§ Wine has done badly. As I said last year, the wine duties have for many years been a falling source of revenue. Instead of the small increase of £14,000, for which I estimated, the revenue from wine shows a further decline of £146,000. 1049 This may in part be due to a change in taste; it is undoubtedly in part owing to lessened purchasing power among the consuming classes. But it is also suggested to me by those in the trade that it is in part due to the growing competition, largely, as they allege, a fraudulent competition, of wines made in this country. It is asserted that there is a very considerable amount of wine manufactured in this country, partly from imported grape must, more largely from currants and raisins, and that this wine, known to the trade as "basis" wine, is sold to the British consumer partly as it stands, but more commonly in mixture with imported wine, under the names of genuine imported wines. By my instructions the Inland Revenue have made careful inquiry into this matter, and have received material assistance from most of those concerned in the matter one way or the other. I am bound to say that I think the allegations made are very much exaggerated, though probably a considerable amount of fraud is practised upon the British consumer and on foreign and colonial wine producers by the sale of these spurious wines under names to which they have no right. But the information at our disposal is at the present time too meagre to allow of any large measures of reform or largo changes in our system being proposed to the Committee, though I think it would be desirable, that we should bring the manufacturers of this British wine under revenue observation and control by imposing upon them an obligation to take out a licence at a small fee. similar to that which is exacted from the makers of British vinegar for the protection of the revenue. That, however, is a matter with which I do not propose to deal in the present Budget; it must remain for consideration by the Committee and the House on another occasion.
§ So far the gains and losses on the Customs revenue pretty nearly equalised one another, though there is a slight balance in favour of the gains.