§ These are, from the point of view of the Revenue, and of public interest, the most important of my proposals relating to licence duties; but I propose to take the opportunity of revising the whole system of Excise liquor licences—a system which is at present full of confusion and anomalies, both in law and practice, and to place it upon a simple and intelligible basis. These licences are divided into three main classes: (1) manufacturers' licences, (2) wholesale dealers' licences, (3) retailers' licences. Speaking generally, no licence of the first two classes requires a justices' licence; but, with a few minor exceptions, all the licences of the third class require such a licence. The considerations to which I have referred relating to monopoly value are, therefore, applicable only to licences of the third class, but this does not, of course, mean that a further contribution to the revenue by way of taxation cannot properly be required from the holders of the other classes of licences. Under the head of manufacturers' licences I propose to substitute for the present fixed duties of £1 and £10 10s. for brewers for sale and distillers of spirits respectively, graduated scales of duty according to the amount produced. In the case of the brewer's licence, the present payment of £l will cover a production of 100 barrels only, and 12s. additional will be charged for every 50 barrels or fraction of 50 barrels above that quantity. The distiller's licence will be £10 for any quantity not exceeding 50,000 proof gallons, with an additional £10 for every additional 25,000 or fraction of 25,000 proof gallons. For the other manufacturers' licences the duties will still be charged at fixed rates, but I propose to increase the licence for rectifiers of spirits from £10 10s. to £15 15s., and that for makers of sweets—a term which in this case does not, of course, mean confectionery, but British-made wines—from £1 to £5 5s. Makers of cider or perry will likewise pay a duty of £5 5s., except when they manufacture solely from fruit which they themselves produce, in which case the duty will not be chargeable. The system of taxing wholesale dealers' licences will be the same as that at present in force, namely, a fixed duty, but the 530 duty will be increased. There is, however, one important change, namely, that these wholesale dealers' licences will not in any case authorise retail sale, and the licences for wholesale dealing and retail sale are kept absolutely distinct. Subject to this qualification, the rates for wine (including sweets) and sweets will remain at £10 10s. and £5 5s. as at present. That for beer will be raised from £3 6s. 1d. to.£10 10s., and spirits from £10 10s. to £15 15s. A licence to deal by wholesale in cider and perry will cost £5 5s.
§ The existing additional licences for retail trade, issued in connection with some of the wholesale dealers' licences, will be abolished, and wholesale dealers who desire to engage in retail trade will be required to take out the ordinary retailer's off-licence, subject, however, to a reduction of 25 per cent. in the scheduled rate for that licence. A separate retailer's off-licence will be introduced in the case of spirits, and the spirit retailer will accordingly be relieved from the necessity under which he at present labours, of taking out a wholesale licence which he does not require. The manufacturer's licence will cover the sale by wholesale of his own product, and dealers' licences will not require to be taken out by manufacturers unless they desire to engage in independent business as dealers.