COUPON TRADING

Hokitika Guardian, 19 December 1930, Page 3

COUPON TRADING

TO BE STOPPED-. GOVERNMENT’S DECISION. IBy Telegraph — Frees As.mk-ihMoii i WELLINGTON, Deo' 18. The Minister of industries ami Commerce, Hon. Mr do la Perrelle, announced to-day that the Government, had decided to prohibit the issue of all forms of trading stamps and trading gift coupons after 30th June, 1931. Necessary regulations will probably ho gazetted next week. “During the. past,,few weeks,” .said the Minister,', “innumerable ■ representations .have been made to the, Goyr eminent,by organisations of retailers, merchants, manufacturers and traders, throughout the Dominion for the suppression of gift coupon schemes in their various forms other tlian that system which involves the granting of a percentage discount based on cash, or usual credit terms. The Government has carefully considered these representations, and the result o' -n----vestigations made into the matter showed that the operations of tradin'! stamp companies 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 e-sson-itiail purpose in the distribution of commodities, and that ultimately the c'-st of snob schemes must he borne either .wholly or in part by the consumer, thus adding to the cost of living. The Government considers it mod undesirable, especially at the present difficult period, that these schemes should be permitted to continue. The ordinary disomuit granted for cash or (he usual credit terms is not. affected hv the operations of the regulations about to be issued. Provision is bring made for the redemption of trading stamps and gift coupons ur> to 31st July, 1931. which is one month after the issue of trading stain ns and trading gift coupons must cease. The interests of the general public in H is direction are thus being safeguarded as far as possible, time being granted to enable them to continue witli tbe collection of stamps or coupons cntitlingJ 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 gilts." The Minister added that .as U'r hack as .1008 the Prohibition and Discount-Stamps Issue Act was passed for the purpose el prohibiting particular schemes ‘•uuilar . to the “universal” coupon scheme. A flaw has Wn revealed in that Act and in order that action could he taken without waiting until next session, prohibitive regulations ~r o bring issued. The amendment of the Act itself will he considered in connection with the Government s Legislative programme next session.