MEMBERS' COMMENTS

Evening Post, Volume CXII, Issue 87, 9 October 1931, Page 7

MEMBERS' COMMENTS

CONFLICTING OPINIONS Commenting on the Committee's report, Mr. A. Harris, (Government, Waitiemata) said that as a member of the Committee he desired to dissociate himself from the report, which was plainly an interference with private enterprise. The evidence went to show that it was possible to benefit the public from the system which had been adopted. There had been ho representations from the public, which was mostly concerned; tho hostility had come from the newspapers and the advertising agoncics. The best thing the Governi.ient could do was to keep its hands off private enterprise.

Mr, P. Frasor (Labour, Wellington Central) said that the question was a difficult one, which tho House would have to deal with carefully. Chambers of commerce always held up the great god competition, but immediately it hurt them they squealed for protection. This showed the futility of the cry for no Government interference in business. The competitive system was wrong root and branch, and when ono endeavoured to help one section, ono found that tho action taken injured anothor section. The newspapers did not like the gift coupon system by which traders used other avenues for advertising their goods, and did not hesitate to condemn the practice as immoral. They had to rid the question of all humbug.

Mr. W. D. Lysnar (Independent, Gisbornc) disagreed with the view that the Bill, was interference in business. They had to, stop unfair trading in foodstuffs, and ho considered that the Bill should bo enlarged to cover free gifts as well as coupons.

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triers) said the coupon system would in-' creaso the cost of goods which the public really required. Ho gave instances of how tho coupon system had increased tho cost of goods out of all proportion. If the coupon system was abolished manufacturers would turn to other avenues for increasing their business, such as improving the quality of their goods or decreasing tho price, aud the public would benofit. The names in the large petition which had been presented in favour of the coupons had been gathered by interested parties. He would support the Bill, but he was very keen that the Government should introduce legislation to deal with tho gift .system. Mr. W. E. Barnard (Labour Napier) said it was desirable that members should know what evidence bad been submitted to the Committee before coming to a hard-and-fast decision. The BUI was scarcely of sufficient importance to warrant the controversy which diad taken place. Mr. R. M'Keen (Labour, Wellington South) said the Bill was of as much importance as Acts which protected tho public against fraudulent details. He regarded the coupon system as a method of specious fraud. If the coupon system and other systems were abolished tho public would get a cheaper article. Tho Industries and Commerce Department was not carrying out its duty. He bolieved that tho coupon system, or anything like it, should be abolished. Mr. H. Holland (Government, Christchurch North) supported tho Committee's report. The public had had ample opportunity of giving evidence if they had desired to do so. The Bill would act as a check on. the free gift system. Mr. F. Lye (Government, Waikato) said that it was a most remarkable thing that the coupon system in the Dominion was largely employed by tea traders. Inquiries had shown that the cost of tho gifts were loaded up iv the products, and that in reality there was no gift at all. He was sorry that they could not prohibit free gifts. It was essential that they should get back to clean, free competition. The people who did not save the coupons wero penal; ised by the system. In reply, Mr. Munns said that the evidence given before the Committee had shown that at least one-third of tho coupons were not redeemed, and that that fraction represented a clear profit to the companies concerned. The cigarette firms valued their coupons at one penny each, and it would be better if they abolished the coupons and reduced the price of cigarettes by one penny. He denied that the newspapers had been responsible 'for tho agitation against tho system. The report was agreed to. Following on the discussion in Parliament on the Trading Coupons Bill, a correspondent asks "The Post" to publish the attached extract from a roccnt issue of the "Goldsmith's Journal":—----"A report on the coupon system of selling tea has beon prepared by the Food Council at the request of Mr. Graham, the President of the Board of Trade, under the late Government. Dealing with the coupon or free gift system, tho council state that the majority of their correspondents made no comment upon it. One distributor expressed strong opposition to this form of trading, and stated that any scheme, such as bonus or gift schemes, used as inducements to buy tea and foodstuffs of any kind should be mado illegal. Both tho Federation of Grocers' Associations of tho United Kingdom, and the Scottish Federation of Grocers and Provision Merchants' Associations, stated they wero opposed to the system of giving gifts in return for coupons. "Tho Scottish Federation made, test purchases on tea with which wore associated dividends, trading stamps, or free gift1 coupohs, and of tea sold without any such inducements, and the following are a few of the particulars ascertained:— Retail price per lb . Expert's retail, paidfor tea carry- valuation, ing coupons. 2s 4d (coupon) Is 8d (good) 2s 4d „ ls4dtols6d 2s4d „ Is to Is 2d 25.4 d „ Is 8d (good) 2s 8d „ ls6d lsßd '„■ Is 2d "The following are particulars given of the teas which did not bear dividends; trading stamps, or coupons, for gifts of any description: — Retail price per lb paid for tcanot Expert's retail carrying coupons. valuation. Is lOdtols Is lOd 2s 4d 2s 8d 2s 8d 2s 4d 2s 4d 2s 8d 2s4d , ls4d Is 2d N 2s lsßd "Tho report concludes: 'From the information supplied to us by the Scottish Federation of Grocers and Provision Merchants' Association; it appears to us that the coupon system of trading in tea has little, if anything, to commend it from tho point of view of the consumer. The system lends itself to the method of trading described by the federation under which the quality. of the article may be depreciated to an extent which the consumer cannot gauge. It is, however, one which applies to a wide range of articles as well as tea, and its prevention could only bo, effocted by legislation.'"