterioration the vehicles were exposed to in the conditions under which they were parked it was important that the vehicles should be disposed of as quickly as possible. It was also costing the Board £5O a week for guards. Another important consideration was that the vehicles should be completely disposed of so as to avoid the Government being faced with the trouble and heavy expense of dumping unsaleable residue, to which end the Board deemed it advisable to obtain bonds from the successful tenderers in the sum of £lO,OOO. It has to be emphasized that the Board's conduct has to be judged in the light of the knowledge it had or should have had in view of the circumstances, conditions, and outlook in the period in question, December to January, above set out, and not by the easy but fallacious standard of after events which has tinged a good deal of the evidence, particularly that of so called experts. I have now to examine in detail the conduct and actions of the members of the Board and its officers, and in this connection the following questions have been postulated : Did the members of the Board and its officers act " carefully, diligently, in a businesslike and efficient manner, and with faithfulness to the interests of the Staie " in the acquisition and disposal of the said assets ? (1) In relation to the acquisition of the assets. This may be shortly answered in the affirmative, as I have above fully set out the position.

15

— 15 Cwt. 1 to 2 Ton. Over 2 Ton, Fourwheel. Over 2 Ton, Sixwheel. Special Types (Miscellaneous). Total. At vehicle reception depots awaiting sale To be declared surplus by Army .. To be declared surplus by Air Force* 4 19 15 3 45 86 141 130 167 24 110 150 1 25 161 30 580 359 Total used trucks ("New trucks in New Zealand awaiting assembly *{ Importations authorized by Ministry j of Supply to land up to 31st December, 1945, and later 275 558 210 240 405 275 190 761 29 9 579 236 0 1,025 439 2,303 833 855 1,226 617 236 3,767 Import licenses in process of finalization (to land during 1946 as commercial orders) — Chevrolet Ford Dodge Fargo 768 816 285 255 2,124f •• 2,124 Total used and new trucks •• •• 5,891 * Figures approximate. t Types and classes not available.