Leo Varadkar advocates consumers giving interest free 3 year loans to retailers

I was interested to read the results of a Fine Gael survey on gift vouchers. Leo Varadkar estimates that “€40 million worth of vouchers are never redeemed, representing a huge windfall for retailers”.

Seriously though – who’s fault is that? It’s hardly retailers fault that consumers don’t use gift vouchers presented to them? Or is it the retailers fault that a consumer gets a voucher and doesn’t bother making an effort to use it in the time period stated on the voucher?

Leo – cop yourself on! If I get a voucher that says I have three months to spend the cash, it’s my fault if I try to spend it in 4 months time, not the retailers.

If the terms and conditions on the vouchers are “unfair” or have the potential of “callously ripping off consumers” then isn’t it up to the consumers who purchase the vouchers to not actually buy them in the first place?

And as for your suggestion that there be a three year time expiry on vouchers, that’s nearly just as much of a gift to retailers as not using the vouchers at all.

In your proposed NCA supported fantasy world, giving a retailer €100 for a voucher now and allowing someone 3 years to spend it is the same as a 3 year interest free loan from the consumer to said retailer. And then take into account 5% inflation per year, the retailer only then has to hand over €85 worth of goods at the end of the loan period.

Shouldn’t you instead be encouraging consumers to use their vouchers as quickly as possible? It’s hardly good “enterprise or trade” to be encouraging consumers to be providing interest free loans to retailers with discounted repayment amounts?

Now, we know you’re only bringing this up because it was on Joe Duffy last week. He was talking about Muslims in Ireland today – when can we expect your press release on this?

Don’t you have anything better to be doing – like “marking” your counterpart who’s in the Department of Enterprise, Trade and Employment at a time when we’re losing hundreds of jobs per week?

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2 Responses to Leo Varadkar advocates consumers giving interest free 3 year loans to retailers

  1. simon February 13, 2008 at 15:09 #

    great post never thought of it as a loan

  2. Darwin February 16, 2008 at 13:54 #

    I’m pretty sure even fewer vouchers would be redeemed if the time limit were extended.

    Three years? No rush. Well, I’ll just put this yoke away somewhere safe(!)…

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