VEHICLE SALES

Otago Daily Times, Issue 26229, 13 August 1946, Page 4

VEHICLE SALES

OPENING OF INQUIRY DISPOSAL OF WAR ASSETS CROWN’S CASE .COMMENCED (P.A.) WELLINGTON, Aug. 12. An unusual array of counsel attended the opening of the Commission of Inquiry into the acquisition and disposal of American motor vehicles by the Wag Assets Realisation Board in Wellington. Mr J. R. Bartholomew is the commissioner, Mr H. E. Evans, K.C. (Solicitorgeneral) and Mr P. B. Cooke, K.C., appeared for the Crown to assist the commission; Mr S. G. Stephenson appeared for Brigadier H. E. Avery, former general manager of the board; Mr T. P. Cleary, for the board; Mr J. Meltzer, for Mr O. Conibear, secretary of the board; Mr W. E. Leicester, with him Mr R. E. Tripe, for Messrs W. S. Goosman, R. G. Gerard, W. J. Broadfoot, and W. A! Sheat, members of Parliament, as members of the public in their private capacities; Mr L. G. Rose, for Mr G. Laing, general inspector of Government motor vehicles; and Dr Hoggard for G. T. Gillies and Sons, of Oamaru. . A preliminary objection was raised by Mr Cleary, who said Mr Leicester’s clients should not claim to represent the public, as members of other political parties might also have chosen to do so, and the general public would then speak in a diversity of tongues. Mr Cleary claimed that those clients had made extravagant statements and innuendoes which had resulted in an inquiry being arranged. After Mr Leicester had replied, Mr Bartholomew said the objection appeared to be making a. mountain out of a molehill. Mr Leicester’s clients were entitled to appear as repr.esentatives of the public if they so desired. Transactions Detailed Mr Cooke, in his opening address, gave a detailed account of the transactions relating to the purchase., He said vehicles and parts acquired from the United States for £15,500 had been sold for £83,146. There had been, however, a forfeiture of £3195, and the Customs Department had been credited with 41 2-3 per cent, of the sales figure. Mr Cooke said that evidence would show that the Treasury had favoured the outright purchase of the vehicles and equipment. On January 9, 1946, the War Assets Board took possession of the assets. A week later, with stocktaking under way, the board resolved that disposal action be taken. The “ scrap material and metal,” including spare parts, was bought by the New Zealand Government from the United States authorities, apart from the original formal declaration from' the United States Joint Purchasing Board in September. It was decided that the board should dispose of the vehicles by tender, Mr Cooke said. Tenders closing on March 5, had been called by January 29. In reply to a question, Mr Cooke said most of the vehicles nad tyres on them, but there would be considerable contest over that question. There was a quantity of spare parts which the United States authorities wished to dispose of, but the general manager .recommended to the Treasury that these should not be purchased because they would be excessive for New Zealand requirements. There were four lots of- 1225 G.M.C. Trucks, 420 Dodge trucks, three J.H.C. trucks, four Diamond T trucks, 546 jeeps and a quantity of scrap metal and parts. The conditions provided for a person to tender for any lot or lots or all of them, for a five per cent, deposit, for tenders to be delivered in sealed envelopes, for a time limit for the bond covering the leaving of the site and a time limit Within which lots had to be removed from Sea view Road Park. No guarantee of the condition of the property was given. Nine GJM.C. trucks which had been received from the United States authorities were not included, having been “hand picked” and bought by the Public Works DepartmenLfor £5055. Tenders Accepted Tenders having been opened,, the general manager recommended to the Minister of Finance that the tender of Archibalds, Ltd. Christchurch, for lots 2 and 3 should be accepted at £63,252, Mr Cooke said. He also recommended . that the tender of Gillies and Sons for lot 1 should be accepted at £21,010, and that no tender for lot 4 should be accepted, but that the material should be sold at a flat rate per ton of £ls. The board endorsed his recommendation. Mr Cooke drew attention to various conditions that tenderers attached to their offers. Several mentioned the advantage to the rehabilitation of returned soldiers which acceptance of their tenders would bring. Archibalds could not proceed and were released on forfeiture of their deposit of £3195. In reply to Mr Bartholomew, Mr Cooke said it was suggested that the propriety of the board’s retaining the deposit was one of the questions he should consider. Fresh tenders were invited for lots 2 and 3 by letters to previous tenderers. It was reported to the board that Gillies were asking and being paid what were considered exorbitant prices, but the board decided "hat it had no power to interfere. The general manager reported that he .believed the market would.soon be met. and that Gillies would be left with,a lot of unsaleable junk. On April 18 the Prime Minister, Mr Fraser, issued instructions that before tenders in the second group were dealt' with a board of valuers, consisting of the board’s own motor transport valuers and a nominee of the Public Works Department, should make a valuation. This committee made a preliminary report and asked for further instructions. It was stated that approximately half of the jeeps were loaded on the trucks owned by Gillies and Sons, and the trucks were parked in blocks so close together that they could not be properly inspected. Many parts were missing. There was much heavy rust, and many tyres were missing or deflated, with the wheels in pools of water. It was estimated that parts from three of the trucks would be required to make one complete truck. Chassis and bodies would require extensive repairs. Valuers’ Difficulties

The only way to make an accurate valuation would be to employ a staff of mechanics, separate the vehicles with cranes, and inspect them under cover. That work would take six months. A cursory examihation of them after separation could be made in three months. With a crane to lift the jeeps off the trucks and put them back again, they could be valued inaccurately in eight to ten weeks. They could be examined as they stood in four to five weeks, but that would be unsatisfactory. A quick appraisal o? them could be completed in two oi three weeks. There was not space in the park for the vehicles to be separated for inspection. It was doubtful whether Gillies and Sons would permit the replacing of She jeeps in their trucks after removal for inspection. The committee recommended that the vehicles should be sold as quickly as possible before the winter caused the already serious deterioration to become worse. The frames of many of the vehicles were badly corroded and were possibly unsafe. The committee strongly advised the board to sell the vehicles in one lot, placing the risk of faults on the purchaser, rather than sell them individually and have the possibility of complaints from individual purchasers. Individual prospective purchasers would have to clamber over Gillies’s trucks to inspect the jeeps. It was doubtful whether Gillies would allow that because of the additional damage that might be done to their property Mr Cooke had not finished his address when the commission rose till 10.30 a.m. to-morrow.