INTERNAL MARKETING

Hawke's Bay Herald-Tribune, Issue 1, 16 January 1937, Page 6

INTERNAL MARKETING

— Prens I

Government Purchase Of Business

(Bv Telecranh

WELLINGTON, . Jan. 16. Correspondence relating to the purchase by tbe Government of the firm of .Picot Brothers, Limited, for the purpose of conducting it as a State enterprise handling essential foodstuffs, was considered at a meeting of the executive of the Associated Chambers of Commerce of New Zealand yesterday, In a letter to the Prime Minister, the Rt. Hon. M. J. Savage, the executive had requested information as to the price at which the Government was acquiring the business, and also details of the salary to be paid to the Director of Internal Marketing, Mr F. R. Picot. To this request Mr Savage has replied that Parliament must be tbe first body to receive the information. After discussion the meeting decided that the Prime Minister should again be written to asking that full information be provided as to tbe policy and powers it was proposed sb&uld be exercised by tbe Director of Internal Marketing, and the extent of the proposed operations of the business the State had acquired. It was felt to he desirable that not only should there be a definite indication that the business would pay income tax, but that its aim would be to pay a dividend of, 5 per cent. as it would be destruetive to competitive private eon^erns if the business were conducted at cost.