§ These two matters cut into the revenue to the tune of about £1,000,000 in a full year and I wish to provide for these losses of revenue approximately by a modification of the duty on films—blank films and picture films. I propose to put an Excise Duty on photographic films and plates manufactured in this country, and the rate of duty I propose is 4½d.per square foot, which will be the equivalent of about 2d. on the most popular size of roll film commonly used by amateur photographers. X-ray films and dental films used for medical and scientific purposes will be exempt from Duty. I understand that a great deal of cinematograph film which is used in a film studio is 992 rejected as unsuitable, either as waste or clippings, for inclusion in the final picture. As I have no wish to hamper the production of British pictures I propose to allow a rebate equal to the Excise Duty on whatever wastage arises in this way.
§ Concurrently with the imposition of the Excise Duty the Customs Duty on blank film and plates will have to be increased. The new rate will be 9d. per square foot of blank film coming from abroad.
§ This is also a convenient opportunity for rectifying certain anomalies in connection with imported picture films. The present Duties are 5d. per linear foot on negatives and one penny per linear foot on positives. When these Duties were imposed in 1915 the intention was that the higher rate of 5d. a foot on negatives would be paid on all foreign productions imported for purposes of reproduction here. But under modern conditions it is possible, and it has become the practice, to avoid the higher Duty by never importing any negative copy at all, but by importing a single positive copy at 1d. a foot and reproducing from it all the additional copies needed. I propose, therefore, in future to charge the higher rate on the first copy of each film imported, whether it happens to be positive or negative, and to allow subsequent copies or prints of the film to come in at the lower rate. To compensate for the Excise Duty, the Customs rate will be increased to 6d. for the first copy and 2d. for each subsequent copy, per linear foot respectively. Films which only contain a sound track and films less than the standard width will be admissible at the lower rate, whether they are first copies or not. This will increase the yield from the Film Duties by £800,000 in the present year and by over £1,000,000 in a full year, which may be substantially set off against the two concessions I have explained.