WAYS AND MEANS—SUGAR DUTIES. (Hansard, 10 May 1854)

§ MR. WILSON
said, that it would be recollected that on a former evening, in passing Resolutions with respect to the sugar duties, it had been found impossible at the moment to arrange exactly the manner of dealing with the duty of sugar in breweries. That difficulty was now overcome, and he had therefore to move a Resolution making the duty on sugar used in breweries correspond with those agreed to in Committee the other evening. He had another Resolution to move also arising out of an omission, but an accidental one, on Monday night. That Resolution ran thus:— That, towards raising the Supply granted to Her Majesty, there shall be raised, levied, collected, and paid, on and after the 9th day of May, 1854, an additional Duty after the rate of fifteen pounds per centum upon the produce and amount of the Duties of Customs upon Sugar, which are now due and payable to Her Majesty. It would be observed by the Committee that the word "and molasses" were omitted. He doubted whether this omission was of any moment, as "sugar" really included "molasses;" but still, to put an end to any doubt, he proposed to move a Resolution extending the additional 15 per cent to the duty on molasses, making that additional 15 per cent payable from and after the 8th May, so as to commence with the additional percentage on sugar. The Custom-House authorities had already considered themselves justified in taking the 15 per cent to extend to molasses, they being advised by their counsel that sugar included that word. The hon. Gentleman concluded by moving Resolutions in accordance with his statement.

MR. HUME
said, the House had passed an Act declaring that the duties on sugar should remain at a given rate until the 5th of July, 1854, and he did not think they had any right to add 15 per cent to those duties before that time. He thought they ought to be very cautious not to violate existing laws in which other parties were concerned.

§ MR. THOMSON HANKEY
said, he believed it would be satisfactory to many persons interested in this matter if some fuller explanation were given on one important point. In the statement made by the Chancellor of the Exchequer the other night, he did not clearly explain whether he proposed to make any alteration in the standards of quality of sugars in this new system of duties. The importers of sugar would be affected by any alteration that might be made in the standard of quality, and he had, therefore, to ask the hon. Gentleman the Secretary to the Treasury to explain more fully the exact mode in which it was proposed to alter the scale of duties, and how far the new proposed scale differed from the one now in existence?

§ MR. WILSON
said, he would endeavour to state, in a few words, the distinction which they proposed to make in the new scale of duties. The Committee was aware that almost the only complaint at the present time in regard to the operation of the existing law was this, that the scale of duties did not operate fairly with respect to the various qualities of sugar. The producers of low sugars complained that, although nominally they paid the same amount of duty as the producers of the higher qualities, yet, in reality, they paid a larger duty, inasmuch as the article they produced did not yield the same amount of saccharine matter, and consequently of refined sugar, as that produced by the other parties. Now, he really assented to that statement; but the question was, how to remedy the evil. The Government had been strongly urged to allow refining in bond; but there were so many objections to that system, that the Government had resolved not to adopt it, at least under present circumstances. They had determined, in the first place, to attempt to equalise the duties upon a different plan. At the present moment there were three scales of duties applicable to colonial sugars. The first, 10s. per cwt. for the lowest class; the second, on sugars of the quality of brown and white clayed, 11s. 8d.; and the third, refined sugars, 13s. 4d. With regard to foreign sugars, the Act of 1848 provided for four scales. There was a scale, in the first place, for a quality below brown clayed; secondly, a scale for a quality equal to brown clayed; thirdly, a scale for white clayed; and fourthly, a scale for refined. The duty on the lowest quality of foreign sugar had never been applicable to colonial sugars; 121 and what they proposed was to attach a duty of 12s. per cwt. to the great bulk of yellow and the best quality of brown colonial sugars, and a duty of 11s. to the lowest qualities, thus making a distinction which had not hitherto been made. By that means they hoped to remedy the evil of which complaint was made. Upon the consideration of protecting the revenue, and making a fair apportionment of duty to the amount of saccharine matter contained, it was intended to modify the standard of white clayed sugars. With regard to the lowest scale—which would be charged with 11s. duty—or sugars of a standard not equal to brown clayed, it was a very low standard, and therefore admitted only a very small quantity—last year, he believed, only 9,000 out of 390,000 tons consumed. The Government proposed to raise that standard considerably, so as to let in a considerable portion of West India sugars not let in by the present standard. The chief object of the alterations would be to modify the standard in such a way that each quality might pay, as nearly as possible, duty in proportion to the real quantity of saccharine matter contained.

§ MR. GREGSON
said, it would be a very advantageous measure if there was one uniform duty on all classes of sugar.

§ MR. DUNLOP
said, he trusted the Government would, in the event of the differential rates of duty, according to quality, being carried, also consider whether differential drawbacks could not be allowed. With respect to the words in the Resolution, "from and after the 8th day of May," he objected to giving it a retrospective operation. On Tuesday night they had passed a Resolution, in which 15 per cent was added to the duties on sugar; nothing was said about molasses. The Resolution now proposed, therefore, became necessary; but according to all precedent, which it would be unwise for the sake of two days to disturb, increased duties took effect from the date when the Resolutions were passed.

MR. HUME
said, he was not aware, until now, that the omission of molasses had taken place, but he remembered a similar omission with respect to the timber duties for one day, and all transactions in the particular class of timber omitted for that day were free of duty. He did not believe it possible they could pass a Resolution on the 10th to come into operation on the 8th. Supposing individuals, know- 122 ing of the omission, had in the two days purchased molasses, they were not to be fined in the duties for the negligence of a Government department. He therefore objected to the 8th of May standing in the Resolution.

§ MR. WILSON
said, that although he had used the precaution of bringing in this Resolution, yet he did not think it was absolutely necessary to do so in order to include molasses, because the Resolution passed the other night declared that certain additional duties should be levied on sugar, and in every Act for regulating the duty on sugar molasses were treated as sugar. The Commissioners of Customs held themselves justified by the terms of the Resolution of Tuesday night in including the duty of molasses in that of sugar, but that there might be no dispute he proposed this Resolution. Had that not been the case he should have yielded immediately to the suggestion made, but as molasses had always been treated as sugar, and as the Commissioners of Customs considered molasses a description of sugar, he thought the Committee would feel no difficulty in passing the Resolution in the form proposed.

§ MR. HENLEY
said, the real question was, not what was the opinion of the Commissioners of Customs, but whether without this Resolution they could introduce into the Act of Parliament power to levy duty on molasses. There could be no doubt it was understood the 15 per cent was applicable to all kinds of sugar and molasses, and if the power of levying it on molasses could be introduced into the Act of Parliament there could be no difficulty.

§ MR. WILSON
said, there could be no doubt about that. The Commissioners of Customs had been already advised that they could collect the duties, and had collected them.

§ MR. HENLEY
said, he was very glad the Government had undertaken to modify the scale, but he thought it was very desirable full notice should be given as to the mode in which they would modify it, because it was a matter of importance to parties interested that the Committee should not be called on to come to any hasty decision. He was one of those who regarded the modification of the scale as a tardy act of justice to a certain proportion of sugar producers, on whose produce there had been a seeming, and not a real, differential duty.

§ MR. WILSON
said, he admitted the 123 question as to drawbacks, referred to by the hon. Member for Greenock (Mr. Dunlop), was an essential one. Hitherto export drawbacks had been allowed to two qualities of sugar—highly refined sugar, or loaf sugar, and the common brown sugar, the residue of the refining. But a practice had risen up in the trade of manufacturing various qualities—crushing sugars—and selling them in their manufactured state. It was suggested that, although the demand for them was at present confined to this country, yet an export trade might spring up in those qualities of sugar. The subject had received considerable attention, and he should be glad if, in connection with those in the refining trade, he could devise a plan to take intermediate drawbacks. If that could not be done in the present Bill, perhaps power might be taken, by Order in Council, or by order of the Treasury, to allow intermediate drawbacks on the varieties of sugar in the market. He was free to admit that the whole value of the measure depended not on the words of the Act of Parliament, but on the actual standard fixed. He had taken the pains to put himself in connection with practical men, to ascertain what would be a proper standard. He did not mean to say he was now ready to fix the standard, but he was ready, with the assistance of the refiners and East and West India merchants who might make representations through Members of the House, to consider the question, so that they might fix a standard which would be fair to the various parties interested. MR. HANKEY said, the proposal of the hon. Member for Lancaster (Mr. Gregson) to make one uniform duty was an extremely unsatisfactory mode of levying the duty to importers of sugar from the West Indies. They felt that the duty ought to be levied on the gross quantity of sacharine matter which the sugar contained, and on that principle had contended for refining in bond. An approximation towards that principle was now offered by Her Majesty's Government; it would be received as a boon by the West India body; and he begged on their behalf to thank the Government for it. He hoped they would fix a standard which should give the benefit to which he alluded.

§ MR. SANDARS
said, he wished to know whether the extra malt duty would be levied on all stock on hand, and whether allowance would be made for screening?

§ MR. WILSON
said, the increased duty would be levied on all holders of malt of every description. An erroneous impression had got abroad that it would be levied on the large consumers, and not on the dealers. Such was not the case. As to the allowance, he believed three, four, or five per cent would be allowed for screening.

§ MR. HENLEY
said, he wished to know if it was to be understood that private persons were not dealers?

§ MR. WILSON
said, he should perhaps have said factors. He did not suppose the Excise Office would follow small dealers. He might mention that, as an additional security, there would be a clause in the Bill which would enable the officers to require the factors and dealers to state on oath what stocks of malt they had on the day the Resolution was passed.

§ MR. DUNLOP
said, he was not quite satisfied with regard to the point as to molasses. If it was the case that the Resolution carried the other night really did include molasses, no injury would be done by leaving out these retrospective words. The hon. Gentleman (Mr. Wilson) said it was to prevent disputes, but disputes were more likely to be caused by putting in retrospective words, contrary to the usage of Parliament. He should be very unwilling to divide the Committee, but they ought to adhere to the ordinary form of these Resolutions.

§ MR. ALEXANDER HASTIE
said, as to molasses being sugar, it was all nonsense. Molasses were always scheduled separately and distinctly. If his hon. Friend divided the Committee, he should feel constrained to vote with him. He had no doubt but that the decision of the Government on Monday last had already been acted upon in Glasgow and Greenock. He considered that it would be very unfair to go out of their way to make alterations, and he thought that they ought to consider well how, for the sake of the war, they trespassed upon and broke through the established usages of the country.

§ MR. HANKEY
said, he hoped that the hon. Member would not divide the Committee. Nobody could possibly have been wronged. He would venture to say nobody had paid a different duty than they would have paid under this Resolution. He had not the smallest doubt the head of the Customs had taken care to inform every one what would be the proposed rate of duty, and that proposed rate was understood by every one to include molasses as 125 part of the ordinary classes which were scheduled in all Acts relating to sugar. Instead of facilitating, the alteration of the Resolution would embarrass the Custom House, by raising a doubt as to the object and intention of the Resolution already passed. He was quite sure nobody in the trade had been deceived, and it would only be misleading the public connected with the trade if they implied any doubt as to what ought to be the course taken by the Custom-House officers. If there was any doubt, it must be settled by the law officers of the Crown; it could not be settled by a Resolution of that House.

MR. HUME
said, that invariably from the passing of the Resolution the Customs were warranted in levying the duties. It would be dangerous to admit the precedent that a Resolution of the 10th would justify their collecting duties on the 8th and 9th, and therefore he should propose to strike out the words "from and after the 8th of May." A retrospective vote was not consistent with the character of that House, and he would certainly divide the Committee upon the question.

§ MR. WILSON
said, in the present state of the House, if he opposed the alteration, probably on a division they would discover there was no House; he should have the Resolution thrown over to another supply day, and, therefore, lose two days' more duty. The most discreet plan, he supposed, was to substitute the 10th to the 8th. He was quite ready to trust to the state of the law for the two days' duty.

§ MR. CRAUFURD
said, he wished to know if they were to understand that molasses were not included in the two days?

MR. HUME
said, he understood that if the Customs were right in their interpretation of the law, molasses cleared on those two days would be liable.
Resolved— 1. "That, towards raising the Supply granted to Her Majesty, there shall be raised, levied, collected, and paid, on and after the 10th day of May, 1854, an additional Duty, after the rate of fifteen pounds per centum, upon the produce and amount of the duties on Molasses, which are now due and payable to Her Majesty in the United Kingdom, under the management and direction of the Commissioners of Her Majesty's Customs. Resolved— 2. "That, towards raising the Supply granted to Her Majesty, there shall be raised, levied, collected, and paid for and upon all Sugar which, after the 10th day of May, 1854, shall be used by any Brewer of Beer for sale in the brewing or making of Beer, the Duty of Five Shillings and Twopence, for every hundred weight, and after 126 the like rate for any greater or less quantity than a hundred weight of such Sugar; in lieu of the Duty of Excise chargeable on such Sugar, under the 3rd section of the Act 13 & 14 Vic. c. 67, but over and above all other Duties, whether of Excise or Customs. House resumed.