H.P. Criticisms Attacked

Press, Volume CVII, Issue 31462, 31 August 1967, Page 12

H.P. Criticisms Attacked

(N.Z. Press Association)

WELLINGTON, August 30.

The Retailers* Federation feels that certain statements in the Consumer Council’s report, tabled in Parliament on Tuesday, are both sweeping and unreasonable.

The council’s report expressed concern about the large and growing volume of complaints relating to hire purchase and credit and of the practice of putting goods on lay-by. “The practice of requiring payment for goods on lay-by or against other promises of future delivery has caused the council concern because of the number of failures in recent years where there has been heavy loss to the public,” the report said. “There is grave risk to buyers unless provision is made for refunds if goods cannot be delivered in the event of failure.”

The president of the Retailers’ Federation, Mr W. G. W. Rix, said a check today with a number of retailers in Wellington and elsewhere left the federation puzzled as to what the council was referring.

“If some consumers have purchases from sources other

than the normal channels of distribution in the hopes of getting a better bargain they may have some cause for complaint,” said Mr Rix. ' Suspicion Cast

“This should not be allowed or used to cast a damaging suspicion over the whole field of hire purchase and credit trading.” Mr Rix said that without the controlled method of

business New Zealand as a whole would not have been able to enjoy its present standard of living. It had been a very large factor in the reduction in the price of major items as a result of manufacturers being able to reach a bigger market. Mr Rix invited the council to give the federation more details about cases where the public was “open to fraudu-

lent exploitation” and where they had been caused a heavy loss.

“I can only repeat that consumers dealing with regular retails who are proud of their reputation built up only as a result of “fair practice' usually going well beyond the provisions of the law will find no cause for complaint. “The Consumer Council’s sweeping statements are most unjust to such business.” In its report to Parliament the council said it was disappointed that no public report of the Tariff and Development Board inquiry into hire purchase and credit trading had been issued. A spokesman for the board said that he would' prefer not to comment until he had received a copy of the report and read it.