H—27

4. Custody of Stores Except for the purpose of housing materials from dismantled camps and buildings, it was not originally the intention of the Board to set up a separate stores organization, all Government Departments being responsible for the holding, safeguarding, and accounting of the stores which they from time to time declare as surplus, but, consequent upon the purchase of the very large volume of stores from the United States Forces in New Zealand, it became necessary, and at short notice, to take over and staff a number of warehouses and stores at Auckland and Wellington. 5. United States Joint Purchasing Board Arrangements were made with the United States authorities whereby all stores which became surplus to the United States Joint Purchasing Board were to be disposed of through the War Assets Bealization Board at a charge of 2 per cent, on proceeds. Disposals under this heading have been practically completed, the total realization being £230,862. 6. Stores ex United Kingdom Government Arrangements have been completed whereby all United Kingdom surplus stores located in New Zealand will be disposed of through the Board at an administrative charge of 2 per cent, on proceeds. It is expected that disposals will commence at an early date. 7. M.T. Parts and Tires During the year the Board took over from the Ministry of Supply the responsibility for the disposal of M.T. parts and used tires. New tires remain with the Ministry of Supply. 8, Sales to Overseas Organizations Negotiations' with UNRRA, Netherlands East Indies, and other overseas organizations were continued throughout the year, the total sales to 31st March, 1946, being approximately as follows : £ UNRRA .. .. .. .. .. 291,000 Netherlands East Indies .. .. ..104,000 Others .. .. .. .. .. 25,000 £420,000 9. Ships The disposal of vessels has proceeded steadily. Up to 31st March, 1946, 97 vessels of various types have been disposed of, including the sale of several minesweepers to Australian interests, all through the agency of the Marine Department. 10. Buildings : General The operations of the Buildings Section over the last year have shown steady progress. There are fewer buildings available, but a steadily rising demand, more apparent in the North Island than in the South, has kept the staff fully engaged throughout the year. The general policy of the Board to satisfy Government Departments, rehabilitated ex-servicemen, and various public organizations as a matter of priority before offering buildings to tender for public competition has done a great deal to have them applied in the right direction, with the greatest benefit to the community as a whole.

2