File 788/1919 Pt 4 ‘MESOPOTAMIA DISPOSAL OF RIVERCRAFT’ [‎43r] (81/240)

9. The General policy pursued in the case of materials held for purposes of manufacture into
stores by the Government, was to restore them to consumption through the normal trade channels, and
the Industries from which the materials had been drawn were generally given the opportunity of
purchasing the stocks. It was not, however, always possible to effect sales on these lines, either
because the trade was unwilling to offer what the Board thought was a satisfactory price, or the
quantities involved were larger than firms desired to handle.
I
Methods of Selling.
10. The general policy was laid down by the Minister as follows :—
Publicity should be given in every case as to the disposal of Surplus Government
Property ; where possible sales should be by public auction or by public tender, and all sales by
private treaty should immediately be reported to the Disposal Board.”
11. So far as possible, sale by auction has been adopted. This course, however, is impracticable
in many instances, e.q., in the case of such material as dock plant, optical instruments, etc., where the
number of possible purchasers is limited, or in the case of materials held in such large quantities that
only a few people can be found who are in a position to handle them, and, in such cases recourse has
necessarily been had to public tender and private treaty.
12 . In the employment of Auctioneers, the Disposal Board has had the benefit of the advice
and assistance of the Auctioneers’ and Estate Agents’ Institute. The policy has been to spread the
work over as many localities, and through as many hands, as possible, consistent with the best results.
The number of separate firms of Auctioneers employed to date is approximately 700. In the case
of sales by private treaty, the Board directed that each Group Member should make a weekly examina
tion of all such sales undertaken within his group, and that all sales involving a purchase price of
more than £5,000 should be approved by a Board Member.
Sales by Advertisement.
13. An Advisory Committee, of which Lord Riddell is the Chairman, was appointed to assist
the Board as to the best means of advertising property available for disposal. A policy of extensive
advertisement through the public press has been adopted and this has been attended with eminently
satisfactory results. Apart from this a special publication—“ Surplus ”—has been issued, its
contents being devoted entirely to materials for disposal. It appeared for the first time in June, 1919,
and has been published twice a month since.
Retail Sales.
14. A good deal of consideration was given to the question of selling by retail, in order to
attract a larger number of purchasers, mainly small consumers. Retail sale establishments on a
small scale were set up experimentally at Earls Court and some other depots, and the advice of a
large number of business men was sought on the general policy. After full consideration these business
men unanimously advised the Board against such a policy, on the ground that it would involve “the
“ creation of a selling organisation of a temporary character and the obtaining of many accessible
“ premises on very short leases. These are extremely difficult things to do. They may almost be accepted
“ as impossible, and aside from that would become practically prohibitive because of their cost per cent,
“ This might run up to almost any figure, say from 25 per cent., even to a possible 40 per cent.
“ or 50 per cent.”
15.. The experience of the small retail establishments which had been set up as an experiment,
showed that the progress of disposals by this means would be extremely slow. It was accordingly
decided not to set up any general retail organisation, but to continue to sell in small lots, at auction oi
by private treaty, articles, such as furniture, which experience had shown could be satisfactoril) disposed
of in that way.
Preferential Sales.
16. Some dissatisfaction has been caused among those who thought they had special claims for
preference, e.q. discharged soldiers, charitable associations and their sympathisers, by the know e ge
that the Board declined to give preference over other buyers. It was felt by the Board that—-apart horn
the loss involved to the tax payer—to allow preferential prices would create suspicion and would seriously
disturb the general market. The same policy was adopted in respect of gifts to Colonial Governments
and others. The principal occasions when stores have been given, or sold at less than their value are
(1) A gift of railway material to the value of £500,000 made, by decision of His Majesty ; s Govern
ment, to the Union of South Africa, in consideration of the assistance rendered by the Union dining
the war ; (2) the sale of plant and machinery, estimated as worth £300,000, at half value to the
Commonwealth of Australia, to enable that Government to equip factories for the production o
munitions ; ( 3 ) sales of huts to local authorities for housing and educationa pm poses, a a iscoui
33* per cent. The amount of the discount is, however, credited to the Disposal Board ou ^Junds
provided by the Government Department (e.g. Ministry of Health, Board of Education) approving the
purchase; (4) the sale of medical instruments to Doctors at if'rmircLse
case, the price was regarded as the legitimate sale price in view of the fact that, failing these purchasers,
the material would have had to be sold at a low price or scrappe .