The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, OCTOBER 23, 1928. CASH ON DELIVERY.

Hokitika Guardian, 23 October 1928, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, OCTOBER 23, 1928. CASH ON DELIVERY.

The cash on delivery system as obtaining through the Postal Department ifor importations from the Home Country, was the subject of an enquiry at one of Mr Seddon’s political meetings in the northern section of the district. Mr Seddon gave a. reply which was satisfactory to the questioner, indicating that he favoured shopping in one’s home town. lie, however, pointed out the immensity of this cash on delivery trading, even so far as it affects the the Coast. The Coast is one of the largest centres in the Dominion for this iform of trading. The matter has been the subject for discussion at the Farmers’ Union, and the following general statement on the mode of business has been made by the secertary of the Dominion Executive:—“The c.o.d. system is one by which a wholesale or retail merchant in Great Britain can supply goods to the order of a customer in New Zealand, the New Zealand Post Office acting as the seller’s agent in the collection of invoice charges, which mnst.be paid before the parcel is delivered. The sender of the parcels pays the usual postage plus a special postage of 3d, and in addition a c.n

chant dealing in similar goods. He £l. Before delivery of the parcel the purchaser in New Zealand has to pay the c.o.d. amount, plus custome duty and a special delivery fee of 4d per parcel. Under this system the British merchant obviously becomes the competitor of the New Zealand mertliat be would lmve to do would lie to has no capital invested in business in New Zealand, and pays no local rates or taxes of any kind. Moreover, he is assured of payment of all his accounts. and is absolutely relieved oi any of the costs off conducting a business in ‘ New Zealand. If a British firm were to employ a representative in New Zealand to solicit orders, all the lie would have to do would ho

send Home the orders nrnd names and addresses of his customers. Indeed he

would be relieved of the trouble of collecting or remitting accounts, and bad debts would bo nil. The following figures show the increase in business during the past four years:— No. of £

the greatest number of parcels received in proportion to population is in the smaller towns, as the following figures for 1927 show: —Auckland, 1580 parcols worth £5,756; Wellington, 5049 parcels worth £10,815; Gisborne, 1435 parcels worth £SOBI ; Westport, 1652 parcels worth £7,369. It seems rather unjust to retailers like Westport and Greymouth, who have comparatively small businesses, and the loss of £13,000 worth of business is « serious matter for them. The unfairness of the system seems to he in the following point:—(l) The New Zealand Government, acting as agents for overseas traders to the detriment of New Zealand traders and taxpayers: 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 bo spent in the Dominion, than is gained by the Postal Department. (3) The system lends itself to evasions of the customs regulations because the value of each parcel, being comparatively small, less care is taken in its examination and in the assessment o>f duty. There is no c.o.d. system in force in Australia for parcels from outside the Commonwealth.”

Year. Parcels. Value. 1924 3,500 12,000 1925 9,129 31,952 1920 13,799 52,308 1927 27,379 97,323 From investigations made recently