INTERNAL MARKETING

Evening Star, Issue 22780, 15 October 1937, Page 15

INTERNAL MARKETING

TAKING OVER OF PIGOT BROS. BUSINESS CREDIT OF £7,453 IN TWO MONTHS [From Ock Parliamentary Reporter.] WELLINGTON, October 14. The purchase by the Government of the produce business of Picot Bros., Wellington, as the basis of the internal marketing scheme is a subject of reference in the annual report to Parliament of the Controller and Auditor-General. The business (he states) was taken over last December. The legal and financial advisers of the Government expressed some doubt whether this undertaking was authorised by the Primary Products Marketing Act. It was decided to charge the capital expenditure and working expenses of the purchased business to Unauthorised Expenditure account. This course was agreed to by the Audit Department on the undertaking of the Prime Minister that the Government would promote any validating legislation which might be necessary, but the statutory limit of unauthorised expenditure for any year is £250,000, and the ipurchas© of this large business threatened to cause the limit to be exceeded.

Therefore, the Prime Minister (explains the Auditor and ControllerGeneral) gave an undertaking to have any over-issue validated. The accounts show that, while the total unauthorised expenditure cs.me near the limit, it did not exceed £250,000. The cost of purchasing Picot Bros.’ business at Wellington and Palmerston North was £66,059. and a further £5.927 had to he provided for running expenses from February 1 until March 31 Set off against the last item_ are receipts from two months’ operations. £13,381. so that the net result of the working of the business for two months was a credit of £7,453. _ The managing director of Picot Bros, has become the Director of Internal Marketing at a salary of £2,000 per annum.