SPIRITS. (Hansard, 8 June 1848)

§ THE CHANCELLOR OF THE EXCHEQUER

said, that early in the Session he had announced his intention of introducing a measure to remove some of the restrictions imposed by the existing laws of excise on the subject of spirits; and, having anxiously waited for an opportunity of doing so, he had not been able to obtain one until that evening. He would now state very shortly the object of the Bills which he proposed, with a view to their being introduced before Whitsuntide, so that an opportunity might he afforded to the parties interested of considering the details in the recess. He was happy to say, that the Bills consisted almost entirely of explanations of the existing laws, and on that account he hoped they would afford satisfaction to all immediately concerned. With regard to excise regulations generally, he would observe, that a return laid on the table last year, on the Motion of the hon. Member for Dumfries, showed to what an extent remissions in the excise department had already been carried into effect, He would state shortly that within the last few years the duties on stone bottles, starch, auctions, glass, vinegar, and tiles, had been repealed; while those on paper and on soap had been reduced. Very considerable relaxations had also been made 560 in the operation of the law with regard to articles on which the duty was still retained, such as malt, paper, bricks, and soap. Perhaps the best proof which he could give of the relaxation of the stringency of the excise laws was to be found in the decrease which had taken place in the number of prosecutions under the excise laws. No doubt some portion of this decrease was owing to the repeal of certain duties, in respect of which no offence could any longer be committed; but the decrease was very extraordinary, and the result could not but be considered satisfactory. He found from a return with which he had been furnished by the Excise, that in the year 1832 there were 4,309 informations heard before the magistrates; in the year 1847 the number was 1,688, being a diminution of 2,621. The summary informations before the Court of Excise Commissioners amounted in 1832 to 974; in 1847 the number was 206, being a diminution of 768. The informations in the Court of Exchequer amounted in 1842, only five years ago, to 183; in 1847 the number was only 74, being a diminution of 109. He thought this afforded satisfactory proof that the greatest pains were taken to prevent a breach of the law, and that the law was administered with as much consideration for the interests of the parties concerned as was consistent with the protection of the public revenue. The measure which he then proposed to introduce referred only to spirits. Though he should have been happy to propose changes affecting other articles, he thought that after the daily experience which they had of the great difficulty of actually carrying measures through that House, it was better that he should confine himself to the measures of most pressing importance, and which he saw the greatest prospect of bringing to a successful issue. The first Bill related to the warehousing of spirits, both for home consumption and for exportation. The House might be aware, that distillers in England were not then permitted to warehouse their spirits in Scotland; they had never been allowed to do so without paying the duty. This Bill would put the English distillers on the same footing as those of Scotland and Ireland. He proposed to permit the spirits of any one part of the United Kingdom to be warehoused in any other part without paying duty. Heretofore the English distiller had not been permitted to warehouse his spirits in Scotland, although the Scotch 561 distiller had been permitted to warehouse his spirits in this country. The English distiller would, in future, be in the same position as the Scotch, and would be relieved from the necessity of paying the duty within a limited time. This Bill, he believed, contained all that was requisite with regard to spirits for home consumption, giving to the distillers of the three kingdoms an equal power of warehousing in either of them. He now came to spirits for exportation. With regard to England, the present law gave a most unfair advantage to foreign spirits. Under the existing law, it was impossible for either the rectifier or the distiller of spirits to warehouse home-made spirits for exportation. The consequence was, that the Dutch distiller having brought his spirits to this country, put them in bonded warehouses; and when he found it convenient to do so, he took them out and exported them to our colonies. This advantage was not enjoyed by the English distiller. He proposed therefore to permit the English distiller to place in bonded warehouses rectified spirits, but not sweetened spirits—spirits which had been prepared to the utmost point short of sweetening—and to allow him to export them free of duty, thereby putting him on an equality with the foreign distiller. If sugar was added to the spirit, the action of the hydrometer, by which the strength would otherwise be ascertained was destroyed, so that it would be impossible to allow any spirit to be sweetened before it was put in bond; but when in bond the merchants might sweeten it as they liked, and transmit it for exportation. The only export trade in spirits to any great extent was carried on from Scotland, and a very considerable quantity was sent to the United States. The largest amount they had hitherto sent was 90,000 gallons; but in last year Scotland had only exported 50,000 gallons, and he attributed that decrease to the heavy duty, which amounted to nearly 100 per cent. He proposed, then, to permit the Scotch distiller to warehouse spirits free of duty, and to allow him a repayment, on exportation, not of 8d., but of 14d., and 5 per cent. He would thus allow the distillers of England, France, and Scotland, equal advantages; and he would not ask them to pay the duties till the spirits were taken out of bond. With respect to foreign exportation, he would allow them to export spirits on the terms he had mentioned, but could not permit spirits to be taken 562 out of the Customs warehouses for home consumption. The second measure he had to propose related to the present system of measurement and surveying. Hon. Gentlemen who had paid attention to this subject might remember that the Commissioners of Excise had reported to the House that the advantages of the system in England, Ireland, and Scotland, were by no means commensurate with the expense and trouble, and might be altogether discontinued, with this exception, that the Board of Excise should have the power of examining stock whenever they thought proper, He proposed, acting on that recommendation, to relieve spirits from the necessity of survey by an excise officer, although he would reserve a power to the Excise whenever there appeared any reasonable suspicion of fraud, to examine the quantity of spirits, and to take stock. There were various clauses which he would not then go into; and the only other provision of material importance which the Bill would contain with respect to spirits was to permit persons who now took out ten-guinea licenses to sell a less quantity of foreign liquors and spirits than they were permitted to do by law. The object of the Bill in that respect was to give to those who took out a five-guinea license (as we understood the right hon. Baronet) the power of selling the quantity which was sold by those who took out a ten-guinea license, and to reduce the quantity allowed to be sold by the latter, thus removing from a large class of persons the liability under which they at present lay to a very heavy fine, for breaches of the law which were committed every day. Every one knew that foreign liquors, such as noyeau and maraschino, were not bought in large quantities, but were retailed by Italian warehouses and such shops as occasion arose. This was a breach of the law, liable to a heavy fine; but as an illustration of the practice, he might state, that on examining the account-book in one of these shops, of some time back, the first name that appeared was that of his late Majesty King William IV.; on the next day came the name of his right hon. Friend the Member for Portsmouth, the Chancellor of the Exchequer (Mr. Baring); and on the following day appeared that of Mr. J. Wood, Chairman of the Board of Excise. He proposed to admit spirit-dealers to sell quantities of spirits down to one quart, instead of restricting them, as at present, to two gallons. He had had some doubt 563 whether the last provision should he extended to Ireland, for on looking to the returns of convictions for illicit distillation in that country during the last two years, he was sorry to say a most fearful increase was shown, notwithstanding the distress which had prevailed; but as he was anxious not to permit any difference to exist between the two countries, he had decided on giving a similar permission to Ireland, reserving to himself the power of recalling the privilege in case it should he abused. The right hon. Gentleman concluded by moving—

"1. That it is expedient to alter and amend certain of the Laws and regulations of Excise respecting the warehousing and removal of British Spirits in the United Kingdom, and their exportation therefrom to Foreign Parts, and the survey of dealers in and retailers of Spirits, and the sale and removal of Spirits by permit from the stock of such traders.
"2. That an Excise Duty of five pounds five shillings shall be paid by every licensed dealer in Spirits for an additional License, authorising such person to sell by retail any quantity (the same not being less than one reputed quart bottle) of Foreign Spirits or Liqueurs not to be drunk or consumed upon the premises."