H—27

(/) Metals The disposal of metals, ferrous and non-ferrous, is handled by an Advisory Committeeworking under the Board. In general, sales are made by dealing directly with manufacturers and trade groups at prices based on current market rates. The total revenue from the sale of metals up to the 31st March, 1948, was £749,56-3. The Board still holds considerable quantities of some classes of metals which were manufactured for specific purposes during the war years —e.g., stainless-steel rods in large dimensions. No market for these classes of commodities can be seen at present,but it is hoped that the general market shortage will result in further substantial clearances during the coming year. (g) Foodstuffs During the past twelve months only small parcels of various lines of foodstuffs were declared surplus to the Board, and the requisite disposal of these was arranged through the agency of the Food Controller. The Food Controller has acted as agent for the Board in the disposal of foodstuffs over the past few years, and my Board wishes to place on record its indebtedness to the Food Controller and his staff for the ready co-operation that was always forthcoming, and appreciation for the successful manner in which foodstuffs were sold. With the cessation of hostilities against Japan in 1945 the United States Forces had substantial quantities of food in New Zealand, and, as their reserves in forward bases were sufficient for the Forces remaining in the area, the United States Joint Purchasing Board returned the total stocks held in New Zealand to the New Zealand Government for disposal. These stocks included huge quantities of perishable goods such as carcass meat, canned meats, edible offals, fats, dairy-produce, bacon and ham, and a wide range of dry stores. Following arrangements made by the Food Controller with the Export Marketing Department, the perishable items, which included 2,000 tons of bacon and ham, were sold to London and were shipped as quickly as refrigerated shipping space became available. The disposal of dry stores presented difficulties as the huge accumulation of these items could not be absorbed by the domestic market. Although a demand existed for certain lines, the quantities available, if placed on the local market, would have upset current domestic production. Items, however, which were in short supply on the New Zealand market were sold through the trade. The balance of these dry foodstuffs, which totalled substantial quantities, was offered by the Government as a gift to the British Ministry of Food. The gift was accepted, and shipping arrangements were made accordingly. The total revenue from foodstuffs up to 31st March, 1948, excluding the value of the gift to the United Kingdom Government was £3,908,189. 18. MECHANICAL PLANT (a) General All mechanical plant and machinery is handled by an Advisory Committee operating: under the Board. In the case of tractors and construction plant generally, all applications to purchase are dealt with and allocations are made on the basis of essentiality of use. All things being equal, preference is given to ex-servicemen. Except in the case of Government Departments, sales are negotiated through normal trade channels at resale prices fixed by the Board, taking advantage of the services of the accredited agents of the respective trade marks, who receive a fixed rate of

10