COUPON TRADING

Rotorua Morning Post, Volume 1, Issue 52, 23 October 1931, Page 3

COUPON TRADING

("Post" Special Commissioner)

BILL PASSED GIFT SCHEMES NOT DEALT WITH BY NEW MEASURE rECHNICAL REASON ADVANCED

WELLINGTON, Thurs. The Trading Coupons Bill, which provides for cash redemptions only of coupons after April 30 next. was passed by the House of Representatives to-day. Although an amendment designed to prohibit gift trading schemes was strongly supported, it was negatived by 38 votes to 28 votes. When the committee stage was resumed this afternoon a division was forced on the clause which stipulates that prosecutions can only he commenced with the consent of the Minister and the provision was retained by 45 votes to 20 votes. Mr A. E. Ansell (Reform, Chalmers) then moved his amendment, which aimed at prohibiting the description of subsidiary articles as "free gifts," at tbe same time protecting ordinary and customary trade discounts. He said his amendment would prevent the purpose of the Bill from being defeated since the restriction of the redemption of coupons would induce. traders to develop gift schemes. Gift Scheme Opposed* Evidence given before the Industries and Commerce Committee, continued Mr. Ansell, was strongly in favour of the abolition of gift trading and prominent firms had stated that, if the Bill were passed without dealing with the problem, tbe position would become mueh worse than at present. The gift system was regarded as being considerably more objectionable than the cou,pon system, and there 'was a widespread desire for its abolition. His fear was that without the amendment in the Bill, small traders would be pushed to the wall. Mr C. A. Wilkinson (Independent, Egmont), said traders were opposed to the gift system, which was regarded as a delusion aiid a snare. Straightout purchase for cash on quality was the ideal which should be encouraged. The Minister of Internal Affairs, the Honl A. Hamilton, said that the Government could not accept the amendment as it would take the matter further than the Government wished. Christmas Calendars The Leader of the Opposition, Mr. H. E. Holland questioned whether, if the amendment were carried, it would be possible for business houses to send out Christmas calendars. The Minister of Finance, the Hon. W. Downie Stewart, said that correspondence he had received showed that the great bulk of the traders were of the opinion that the Bill should cover free gifts. He suggested that the Minister should take further advice and see if it were not feasible to have an amendment on similar lines to Mr. Ansell's included in the Upper House, so that the cardinal point emphasised by the traders could be given effect to. The Minister said he was standing by the recommendations of the committee. Mr G. C. Munns (United, Raskill), who was chairman of the committee, said the majority of the committee had been in favour of the gift system being dealt with on the lines suggested by Mr Ansell, but the law draftsman had said it could -not be included in a bill dealing with coupons. Had it been possible to* incorporate such a clause, the committee would not have hesitated to do so. The amendment was defeated by 38 votes to 28 votes. The Bill was then read a third time and passed.