§ There remain the wine duties. Notwithstanding the heavy increases made in the beer and spirit duties in recent years the wine duties have remained untouched since 1899. Nothing but consideration pushed to its utmost limit for the feelings of our Allies, especially France and Portugal, would have justified me in making so large an increase in the beer and spirit duties last year whilst leaving the wine duties untouched, and I think the Committee will agree that it would not be possible to contemplate the further increases for which I ask this year in beer and spirits while leaving the wine duties at their present low limit. And if the Committee will allow me to remind them what the present rates of duty are, I think they will realise that there is room for an addition without any serious effect upon consumption. I could not under any circumstances expect that the wholly phenomenal clearances of last year would continue, but I think there is room for an increase—a substantial increase—in the wine duties without any greater fall in the consumption than I might otherwise have expected. The present rates for wine are 1s. 3d. a gallon for light wines and 3s. for heavy wines. In addition there is a surtax on wine imported in bottle of 1s. 88 per gallon on still wine and 2s. 6d. on sparkling wine. The wine duties thus work out at 2½d. a bottle on light wines, and 6d. a bottle on heavy wines, such as port and sherry, imported in cask. The surtax represents a further 2d. per bottle on still wine in bottle and a further 5d. a bottle on sparkling wine. These figures, I suggest, show a margin for further taxation. I propose to double all the wine duties and further to impose a special duty on sparkling wine. It will be seen from the figures I have given that the total duty now payable in respect of a bottle of sparkling wine is 7½d. Even after doubling the duty as I now propose, this figure only becomes 1s. 3d. and it is wholly disproportionate to the very high retail prices which are not only asked but obtained for these sparkling wines. I think they may well bear a heavy increase. But it has often been urged that the duties should bear a closer relation than at present to the relative value of the commodities taxed. I propose therefore that in addition to doubling the existing wine duty a 50 per cent. ad valorem duty should be levied on sparkling wines imported into this country. The average duty payable on a bottle of champagne at present import prices would be under my proposal about 6s. I am informed that a new class of champagne drinkers has come into existence since the War. They are not confined to any one stratum of society. It has been suggested to me that a new class of champagne has come into existence to meet their demands. If so, both consumers and consumed will in future I hope contribute to our revenue. By these proposals I expect to obtain £3,800,000 in the present year and £4,100,000 in a full year. The ad valorem duty on sparkling wines accounts for £1,800,000 of these figures in the current year, and for £1,900,000 in a full year.