REDEMPTION OF COUPONS

Taranaki Daily News, 21 February 1931, Page 6

REDEMPTION OF COUPONS

SEVEN MONTHS ALLOWED FRESH LEGISLATION PROMISED. nothing but cash discounts. Bt Tei«srai>h. —Press Assoeiation. Wellington, Last Night. Referring to the Government’s intention, announced in December last, to Gazette regulations prohibiting the issue and redemption of all trading stamp coupons except cash discount coupons issued by individual retailers, the Minister of Industries and Commerce has made the following statement:— The issUe and redemption of trading stamps by trading stamp coinpantes was rendered illegal by the Trading Stamps Prohibition and Discount Stamps Issue Act, 1008. A Supreme Court judgment held, however, that in some respects the Act did not apply to certain forms of trading coupons. In view of this judgment it was therefore considered tliat action under the Act to prevent .trading coupon companies operating would be unsuccessful. To a great extent the trading stamps which the Trading Stamps Act was originally intended to cover have for many years censed to be issued, and there appeared to be no urgent necessity for amendment of the Act to cover special circumstances. The practice, however, of offering coupons to retail purchasers has for the past year or so grown, to considerable dimensions. In the majority of cases the issue and redemption of coupons under the various systems lit present employed would not be illegal under the Trading Stamps Prohibition and Discount Stamps Issue Act, 1908. It was intended, therefore, to issue regulation? with the twofold purpose of (1) amending tile apparent defect in the 19QS Act (in view of the Supreme Court decision) and (2) enlarging tlie scope of the present Trading Stamps Prohibition Act, 1908, to include all forms of trading coupons. In the recent action taken against a coupon trading company in the lower court at Auckland the magistrate held that a breach of the 19(18 Act had been committed and that not only is the issue of coupon trading companies’ coupons thereby made illegal, but their redemption is also made illegal. The Government recognises that trading coupon companies and retailer? (in View of the SuEe Court decision) had acted in good in the sale and purchase, distribution and redemption of trading coupons. In order to protect their interests and thfe interests of public holding coupons, tnfe Government to-day gazetted regulations restraining trading . coupon companies from disposing ot their assets without the consent of the Minister of Industries and Commerce. ' Fin&lly, to overebnje the present dim" culty and to 4 e ®l effectively With the general question the Government. proposes to bring down ataenejihg legislation to provide for (1) the extension of the term of coupons not contemplated under the “trading cOupoh’’ to include other forms 1908 Act; (2) prohibition of the issue of all coupon? oth?r than cash discount coupons after June 30, 1331; (3) to make legal the redemption of coupons up to September 30, 1931.

The above message bears out what was contained in a telegram received yesterday by Messrs. Moss and Spence, New Plymouth, from Hon. S. G. Smith, Aliniste’r of Labour. The telegram stated: “In reply to your representations I have to advise that an Order-in-Council is being gazetted prohibiting Universal Distributor? Ltd., from parting with their assets until such time as legislation has been enacted to deal effectively with the whole question.” ... , Messrs. Moss add Spence were acting for the retailers of New Plymouth in an endeavour to protect the interests of holders of Universal Certificates.