- (1) The Customs Duty chargeable on tea shall cease to be charged.
- (2) Thi6 Section shall be deemed to have had effect as from the twenty-fifth day of April, nineteen hundred and thirty-three.— [Mr. D. Grenfell.]
§ Brought up, and read the First time.
§ 3.41 p.m.
§ Mr. DAVID GRENFELLI beg to move, "That the Clause be read a Second time."
We hope that we shall get the overwhelming assent of Members of this Committee to this Clause. This concession, which we hope to obtain, would be distributable over the largest possible number of citizens of this country. Tea, which was at one time regarded as a luxury and a subject of feminine indulgence, is now the most popular of all drinks and an article of daily consumption among all classes of our people. I think it is true to say that we are the greatest tea-drinking nation in the world, and in quality, I think, our tea stands supreme as compared with the tea served in all other countries. A very great trade has been built up in this beverage, and we move this new Clause confident that that trade will be maintained, that there is no danger of interference with the consumption or sale of this very popular commodity. Unlike beer, there is no danger that the law of diminishing returns will affect this taxable commodity, but we are not having regard to the financial value of this concession.
We believe that this wholesome and mildly stimulating drink should be still further encouraged, because it plays a very prominent part in the daily dietary of our people. The old-time ideas that tea was detrimental to health have now been almost completely discredited, and no one now believes that moderate indulgence in the use of tea is at all detrimental or a sign of unmanliness or 2082 effeminacy in the consumer. There are those who believe that tea is indeed a highly essential drink in these days of changed habits, when the currents of life run so swiftly. It is urged by those who have studied physiology and diet that all of us require on occasion a little stimulative element of some kind, and I am sure that the tea-drinker holds a very prominent place in this House because of the mild and non-injurious stimulation which his cup of tea gives him in the course of the day.
It is said that tea is a proper subject for taxation because it comes in part from the Empire and in part from foreign countries, and some think the tax should be maintained because it gives an opportunity for Imperial preference, but no less ardent an Imperialist than the right hon. Member for Epping (Mr. Churchill) did what we are asking should be done to-day. He took off this tax in 1926, and from then till 1931 the right hon. Member for Epping, followed by that rabid temperance reformer, Lord Snowden, maintained free imports of tea into this country, despite the temptation to raid all possible sources of revenue. The Noble Lord, it is true, became a backslider in the cause of temperance and free imports under the pressure of economy in 1931, but for the years 1928 to 1931 there was no taxation of tea, and no Chancellor of the Exchequer in ordinary times would have dreamed of restoring this duty.
The tax now stands at 4d. per lb. on foreign-grown tea and 2d. on tea produced within the Empire. There is, therefore, a preference of 2d. per lb. on Empire-grown tea. We were told on one occasion how many cups of tea were made from one pound of tea and now difficult it would be to apportion the value of this concession to the purchaser of the individual cup of tea who visited a tea-shop and bought a cup of tea. Those who argue in that way ignore the fact that the great bulk of the tea that is drunk in this country is made at home by the head of the family, the lady of the house, who makes it for her family and does not count the cups of tea that are consumed. The argument that you cannot give this concession to the individual person who pays a visit to the teashop is not worthy of attention. We are not asking for this concession in the interests of those people, but because we 2083 believe that the concession is due to the great bulk of people, who must in consequence benefit from the removal of the duty and a reduction in the price of tea by 4d. per lb. in the case of foreign tea and 2d. in the case of tea produced in the Empire. The Chancellor of the Exchquer has pleased a minority of people by his reduction of 1d. a pint on the duty on beer, but he will please and earn the gratitude of the overwhelming Majority of the people of this country if he will balance that by a concession of 4d. per lb. on foreign tea and 2d. on Empire tea.
§ 3.50 p.m.
§ Mr. BANFIELDI beg to support the Motion. During these Debates all kinds of interests come to the House and ask for some relief in some form or another. In this new Clause we are asking for some relief for a very important section of the community, namely, the wives who pay the Tea Duty. It is the one duty which is a direct tax upon the home purse, and in asking for this concession we are not asking for a very great thing. I feel sure that had it not been for the crisis and the economy proposals we should not have had this duty replaced on tea. The Government have now an opporunity to restore the position as it was previous to 1931, and to give some relief, however small, to the home. The purchase of tea is made by the housewife, and, as consideration has been given to the men by a reduction in the Beer Duty, it is only fair that the women who have to pay the Tea Duty should have a look in also.
§ 3.52 p.m.
§ Mr. TINKEROn the question of the Beer Duty there was a difference of opinion on this side of the Committee, but on this question we are unanimous. I think that that unanimity ought to impress the Chancellor. Tea is the national beverage, and we should like it to have the position that it occupied when there was no duty at all upon it. This duty is indirect taxation, and we are opposed to that form of taxation. We believe in the principle of the direct taxation of people so that they know exactly what they have to pay. It is time the House of Commons set about removing all indirect taxes, and we could not do better than to start by removing the Tea Duty, because every one uses tea more or less. 2084 It may be injurious to use too much, but it is used in every household. We may be met by the Financial Secretary saying that our finances cannot stand this remission. We have managed to find money for other remissions, however, and I hope that there will be no riding off on those lines, but that the Financial Secretary will meet us on the straight issue whether tea ought to be taxed or not.
§ 3.54 p.m.
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)I must thank the three hon. Members for the brevity with which they have initiated our long discussions this afternoon. They have stated the case very concisely, and, if everybody will do that, we shall be able to get through our business by midnight. They have not imposed a very heavy task upon me. I do not in the least dispute the virtues of the beverage, nor its popularity. We may all agree about that. I do not know, however, why the hon. Member for Leigh (Mr. Tinker) should seek to deprive me of what is, after all, a very valid argument, namely, that this remission would ultimately cost over £4,000,000. I would point out that other new Clauses which hon. Members opposite have on the Order Paper would cost £25,000,000, and, while they may have made some suggestion for additional revenue in the course of our discussions, no proposal that they have made would provide us with the means to satisfy all their demands. Therefore, I must point out to the Committee that it would cost over £4,000,000 to remit this duty. Is it a hardship? Let us look at the simple facts. When there was no duty on tea in 1929–30, the retail price was 2s. 0¾d. per lb. To-day, with the 2d. duty, it is 1s. 9¼d. Therefore, I do not think it can seriously be contended that the existence of this duty has made tea less accessible to the households of the country. I hope that in raising these two practical arguments I have said enough to satisfy the three hon. Gentlemen who have spoken.
§ Question put, "That the Clause be read a Second time."
§ The Committee divided: Ayes, 39; Noes, 233.
2087| Division No. 219.] | AYES. | [3.59 p.m. |
| Attlee, Clement Richard | Hirst, George Henry | Nathan, Major H. L. |
| Banfield, John William | Janner, Barnett | Owen, Major Goronwy |
| Batey, Joseph | John, William | Parkinson, John Allen |
| Brown, C. W. E. (Notts., Mansfield) | Jones, J. J. (West Ham, Silvertown) | Price, Gabriel |
| Cape, Thomas | Jones, Morgan (Caerphilly) | Salter, Dr. Alfred |
| Cocks, Frederick Seymour | Kirkwood, David | Smith, Tom (Normanton) |
| Cripps, Sir Stafford | Lansbury, Rt. Hon. George | Thorne, William James |
| Edwards, Charles | Lawson, John James | Tinker, John Joseph |
| Foot, Isaac (Cornwall, Bodmin) | Logan, David Gilbert | Williams, David (Swansea, East) |
| Grenfell, David Rees (Glamorgan) | McEntee, Valentine L. | Williams, Edward John (Ogmors) |
| Groves, Thomas E. | McGovern, John | Williams, Thomas (York, Don Valley) |
| Grundy, Thomas W. | Mainwaring, William Henry | |
| Hall, George H. (Merthyr Tydvil) | Mander, Geoffrey le M. | TELLERS FOR THE AYES.— |
| Hicks, Ernest George | Maxton, James | Mr. D. Graham and Mr. G. Macdonald. |
| NOES. | ||
| Acland-Troyte, Lieut.-Colonel | Denville, Alfred | Lloyd, Geoffrey |
| Adams, Samuel Vyvyan T. (Leeds, W.) | Despencer-Roberteon, Major J. A. F. | Lovat-Fraser, James Alexander |
| Agnew, Lieut. Com. P. G. | Dickie, John P. | Mabane, William |
| Albery, Irving James | Doran, Edward | Mac Andrew, Lieut.-Col. C. G. (Partick) |
| Allen, Lt.-Col. J. Sandeman (B'k'nh'd.) | Drewe, Cedric | McEwen, Captain J. H. F. |
| Anstruther-Gray, W. J. | Dugdale, Captain Thomas Lionel | McKie, John Hamilton |
| Applin, Lieut.-Col. Reginald V. K. | Duncan, James A. L. (Kensington, N.) | McLean, Major Sir Alan |
| Astor, Viscountess (Plymouth, Sutton) | Edmondson, Major A. J. | McLean, Dr. W. H. (Tradeston) |
| Baldwin, Rt. Hon. Stanley | Ellis, Sir R. Geoffrey | Maitland, Adam |
| Balfour, Capt. Harold (I. of Thanet) | Elmley, Viscount | Makins, Brigadler-General Ernest |
| Banks, Sir Reginald Mitchell | Emrys-Evans, P. V. | Mallalieu, Edward Lancelot |
| Barclay-Harvey, C. M. | Erskine, Lord (Weston-super-Mare) | Manningham-Buller, Lt.-Col. Sir M. |
| Barrie, Sir Charles Coupar | Erskine-Boist, Capt. C. C. (Blackpool) | Margesson, Capt. Rt. Hon. H. D. R. |
| Beaumont, M. W. (Bucks., Aylesbury) | Evans, Capt. Arthur (Cardiff, S.) | Marsden, Commander Arthur |
| Beaumont, Hon. R. E. B. (Portsm'th, C.) | Falle Sir Bertram G. | Martin, Thomas B. |
| Belt, Sir Alfred L. | Fielden, Edward Brockiehurst | Mayhew, Lieut.-Colonel John |
| Benn, Sir Arthur Shirley | Foot, Dingle (Dundee) | Mills, Sir Frederick (Leyton, E.) |
| Bennett, Capt. Sir Ernest Nathaniel | Fox, Sir Gifford | Mills, Major J. D. (New Forest) |
| Betterton, Rt. Hon. Sir Henry B. | Galbraith, James Francis Wallace | Milne, Charles |
| Birchall, Major Sir John Dearman | Ganzoni, Sir John | Mitchell, Sir W. Lane (Streatham) |
| Blinded, James | Gillett, Sir George Masterman | Molson, A. Hugh Elsdale |
| Bossom, A. C. | Glimour, Lt.-Col. Rt. Hon. Sir John | Moreing, Adrian C. |
| Boulton, W. W. | Gledhill, Gilbert | Morris-Jones, Dr. J. H. (Denbigh) |
| Bower, Lieut.-Com. Robert Tatton | Glyn, Major Raiph G. C. | Morrison, William Shepherd |
| Bowyer, Capt. Sir George E. W. | Goodman, Colonel Albert W. | Murray-Phillpson, Hylton Raiph |
| Boyce, H. Lesile | Grattan-Doyie, Sir Nicholas | Natlon, Brigadler-General J. J. H |
| Braithwaite, J. G. (Hillsborough) | Gretton, Colonel Rt. Hon. John | Newton, Sir Douglas George C. |
| Briscoe, Capt. Richard George | Grimston, R. V. | Nicholson, Godfrey (Morpeth) |
| Broadbent, Colonel John | Guest, Capt. Rt. Hon. F. E. | Nicholson, Rt. Hn. W. G. (Petersf'ld) |
| Brockiebank, C. E. R. | Gunston, Captain D. W. | North, Edward T. |
| Brown, Col. D. C. (N'th'l'd., Hexham) | Hacking, Rt. Hon. Douglas H. | Oman, Sir Charles William C. |
| Brown.Brig.-Gen.H, C.(Berk, Newb'y) | Hales, Harold K. | O'Neill, Rt. Hon. Sir Hugh |
| Browne, Captain A. C. | Hamilton, Sir R. W. (Orkney & Zetl'nd) | Ormiston, Thomas |
| Buchan-Hepburn, P. G. T. | Hammersley, Samuel S. | Pearson, William G. |
| Burghley, Lord | Hanbury, Cecil | Peat, Charles U. |
| Burgin, Dr. Edward Lesile | Hanley, Dennis A. | Petherick, M. |
| Burnett, John George | Hartington, Marquess of | Peto, Geoffrey K. (W'verh'pt'n, Bliston) |
| Campbell, Edward Taswell (Bromley) | Hartland, George A. | Pike, Cecil F. |
| Campbell-Johnston, Malcolm | Harvey, George (Lambeth, Kenn'gt'n) | Potter, John |
| Carver, Major William H. | Harvey, Major S. E. (Devon, Totnes) | Power, Sir John Cecil |
| Cautley, Sir Henry S. | Haslam, Henry (Horncastle) | Pownail, Sir Assheton |
| Cayzer, Sir Charles (Chester, Clty) | Headlam, Lieut.-Col. Cuthbert M. | Procter, Major Henry Adam |
| Cayzer, Maj. Sir H. R. (Prtsmth., S.) | Heneage, Lieut.-Colonel Arthur P, | Pybus, Perey John |
| Cazalst, Thelma (Islington, E.) | Hepworth, Joseph | Raikes, Henry v. A. M. |
| Cazalet, Capt. V. A. (Chippenham) | Herbert, Capt. S. (Abbey Division) | Ramsay, Alexander (W. Bromwich) |
| Cecil, Rt. Hon. Lord Hugh | Hills, Major Rt. Hon. John Walter | Ramsay, Capt. A. H. M. (Midlothian) |
| Chamberlain, Rt.Hon. SirJ.A.(Birm.,W) | Hore-Belisha, Lesile | Ramsden, Sir Eugene |
| Chamberlain, Rt. Hon. N. (Edgbaston) | Hornby, Frank | Rea, Walter Russell |
| Chapman, Sir Samuel (Edinburgh, S.) | Howitt, Dr. Alfred B. | Reed, Arthur C. (Exeter) |
| Clarke, Frank | Hudson, Capt. A. U. M. (Hackney, N.) | Reid, David D. (County Down) |
| Clarry, Reginald George | Hume, Sir George Hopwood | Ropner, Colonel L. |
| Cobb, Sir Cyril | Hurd, Sir Percy | Runciman, Rt. Hon. Walter |
| Cochrane, Commander Hon. A. D. | Jamisson, Douglas | Rungs, Norah Cecil |
| Conant, R. J. E. | Jones, Lewis (Swansea, West) | Russell, Alexander West (Tynemouth) |
| Cook, Thomas A. | Ker, J. Campbell | Rutherford, John (Edmonton) |
| Cooke, Douglas | Kerr, Hamilton W. | Salmon, Sir Isidore |
| Cooper, A. Duff | Kimball, Lawrence | Salt, Edward W. |
| Courthope, Colonel Sir George L. | Knox, Sir Alfred | Samuel, Sir Arthur Michael (F'nham) |
| Craven-Ellis, William | Lamb, Sir Joseph Quinton | Samuel, Rt. Hen. Sir H. (Darwen) |
| Crooke, J. Smedley | Law, Richard K. (Hull, S. W.) | Sandeman, Sir A. N. Stewart |
| Crookshank, Capt. H. C. (Gainsb'ro) | Leighton, Major B. E. P. | Sanderson, Sir Frank Barnard |
| Dalkeith, Earl of | Levy, Thomas | Scone, Lord |
| Davies, Maj. Geo. F.(Somerset, Yeovil) | Liddall, Walter S. | Shakespeare, Geoffrey H. |
| Davison, Sir William Henry | Lindsay, Noel Ker | Shaw, Helen B. (Lanark, Bothwell) |
| Denman, Hon. R. D. | Lister, Rt. Hon. Sir Philip Cunliffe- | Smith, R. W.(Ab'rd'n & Kinc'dine, C.) |
| Smith-Carington, Neville W. | Summersby, Charles H. | Wedderburn, Henry James Serymgol |
| Smithers, Waldron | Tate, Mavis Constance | Wells, Sydney Richard |
| Somerville, Annesley A. (Windsor) | Templeton, William P. | Weymouth, Viscount |
| Soper, Richard | Thomas, Rt. Hon. J. H. (Derby) | White, Henry Graham |
| Southby, Commander Archibald R. J. | Thomson, Sir Frederick Charles | Whiteside, Borras Noel H. |
| Spene, William Patrick | Thorp, Linton Theodora | Williams, Herbert G. (Croydon, S.) |
| Stanley, Hon. O. F. G. (Westmorland) | Todd, A. L. S. (Kingswinford) | Wilson, G. H. A. (Cambridge U.) |
| Steel-Maitland, Rt. Hon. Sir Arthur | Tryon, Rt. Hon. George Clement | Windsor-Clive, Lieut.-Colonel George |
| Stevenson, James | Turton, Robert Hugh | Wood, Rt. Hon. Sir H. Kingsley |
| Stones, James | Wallace, John (DunferMilne) | Wood, Sir Murdoch McKenzie (Banff) |
| Strauss, Edward A. | Ward, Lt.-Col. Sir A. L. (Hull) | |
| Strickland, Captain W. F. | Ward, Sarah Adelaide (Cannock) | TELLERS FOR THE NOES.— |
| Sueter, Rear-Admiral Murray F. | Wardlaw-Milne, Sir John S. | Sir George Penny and Mr. |
| Sugden, Sir Wilfrid Hart | Waterhouse, Captain Charles | Womersley. |