COUPON SYSTEM

Evening Post, Volume CX, Issue 133, 3 December 1930, Page 12

COUPON SYSTEM

PROTEST BY FARMERS

MINISTER SYMPATHETIC

"ABOMINABLY YICIOITS"

A request that the Government prohibit the coupon system being applied to primary products was made to the Minister of Industries and Commerce (the Hon. P. A. de la Perrelle) by a deputation from the National Dairy Association today. It was contended that the application of the system to butter was costing the farmers one halfpenny per pound on their product and that this cost was aggravating the .already serious plight of the farmer. ' The Minister agreed that something would have to be done to counteract the coupons, and he intended to place the whole - matter before Cabinet. Introducing the deputation, the Hon. J. B. Gow, M.L.C., said that the question was one of serious importance to the dairying industry. /The president of the association, Mr. A. Morton, said that they represented the whole of the dairy farmers of the North Island. The farmers had experienced a heavy fall in the price of their products, and the coupons were adding to their burdens, because it meant that they had to make a concession to the system. The managng director of Amalgamated Dairies, Auckland, Mr. William Goodf ellow, said that • the ■ coupon system had only ' recently been applied to the sale of butter ia Wellington, and his company, which supplied one-third of the local'market,' would lose £16,000 because of it. It would almost certainly spread to Auckland, and the cost to the dairying-in-dustry would be heavy indeed. The manage c of one of the chain store companies in Wellington had told him that it would cost his firm £25,000, or 2J per cent, of the turnover, if it was applied to all goods. That would mean that thS people who dealt at that company's stores would have to pay £25,000 more for their groceries. The system had been stopped in South Affrica and in Australia, and they urged that similar steps be taken in New Zealand, especially as far as the primary producers were concerned. Mr. Perrelle: "Who started the system?" Mr. Gooc[fellow: "It.was started by a group of merchants in Wellington." BELOW LONDON PARITY. Mr. J. G. Brechin (Pahiatua) said that the dairy company he represented had requested the Wellington merchant who had originated the scheme to diseontinue'it, but they were unable to receive any definite answer to their representations. They were tricked for months, and during that time the merchant had captured the trade with it 3 particular brand of Gutter. It was the merchants and not the dairy factories that had started the scheme, and as a result of it the price of butter in Wellington had been forced down below London parity, notwithstanding the fact that it cost more to pack and distribute for the home market, which, required butter in pats and not in bulk. The cost of distributing and packing for the New Zealand market was estimated at l|d extra, and the coupons added to this another $d. Those firms which had refused to issue coupons had had to reduce the price of their butter, and thus it was easy to see. the deadly; effect of the system. Obviously the grocer's margin of profit would not ba reduced, and the farmers would suffer. The whole system was vicious. In reply, Mr. Perrelje said that he realised the seriousness of the position, especially as there had been a big fall in prices on the overseas markets. Tomorrow he was to receive a deputation from the Chamber of Commerce protesting against the Universal coupons, and after hearing their views he would place the whole matter before Cabinet. Ha could see that something must be" done. Mr. Goodf ellow: "Will you make a favourable recommendation to Cabinet?" '". . Mr. Perrolle: "I think that something must be done." .; Mr. Goodfellow: "It is an- abominably vicious thing." Mr. Perrelle said that he was very sorry indeed that the farmers were suffering as the result of the system. Mr. Morton: "It affects the whole of the people." The Minister: "Yes, there is no doubt that it affects the whol» country.''