HC Deb 17 May 1909 vol 5 cc9-11
Mr. ROBERT HARCOURT

asked the Chancellor of the Exchequer if he can specify the articles in the chemical, medicine, and perfumery trade into the price of which the cost of spirit enters as a factor and which may be raised by the increased duty?

Mr. LLOYD-GEORGE

I am unable to give the information asked for.

Mr. ROBERT HARCOURT

asked the Chancellor of the Exchequer if he has received representations from organised bodies of chemical or perfumery manufacturers or of wholesale or retail chemists protesting against the increased duty on spirit; if so, from what bodies; and, if so, what action he proposes to take?

Mr. LLOYD-GEORGE

I have received some representations on this subject, including a communication from the Pharmaceutical Society of Great Britain. As regards the last part of the question, I cannot at present add anything to the replies which I have already given.

Mr. ROBERT HARCOURT

asked the Chancellor of the Exchequer if he can indicate the nature of the difficulties stated by him to stand in the way of granting a rebate of the increased duty on spirit used by chemists; and if he can say whether it was possible to surmount those difficulties

Mr. LLOYD-GEORGE

It would be difficult to provide an effective check which would ensure that the spirit was used only for strictly chemical purposes and to prevent frauds which might involve serious loss to the Revenue. As at present advised, I am doubtful whether it will be possible to devise means for surmounting these difficulties.

Lord ROBERT CECIL

Why is it more difficult to check fraud in the case of chemists than in the case of using spirits for manufacturing or commercial purposes?

Mr. LLOYD-GEORGE

I can only act upon the advice given by my experts; they tell me it is much more difficult. I am not quite sure of the reason, but I will try and find out.

Mr. HUGH LEA

Is it not a fact that spirits used for manufacturing purposes are rendered importable before being used?

Mr. LLOYD-GEORGE

That is part of the regulations.

Mr. AUSTEN CHAMBERLAIN

Seeing the concession made the other day by which it was rendered necessary that spirits used for industrial purposes should be rendered impotable on the very ground that it would check trade, perhaps the Chancellor would look into that?

Mr. CHIOZZA MONEY

May I ask my right hon. Friend if his answer does not show how difficult it is to prevent taxes on materials injuring trade?