C.O.D. SYSTEM.

Gisborne Times, Volume LXVIII, Issue 10725, 24 October 1928, Page 7

C.O.D. SYSTEM.

POSITION IN NEW ZEALAND

INTERESTING STATISTICS

A statement showing as to what extent the cash on delivery system was used in New Zealand was presented to the Dominion; Executive of \he Farmers’ Union by the’ secretary (Colonel J. Pow). He said: “The -e.o.d.' system—-is. "one by which' a "who!esn lo or lOtfffl ,-merchan t in Great Britain can supply goods to the order of the customer in New Zealand, the New Zealand Post Office acting as the sellers’ agent in the / collection -of invoice charges, which must ha paid before the parcel is delivered. The sender of the parcel pays the usual postage plus a special postage of 3d, and in addition a e.o.d, fee of 2-id for each £1 or fraction thereof. Before delivery of the parcel tho add res see in New Zealand has to pay the e.o.d. -• amount plus Customs duty and a special delivery fee ofj4d per parcel. Under this system the British • merchant obviously becomes the competitor _ of the New Zealand merchant dealing in-similar goods. He has no capital invested in business in New Zealand and pays no local rates or taxes of any kind. Aforeover, he is assured of payment of all his accounts, and is absolutely relieved of any of the costs of conducting a business, in New, ’Zealand- 'Hi a British firm were' to employ a representative in New Zealand to solicit orders, all that he would have to do would he to send Home the orders and names and addresses of his customers. Indeed, lie would he relieved of the trouble of collecting or- remitting accounts and bad debts would be nil. Thp following figures show the increase, in businoss during the past four years: 1924, 3500 parcels, worth £12,100; 1925, 9129 parcels.-.worth £31,952; 1926, 13,799 parcels, worth £52-;30S; 1927, 27,-379 parcels, worth £97.323. ' ' ' "

“From investigations made recently the grrttest number of parcels received in proportion to population is in . the smaller towns, the tho following figures of 1927 show: Auckland, 1580 parcels, .tyorth £5736; Wellington, 30-19 parcels, worth £10,815; Gisborne. 1433' parcels, tyorth £5081; Westport, 1652 parcels worth £5613; Greymouth,. 1973 parcels, worth £7369. ... : ; “Tt seems rather unjust to retailers in our smaller towns, like Westport and Greymouth, who have comparatively small businesses,; and tho loss of. £13,000 worth of business is a serious. matter.

“The unfairness of the system seems to lie in the following points: (1) The New Zealand Government, acting as.agents for overseas traders to the detriment of New Zealand traders and traxpayers. If the public of the Dominion wished! to make its purchases abroad per medium of mail-order, no one could reasonably object. (2) The State must lose more revenue from the expenditure abroad of £97,000 per annum, which would probably be spent in the Dominion, than what is gained by the Postal Department. (3) The system lends itself to the evasion of • the Customs- regulations, because.' the value of each parcel being comparatively/'small, less care is taken in its;. a iid in the assessment ,of 'duty., . - ■ . -,v “There .is no co.od, system In forojo, in' Australia ifoi* parcels from outside „tho Cojnmomvonlfh.” 'Tlfo matter -was briefly discussed by the-Farmers’ Union, and the general opinion was favorable -towards tlie system.