HC Deb 18 July 1927 vol 209 cc159-73

I beg to move, in page 9, line 9, to leave out the words "is imported after the date of the passing of this Act," and to insert instead thereof the words has been since the twenty-fifth day of April, nineteen hundred and twenty-seven, or is hereafter imported. This Amendment, like the last one, is very simple and modest. In Clause 19 a provision was made in the Committee stage which would have the effect of exempting from the paper duties imposed by the Finance Act of last year, paper of a special character, made only in two factories in the world, imported into this country and spun into yarn by one or two small industries. The provision itself was very useful and, as the representative of a constituency which contains one of these industries, I welcomed it. My anxiety now is that the benefit of that exemption should be given as from a date which I have stated in the Amendment as 25th April, 1927. I think, having regard to the fact that the duty imposed on paper has such a serious effect on these industries, and that it was not intended to have that effect, I might reasonably have asked that the amount of duty which has been paid by these industries since the passing of the Act last year should be refunded to the firms concerned. I am contenting myself, however, with asking that there should be an Amendment of the kind I now propose, so that paper coming forward, as well as paper which has arrived in this country since 25th April of this year, shall be, so far as it is consigned to these particular businesses, for their particular purposes, be exempt from the duty.


I beg to Second the Amendment.

I do so because the Amendment proposes to lessen, so far as any Amendment can lessen, the disastrous effects of the decision which was come to last year to extend the principle of safeguarding to the raw materials of industries. It is impossible to exaggerate the ill-effects of this duty on the textilose industry in Lancashire. When this matter was debated a year ago, a large number of Conservative Members from Lancashire pointed out the danger of taxing raw materials. The result of the duty has been that, whereas a year ago this was a flourishing industry, making yarns by means of paper, and furnishing the raw material for the carpet indistry, now, owing to the imposition of this duty, these works at Trafford Park have been practically closed down and hundreds of people have been dismissed, while foreign carpets, fully manufactured, have come in free of duty. The imposition of a duty on the raw material has left the British industry absolutely stranded. All we can do now is to lessen the injury so far as that can be done by legislation. Clause 19 is not perfect, but it tries to meet the case of the textilose industry, and the Amendment is an attempt to lessen the harm and to enable this industry to recover from the effects of hasty and ill-considered legislation.


The Mover and Seconder of the Amendment have given a not altogether accurate account of the effects of this duty which has greatly increased employment in this country. There is one exceptional case, and the Government on the last occasion when an Amendment was moved accepted that Amendment exactly in the form in which it was moved. On that occasion, no voice was raised in criticism of that Amendment. Now hon. Members are asking for something more, something entirely inconsistent with the practice of the Customs, and something which was not put forward by the supporters of the Amendment moved on the last occasion. It would be quite impracticable, so the Customs inform me, to take the Amendment in this form. They would have to be satisfied that the paper which is, in fact, already imported for these factories had found its way into the factories. They would have to be satisfied as to the destination and use of each consignment. Because of the particular circumstances of this case, and the fact that the paper is of a unique class, they have made this exception, but it would be impossible for them to check the consignments which have already been introduced into this country. Therefore, I cannot accept the Amendment.


I think the President of the Board of Trade is most unreasonable in this case, as he always is. The only time when we meet with any sympathy in these matters is when he leaves us to the tender mercies of the Parliamentary Secretary who, at least, has courtesy and is ready to listen to argument and reason. The right hon. Gentleman thinks it is his business to rule this House in the manner of an autocrat. Here we have a case of an industry which has been nearly ruined by this so-called "safeguarding" of industry. This industry was apparently doing a good home trade and also a good export trade, though the right hon. Gentleman seems to despise export trade. I happen to know a very enterprising firm which was investing capital in a new enterprise, but the right hon. Gentleman's ingenuity found a way of closing down the works for a whole year. Now this reasonable proposal is put forward by the Member for the district, that some of the harm that has been done should be undone, but the right hon. Gentleman says that it would be inconvenient to the Customs officials. The Customs officials have been multiplied exceedingly, and kept busy, and now, forsooth, because of the inconvenience to these officials, the right hon. Gentleman cannot accept this Amendment.

Question put, "That the words proposed to be left out stand part of the Bill."

The House divided: Ayes. 249: Noes, 120.

Division No. 271.] AYES. [9.58 p.m.
Acland Troyte, Lieut.-Colonel Brittain, Sir Harry Conway, Sir W. Martin
Albery, Irving James Brocklebank, C. E. R Cope, Major William
Alexander, E. E. (Leyton) Broun-Lindsay, Major H. Couper, J. B.
Alexander, Sir Wm. (Glasgow, Cent'l) Brown, Col. D. C. (N'th'l'd., Hexham) Courtauld, Major J. S.
Allen, Lieut.-Col. Sir William James Brown, Brig.-Gen. H. C. (Berks, Newb'y) Courthope, Colonel Sir G. L.
Ashley, Lt.-Col. Rt. Hon. Wilfrid W. Buchan, John Cowan, Sir Wm. Henry (Islingtn., N.)
Baldwin, Rt. Hon. Stanley Buckingham, Sir H. Craig, Capt. Rt. Hon. C. C. (Antrim)
Balfour, George (Hampstead) Burney, Lieut.-Com. Charles D. Craig, Sir Ernest (Chester, Crewe)
Balniel, Lord Butler, Sir Geoffrey Crooke, J. Smediey (Deritend)
Banks, Reginald Mitchell Butt, Sir Alfred Crookshank, Col. C. de W. (Berwick)
Barclay-Harvey, C. M. Cadogan, Major Hon. Edward Crookshank, Col. H.(Lindsey, Gainsbro)
Barnett, Major Sir Richard Campbell, E. T. Cunliffe, Sir Herbert
Beamish, Rear-Admiral T. P. H. Carver, Major W. H. Dalkeith, Earl of
Bellairs, Commander Carlyon W. Cassels, J. D. Davidson, J.(Hertf'd, Hemel Hempst'd)
Bennett, A. J. Cayzer, Sir C. (Chester, City) Davies, Maj. Geo. F. (Somerset, Yeovil)
Betterton, Henry B. Cecil, Rt. Hon. Sir Evelyn (Aston) Davies, Dr. Vernon
Bird, E. R. (Yorks, W. R., Skipton) Chadwick, Sir Robert Burton Davison, Sir W. H. (Kensington, S.)
Boothby, R. J. G. Churchill, Rt. Hon. Winston Spencer Dawson, Sir Philip
Bourns, Captain Robert Croft Churchman, Sir Arthur C. Dean, Arthur Wellesley
Bowyer, Capt. G. E. W. Clarry, Reginald George Dixey, A. C.
Brass, Captain W. Cobb, Sir Cyril Drewe, C.
Brassey, Sir Leonard Cochrane, Commander Hon. A. D. Eden, Captain Anthony
Briggs, J. Harold Cockerill, Brig,-General Sir George Edmondson, Major A. J.
Elliot, Major Walter E. Jackson, Sir H. (Wandsworth, Cen'l) Reid, D. D. (County Down)
Ellis, R. G. James, Lieut.-Colonel Hon. Cuthbert Remer, J. R.
Elveden, Viscount Jones, G. W. H. (Stoke Newington) Rice, Sir Frederick
Evans, Captain A. (Cardiff, South) King, Commodore Henry Douglas Richardson, Sir P. W. (Sur'y, Ch'ts'y)
Everard, W. Lindsay Kinloch-Cooke, Sir Clement Roberts, E. H. G. (Flint)
Fairfax, Captain J. G. Knox, Sir Alfred Roberts Sir Samuel (Hereford)
Falle, Sir Bertram G. Lamb, J. Q. Ropner, Major L.
Fermoy, Lord Lister, Cuniffe-. Rt. Hon. Sir Philip Russell, Alexander West (Tynemouth)
Fielden, E. B. Lloyd, Cyril E. (Dudley) Rye, F. G.
Finburgh, S. Loder, J. de V. Samuel, Samuel (W'dsworth, Putney)
Forestier-Walker, Sir L. Long, Major Eric Sandeman, N. Stewart
Foster, Sir Harry S. Looker, Herbert William Sanders, Sir Robert A.
Foxcroft, Captain C. T. Lougher, Lewis Shaw, R. G. (Yorks, W.R., Sowerby)
Fraser, Captain Ian Lucas-Tooth, Sir Hugh Vere Sheffield, Sir Berkeley
Fremantle, Lieut.-Colonel Francis E. Lumley, L. R. Shepperson, E. W.
Galbraith, J. F. W. Macdonald, Capt. P. D. (I. of W.) Simms, Dr. John M. (Co. Down)
Ganzoni, Sir John Macdonald, R. (Glasgow, Cathcart) Smith-Carington, Neville W.
Gault, Lieut.-Col. Andrew Hamilton McDonnell, Colonel Hon. Angus Spender-Clay, Colonel H.
Gibbs, Col. Rt. Hon. George Abraham Maclntyre, Ian Sprot, Sir Alexander
Goff, Sir Park McLean, Major A. Stanley, Lieut.-Colonel Rt. Hon. G. F.
Grace, John Macmillian, Captain H. Stanley, Hon. O. F. G. (Westm'eland)
Graham, Fergus (Cumberland, N.) McNeill, Rt. Hon. Ronald John Steel, Major Samuel Strang
Grant, Sir J. A. Macquisten, F. A. Storry-Deans, R.
Grattan-Doyle, Sir N. MacRobert, Alexander M. Streatfeild, Captain S. R.
Greaves-Lord, Sir Walter Maitland, Sir Arthur D. Steel- Stuart, Crichton-. Lord C.
Greene, W. P. Crawford Makins, Brigadier-General E. Stuart, Hon. J. (Moray and Nairn)
Grenfell, Edward C. (City of London) Malone, Major P. B. Styles, Captain H. Walter
Grotrian, H. Brent Manningham-Buller, Sir Mervyn Sueter, Rear-Admiral Murray Fraser
Guest, Capt. Rt. Hon. F. E. (Bristol, N.) Marriott, Sir J. A. R. Tasker, R. Inigo.
Gunston, Captain D. W. Mason, Lieut-Col. Glyn K. Templeton, W. P.
Hacking, Captain Douglas H. Meller, R. J. Thompson, Luke (Sunderland)
Hall, Lieut.-Col. Sir F. (Dulwich) Merriman, F. B. Thomson, F. C. (Aberdeen, South)
Hall, Capt. W. D'A. (Brecon & Rad.) Meyer, Sir Frank Thomson, Rt. Hon. Sir W. Mitchell-
Hanbury, C. Milne, J. S. Wardlaw- Tryon, Rt. Hon. George Clement
Hannon, Patrick Joseph Henry Mitchell, W. Foot (Saffron Walden) Vaughan-Morgan, Col. K. P.
Harland, A. Mitchell, Sir W. Lane (Streatham) Ward. Lt.-Col. A.L.(Kingston-on-Hull)
Harmsworth, Hon. E. C. (Kent) Mond, Rt. Hon. Sir Alfred Warrender, Sir Victor
Harrison, G. J. C. Monsell, Eyres, Com. Rt. Hon. B. M. Waterhouse, Captain Charles
Hartington, Marquess of Moore, Lieut-Colonel T. C. R. (Ayr) Watson, Rt. Hon. W. (Carlisle)
Harvey, G. (Lambeth, Kennington) Moreing, Captain A. H. Wells, S. R.
Hawke, John Anthony Nall, Colonel Sir Joseph Wheler, Major Sir Granville C. H.
Headlam, Lieut-Colonel C. M. Nelson, Sir Frank White, Lieut.-Col. Sir G. Dalrymple
Henderson, Capt. R. R. (Oxf'd, Henley) Neville, Sir Reginald J. Williams, A. M. (Cornwall, Northern)
Heneage, Lieut.-Colonel Arthur P. Newton, Sir D. G. C. (Cambridge) Williams, Com. C. (Devon, Torquay)
Henn, Sir Sydney H. Nuttall, Ellis Williams, Herbert G. (Reading)
Herbert, Dennis (Hertford, Watford) Oakley, T. Wilson, Sir C. H. (Leeds, Central)
Hills, Major John Waller O'Connor, T. J. (Bedford, Luton) Wilson, R. R. (Stafford, Lichfield)
Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. O'Neill, Major Rt. Hon. Hugh Winby, Colonel L. P.
Hogg, Rt. Hon. Sir D.(St. Marylebone) Oman, Sir Charles William C. Wise, Sir Fredric
Holt, Captain H. P. Ormsby-Gore, Rt. Hon. William Withers, John James
Hope, Sir Harry (Forfar) Penny, Frederick George Wolmer, Viscount
Hopkins, J. W. W. Perkins, Colonel E. K. Womersley, W. J.
Horlick, Lieut.-Colonel J. N. Perring, William George Wood, E. (Chest'r, Stalyb'dge & Hyde)
Hudson, Capt. A. U. M.(Hackney, N.) Peto, Sir Basil E. (Devon, Barnstaple) Wood, Sir Kingsley (Woolwich W.)
Hudson, R. S. (Cumberl'nd, Whlteh'n) Peto, G. (Somerset, Frome) Wood, Sir S. Hill- (High Peak)
Hume, Sir G. H. Pilditch, Sir Philip Woodcock, Colonel H. C.
Hume-Williams, Sir W. Ellis Pownall, Sir Assheton Worthington-Evans, Rt. Hon. Sir L.
Hunter-Weston, Lt.-Gen. Sir Aylmer Price, Major C. W. M. Young, Rt. Hon. Sir Hilton (Norwich)
Huntingfield, Lord Radford, E. A.
Hurd, Percy A. Raine, Sir Walter TELLERS FOR THE AYES.—
Inskip, Sir Thomas Walker H. Rawson, Sir Cooper Captain Viscount Curzon and
Captain Margesson.
Adamson, Rt. Hon. W. (Fife, West) Clynes, Rt. Hon. John R. Greenall, T.
Adamson, W. M. (Staff., Cannock) Compton, Joseph Greenwood, A. (Nelson and Colne)
Ammon, Charles George Connolly, M. Grenfell, D. R. (Glamorgan)
Attlee, clement Richard Cove, W. G. Groves, T.
Baker, J. (Wolverhampton, Bilston) Cowan, D. M. (Scottish Universities) Grundy, T. W.
Baker, Walter Crawfurd, H. E. Hall, F. (York, W.R., Normanton)
Barker, G. (Monmouth, Abertillery) Dalton, Hugh Hall, G. H. (Merthyr Tydvil)
Batey, Joseph Davies, Evan (Ebbw Vale) Hamilton, Sir R. (Orkney & Shetland)
Bondfield, Margaret Davies, Rhys John (Westhoughton) Hardie, George D.
Bowerman, Rt. Hon. Charles W. Day, Colonel Harry Harney, E. A.
Briant, Frank Dennison, R. Harris, Percy A.
Broad, F, A. Duncan, C. Hartshorn, Rt. Hon. Vernon
Bromley, J. Dunnico, H. Henderson, Rt. Hon. A. (Burnley)
Brown, Ernest (Leith) Edge, Sir William Henderson, T. (Glasgow)
Brown, James (Ayr and Bute) Edwards, C. (Monmouth, Bedwellty) Hirst, G. H.
Buchanan, G. England, Colonel A. Hirst, W. (Bradford, South)
Buxton, Rt. Hon. Noel Forrest, W. Hurst, Gerald B.
Cape, Thomas Gillett, George M Hutchison, Sir Robert (Montrose)
Cluse, W. S. Graham, Rt. Hon. Wm. (Edin.,Cent.) John, William (Rhondda, West)
Jones, Henry Haydn (Merioneth) Paling, W. Stamford, T. W.
Jones, Morgan (Caerphilly) Parkinson, John Allen (Wigan) Stewart, J. (St. Rollox)
Jones, T. I. Mardy (Ponlypridd) Pethick-Lawrence, F. W. Sullivan, J.
Kelly, W. T. Ponsonoy, Arthur Sutton, J. E.
Kennedy, A. R. (Preston) Potts, John S. Taylor, R. A.
Kennedy, T. Purcell, A. A. Thorne, W. (West Ham, Plalstow)
Lawrence, Susan Richardson, R. (Houghton-le-Spring) Townend, A. E.
Lawson, John James Rlley, Ben Trevelyan, Ht. Hon. C. P.
Lee, F. Ritson, J. Varley, Frank B.
Lindley, F. W. Robinson, W. C. (Yorks. W.R., Elland) Viant, S. P.
Lowth, T. Runclman, Rt. Hon. Walter Wallhead, Richard C.
Lunn, William Salter, Dr. Alfred Walsh, Rt. Hon. Stephen
Macdonald, Sir Murdoch (Inverness) Scurr, John Watson, W. M. (Ounfermllne)
Mackinder, W. Shepherd, Arthur Lewis Westwood, J.
MacLaren, Andrew Simon, Rt. Hon. Sir John Wiggins, William Martin
Maclean, Nell (Glasgow, Govan) Sinclair, Major Sir A. (Caithness) Wilkinson, Ellen C.
Maxton, James Sitch, Charles H. Williams, Dr. J. H. (Llanelly)
Mosley, Oswald Smillie, Robert Williams, T. (York, Don Valley)
Murnin, H. Smith, Ben (Bermondsey, Rotherhithe) Wilson, C. H. (Sheffield, Attercliffe)
Naylor, T. E. Smith, H. B. Lees- (Keighley)
Newman, Sir H. H. S. D. L. (Exeter) Smith, Rennie (Penistone) TELLERS FOR THE NOES.—
Oliver, George Harold Snowden, Bt. Hon. Philip Mr. A. Barnes and Mr. Whiteley.

I beg to move, in page 9, in line 11, after the word "yard," to insert the words, "or to be used in some other process of manufacture."

The process of the education of the right hon. Gentleman the Minister in charge of these duties, the President of the Board of Trade, is going on. He has had one, little lesson, so simple that he can understand it. Even he cannot explain it away by elaborate arguments. Bat there are other industries, older industries, better established and better organised, that have been able to withstand the handicap of these duties on their raw material, because wrapping-paper is a raw material. It is a material largely used in thousands of the great industries of this country. I am not going to give the case of the confectionery trade, because when the duty was originally introduced it was argued at length and no adequate answer was given to those arguments. Thousands of men are working in the confectionery industry, and this paper is an important ingredient of that industry. But there is another case where the argument is even stronger, as has been proved during the last few months in which we have had experience of this duty, and that is the manilla envelope industry. The manufacture of envelopes is a very big trade. A large amount of correspondence is going on all over the world, and envelopes have to be used for this correspondence.

It has been pointed out in evidence before the Committee of Inquiry that, compared with the number of people employed in manufacturing wrapping-paper, the number of people employed in the manufacture of envelopes is three, four or five times the number. The more experience we have of the incidence of this new duty on the envelope industry, the more serious does it become. We have a case quoted in the "Board of Trade Journal," page 722, with reference to the trade in India. In India, largely due to the spread of education, the development of the envelope trade has been considerable during the last few years. Great Britain, before the imposition of this duty, was getting a considerable share, but already, as figures show, while there has been an increase in the importation of envelopes in India, the share of Great Britain has fallen, while the importations from Norway, Germany and Holland have increased. That is undoubtedly attributable entirely to the fact that their raw material is taxed under the wrapping-paper duty. It is true it may be argued that it is quite possible to get the drawback, but somehow or other the Customs House officials find it impossible so to arrange matters that a drawback can be given, and the result is that this very important industry, employing many thousands of people is handicapped and displaced.

Nor is the actual wrapping-paper industry largely benefited by the duty. I notice that, in the first six months of 1927, the, latest available figures, there was a decrease in re-exports as compared with last year. The re-exports of wrapping-paper amounted to £33,000 in 1926. The industry then was handicapped by the coal stoppage, but they have fallen to £10,000 in 1927, so that even the industry itself is not receiving much benefits by the duty. The exports have gone down from £205,000 to £156,000, so that you have both exports and re-exports' going down in value. Therefore, not only is the industry in this country handicapped by a tax on raw material, but the wrapping-paper industry itself in this country is apparently not receiving much benefit from this duty, in the light of these figures. There is, at any rate, one industry to which this duty has proved of no benefit, and, therefore, is it unreasonable to ask that the same privilege should be extended to all the industries where wrapping-paper is actually the raw material? I contend that is a concession for which we are entitled to ask, and I hope the Minister will for once be reasonable, and will make some concession.


I beg to second the Amendment.

I find myself in rather an unusual position in supporting an Amendment of this kind, moved by the hon. Gentleman the Member for South-West Bethnal Green (Mr. Harris), but I do so differing entirely from him and from the arguments which he has used. I understood him to say—I hope I am not misquoting him—that this particular wrapping-paper is one of the ingredients used in confectionery manufacture. [Interruption.] If that fact were substantiated, then the consumption of British-made confectionery would go down. I want to refer, however, to some other directions in which the import duty on wrapping-paper has operated as a tax on raw material in certain of our industries. I think it is universally accepted in all parts of the House that the Government's policy of safeguarding, taken as a whole, has been an unqualified success. [Interruption.] Hon. Members opposite appear to dissent from that view, but I think I may say that, whereas we recognise that on this side of the House, with whole-hearted satisfaction, they admit it in secret and reluctantly. But we, on this side of the House, are not doctrinaires, and where we find that any of these import duties operate in a manner in which it was not intended they should operate, we are prepared to make some amendment to the provisions of our law accordingly.

I think I am right in saying that the introduction of these import duties was to stimulate our home manufactures, and we believe that if our English manufacturers are thereby able to obtain a greater output from their works, and thereby cut down their cost of production, then the British article will cost no more to the consumer than when, the foreign stuff was coming in free. But there are certain classes of wrapping paper which it has been found cannot be made by English manufacturers. There is kraft wrapping paper, which is made of wood pulp, and to secure the best quality the wood pulp must be manufactured into paper while it is wet and fresh. Our English manufacturers who use the highest quality kraft papers are still compelled to buy kraft papers from abroad. There are only two mills, one in Canada and one in Sweden, which make the particular quality which was referred to in the previous Amendment as paper which was imported to be spun into textilose yarn. That same paper is also used for the manufacture of certain packing materials. It is used to make kraft waterproof paper, nutbrown waterproof paper, cottonline waterproof paper, and various other varieties of paper for which it is a raw material, and our manufacturers have to import it from abroad.

Another anomaly in connection with this duty is that it is very uncertain what constitutes a wrapping paper and what does not. Some friends of mine assure me that they have definite evidence that because they are packing material manufacturers all the paper sent to them is regarded as packing paper and they have to pay import duty on it—they themselves do certain printing on those wrapping papers before they become the finished article. On the other hand, firms of printers who import identical paper find that it is regarded a printing paper in their case because they are printers, and that it comes in free of duty. I am sure those anomalies will be dealt with by my right hon. Friend as a matter of departmental regulation; but I do submit that it was never intended that when it was found that a duty was operating in a way in which it was not designed to operate that we should continue that duty. Hon. Members opposite have always said that once an import duty is imposed it is imposed for ever, because we cannot experiment with these duties. I appeal to my right hon. Friend the President of the Board of Trade to show them they have been entirely wrong in that contention, and that where we find an isolated case amongst the whole of our safeguarding duties which has not been an unqualified success we are prepared to make the necessary amendment.


The effect of the wrapping paper duty upon the industry as a whole has undoubtedly been wholly beneficial. Not only have men been kept in work who would have been thrown out of work if the Opposition had had their way, but, in addition to that, large orders have been placed for new machinery for re-equipping English mills, exactly as was forecast a year ago. Not only have these orders been placed for machinery, but in spite of various factors which, I am informed, would make naturally for an increase in price—some of the materials had risen in price—the English quotation for kraft paper has gone down by several pounds per ton since the duty was imposed. I think that is enough to dispose of the general argument that this duty has had an adverse effect. We have made an exception in the one case where it was proved that a particular kind of kraft paper was absolutely indispensable for a particular kind of manufacture. There are many cases in which one or another of the forms of kraft paper can be used indiscriminately, and in which the English paper can quite well be used in place of the foreign paper. It was to meet one unique case where a particular article can only be manufactured with one particular kind of foreign kraft, obtainable from a single factory, that the special exemption to which the Customs have agreed has been inserted in the Bill.

The question of envelopes has been raised. There is not the least doubt that envelopes can be made just as well from English paper as from foreign paper. Though people come forward, as it is quite right they should, to report to the Board of Trade any difficulties in their trade, I am informed that not a single envelope manufacturer has made the least complaint to the Board of Trade during the whole time the duty has been in operation. This is a matter which engaged the attention of the Committee which re- ported in the first instance. They contemplated that a drawback could not be given, and said that they made their recommendation on the assumption that a drawback would not be given. They gave it as their considered judgment that an advantage would accrue in employment by putting on this duty, and I think that has been borne out by the result. Moreover, when the duty was imposed, this House was careful to put it only upon articles made almost wholly of paper, and a provision was inserted in the Finance Act of last year dealing with this point. It would therefore be unwise to repeal the duty, thus making wrapping paper used in this country duty free. That would be quite impossible of administration.

This duty was agreed to a year ago. I need not repeat all the arguments which were then so plainly stated by the Financial Secretary to the Treasury, who used the argument as to the impossibility of levying or not levying a duty in accordance with the ultimate purpose of the imported article. Suffice it to say that in order to carry out this duty it would be necessary for the Customs to establish some system of inspection of all imported paper from start to finish and all the processes through which that paper passed. I do not think anything more objectionable to paper manufacturers could be invented, and I am certain it would not work if put into operation. On the ground that this Amendment is administratively impossible, economically unnecessary, and that it would repeal a duty that has been very effective I invite the House to reject it.


The hon. Member for South-West Bethnal Green (Mr. Harris) horrified us by his statement about the effect this duty would have upon the envelope trade. May I point out that in the first six months of last year, before the passing of this duty, our exports for envelopes amounted to 22,828 cwts. This year during a similar period, while this duty has been in operation, the total was 24,472 cwts. Therefore, the arguments of the hon. Member for South-West Bethnal Green are destroyed by the actual facts.


The hon. Member is including envelopes made not only from kraft but from all paper.

Question put, "That those words be there inserted in the Bill."

The House divided Ayes, 129; Noes, 252.

Division No. 272.] AYES. [10.20 p.m.
Adamson, Rt. Hon. W. (Fife, West) Groves, T. Rees, Sir Beddoe
Adamson, W. M. (Staff., Cannock) Grundy, T. W. Richardson, R. (Houghton-le-Spring)
Alexander, A. V. (Sheffield, Hillsbro') Hall, F. (York, W. R., Normanton) Riley, Ben
Ammon, Charles George Hall, G. H. (Merthyr Tydvil) Ritson, J.
Attlee, Clement Richard Hamilton, Sir R. (Orkney & Shetland) Robinson, W. C. (Yorks, W.R., Elland)
Baker, J. (Wolverhampton, Bilston) Hardie, George D. Runciman, Rt. Hon. Walter
Baker, Walter Harris, Percy A. Salter, Dr. Alfred
Barker, G. (Monmouth, Abertillery) Hartshorn, Rt. Hon. Vernon Scurr, John
Barnes, A. Henderson, Right Hon. A. (Burnley) Shaw, Rt. Hon. Thomas (Preston)
Batey, Joseph Henderson, T. (Glasgow) Shepherd, Arthur Lewis
Beckett, John (Gateshead) Hirst, G. H. Simon, Rt. Hon. Sir John
Bowerman, Rt. Hon. Charles W. Hirst, W. (Bradford, South) Sitch, Charles H.
Briant, Frank Hurst, Gerald B. Smillie, Robert
Broad, F. A. John, William (Rhondda, West) Smith, Ben (Bermondsey, Rotherhithe)
Bromfield, William Jones, Henry Haydn (Merioneth) Smith, H. B. Lees- (Keighley)
Bromley, J. Jones, Morgan (Caerphilly) Smith, Rennie (Penistone)
Brown, Ernest (Leith) Jones, T. I. Mardy (Pontypridd) Snell, Harry
Brown, James (Ayr and Bute) Kelly, W. T. Snowden, Rt. Hon. Philip
Buchanan, G. Kennedy, A. R. (Preston) Stamford, T. W.
Buxton, Rt. Hon. Noel Kennedy, T. Stewart, J. (St. Rollox)
Cape, Thomas Lansbury, George Strauss, E. A.
Cluse, W. S. Lawrence, Susan Sullivan, Joseph
Compton, Joseph Lawson, John James Sutton, J. E.
Connolly, M. Lee, F. Taylor, R. A.
Cove, W. G. Lindley, F. W. Thorne, W. (West Ham, Plaistow)
Cowan, D. M. (Scottish Universities) Lowth, T. Townend, A. E.
Crawfurd, H. E. Lunn, William Trevelyan, Rt. Hon. C. P.
Dalton, Hugh Macdonald, Sir Murdoch (Inverness) Varley, Frank B.
Davies, Evan (Ebbw Vale) Mackinder, W. Viant, S. P.
Davies, Rhys John (Westhoughton) MacLaren, Andrew Wallhead, Richard C.
Day, Colonel Harry Maclean, Nell (Glasgow, Govan) Walsh, Rt. Hon. Stephen
Dennison, R. March, S. Watson, W. M. (Dunfermilne)
Duncan, C. Maxton, James Watts-Morgan, Lt.-Col. D. (Rhondda)
Dunnico, H. Mosley, Oswald Westwood, J.
Edge, sir William Murnin, H. Whiteley, W.
Edwards, C. (Monmouth, Bedwellty) Naylor, T. E. Wiggins, William Martin
England, Colonel A. Oliver, George Harold Wilkinson, Ellen C.
Forrest, W. Palin, John Henry Williams, David (Swansea, E)
Gardner, J. P. Paling, W. Williams, Dr. J. H. (Lianelly)
Gillett, George M. Parkinson, John Allen (Wigan) Williams, T. (York, Don Valley)
Graham, Rt. Hon-Wm. (Edin., Cent.) Pethick-Lawrence, F. W. Wilson, C. H. (Sheffield Attercliffe)
Greenall, T. Ponsonby, Arthur
Greenwood, A. (Nelson and Colne) Potts, John S. TELLERS FOR THE AYES.—
Grenfell, D. R. (Glamorgan) Purceil, A. A. Sir Robert Hutchison and Mr.
Acland-Troyte, Lieut.-Colonel Burney, Lieut.-Com. Charles D. Cunliffe, Sir Herbert
Agg-Gardner, Rt. Hon. Sir James T. Butler, Sir Geoffrey Dalkeith, Earl of
Albert, Irving James Butt, Sir Alfred Davidson, J. (Hertf'd,Hemel Hempst'd)
Alexander, E. E. (Leyton) Cadogan, Major Hon. Edward Davies, Maj. Geo. F. (Somerset, Yeovil)
Alexander, Sir Wm. (Glasgow, Cent'l) Calne, Gordon Hall Davies, Dr. Vernon
Allen, Lieut.-Col. Sir William James Campbell, E. T. Davison, Sir W. H. (Kensington, S.)
Ashley, Lt.-Col. Rt. Hon. Wilfrid W. Carver, Major W. H. Dawson, Sir Philip
Baldwin, Rt. Hon. Stanley Cassels, J. D. Dean, Arthur Wellesley
Balfour, George (Hampstead) Cayzer, Sir C. (Chester, City) Dixey, A. C,
Balniel, Lord Cecil, Rt. Hon. Sir Evelyn (Aston) Drewe, C.
Banks, Reginald Mitchell Chadwick, Sir Robert Burton Eden, Captain Anthony
Barclay-Harvey C. M. Churchill, Rt. Hon. Winston Spencer Edmondson, Major A. J.
Barnett, Major Sir Richard Churchman, Sir Arthur C. Elliot, Major Walter E.
Beamish, Rear-Admiral T. P. H. Clarry, Reginald George Ellis, R. G.
Billairs, Commander Carlyon W. Cobb, Sir Cyril Elveden, Viscount
Bennett, A. J. Cochrane, Commander Hon. A. D. Evans, Captain A. (Cardiff, South)
Betterton, Henry B. Cockerill, Brig.-General Sir George Everard, W. Lindsay
Bird, E. R. (Yorks, W. R., Skipton) Conway, Sir W. Martin Fairfax. Captain J. G.
Boothby, R. J. G. Cooper, A. Duff Falle, Sir Bertram G.
Bourne, Captain Robert Croft Cope, Major William Fermoy, Lord
Bowyer, Capt. G. E. W. Couper, J. B. Fielden, E. B.
Brassey, Sir Leonard Courtauld, Major J. S. Finburgh, S.
Briggs, J. Harold Courthope, Colonel Sir G. L. Forester-Walker, Sir L.
Brittain, Sir Harry Cowan, Sir Wm. Henry (Islington,N.) Foster, Sir Harry S.
Brocklebank, C. E. R. Craig, Capt. Rt. Hon. C. C. (Antrim) Foxcroft, Captain C. T.
Broun-Lindsay, Major H. Craig, Sir Ernest (Chester, Crewe) Fraser, Captain Ian
Brown, Brig.-Gen. H. C. (Berks,Newb'y) Crooke, J. Smedley (Deritend) Fremantie, Lieut.-Colonel Francis E.
Buchan, John Crookshank, Col. C. de W. (Berwick) Ganzonl, Sir John
Buckingham, Sir H. Crookshank, Cpt. H. (Lindsey, Gainsbro) Gault, Lieut.-Col. Andrew Hamilton
Gibbs, Col. Rt. Hon. George Abraham Lucas-Tooth, Sir Hugh Vere Rye, F. G.
Goff, Sir Park Lumley, L. R. Salmon, Major I.
Graham, Fergus (Cumberland, N.) Macdonald, Capt. P. D. (I. of W.) Samuel, Samuel (W'dsworth, Putney)
Grant, Sir J. A. Macdonald, R. (Glasgow, Catheart) Sandeman, N. Stewart
Grattan-Doyle, Sir N. McDonnell, Colonel Hon. Angus Sanders, Sir Robert A.
Greaves-Lord, Sir Walter Macintyre, Ian Sassoon, Sir Philip Albert Gustave D.
Greene, W. P. Crawford McLean, Major A. Shaw, R. G. (Yorks, W. R., Sowerby)
Grenfell, Edward C. (City of London) Macmillan, Captain H. Sheffield, Sir Berkeley
Grotrian, H. Brent Macnaghten, Hon. Sir Malcolm Shepperson, E. W.
Guest, Capt. Rt, Hon. F. E. (Bristol, N) McNeill, Rt. Hon. Ronald John Simms, Dr. John M. (Co. Down)
Gunston, Captain D. W. Macquisten, F. A. Skelton, A. N.
Hacking, Captain Douglas H. MacRobert, Alexander M. Smith-Carington, Neville W.
Hall, Lieut.-Col. Sir F. (Dulwich) Makins, Brigadier-General E. Smithers, Waldron
Hail, Capt. W. D'A (Brecon & Rad.) Malone, Major P. B. Spender-Clay, Colonel H.
Hanbury, C. Manningham-Buller, Sir Mervyn Sprot, Sir Alexander
Hannon, Patrick Joseph Henry Margesson, Captain D. Stanley, Lieut.-Colonel Rt. Hon. G. F.
Harland, A. Marriott, Sir J. A. R. Stanley, Hon. O. F. G. (Westm'eland)
Harmsworth, Hon. E. C. (Kent) Mason, Lieut.-Colonel Glyn K. Steel, Major Samuel Strang,
Harrison, G. J. C. Meller, R. J. Storry-Deans, R.
Hartington, Marquess of Merriman, F. B. Streatfeild, Captain S. R.
Harvey, G. (Lambeth, Kennington) Meyer, Sir Frank Stuart, Crichton-,Lord C.
Hawke, John Anthony Mitchell, W. Foot (Saffron Walden) Stuart, Hon. J. (Moray and Nairn)
Headlam, Lieut.-Colonel C. M. Mitchell, Sir W. Lane (Streatham) Styles, Captain H. Walter
Henderson, Capt. R. R.(Oxf'd, Henley) Mond, Rt. Hon. Sir Alfred Sueter, Rear-Admiral Murray Fraser
Heneage, Lieut.-Colonel Arthur P Monsell, Eyres, Com. Rt. Hon. B. M. Tasker, R. Inigo.
Henn, Sir Sydney H. Moore, Lieut.-Colonel T. C. R. (Ayr) Templeton, W. P.
Herbert, Dennis (Hertford, Watford) Moreing, Captain A. H. Thompson, Luke (Sunderland)
Hills, Major John Waller Nail, colonel Sir Joseph Thomson, Rt. Hon. Sir W. Mitchell-
Hoare, Lt.-Col. Rt. Hon. Sir S. J. G. Nelson Sir Frank Tryon, Rt. Hon. George Clement
Hogg, Rt. Hon. Sir D. (St. Marylebone) Neville, Sir Reginald J. Vaughan-Morgan, Col. K. P.
Holt, Capt. H. P. Newton, Sir D. G. C. (Cambridge) Wallace, Captain D. E.
Hope, Sir Harry (Forfar) Nuttall Ellis Ward, Lt.-Col. A. L. (Kingston-on-Hull)
Hopkins, J. W. W. Oakley, T. Warrender, Sir Victor
Horlick, Lieut.-Colonel J. N. O'Connor T. J. (Bedford Luton) Waterhouse, Captain Charles
Hudson, Capt. A. U. M. (Hackney,N.) O'Neill, Major Ht. Hon. Hugh Watson, Rt. Hon. W. (Carlisle)
Hudson, R. S. (Cumberl'nd, Whiteh'n) Oman, Sir Charles William C Wells, S. R.
Hume, Sir G. H. Ormsby-Gore, Rt. Hon. William Wheler, Major Sir Granville C. H.
Hume-Williams, Sir W. Ellis Penny, Frederick George White, Lieut.-Col. Sir G. Dalrymple-
Hunter-Weston, Lt.-Gen. Sir Aylmer Perkins, Colonel E. K. Williams, A. M. (Cornwall, Northern)
Huntingfield, Lord Perring, Sir William George Williams, Com. C. (Devon, Torquay)
Iliffe, Sir Edward M. peto, Sir Basil E. (Devon, Barnstaple) Williams, Herbert G. (Reading)
Inskip, Sir Thomas Walker H. Peto G. (Somerset, Frome) Wilson, Sir C. H. (Leeds, Central)
Jackson, Sir H. (Wandsworth, Cen'l) plicher, G. Wilson, R. R. (Stafford. Lichfield)
James, Lieut.-Colonel Hon. Cuthbert pilditch, Sir Philip Winby, Colonel I. P.
Jones, G. W. H. (Stoke Newington pownall, Sir Assheton Wise, Sir Fredric
Kidd, J. (Linlithgow) price, Major C. W. M. Wolmer, Viscount
King, Commodore Henry Douglas Raine, Sir Walter Womersley, W. J.
Kinloch-Cooke Sir Clement Rawson, Sir Cooper Wood, E. (Chest'r, Stalyib'ge & Hyde)
Knox, Sir Alfred Reid, D. D. (county Down) Wood, Sir Kingsley (Woolwich W.)
Lamb, J. Q. Remer, J. R. Wood, Sir S. Hill-(High Peak)
Leigh, Sir John (Clapham) Rice sir Frederick Woodcock, Colonel H. C.
Lister, Cunliffe-, Rt. Hon. Sir Philip Richardson, Sir P. W. (Sur'y, Ch'ts'y) Worthington-Evans, Rt. Hon. Sir L.
Lloyd, Cyril E. (Dudley) Roberts, E. H. G. (Flint) Young, Rt. Hon. Sir Hilton (Norwich)
Loder, J. de V. Roberts, Sir Samuel (Hereford)
Long, Major Eric Ropner, Major L. TELLERS FOR THE NOES.—
Looker, Herbert William Russell, Alexander West (Tynemouth) Mr. F. C. Thomson and captain
Viscount Curzon.

Resolution agreed to.