STATE PURCHASE

New Zealand Herald, Volume LXXIV, Issue 22893, 23 November 1937, Page 13

STATE PURCHASE

FIRM OF PICOT BROTHERS

QUESTIONS ABOUT THE PRICE "SLIGHTLY OVER £60,000 " [BY TELEGRAPH' —SPECIAL REPORTER] WELLINGTON, Monday A statement that the firm of Picot Bros., Limited, had been purchased for slightly more than £60,000 was made by the Minister of Finance, the Hon. W. Nash, during the second reading debate on the Finance Bill in the House of Representatives to-night. A clause in the bill validates the purchase of the firm and the payment of the contract price out of the Dairy Industry Account.

"1 think it is somewhere about £60.000. said the Minister in reply to Opposition requests to disclose the actual price paid. Taking into account the earning Capacity of Picot Bros., Limited, he thought that a competent sharebroker would have valued the asset at twice the amount paid for it. The IU. Hon. G. W. Forbes (Opposition—Hurunui): Not with the Government entering the business. Picot Bros., Limited, said Mr. Nash, had built up one of the finest wholesale distributive systems in the Dominion.

Mr. S. G. Holland (Opposition— Christchurch North): How much was paid for goodwill? Mr. Nash: The amount paid for the business was slightly more than £(30.000. I think that sum covers everything, but I will give particulars later. The Minister suggested that any discussion should take place on the Estimates or the report of the Primary Products Marketing Department.

Mr. Holland: It is not a bad time when Ave are dealing with legislation validating the purchase of the firm. Mr. Nash: I may try to give the information when we are in committee, but I have not the figures with mo at the moment.