STATE PURCHASE

Wanganui Chronicle, Volume 80, Issue 280, 25 November 1937, Page 5

STATE PURCHASE

FIRM OF PICOT BROTHERS. QUESTIONS ABOUT THE PRICE. 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 on Monday. A clause in the Bill validates the purchase of the firm, and the payment of the contract price out of the Dairy Industry Account. ’I 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 Rt. 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 £60,000. 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 tne Primary Products Marketing Department. Mr. Holland: It is not a bad time when we are dealing with legislation validating the purenase of the firm. Mr. Nash: I may try to give ih? information when we are in committee, but I have not the figures with me at the moment.