PURCHASE OF FIRM CRITICIZED

Southland Times, Issue 23374, 4 December 1937, Page 8

PURCHASE OF FIRM CRITICIZED

PAYMENT FOR PICOT BROS.

(From Our Parliamentary Reporter). WELLINGTON, December 3.

Further criticism of the purchase by the Government of the firm of Picot Brothers, Ltd. for establishing the internal marketing plan was expressed by Mr W. J. Polson (Nat., Stratford) during the debate on the Primary Products Marketing Amendment Bill in the House of Representatives today.

“Picot Brothers’ business was certainly a high-class commercial concern run by able men,” Mr Polson said, “and I must congratulate them on being too capable for the Minister. They got £15,000 for goodwill and £5OOO for book debts for a business in which they did not have much captial and which was about to be closed down.”

Mr S. G. Holland (Nat., Christchurch North): Yes, that was a good one. “On top of that Picot Brothers got good jobs for themselves,” Mr Polson added. “The Minister knew and Mr Picot knew what was to be done and the rest of the unfortunate people who were to be guillotined all over the country did not know. It was not a fair deal.

“The whole thing was arranged between the Minister and Mr Picot,” Mr Polson said, “and that is not a proper method of handling such an important question. The Dairy Board had contemplated an internal marketing plan and it would have given the traders a fair deal.”