H—27

(h) Radio and Electrical Materials The disposal of all radio and electrical equipment and stores is handled by an Advisory Committee operating under the Board. This Committee includes representatives of other Government Departments chiefly concerned—viz., Post and Telegraph Department, Department of Scientific and Industrial Eesearch, and Ministry of Supply. The revenue from disposal of radio and electrical equipment and stores up to 31st March, 1947, reached the substantial figure of £1,349,099. Except in the case of a limited number of items which have been sold direct to the public at fixed prices, the normal method of disposal has been through trade •channels, to traders and manufacturers approved by the Board, at prices based on replacement costs of similar commodities. The radio and electrical trades have worked in harmony with the Board. The policy has worked smoothly and well and has resulted in large quantities of materials being sold at a minimum of cost. There is no doubt that but for the speedy release of surplus radio parts and raw materials, the radio industry would have been in a serious position—the trade held very little stocks and importations were almost impossible to obtain. As it is, the trade has been in a position to market domestic radio receivers in reasonably large quantities and in many different makes. As indicated in my report for the year ended 31st March, 1945, one of the functions of the Board has been to advise the Comptroller of Customs, through the Department of Industries and Commerce, regarding the importation of radio components, materials, and equipment. In many lines the surplus holdings were far in excess of the normal annual importations, and in such cases the Board recommended that the importation of those items should be prohibited. This policy has ensured not only the consumption of most of the surpluses within a reasonable period, but has also conserved overseas credits. The list of prohibited lines is kept under close review and amended from time to time as surpluses are disposed of. Despite the fact that there is a considerable demand for radio equipment, there are many items which are held in such large quantities that their disposal presents a very difficult problem. Much of the Service equipment requires modification before it is suitable for civilian use, and, in any case, the use of radio transmitting-equipment is necessarily strictly controlled by the Post and Telegraph Department. That Department has co-operated with the Board to the fullest extent, but there are many cases where the Department is unable to grant licences to operate. Much of the Service equipment, too, is of little use in peacetime — e.g., large radar sets —and will have to be disposed of at purely nominal prices. (*) Aircraft Substantial numbers of aircraft have been declared surplus by Air Department, including 159 Tiger Moths, 119 Oxfords, 491 combat types, and 24 various, a total of 793. Tiger Moth aircraft, put into condition to warrant their being issued with certificates -of air worthiness, have been made available to aero clubs at a flat price of £450 each. Up to date, 46 machines have been disposed of under this heading. Previous owners of aircraft purchased by Air Department have been given an •opportunity of repurchase of their machines. Up to date, 15 aircraft have been sold in this manner. Tiger Moth and Oxford aircraft were offered for sale by tender, the former with reserve prices fixed, and the latter without reserve. The combat-type aircraft, chiefly located at Kukuhia, have not yet been offered for sale but disposal action is now in hand.

13