TRADING COUPONS

Southland Times, Issue 21273, 19 December 1930, Page 5

TRADING COUPONS

PROHIBITION OF ISSUE REGULATIONS TO BE GAZETTED MINISTER’S ANNOUNCEMENT (Per United Press Association.) Wellington, December 18. The Minister of Industries and Commerce (the Hon. P. A. de la Perrelie) announced to-day that the Government had decided to prohibit the issue of all forms of trading stamps and trading gift coupons after June 30, 1931. The necessary regulations will probably be gazetted next week. “During the past few weeks,” said the Minister, “innumerable representations have been made to the Government by organizations of retailers, merchants, manufacturers and traders throughout the Dominion for the suppression of gift coupon schemes in their various forms other than that scheme which involves the granting of a percentage discount based on cash or on usual credit terms. The Government has carefully considered these representations and the result of the investigations made into the matter showed that the operations of the Trading Stamp Company in New Zealand and the use and extension of somewhat similar gift coupon schemes by other trading concerns are uneconomic; 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. Ordinary discount granted for cash or the usual credit terms are not affected by the operation of the regulations about to be issued.”

“Provision is being made for the redemption of trading stamps and gift coupons up to July 31, 1931, which is one month after the issue of the trading stamps' and trading gift coupons must cease,” added the Minister. “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 the holders to gifts of various kinds. At the same time the interests of trading stamp companies and traders are also being conserved to a reasonable degree by reason of their being allowed sufficient time in which to dispose of their stocks of gifts.”

The Minister said that, as far back as in 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 has been revealed in that Act and, in order that action could be taken without waiting until next session, prohibitive regulations are being issued. An amendment of the Act itself will be considered in connection with the Government's legislative programme for next session.