§ MR. SNAPE (Lancashire, N.E., Heywood)
I beg to ask the Chancellor of the Exchequer whether bounties are allowed on the export of any other articles than plain and sweetened spirits; whether he is aware that the bounty allowed on these exported spirits frequently amounts to a profit of 12 per cent. on their value; and whether, in view of the fact that in the last financial year a bounty of £28,538 6s. 5d. was allowed to distillers and exporters of plain spirits, and of £9,159 17s. 9d. to the compounders and exporters of the flavoured spirits which are chiefly exported to the natives of uncivilised lands, he will arrange in his Budget proposals for their abolition?
§ *SIR J. T. HIBBERT
Perhaps my hon. Friend will allow me to answer the question. Nothing which can be regarded as a "bounty" is given on the exportation of plain and sweetened spirits. An allowance of 2d. per gallon on plain and of 4d. on compounded spirits is paid by the Government on the exportation of spirits, as compensation for the increased cost of production resulting from the Excise restrictions on the processes of distilling and loss in rectifying. These allowances have been the subject of repeated consideration, and there appear to be no grounds for re-considering them at present.
§ SIR J. T. HIBBERT
I have already stated that it is not considered that spirits on export receive any bounty. They are freed from ditty. We do not charge our foreign customers our own 1368 duties, and to do so would destroy the export trade on articles subject to duty here.