SALE OF ARMY CARS

Timaru Herald, Volume CLVI, Issue 22997, 14 September 1944, Page 4

SALE OF ARMY CARS

Irregularities Alleged

(N.Z.P.A.) WELLINGTON, Sept. 13. In the House this afternoon, Mr J. T. Watts (National, Riccarton) raised the question of the correctness of the reply by the Minister of Supply to a question by Mr R. G. Gerard (National, Mid-Canterbury) regarding the sale of motor-cars to officers in the Southern Military District at prices allegedly below their market value. He pointed out that there was a discrepancy between the Minister’s statement that two valuations had been disputed and the report of the Auditor-General of six transactions below an independent valuation. Mr Watts said the Minister had evaded the request for a full report to the House of the result of the investigations. He did not think the Minister had done anything wrong. The Hon. D. G. Sullivan said that his answer was correct and honest in that the only cases brought to his attention were the two mentioned in the answer. After the Auditor-General had considered the valuation by the officers he had apparently decided that there were two cases upon which he should report to the Government. He had done so, and on no others and there was a good deal of confusion as to who had made the valuations, and there was a difference of opinion on the valuations. Tire Auditor-General had apparently made up his mind about two of them and the Ministerial answer had been written accordingly. The Prime Minister (the Rt. Hon. P. Fraser) said the matter had been before him. It was investigated and he was not satisfied that everything was in order and had asked that a report be sent to the Auditor-General to enable the latter to take any action he thought fit. There was no attempt to shield anyone. If everyhing was not above board, those responsible should be dealt with and where re-sales had been made at a profit action should be taken to recover that profit. Whatever the law would permit to be done should be done.