HC Deb 21 June 1921 vol 143 cc1311-3

Section four of the Finance Act, 1918 (which provides for the reduction and allowance of duty in respect of spirits used in medical preparations or for scientific purposes), shall apply also to spirits used in hospitals on prescription, while Section seven, Sub-section (1), of the Finance Act, 1920, shall not apply to wines supplied on prescription in hospitals, and the Commissioners of Customs and Excise may make regulations for carrying this provision into effect.—[Mr. Lyle.]

Brought up, and read the First time.

Mr. LYLE

I beg to move, "That the Clause be read a Second time."

I moved this Clause last year on behalf of the hospitals and I am afraid the late Financial Secretary to the Treasury was fearful of what might happen to spirits in hospital once the cork had been taken out of the bottle. But I am putting this forward this year because there is a different Chancellor of the Exchequer and he comes from across the border. I am hopeful he will be slightly more sympathetic and less fearful of what may happen when the cork does come out of the bottle. The hospitals have to pay the full spirit duty—which is very heavy—and we are all very sympathetic with hospitals. During the War the Red Cross hospitals used to get their spirits at a much reduced duty, and all that I am asking is that the hospitals, which are so badly off just now, should be allowed this small concession.

Mr. H. YOUNG

As stated by the hon. Member who moved the Amendment, this is a proposal which has been put forward more than once before, and it has never been possible to receive it favourably from the point of view of the revenue. A considerable concession has been made to hospitals in regard to exemption on spirits actually used in medical prescriptions. This goes a little further. The great objection would be that it would constitute a very serious breach of the control of the Inland Revenue over the use of spirits. I think, if my hon. Friend who moved the Amendment were acquainted with some of the opinions of hospital authorities which have been prominently brought before me, he would find many responsible authorities who were reluctant that the hospital authorities should undertake such difficult responsibilities as those which he proposes. It is regarded by a responsible body of opinion that the danger of abuse which would exist would not compensate the hospitals for the benefit they would receive pecuniarily from this exemption. It is for these reasons, both in the interests of the revenue and of the hospitals themselves that it has never been possible to accept this particular recommendation, and for the same reason it is not possible to accept them on the present occasion.

Mr. LYLE

I do not desire to divide the Committee on this occasion. But the Financial Secretary has stated that if I were a little more acquainted with the history and the working of hospitals I should find that there was reluctance to undertake the responsibilities proposed. I would like to say that I have a considerable acquaintance with the work of hospitals.

Mr. YOUNG

I had not intended to convey any impression of that sort. I know the hon. Gentleman is very well acquainted with all aspects of hospital work, and I was accepting his authority; but some opinions are expressed more vocally than others, and there is this opinion. It may not be the opinion of the majority, but still it is an opinion entitled by its intrinsic merits to some weight.

Mr. LYLE

I accept that, but the British Hospitals Association quite approve of this Amendment. I desire to withdraw it.

Motion and Clause, by leave, withdrawn.

Mr. HOLMES

On a point of Order. Is not my new Clause to amend 10 and 11 Geo. V., c. 18, s. 52, in order?

The CHAIRMAN

This is, I understand, an exemption from Corporation Profits Tax. I think we dealt with that on Clause 40 yesterday. One or two proposed exemptions were discussed, and the present one is therefore out of place here.

Mr. HOLMES

I understood it would be in order here.

The CHAIRMAN

I am afraid I cannot take cognisance of that. Subject to what Mr. Speaker may say, it would be in order on the Report stage, and the difficulty of it being out of place would not then arise.

Mr. HOLMES

I had an Amendment down on the Clause. I understood that it would be in place here, and therefore gave notice that I would not move my Amendment earlier.

The CHAIRMAN

I much regret if that was the intimation given. The undertaking given to the hon. Gentleman then would hold good on the Report stage.