A REDUNDANT DIVISION

Putaruru Press, Volume XXI, Issue 1232, 29 May 1947, Page 8

A REDUNDANT DIVISION

INTERNAL MARKETING Its Disappearing Functions The Internal Marketing Division having sold all its interests in the butter, cheese and egg distribution business to Farm Products, Ltd., the question' of its own survival as an expensive State institution comes more prominently under consideration, states the New Zealand Fruit and Produces Merchants’ and Auctioneers’ Association. The purchase of the distributing business of Messrs. Picot Bros, for approximately £60,000 gave the division its start, and the principal, Mr. F. R. Picot, ably served the country during the war as Commission of Supply. Mr. Picot, who has returned to the sphere of private enterprise, was; followed as director of the division by Mr. R. P. Fraser, who has now resigned. During the critical stages of the war in the Pacific private enterprise supplied the food controller with large supplies of produce and fresh vegetables for the American and other armed forces. Though the suggestion of the federation that guaranteed minimum prices should foe offered to the growers was ignored, enormous quantities of vegetables in particular were packed by members of the federation, who also bore the brunt of public complaint ever a consequent local shortage. Supply and crating of vegetables laving been effectively organised, the division, when the position became easier, intervened to sidetrack merchants, making direct contracts with growers notwithstanding that the growers had emphasised their desire to supply through accustomed channels of trade, and not through a State department. This war activity having completely disappeared, the division no longer purchases green vegetables. Thus another of its functions has gone.

Potato Shortage Merchants after the war desired to take advantage of their long-es-tablished connections to import Tasmanian potatoes during an; extreme shortage. ißut the I.M.D. imposed a monopoly and tried the experiment itself, bringing in two or three shipments (too late in the year) on which it must have made heavy losses, as the condition on arrival was poor owing to the wrong variety having been purchased and stowage not being suitable. Apparently the main functions of the department to-day is to continue its monopoly right of importing citrus fruits, 'bananas and pineapples, a business' built up by private enterprise. The housewives of the country are good judges of what the division has done with this monopoly. They decided the point by their knowledge of the shortage of imported fruit, and that it is l 'hot cheap. Control is also officially exercised over such apples and pears as the fruitgrowers of New Zealand do not sell themselves. This control only applies to wholesalers and retailers engaged in the business, but they are not getting all the available supplies for widespread and equitable distribution to consumers who buy in the shops. This heavily staffed expensive division controls imported fruits, and partially controls apples, pears and lemons. ®ut the real work of getting these products to the consumer is done by the wholesale fruit and produce distributing firms. So what, in a practical sense, is left fer the division which could not be more efficiently done by private firms specialising in this service under competitive ccnditons ? asks the federation. If there is anything left, such as the assembly of apples and pears and payment to growers, the Department of Agriculture, with officers in all parts of the Dominion, could effectively undertake the work without having to employ another couple of hundred State servants. The big task of distribution could well be given back completely to the experienced private firms who have a valuable goodwill among growers which no monopoly institution has been able to take away.