TRADING COUPONS.

Cromwell Argus, Volume LXI, Issue 3161, 4 May 1931, Page 3

TRADING COUPONS.

ABOLITION PROPOSAL.

EFFECT ON BUSINESS.

A measure to prevent the use of trading coupons was introduced into the House of Representatives recently by Governor General's message and met with a certain amount of goodnatured objection, several members contending that the measure was not of sufficient importance to warrant its introduction during the present session. During the debate in commitee on the message the Minister of Industries and Commerce, the Hon. P. A. dc la Perolle, said that the Trading Coupons Bill would prohibit the issue and redemption of all forms of gift, coupons. Mr W. E. Parry (L., Auckland Central): Is this a matter for emergency session ?

Mr Perelle said it was desired to have the Bill passed before June 30. The coupon system was assuming vicious aspects. There was no objection to cash coupons, but exception was taken to gift coupons. He added in many cases the gifts were not worth half the value put upon them. Mr J. S. Fletcher (1., Grey Lynn): Who.,asked for the legislation? Mr Perelle: The great bulk of the consuming public of New Zealand. Mr Parry asked what was the difference between coupon advertising and any other from of advertising? Would the public not have to bear the cost of newspaper advertisements to the same extent as in the case of coupon advertisements? Should manufacturers not be allowed to choose their own system ? It would be logical if the bill were passed to go further and abolish advertising in the daily newspapers. Mr D. G. Sullivan (L., Avon) asked why a measure of the kind was brought forward at the emergency session.

The Prime Minister, Mr Forbes, stated that the coupon system was leading to abuses which would have to be stopped. Mr M. J. Savage (L., Auckland West) suggested that it was just possible the legislation had been sought by those people who had been promising prizes and who wanted a way out of their commitments. He asked the Minister if that were the case.

Mr Perellc: Not to my knowledge 1 anyhow. Mr C. C. Munns (U., Roskill) referred to the position created by universal coupons, and added that a request for the measure had come from the business section of the community, mainly from the master grocers. He said the proprietors of the universal coupons had picked out one of every trade in each district and only that retailer was able to get coupons. The result was that the system gave one section of the traders an unfair advantage over its competitors. Mr Perelle said representations have been received from many grocers and small business men who did not advertise at all. Mr McKeen (L., Wellington South), contended that the Bill should have been referred to a committee. He was satisfied there were several coupon systems which were "not so obnoxious as Universal distributors." Fair Competition Hampered. The Hon. W. A. Veitch, Minister of Railways, stated that it had been found that the provisions of the Trading Stamps Prohibiton Act of 1908 were not wide enough to cope with the abuses which had arisen. He explained that when a number of small businesses found that they were losing trade as a result of competitors being in a position to issue universal coupons, they had been called upon to pay a premium for admission into the system. This was a vicious development. The system as it existed hampered fair competition, he said. All business people had the right to advertise by other means. It was not necessary for them to pay a premium if they wished to advertise in the newspapers or by circulars in the same manner as their competitors. The Minister added that the Bill prohibited manu-

facturers issuing coupons after June 30, but as, for instance, in the case of certain cigarettes any retailer who had bought goods prior to that date with coupons included would be permitted to sell them as long as the stock lasted.

Mr R. Semple (L., Wellington East) supported the view that time should not be wasted on a measure of the kind during the emergency session.

Mr Forbes said the only waste of time so far had been on the part of members delaying reception of the Governor-General's Message. He suggested that the House should allow the message to go through and then when the Bill was printed members would have the opportunity of inspecting it and deciding whether the measure should be left over till the ordinary session. Mr H. G. R. Mason (L., Auckland Suburbs), said the Bill would ensure the newspapers against the loss of advertising involved in the issue of coupons. Surely when a command came from that quarter members should not question the urgency of the measure. (Labour laughter). He could not understand members raising such questions.

Mr E. J. Howard (L., Christchurch South): Innocents abroad. Mr Mason went on to remark that there was no doubt there were some aspects of the coupon system that would require examination. It had admittedly got into a tangle. At this stage the committee adjourned until 7.30 amid considerable laughter. As Mr W. A. Bodkin was leaving the chair he called "Order!" and a Labour member said: "He's calling order and he's not in the chair." Members then dispersed amid more laughter. As soon as the committee resumed the message was agreed to and the Bill was read a first time. Provisions of the Bill.

The Bill is a short one consisting of eight clauses only. Its purpose is to prohibit the use of any trading coupon including . any stamp, token, "cover, package, document or any other means or device used for the issue to the purchaser of goods for the purpose of making the purchaser entitled to demand any money or goods, or any right of transport or right to enter a place of amusement or entertainment or any other consideration, benefit or advantage. The Bill provides that it will be illegal to issue any coupons after the passing of the Act by a trading coupon company or for any trader to do so after June 30. It will not be illegal, however, for any trader to sell goods containing coupons issued before June 30, but purchased from the manufacturer before that date. Coupons ah'eady issued and issued up to June 30 will be redeemable until December 30, but no later. Every trading coupon company that refuses to honour the coupons issued by it up to September 30 will be liable to prosecution under the Act. The issue of credit slips upon which discount will be paid at a later date is exempted under the Act. Any trading coupon company which may go into liquidation before September 30 will be debarred from distributing profits among members until after that date. Breaches under the Act will be punishable by a penalty of £2OO.