§ 3. Mr. SAKLATVALAasked the Under-Secretary of State for India whether, in view of the hardship caused to the poorer Indian peasants thereby, he will explain why anad valoremtax of 15 per cent. is placed upon hand looms entering India whilst the duty on power looms is only 2½. per cent.; and if he will say whether it is proposed in the near future to put into operation the recommendation as to hand looms contained in paragraph iii, pages 61–62 of the Report of the Indian Fiscal Commission, 1921–22?
§ Earl WINTERTONThe principle on which machinery, including power looms, is admitted into India at a low rate of duty is apparently that it is considered desirable to open the door freely to such articles as represent what may be called the fixed capital employed in productive industries. The Government of India have not stated that they propose to take any action on the recommendation of the Indian Fiscal Commission referred to by the hon. Member. A copy of his question will be forwarded to the Government of India.
§ Mr. SAKLATVALAWill the right hon. Gentleman, when he forwards the question to the Government of India, draw attention to the iniquitous burden placed on those British firms who have, at a 6 very high cost, developed this industry, and who have been penalised as compared with the traders in power looms?
§ Earl W1NTERTONIt is difficult within the recognised limits of an answer to a question to define the position of the. Secretary of State in a matter of this kind. No doubt the matter which the hon. Gentleman has brought forward was present to the mind of the Government of India when they imposed this duty, but the other reasons were considered by them to be overwhelming.