"VICIOUS IN EXTREME."

Auckland Star, Volume LXII, Issue 85, 11 April 1931, Page 7

"VICIOUS IN EXTREME."

COUPON SYSTEM CONDEMNED RECEPTION OF BILL. LIVELY INTEREST IN HOUSE.. (By Tejegraph. —Parliamentary Reporter.) ' WELLINGTON, Friday. The introduction of the measure produced a lively exchange of opinions among members, some of whom were inelined to' treat the matter lightly, while others queried the necessity for the pasiage of the. legislation during an emergency session. Outlining the provisions of the bill, the Hon. P. A. de la Perrelle,. Minister of Internal Affairs, said that a very vicious system of coupon trading had been operating in New Zealand for some time past. A thousand coupons, were 'gold to firms for £2 10/, and these coupons, which were subsequently redeemed by the trading company, were given to customers. The consuming public were for the. coupons. The Bill sought to prevent the issue and redemption of the trading certificates. "Is -this a matter for an emergency tession?" asked Mr. W. *E. Parry (Lab., Auckland Central). The. Minister declared that the coupon lystem was assuming Vicious aspects, exception being taken not to the cash eoupons but to the gift certificates. It lad been found that in many cases the gifts were not worth half the value placed on them. "Who asked for this legislation?" injjuired Mr. J. S. Fletcher (Ind., Grey Lynn).' The Minister: The great bulk of the fconsuming public of New Zealand. He lidded that it way desired to pass the measure before June 30.

Asking jvhat was the difference between coupon and any other form of advertising, and suggesting that manufacturers should be permitted to choose their own system, Mr. Parry maintained that it would be logical, if the bill were passed, to go further and abolish advertising in the daily newspapers. "I have not seen the bill," confessed Mr. D. G. Sullivan (Lab., Avon), who wanted to know why the measure had heen introduced in an emergency session, which, according to the Prime Minister, was so expensive. , - Defective Law. The Prime Minister, the Rt. Hon. G. ' W. Forbes, explained that the bill was to meet the difficulty over the discontinuance of trading coupons, which were leading to a great deal of abuse. There Was a Supreme Court decision which •uggested that the law was defective, tnd the measure was designed to remedy that and prevent an injustice to a number of people. N „ Mr. H. S. S. Kyle (Reform, Riccarton) "Poke of the hopefulness of a lady who lad to save up only a few more coupons to secure a wristlet watch. Would she ■get it? he asked.

The Hon. J. A. de la Perrelle: She can get it.- (Laughter.) Mr. Kyle: It looks as, though we will lave .to get a hardship clause! Mr. M. J. Savage (Lab., Auckland West) declared that the matter was Serious. It was just possible, he said, »&at the people who had promised prizes Were looking for a way out. Where . Would-the whole business stop? He'predicted the Minister would get into a hopeless tangle. .It was recalled by Mr. H. G. Dickie (Reform, Patea) that the Minister had Been asked last session whether a certain coupon firm was contravening the Trading Stamp Act. Chambers of commerce had taken action, and the company concerned had gone into liquidation. He considered the Government should have taken action promptly and allowed things to drift into chaos. Wanted by Grocers. \Mr. G. C. Mnnns, Chief Government WWp, stated that the demand for the legislation came mainly from master grocers' who demonstrated that the ®oupon system gave one section an unfair advantage over other traders. There Was something wrong when any contra could hold a pistol at a trader's *iead, declaring that if he did not take the coupons it would go to someone else ■id cut him out. Either the quality of tte' article was inferior or unfair promts were being made, if such wonderful gifts could be promised. Mr. H. T. Armstrong (Lab., Christchurch East) said he had received no from, any section in his electorate, and he wanted to know who asked for the legislation.

"They are all asking for it," interjected Mr. J. A. Nash (Reform, Palmerston). "It will reduce the cost of living." "Vicious in Extreme." The Hon. P. A. de la Perrelle stated that the bill was requested by grocers and small business men who did not advertise. There were also requests from ■ farger firms. A firm was charging £2 10/ per 1000 for coupons which it rein gifts. In other parts of the world, if a trader had a flourishing business, the coupon firm demanded a High premium on its coupons, otherwise it would sell them to rivals. "Some members of the House," added the Minister, "are so desirous of receiving little gifts for their homes that they will tolerate a system that is vicious in the extreme." In the opinion of Mr. .R. McKeen (Lab., Wellington South) the legislation was essential to prevent the mushroom growth of syndicates such as the Minister had mentioned, but he protested that the. bill should be referred to <t Select Committee to enable business men to give evidence. The Hon. W. A. Veitch, Minister of Railways, stated that the coupons not only increased the price of the article, but created an imposition on legitimate trading. In some cases traders were brow-beaten—-he would not use the word "blackmail"—into coming into the scheme at a premium. i A wilful waste of time" was the description the introduction of the bill leceived from Mr. E. J. Howard (Lab., Christchurch South). If this is part of legislation to reduce the cost of living, tlien the Government is flirting and fooling with it," declared Mr. R. Semple (Lab., Wellington East). ° Cash Discounts Remain. The Prime Minister retorted that if members would allow the bill to b£ printed they would be a"ble to for themselves whether the legislation was : necessary or not. Mr. Savage asked what difference there i was between the receipt of cash dis- . counts and poods discounts The Hon. W. A. Veitch: The bill does ' not abolish cash discounts. j Mr. Savage: Then why should it ' abolish goods discounts? "The whole i thing, he added, "was ridiculous, and 1 it; was playing with the question to bring down such a bill in an emergency session." * ° J

Mr. H G R. Mason (Lab., Auckland Suburbs) alleged that the reason for the urgency of the bill was that its passage would conserve the advertising interests of newspapers. ~