GIFT COUPONS

Evening Post, Volume CX, Issue 147, 19 December 1930, Page 12

GIFT COUPONS

SYSTEM TO CEASE "MOST UNDESIRABLE"

The Government is prohibiting the issue of all forms of trading stamps and trading gift coupons after 30th June, 1931. The necessary regulations will probably be gazetted next week. This prohibition will apply to all forms of coupon, including,cigarette coupons... "During the past few weeks," said the Minister of Internal _ Affairs (the j Hon. P. A. do la Perrelle) in making the announcement, "innumerable re-' presentations have been made to the Government by organisations of retailers, merchants, manufacturers, and: traders throughout the Dominion for the suppression of gift coupon schemes in their various forms, other than that system which involves the granting of a percentage discountijbased on caslii or usual credit terms. "The Government has considered these representations carefully, and the result of investigations made into thematter showed that the operations of trading stamp companies in New Zealand, and the use and extension of somewhat similar gift coupon schemes by other trading concerns, .are un economic; that in general they serve no essential purpose in the distribution of commodities; and that ultimately the cost of such schemes .must be borne, either wholly or in part, by the consumer, thus adding to the cost of living. "The Government considers it most undesirable, especially at the present difficult period,/ that these schemes should be permitted to continue. The ordinary discount granted for cash or usual credit.terms is not affected by the operations of the regulations about to be issued., "Provision is being made tor the redemption of trading stamps and gift coupons up to 31st July, 1931, which is one month after the issue of trading stamps and trading gift coupons must cease. The interests of the general public in this direction are- thus being safeguarded as far as possible, time being granted to enable them to continue with the collection of stamps or coupons entitling holders to gifts of various kinds. At the same time the interests of the trading stamp companies and traders are also being conserved to a reasonable degree by reason of thenbeing allowed sufficient time in which to dispose of their stocks of gifts." The Minister added that as far back as 1908 the Trading Stamps Prohibition and Discount Stamps Issue Act was passed for the purpose of prohibiting, in particular, schemes similar to the "universal" coupon scheme.. A. flaw had been revealed in that Act, and m order that action could be taken without waiting until next session,.prohibitive regulations were being issued. The amendment of the Act itselt would be considered in connection with the Government |s legislative programme for next session. .