§ MR. C. B. RENSHAW (Renfrew, W.)I beg to ask the Secretary of State for India whether the countervailing Excise duty on Indian-made cottons is to be charged only on counts above 21s.; and, if so, whether he can state what proportion the cotton yarn spun in India above 21s. bears to the total annual production of the Indian mills; whether it is the case that cotton yarns 21s. or under, spun in India at Bombay, and shipped to the port of Rangoon, will be admitted free of all duty, whilst similar yarn spun in this country will be subject to the duty of 5 per cent.; and, whether Indian yarn above 21s. will be taxed on its grey value only, whilst dyed yarns exported from this country, as is the case with turkey red yarns produced in the Vale of Leven, 296 in Dumbartonshire, will have to pay duty on the value of the dyed yarn, and that this will practically make the duty on the Scotch yarn twice as much as the duty on the Indian yarn, and will seriously prejudice the position of the Scotch manufacturers?
§ MR. H. H. FOWLER(1) The Cotton Duties Act, 1894, imposes Excise duty on yarns made in Indian mills of any count above 20s. I cannot give statistics of Indian-made yarns above 21s.; but the papers distributed yesterday show that not more than 6 per cent, of the yarns made at Indian mills are of counts over 24s. (2) It is the case that no Customs duty is payable upon Indian yarns conveyed by sea or otherwise from one part of India to another. (3) The Excise duty is levied on Indian yarns as grey yarns, and Customs duty ad valorem on imported dyed yarns; but I am not prepared to admit the inferences indicated in the hon. Member's question. I have forwarded the statement of the Scotch manufacturers on this subject to the Indian Government, and am waiting for their observations thereon.