HC Deb 16 May 1927 vol 206 cc916-7
65. Colonel DAY

asked the Chancellor of the Exchequer whether he is aware that since his Budget statement, in which he announced the Government's intention of placing a tax of 8d. a pound on tobacco, many tobacco companies have increased the price of their cheaper tobaccos by 9d. a pound; and will he consider the introduction of legislation to prohibit tobacco companies charging the public an extra 1d. a pound in addition to the proposed tax?

Mr. CHURCHILL

My attention has been called to a statement in the Press that the retail price of certain tobaccos sold by the half-ounce has been increased by an amount equivalent to 9d. per lb. and that the manufacturers have increased their prices in such cases by 7d. per lb. I am informed that the manufacturers have provided, as they did in similar circumstances in 1909, an alternative packet for the purchaser's choice containing slightly more that one-thirty-fourth of a pound to be sold retail at the pre-Budget price for the half-ounce. The answer to the last part of the question is in the negative.

Colonel DAY

If I send to the right hon. Gentleman proof that they charge 9d. per lb., will he take some action?

Mr. CHURCHILL

No, Sir.

Colonel DAY

Are there no steps which the right hon. Gentleman will take to see that the public are not robbed in this matter?

Sir F. HALL

Is it not a fact that tobacco manufacturers have to pay their duty before they withdraw from bond, and is it not only reasonable that, if they have to pay that, some reasonable compensation should be given to them for loss of interest?

Forward to