HC Deb 21 June 1916 vol 83 cc183-7

(1) There shall as from the first day of May, nineteen hundred and sixteen, be charged, levied, and paid upon table waters as defined by this Section im- ported into Great Britain or Ireland, the following duties of Customs, that is to say:

On table waters which contain as the result of the ordinary process of manufacture, or are prepared in the ordinary process of manufacture with, sugar or other sweetening material, or which are fermented beverages, a duty at the rate of four-pence per gallon; and

On any other table waters a duty at the rate of eightpence per gallon.

(2) In this section "table waters." includes any aerated waters and any beverages to be sold or kept for sale in bottles other than—

  1. (a) Any liquor for the retail sale of which an Excise licence was at the time of the passing of the Finance (New Duties) Act, 1916, required; and
  2. (b) Syrups or other liquors intended to be consumed only in a diluted form.

Sir J. D. REES

This Clause indicates some compunctious visitation of conscience on the part of those who are generally ready to penalise the moderate drinker, the man who follows the prophet and observes the Evangelistic recommendation of drinking wine for the stomach's sake. I desire to know whether it is intended equally to penalise French Allies and enemy table water. I do not quite understand how that is. If you take table waters as denned, imported into this country, it would look like as if you would affect Appollinaris in the first instance. That is a German water. Then there is Contrexeville, which allays the pangs of gout and is French, and Evian, which is as soft as silk and as mild as milk and is also French. Is it an accident that they are all lumped together under Customs Duty, and is it intended, whether they come from the friendly French or the hostile German, that they should come alike under the Customs Tax? In Sub-section (2) table waters includes any aerated waters and any beverages to be sold or to be kept on sale in bottle. Does bottle include flask and stone jar, because table water used to be imported in stone bottles? Will the right hon. Gentleman kindly answer these questions? I will not detain the Committee a minute longer, except to make this one remark, that if this is to be considered a great victory for the drinkers against teetotalers, it must be remembered that these table waters are properly used for diluting strong drinks, and this tax is paid quite as much by the moderate drinker as by the teetotaler or any other man.

Mr. LOUGH

I wish to ask the right hon. Gentleman why this Clause has wan- dered out of the Finance (New Duties) Act into this Bill? I remember well that there were no Customs Duties on mineral waters, and with his usual courtesy the right hon. Gentleman explained to me-that everything was covered by Excise-Duty. But here I find a new Clause which' ought to have been in the other measure.

The FINANCIAL SECRETARY to the TREASURY (Mr. Montagu)

In answer to the hon. Member for Nottingham (Sir J. D. Rees), I would point out that this duty applies to all waters, of whatever sort or kind, that are imported into this country. If these importations are going on of which he speaks, I trust he will give the authorities information, in order that the matter may be dealt with, not by tax, but by the provisions of the law.

Sir J. D. REES

Is it a purely temporary tax, or how long is it to continue?

Mr. MONTAGU

If the tax is in existence where there is importation of waters from countries which are now enemy countries, then will be the proper time for my hon. Friend to raise the question.

Sir J. D. REES

After the War, if this tax is continued, French waters will be subject to this duty. That is the point I am on now.

Mr. MONTAGU

All imported waters are subject to this tax. With regard to a glass, or a jar, or a bottle, the hon. Member will recollect that when the Finance (New Duties) Act was passed earlier in the Session the definition was made that a bottle included a stone jar. In reply to the question of my right hon. Friend the Member for Islington (Mr. Lough), if I may refresh his memory, I think he will see what is the explanation. When the tax on mineral waters was originally proposed it was to be levied by a stamp on the cork or bottle, but that would have had to be put on imported waters as well as upon home-made waters before they could be sold. In the course of the Debate it was decided to substitute a duty on waters, and then it became necessary to have corresponding Customs in regard to the home manufacturer as against the foreign competitor. Therefore, we have put into this Bill the second duty, which apparently was thought not to be necessary until it was occasioned by the alteration suggested in the course of the Debate.

Sir GEORGE YOUNGER

I would like to ask one or two questions of the right hon. Gentleman. It is proposed to place light beers which contain 2 per cent, of proof spirit under this tax because they are made in breweries, while other liquids which are stronger and which are much favoured by the Board of Control are not taxed, and are not made in breweries.

Mr. MONTAGU

The right hon. Gentleman is referring to an old grievance, and I do not think this is the time or place to raise it.

Sir G. YOUNGER

On the contrary, it is not an old grievance; it is a new grievance. These light beers are now sold, and are very much pushed by the Board of Control, who I do not think know much about the matter.

Mr. MONTAGU

I do not think, in levying the tax, we should regard competition as between one drink and another.