§ 66. Mr. LOUGHasked the President of the Board of Trade whether he is aware that the freight on tea from Colombo to London has been increased from about 35s. per cubic ton before the War to some 245s. at present; whether he can state how far this increase of freight is rendered necessary by increased cost of labour or insurance; and what proportion of the residue is taken by the Government under the Excess Profits Tax or other impositions on the shipowners?
§ Sir L. CHIOZZA MONEYMy right hon. Friend has asked me to reply. The figures given in the first part of the question are approximately correct. It is not possible to answer the second part with any precision, but as regards the third part the liners concerned are now trading under Government requisition, and all receipts over and above the agreed rate of hire are paid into the Exchequer.
§ Mr. LOUGHCan the hon. Gentleman give any idea of what, in this particular case, may be the surplus which is paid into the Exchequer?
§ Sir L. CHIOZZA MONEYWell, I can hardly give the precise figure, but I imagine that the Blue Book rates are about 100s.; by a process of subtraction my right hon. Friend will see the balance paid into the Exchequer.
§ General Sir IVOR PHILIPPSDoes the increased cost of transport really increase the price of tea put on by the Government without the prior permission of this House?
§ Sir L. CHIOZZA MONEYWell, the position is this: that the liners are requisitioned, and when goods are carried for Government purposes the Government have the advantage of the Blue Book rates; when goods are carried for private firms the Government gets the advantage of the difference between the Blue Book rates and market rates.
§ Mr. HOUSTONProfiteering! Is the hon. Gentleman aware that the Blue Book rates are only about half what he has indicated; therefore the Government is to that extent, profiteering?
§ Sir L. CHIOZZA MONEYMy hon. Friend will see that in the particular case tea coming from other parts of the Indian Empire comes at very much less than the Colombo rates; therefore, were we so unwise as merely to charge that rate upon a small part of the supply, the people of the country would not gain the advantage and the Government would lose the balance.
§ Mr. HOUSTONWill the hon. Gentleman explain why the shipowner is held up as a scapegoat for the Government?