DUTY ON FOREIGN WINES.

HC Deb 13 May 1847 vol 92 cc734-42

DR. BOWRING

rose to bring forward the Motion of which he had given notice— That this House will immediately resolve itself into a Committee to consider of a reduction of the Duties on foreign Wines. This country had already made great alterations in its import duties, and he consid- ered that they should extend their liberal policy still further. The Lest method of carrying out the principles of free trade was by admitting the products of foreign countries on such terms as they should like the products of this country to be admitted abroad. By reforming our own tariffs, by encouraging imports, we should best secure the introduction of our articles abroad. We could only influence the legislation of other countries by associating their interests with our own, and giving the friends of extended trade with England additional means of action. It was a remarkable fact, that several hundred years ago the importation of wine into this country was greater than it was now. In the fourteenth century no less than 200 vessels, loaded with wine, brought cargoes from the Bordeaux district into England. If by a reduction of duty they increased the demand for foreign wines, the supply could be so increased that the price of the article would not be raised. This had been the case with regard to tea from China; and it would be so with wine, for wine was the fruit of every temperate clime; and in Europe, great as was its production, that production might be increased to an almost unlimited extent, and placed within the reach of the working classes. He believed that no limit could be placed to its importation. All wines from France paid 5s. 6d. a gallon, or about 1s. 1d. a bottle of duty. A change had taken place in the year 1831, when the duty on wine was lowered from 7s. 3d. to 5s. 6d., while Spanish and Portuguese wines were raised from 4s. 10d. to 5s. 6d. per gallon. The consumption, singular to say, was less now than it had been twenty years ago. In 1803 and 1804, the revenue received was 2,500,000l. for wine alone, the consumption being about 6,000,000 or 7,000,000 of gallons. In 1845 the consumption was 5,786,000 gallons, and the duty received was 1,900,000l. In Prance, where wine was so cheap as to be within the reach of all classes, the wines which were above the common qualities paid a duty of 3,000,000l. sterling. Wines afforded a curious history. They found that of the wines consumed in this country two centuries ago, two-fifths of the whole was the produce of France. From 1678 to 1744 it was one-twelfth of the whole consumption; from 1744 to 1785, the duties levied on French wines exceeded cent per cent the duty levied on the wines of other countries, and the importation did not approach within one- twentieth of the whole demand. From 1786 to 1806 duties levied on French wines had not been one-seventeenth of the whole which had been collected, the duty having been about one third more than that levied on the wines of Spain and Portugal. Now he could not but feel great interest in our connexion with France, and he was happy to be instrumental in any legislation which promoted, either politically or commercially, our connexion with that country, and which might promote the consumption of French wines. Much had been done by the southern provinces of Franco in favour of the more enlightened commercial policy which this country was now following. He might instance the exertions of the Chamber of Commerce of Bordeaux, who had in their memorials repeatedly pressed upon the Government the necessity of taking some measures to promote free trade. More than six hundred commercial establishments had signed these representations; and be it remembered, that Bordeaux and its neighbourhood produced annually 250,000 tons of wine, of which l–50th was sent to Great Britain. It appeared, from the statement of the French Excise, by whom he had formerly been favoured with information, that upwards of 800,000,000 gallons of wine were annually produced in France, of which not more than one-thirtieth part was exported to foreign countries. Of the gross quantity thus produced, the greater quantity was sold in France, at about sevenpence per gallon, or rather more than three halfpence per quart; Count Chaptal calculated that 4,000,000 of acres were appropriated in France to the cultivation of the vine—that the produce was 900,000,000 of gallons, and the value 28,000,000l. sterling—and he did therefore think that these were strong reasons for an alteration of the duties on the introduction of French wines. A considerable quantity of wine was produced in the Austrian dominions, as they found from the statements of Dr. Springer, who said that 3,200,000,000 gallons of wine were produced in those regions. In Hungary there were 2,000,000,000 gallons of wine produced; and in Transylvania 700,000,000 gallons per annum. No doubt, if they took the wines of these countries, the inhabitants would take their manufactures in return. Important statistics connected with the trade had been laid before the House. Wine might be obtained at 3l. per hogshead, which might be retailed at an equally low price. There was no country in Southern Europe which had not the means of affording this country a great supply of wine. He had often advocated a closer commercial relationship with the countries which bordered the Danube. Those countries were now giving us corn at the time of our most disastrous need; and but for hostile tariff's they would give us drink also. Though they could not taste the ancient classical Scian and Falernian wines, still the land where these were produced existed, under the same sun, with the same soil, and the same capabilities, all of which might again be made availing. Why should not the vineyards of Mareotis, Meroe, and Tœnia, be again wakened to fertility? There were excellent wines to be obtained in Tenedos, in Cyprus, and in the islands of the Archipelago, provided the absurd regulations of hostile tariffs were broken through; and the re-introduction of the Saprian, Lesbian, Chian, and Thasian wines, might again revive the old associations of classical memory. Italy had her Montepulciano and Chianti to offer us; and he believed her ancient fame might be revived, and the Falernian, Sabine, and Cœcuban wines again appear on our tables. But in Italy the vine cultivation had been sadly neglected. He did not know any better mode by which friendly relations between those countries could be strengthened than by receiving the commodities which those countries could produce. In 1801 the consumption of foreign wines in this country had been half a gallon per head; in the present year it was not more than one-fourth of that amount. In France the consumption was stated to be eighteen gallons per head on the average of the whole population, or twenty-six gallons per head in the towns, and sixteen in the rural districts —others estimated the consumption at twenty-five per head. In a state of vassalage, the slaves of Rome were reported to have consumed sixty-eight gallons per annum; and the people are said by Cato to have consumed eight amphoræ, or about fifty-three gallons per head. If England consumed only one-fifth of the quantity of wine used in France, namely, five gallons per head, the sum which would be raised for revenue at 1s. per gallon of duty would amount to 7,000,000l., a sum which the Chancellor of the Exchequer would surely be glad to receive. The wine duty in France produced 3,000,000l. sterling, though it was estimated that nearly one-half escaped taxation. And, looking to other countries, the diminished consumption of this country was made the more striking. In the Netherlands the consumption was twenty-four times greater per head than in England. In the Hanseatic towns it was five times greater. In Denmark, with a population of two millions, there was as much wine imported as into Great Britain, with twenty-eight millions. The facts to which he had drawn attention with regard to wine, that the increased consumption caused by a reduced duty, would enlarge the revenue to the Exchequer, was borne out by a reference to the consumption of other articles in this country. With regard to tea, it was a most remarkable thing that in 1821, when the price was 5s. 8d. per lb., the consumption per head was only 1lb.; and from 1831 to 1841, when the prices fell to 4s. 2d. and 4s. 4d. per pound, the consumption was increased to 1 lb. 4oz.; and in 1846, when, by a combination of circumstances, the price fell to 3s. 5d. per lb., the consumption increased to 1 lb. 10 oz. per head. Now, what was the effect of the reduction of duties on the revenue? In 1821, with a duty of 2s. 10d., the revenue on this article amounted to 3,738,000l.; in 1841, when the duty was reduced to 2s. 2½d. per lb., the revenue amounted to 3,978,000l.; and in 1846 to 5,100,000l. The results of this reduction of the duty were as strikingly apparent on the comforts of the people. In 1811, when the price was 5s. 11d. per lb., the total consumption was 23,000,000 lbs.; in 1821, when the price was reduced to 5s. 2d., it was 27,600,000 lbs.; and when it was reduced to 4s. 3d., the consumption was 31,000,000 lbs. In 1841, when the price was 4s. 1d., the consumption was 36,800,000 lbs.; in 1843, at 3s. 4d., it was 39,900,000 lbs.; and the latest test which they had, viz., the year 1846, the price being lowered to 2s. 11d. per lb., the consumption was 47,500,000 lbs. He could not but think that matters like those must make an impression on the House and the country. What, again, had been the case with brandy, on which the experiment of a large diminution of duty had been made, namely, from 22s. 10d. to 15s. per gallon? In 1841, when the high duty was in operation, the consumption was 1,164,000 gallons, and the revenue receipt was 1,329,000l.; in 1844, the consumption was 1,023,000 gallons, and the revenue 1,167,000l.; in 1845, it was 1,058,000 gallons, and the revenue 1,200,000l. It did not require a certain number of years for the revenue to rise to the same condition it was in before the duty was reduced. One year was sufficient to reinstate the revenue; for in 1846 the quantity of brandy imported was 1,500,000 gallons, and the revenue now was as much as it had been when the duty was 22s. 10d., namely, 1,166,000l. This gave them great encouragement to pursue the same course. The article of coffee bore out the same result. In the year 1841 the consumption was 28,300,000 lbs., and in 1846 it was 36,700,000 lbs., and the reduction of duty had been at one-third. The duties wore in 1841 6d. and 9d. a pound, but now they were 4d. and 6d. What, then, had been the effect of that reduction? In 1841 the revenue was 887,000l.; and now, with so great a reduction, it was 757,000l., a much greater amount than was returned in the year 1843, when the duties were 4d. and 8d. To take the result still later, as the months of the present year showed the amount. For the first three months of the year 1846, the sum was 186,000l.; and for the corresponding months of the year 1847,213,000l. So in the matter of brandy. For the first three months of this year the quantity entered was 362,000 gallons; in 1846 it was only 214,000 gallons; but in 1847 the consumption during these three months had been 271,000 gallons. Wine ought to be an article of universal consumption in this country; but the duty imposed on the article was so excessive that it was practically excluded from consumption in England. He wanted it to be accessible to the poor man. He wanted to enable him to purchase a bottle of wine at the same price he would give for a bottle of beer. Now, the Chamber of Bordeaux had stated that wine of good quality could be shipped at 3l. per hogshead, or 2½d. per bottle; at 51., or 4d. per bottle, a better wine; a still bettor at 8l., or 6½d. per bottle; and so on through various qualities, up to 4s. per bottle. At 2s. 6d. duty per gallon, these wines could be sold from 9d. to 5s. per bottle; and at 1s. duty, from 4½d. to 4s. 2d. per bottle. It appeared to him that he had made out his case. He thought he had proved to demonstration that if Government would only make the experiment upon a large and liberal scale, the article of wine might be in universal demand for home consumption. He believed it would improve the public health. It would augment popular enjoyment, increase the revenue, extend trade, and alto- gether give general satisfaction. On those grounds, without troubling the House further, he would take the liberty of moving that the House should immediately resolve itself into a Committee for the purpose of reducing the duty on foreign wines.

MR. EWART,

in seconding the resolution, expressed his conviction that a reduction of duty on foreign wines would give a most beneficial stimulus to the trade of this country. He considered that the questions of the reduction of the duties on wine, as well as of the duties on tea, tobaccco, and other articles, must eventually come under the consideration of Parliament as part of one great scheme. He believed that if this nation intended to do justice to its future commercial development, it would be necessary for Parliament to consider the general subject of taxation; and whenever that question came under the notice of the House, the policy of the wine duties must also be considered; but, though he took this general view of the subject, he would cordially support the more partial proposition of his hon. Friend. He did not think that the reduction of the duties on wine would in any degree impair the revenue, for he believed that the increased consumption would fully maintain the revenue at present derived from this source. He might observe that our export trade to France had very greatly increased since the reduction of our tariff; and he thought hon. Gentlemen would concur with him in opinion that it was most desirable to promote, so far as was possible, a friendly intercourse and the extension of commercial relations between this country and France.

The CHANCELLOR OF THE EXCHEQUER

observed, that the flattering results described by the hon. Member for Bolton as likely to follow the reduction of duty on foreign wines were not quite in accordance with experience; for the duty on French wines had been reduced in 1831, and it was not until 1844 that the revenue derived from duties on those wines reached the same amount which had been obtained from that source before the reduction took place. The hon. Gentleman who seconded the Motion had referred to the state of our export trade to France. He was ready to admit that it was most desirable to promote the free interchange of commerce between that country and our own; and the existence of such commercial relations would render it the mutual interest of both countries to maintain an amicable understanding. He must, how- ever, remind the House that although on this side of the water the duties on most of the imports from France had been reduced, this example had not been followed by a similar liberal reduction by France of the duties imposed on the imports of our manufactures into that country. But it would be satisfactory to hon. Gentlemen to know that, though this had been the case, yet, in spite of the restrictions still maintained by France, the quantity of British manufactured goods exported to that country had increased to an extraordinary extent since the reduction of our import duties on French articles. This country had, therefore, obtained an advantage, though it had not been so extensive as it might have been if the French Government had reduced their excessive duties upon our manufactures. In 1830 the whole value of British manufactures exported to France was only 475,000l.; in 1841 it was 3,610,000l.; and in 1845, it was 2,791,000l. It was clear, therefore, that this country had derived great advantage from reducing its import duties, although no similar concession had been made on the part of France. He was most desirous to promote, to the utmost of his power, the free interchange of commodities between the two countries; and for the sake of doing this he would willingly run some risk of loss to the revenue; but in the present state of our finances he did not think he should be justified in making the large sacrifice required by the hon. Member for Bolton; because experience had shown, that if the hon. Gentleman's suggestions were acceded to, there would be an immediate loss to the revenue, which could not be repaired until after the lapse of some years. Under these circumstances, therefore, he felt it his duty to oppose the Motion.

MR. P. BENNET

thought that the Government ought not to be called upon to reduce duty on foreign wines until the duties on malt, soap, and other articles which were much more necessary for the comfort of the people, and for which there was a much more general demand, had been reduced. He considered that it would be much more advisable to repeal the malt tax, which pressed most heavily on the labouring classes of this country, than to reduce the duty on French wines.

MR. HUME

was surprised that the hon. Gentleman should object to the Motion of the hon. Member for Bolton (Dr. Bowring); because, if that proposition were carried, the yeomen of some counties might be enabled to drink claret, to which, he believed, they had formerly been accustomed. In 1839 a diplomatic agent was sent to Paris by the English Government to endeavour to conclude a treaty on this subject; and if that attempt had been successful, they would now have had claret in this country at 2s. 6d. instead of 5s. 6d. a bottle, and he believed the revenue would have been very considerably increased. He would put it to the Chancellor of the Exchequer whether it was not possible to reduce the duty upon foreign wines without any serious loss to the revenue. He begged to refer the right hon. Gentleman to a despatch from Mr. Pakenham, which had been laid on the Table a few nights ago, referring to the result of the reduction of duties by the United States Government, from which it appeared that in the course of four months after the reduced duties came into operation, there had been an increase in the revenue of 1,000,000 dollars. They had reduced the duty on brandy; and why not now reduce the duty on wine? He had no doubt that individuals might be found ready to contract to pay the same to the revenue as was now paid in respect to the wine duty, if the duty were reduced one-half. The question was an important one, and the right hon. Gentleman ought to dispose of it in the way he had attempted.

MR. STAFFORD O'BRIEN

looked upon the present Motion as a halt between free trade and protection. Free trade he took to be the abolition of all duty, and how that could increase the revenue he was at a loss to understand.

DR. BOWRING

replied. He had heard nothing like an argument against his proposition. He thought he had laid a foundation for future reform, and, trusting that he might meet with more success at another period, he should for the present withdraw his Motion.