Director of Internal Marketing

Manawatu Times, Volume 61, Issue 287, 4 December 1936, Page 6

Director of Internal Marketing

Mr Frank Picot Appointed

FIRM’S BUSINESS ACQUIRED BY GOVERNMENT Per Press Association. WELLINGTON, Last Night. The Government’s local marketing scheme has been definitely initiated. Mr. F. R. Picot, of Wellington, has been apopinted Director of Internal Marketing of Dairy and Allied Products as from February 1 next year. From that date, also, the Government will take over the business now known as Picot Brothers, Ltd., and carry it on as a State enterprise. In making this announcement this evening, tho Prime Minister (Rt. Hon. M. J. Savage) explained that the newly-acquired depot would continue to act as a distributor of butter and cheese, the only difference being that, as from February, the depot primarily would be a State service organisation, handled under the provisions of the Primary Products Marketing Act. It will also handle and distribute honey, eggs, pOrk products and bacon on the same basis, said Mr. Savage. The experience so gained will be the basis of tho control to be exercised on the sale of these commodities in the future. "The culmination of the negotiations for the appointment of a Director of Internal Marketing may be expected to have far-reaching effects on the Government’s pblicy of marketing control,” the Prime Minister Continued. “It is common knowledge that tho unsatisfactory state of the local market for dairy and other primary produce has been giving tho Government sbme concern ever since its assumption of office. The late Dairy Board gave serious consideration to tho conditions obtaining in the'local butter market and tentative proposals were made for control by that body. It was then expected tho Government would introduce reforms coincident with the introduction of its guaranteed price scheme, but Mr. Nash announced before his departure for London that this matter would bo delayed in the meantime. Since then, however, matters have moved rapidly and I am now able to release tho following information: — “Prior to the departure for England tho Hon. Minister for Marketing (Mr. VV. Nash) entered into tentative negotiations with Air. F. R. Picot with tho idea of appointing Mr. Picot as Director of Internal Alarketing of Dairy and Allied Products, the Government to buy out tho interests of Picot Bros., Ltd., in Wellington and to operate the business now conducted by that firm as a Government . marketing organisation. It is accepted by tho trade and by the Government that Mr. Picot is one of the most experienced aud efficient distributing merchants iu- tho Dominion to-day and under his direction tho firm of Picot Bros, has built up a business which is outstanding for its success based on efficiency.

“Acting on the recommendation of Mr. Nash, who interviewed Mr. Picot in Auckland prior to his departure, Cabinet has followed up those negotiations and has great satisfaction in announcing that arrangements have now been finalised to the point that Mr. Prank Picot will take up the position of Director of Internal Marketing as from February 1, 1937. From that date the business how known as Picot Bros., Ltd., will bo carried on as a Government enterprise.

“To facilitate the working of the plan Mr.' Picot will liquidate all hi 3 business associations with allied organisations and the trade generally and will devote the whole of his time and energies to the service of the State. The newly-acquired Government depot will continue to act as a distributor of butter and cheese, the only difference being that as from February 1 nezt it will be primarily a State service organisation handled under the provision of the Primary Products Marketing Act. It will also handle and distribute honey, eggs, pork products and bacon on the same basis.

“The experience so gained will bo the basis of the control to be exercised on the salo of these commodities in future,"

The Prime Minister said ho was anxious that proprietary distributing organisations should not misunderstand this new development. “It is not intended to extend Government ownership of the distributing services in other centres. The objectivo will be to acquire the greatest possible degree of co-operation on a voluntarily basis and as long as such co-oporation is secured other efficient units in distribution have nothing to fear. The ideal is that too conditions of distribution will be so regulated that producers will bo given the highest returns on tho one hand whilst consumers' interests will be protected on tho other hand. The policy of the Government in respect to local marketing might therefore be summarised as follows: — “1. The services of one of the most competent traders have been secured to direct and co-ordinate the distribution of the people’s essential foodstuffs, the man so appointed being freed from all his present business obligations.

“2. Tho Government will operate a key organisation in tho Wellington Pro vinco for the purpose of demonstrating what can be achieved in tho direction of a service to tho public at the lowest possible cost. “3. In Wellington and other centres efficient distributors will be required to co-operate on the basis of service within reasonable margins. “4. The endeavour will be ; (a) to eo-Ordinate the distribution of dairy products, eggs, honey and pig prooucts, so that the interests of both producers and consumers will be protected; (b) to reduce the operation ot factors that tend to cause harmful fluctuation, and in 'this connection to cut put specula tion." It is considered that the Government is most fortunate in acquiring the services of such a well-known, man as Mr,

F. It. Picot for the position of Director of Internal Marketing and tho Government asks that distributors throughout the Dominion should co-operate with him in the task he has been asked to perform.