INTERNAL MARKETING

Otago Daily Times, Issue 23055, 4 December 1936, Page 12

INTERNAL MARKETING

THE GOVERNMENT'S POLICY DISTRIBUTION OF DAIRY PRODUCTS APPOINTMENT OF DIRECTOR (Per United Press Association! WELLINGTON, Dec. 3. The Government's local marketing scheme has been definitely initiated Mr F. R. Picot, of Wellington, has been appointed Director of Internal Marketing of Dairy and Allied Products '-as from February 1 next year From thai date also the Government will tak< over the business now known as Picot Bros., Ltd. and carry it on as a State enterprise.

Making this announcement this evening, the Prime Minister (Mr M. J. Savage) explained that the newlvacquired 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 Primarv 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 control to be exercised on the sale ot these commodities in the future. " The culmination of the negotiation.-* tor the appointment of a director ol internal marketing may be expected to have far-reaching effects on the Government's policy of marketing control," the Prime Minister continued " It is common knowledge that the unsatisfactory state of the local market for dairy and other primary produce has been giving the Government some concern ever since its assumption of office. The late Dairv Board gave serious consideration to the conditions oh taining in the local butter market, and tentative oroposals were made for control by that body. It was then expected that the Government would introduce reforms coincident with the introduction of its guaranteed price scheme, v but the Minister of Marketms (Mr W. Nash) announced before his departure for London that this matter would be delayed in the meantime Since then, however, matters have moved rapidly and I am now able to release the following information- " Prior to his departure for England the Minister of Marketing (Mr W. Nash) entered into tentative negotiations with Mr F. R. Picot with the idea of appointing Mr Picot as Director of Internal Marketing of Dairy and Allied Products, the Government to buy out the interests of Picot Bros., Ltd., in Wellington, and to operate the business now conducted by that Arm as a Government marketing organisation. It is accepted by the trade and by the Government that Mr Picot is one of the most experienced and efficient distributing merchants in the Dominion to-day, and under his direction the 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 Mi Frank Picot will take up the position of Director of Internal Marketing as from February 1, 1937. From that date the business now known as Picot Bros., Ltd., will be carried on as a Government enterprise. "To facilitate the working of the Elan, Mr Picot will liquidate all his usiness associations with allied organisations and 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 next it will be primarily 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. The experience so gained will be the basis of control to be exercised on the sale of these commodities in the future.' The Prime Minister said he was anxious that proprietary distributing organisations should not misunderstand this new development. "It is not intended to extend the Government ownership of the distributing services in other centres," he said. "The objective will be to acquire the greatest possible degree of co-operation on a voluntary basis, and as long as such cooperation is secured other efficient units in distribution have nothing to fear. The ideal is that the conditions of distribution will be so regulated that the producers will be given the highest returns on the one hand, whilst the Consumers' interests will be protected on the other hand. The policy of the Government in respect to local marketing might therefore be summarised as follows:

(1) "The services ot one of the most competent traders has 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) "The Government will operate a 'key organisation in the Wellington province for the purpose of demonstrating what can be achieved in the direction of service to the public at the lowest possible cost. (3) "In Wellington and in other centres efficient distributors will be required to co-operate on the basis if set vice within reasonable margins. (4) "The endeavour will be (a) to co-ordinate the distribution of dairy products eggs, honey, and pig products so that the interests of both producers and consumers will be protected; (b) to reduce the operation of the factors that tend to cause a harmful fluctuation and in this connection to cut out speculation "It is considered that the Government is most fortunate in acquiring the services of such a well-known man as Mr F R Picot for the Dosition of director of internal marketing, and the Government asks that distributors throughout the Dominion should cooperate with him in the task he has been asked to perform."