TRADING COUPONS.

Timaru Herald, Volume CXXXIV, Issue 18849, 11 April 1931, Page 10

TRADING COUPONS.

PROHIBITION OF GIFT SCHEMES. BILL INTRODUCED IN HOUSE. By Telegraph— Press Association WELLINGTON. April 10. In the House of Representatives this afternoon, the Trading Coupons Bill was introduced by Governor-General's Message. Replying to the Leader of the Opposition (Hon. J. G. Coates), the Hon. P. A. de la Perrelle said it would prohibit the issue and redemption of all forms of gift coupons. Mr A. E. Parry (Auckland): "Is this a matter for an emergency session?” Mr Perrelle said it was desired to have the Bill passed before the thirtieth of June. The coupon system was assuming vicious aspects. There was no objection to cash coupons, but exception was taken to gift coupons. He added that in many cases the gifts were not worth half the value put upon them. Mr J. S. Fletcher (Grey Lynn): “Who asked for this legislation?” Mr Perrelle: “The great bulk of the consuming public of New Zealand.” Mr Parry asked what was the difference between coupon advertising and any other form of advertising. Would the public not have to bear the cost of newspaper advertiseents to the same extent as in the case of coupon advertisements? Should not manufacturers be allowed to choose their own system? It would be logical if the Bill passed, to go further and abolish advertising in the daily newspapers.

Mr D. C. Sullivan (Avon) asked why a measure of this kind was brought forward in an emergency session. The Prime Minister stated that the coupon system was leading to abuses which would have to be. stopped. Mr M. J. Savage (Auckland) suggested that it was just possible that the legislation had been sought by ' those people who had been promising prizes, and who wanted a way out of their commitments. He asked the Minister if that were the case. Mr Perrelle: “Not to my knowledge, anyhow.” Mr G. C. Munns (Roskill) referred to the position created by Universal Coupons, and added that the request for the measure had come from the business section of the community, mainly from master grocers. He said the proprietors of Universal Coupons had picked out one of every trade in each district, and only that retailer was able to get the coupons. The result was a system that gave one section of traders an unfair advantage over competitors. Mr Perrelle said representations had been received from many grocers and small business men, who did not advertise at all. Mr R. McKeen (Auckland) contended that the Bill should have been referred to a committee. He was satisfied there were several coupon systems which were “not so obnoxious as Universal Distributors.” The Hon. W. A. Veitch stated that it had been found that the provisions of the Trading Stamps Prohibition Act 1908 were not wide enough to cope with abuses which had arisen. He explained that when a number of small businesses found they were losing trade as a result of competitors being in a position to issue universal coupons, they had been called upon to pay a premium for admission into the system. This was a vicious development. The system as it existed hampered fair competition. He pointed out that all business people had a right to advertise by other means. It was not necessary for them to pay a premium if they wished to advertise in the newspapers or by circulars in the same manner as competitors. The Minister added that the Bill prohibited manufacturers issuing coupons after the thirtieth of June, but as for instance in the case of certain cigarettes, any retailer who had bought goods prior to that date with coupons included would be permitted to sell them as long as his stock lasted. Mr R. Semple (Wellington) supported the view that time should not be wasted on a measure of the kind during an emergency session. Mr Forbes said the only waste of time so far had been on the part of members delaying reception of the Governor-General’s Message. He suggested that the House should allow the Message to go through, and then when the Bill was printed, members would have an opportunity of inspecting it and deciding whether , the measure should be left over till the ordinary session.

Mr H. G. R. Mason (Eden) said the Bill would ensure newspapers against loss of advertising involved in the issue of coupons. Surely when a command came from that quarter members should not question the urgency of the j measure. (Labour laughter.) He could ! not understand members raising such questions. j Mr E. J. Howard: “Innocents abroad.” I Mr Mason went on to remark that there was no doubt that there were some aspects of the coupon system that would require examination. It had admittedly got into a tangle. The House adjourned at 5.30. When the House resumed at 7.30, the Bill was read a first time. PROVISIONS OF NEW BILL. (Special to the “ Herald.”) WELLINGTON, April 10. The Bill prohibiting the issue of trading coupons, introduced in the House to-day, stipulates that after June 30th no trading coupon company will be permitted to make coupon issues. Manufacturers, packers, importers, or sellers of goods may, up till that date, issue trading coupons in respect to their own goods, redeemable solely by themselves. No redemptions of trading coupons will be legal by means of money, goods, or other means after the operative date of the measure. Refusal to redeem trading coupons before the prescribed date will be regarded as an offence. Liability for a breach of the Act in respect to the issue of coupons will devolve on the agents of coupon trading companies, as well as the companies themselves. There is nothing to prevent a trader delivering to a customer acknowledgment of payment made for goods for subsequent discount purposes, and cash discounts are similarly protected. The assets of trading coupon companies in liquidation are not to be distributed among members before October Ist, 1931. Distributions before that date will be void. Infringements of the Act will be liable to be met by a fine £2OO. The Trading Stamps Prohibition and Discount Stamps Act is repealed, and the trading stamps regulations issued this year are revoked.