§ 28. Mr. LEVYasked the Chancellor of the Exchequer whether, in view of the increase in imports of knitted undergarments of artificial silk by 900 per cent. from 1926 to 1931, and the consequent hardship to the industry in this country and loss of revenue to the Exchequer, he will take steps to deal with this matter?
§ Major ELLIOTI would refer my hon. Friend to the statement made by my right hon. Friend the Chancellor of the Exchequer on the subject of the Silk Duties generally on the 21st April during the Debate on the Budget proposals.
§ Mr. LEVYDoes my right hon. and gallant Friend realise that the making-up side of this industry has practically gone out of existence, and that thousands of people who normally would be employed are now out of work in consequence?
§ Major ELLIOTI am afraid that I cannot discuss the matter by question and answer across the Floor of the House. The Chancellor of the Exchequer heard the whole of the speech of my hon. Friend, and he answered it during the Budget Debates.
§ Mr. LEVYMay I ask my right hon. and gallant Friend, with great respect and humility, if he did not understand the Chancellor of the Exchequer to say that he could not yield to this proposition, because in his opinion it would mean loss of revenue?
§ Major ELLIOTI am afraid that I cannot go beyond the reference which I have given in my answer.
§ 29. Captain STRICKLANDasked the Chancellor of the Exchequer if he is aware of the growing imports of artificial silk tissues, and that these imports increased since 1926 to 1931 by 150 per cent.; and whether he proposes to take any steps to rectify this position and help British labour?
§ Major ELLIOTAs regards the first part of the question I am aware that the increase in the quantity of artificial silk tissues imported in 1931 as compared with 1926 was approximately 150 per cent. As regards the second part of the question I would refer ray hon. and gallant Friend 559 to the statement made by my right hon. Friend the Chancellor of the Exchequer on the subject of the silk duties generally during the Debate on the Budget proposals on the 21st April.
§ Mr. LEVYIs the right hon. Gentleman aware that the margin of production in this industry is in favour of the foreigner?
§ 30. Captain STRICKLANDasked the Chancellor of the Exchequer whether he will remove the Excise Duty of 6d. from artificial silk waste, seeing that the selling price of waste artificial silk in this country is approximately 2d. per lb. and consequently quantities of artificial silk waste are destroyed under supervision of the Customs and Excise Department rather than pay an Excise Duty of 6d., which would involve the manufacturer in a loss of 4d. per lb?
§ Major ELLIOTThe duty in question is an integral part of the silk tariff and could not be considered separately. I am informed that the price and quality of waste varies appreciably and that the quantity which manufacturers find it necessary to destroy because of its inferiority is but a small proportion of the total amount produced.
§ 31. Captain STRICKLANDasked the Chancellor of the Exchequer whether he is aware that the duty on made-up articles of artificial silk (underwear, etc.) is 33⅓ per cent. ad valorem, while the duties on artificial silk yarn and piece goods are specific, so that the imported finished article often pays less duty than the raw material; and whether he will take steps to remedy this?
§ Major ELLIOTI am aware that in exceptional cases of made-up articles of low value the ad valorem duty may be less than the specific duty on the kind of materials used in their manufacture. I have no reason, however, to suppose that the general incidence of the Silk and Artificial Silk Duties is unfavourable to the maker-up of garments in this country, and I doubt if it would be possible to make special provision to meet all exceptional cases.
§ Captain STRICKLANDIs not the right hon. and gallant Gentleman aware that in the case of raw materials the duty 560 is on weight, whereas in the case of the manufactured article it is charged on value? With falling prices, is he not aware that the balance is turned against the manufacturer in this country, so that it is cheaper to import the manufactured silk rather than import the raw material to make the goods?
§ Major ELLIOTI am aware of these facts, and it is on account of these facts that I am receiving certain hon. Members this afternoon who desire to discuss the question with me.
§ Mr. LEVYAs I have pointed out these anomalies to the right hon. and gallant Gentleman many times, will he tell us what steps he intends to take to remove the anomalies?
§ Major ELLIOTThe hon. Member must be aware that it is not in the power of any single Minister, certainly not of any junior Minister, to take steps to alter the revenue of this country.
§ 35. Mr. LEVY forasked the Chancellor of the Exchequer if he is aware that foreign silk manufacturers who were negotiating for the purchase of derelict mills in Scotland have discontinued these negotiations owing to the fact that he has made no change in the Silk Duties; and what action he proposes to take to assist this industry?
§ Major ELLIOTThe answer to the first part of the question is in the negative. As regards the second part of the question, I would refer my hon. Friend to the remarks made by my right hon. Friend the Chancellor of the Exchequer on the subject of the Silk Duties generally during the Debate on the Budget proposals on 21st April.
§ Mr. LEVYMay I ask. as it is the policy of the Government to encourage manufacturers to come to this country, how can that policy be carried out in face of the failure to—
§ Mr. BUCHANANHave the Government taken any steps in connection with this matter of buying silk factories in Scotland to see that it is done under proper conditions, in view of the fiasco which arose out of the last purchase of silk factories?
§ Major ELLIOTThe Government are not themselves taking any steps in connection with the purchase of factories for silk manufacture.
Mr. HAMMERS LEYArising out of the original reply, does not the right hon. and gallant Gentleman realise that a certain amount of responsibility attaches to the Government in connection with the new factories which have been started under the auspices of the expected tariff proposals; and that the fact that there is no alteration in the tariff makes those new factories inadvisable from an economic point of view?
§ Major ELLIOTI do not think that that arises out of this question.