HC Deb 03 July 1939 vol 349 cc1034-40

8.39 p.m.

Sir J. Simon

I beg to move, in page 38, line 7, after "for," to insert "sub-paragraph (ii) of."

I think it would be right that I should state very briefly the effect of the numerous Amendments which appear on the Order Paper to this Schedule. They carry out the change which I announced earlier in respect of the duty on films, and, taken together, they carry out completely the changes then announced. There is also one further adjustment which I should specially mention. The result will be that, in addition to the disappearance of the Excise Duty, the Customs Duties on blank film will be, in the case of imported blank cinematograph film, the rate of one-third of a penny per foot of standard width, and other widths in proportion, and to that extent we return to the position before the Budget. As regards imported foreign blank photographic films and plates, we also revert to the pre-Budget position.

There is a change of importance introduced in respect of Customs Duties on exposed cinematograph films. At present the higher rate of duty is imposed only on the imported negatives, and, as I explained, by a device of importing a positive in the first instance, which paid a lower rate of duty, it was possible very largely to evade what certainly Parliament intended to be the Customs Duty on this class of import. I propose to change that, by arranging that there will be a higher charge on the first imported copy of any film, whether positive or negative, the charge being 5d. in the case of the first copy, and Id. on those which follow afterwards. There are altogether four exceptions to the principle that the first copy imported should pay a duty of 5d. per foot. There is, first of all, the case of the sub-standard exposed cinematograph film that is less than the usual standard width which, even though it is the first copy, will pay one penny per foot import duty. There is the case of the single sound track, which again, though a first copy, will pay one penny per linear foot. There is the further exception, to which I will refer in a moment, more at length, of news films which are imported and will pay one penny per linear foot; and there is, lastly, the case of the single copy film, sometimes called Continental film, not introduced in this country for copying purposes at all, but which is prepared in a single version for exhibition here. Here again the duty will be at the rate of one penny per linear foot.

I promised to explain why I propose that in the case of imported film, which is not feature but is a news film, the duty should be Id., and not 5d. It is partly because the imported news film, as I am informed, is in quantity very much greater than the amount that is exhibited. Only about one-tenth is really used and reproduced. Much of it is put into libraries and may be useful in certain circumstances hereafter. As I have reminded the Committee, the justification for treating news films quite differently is that it is the very nature of the news film that it enjoys its value for a very short time, except so far as it is stored for possible use thereafter. There have to be a great number of exhibitions of it, and it is not simply passed round from one cinema to another in the course of a series of weeks. Therefore, the proposal is fair both to the home news reels and to news reels imported from abroad.

Take the very recent example we had of the perfectly splendid pictures we have seen of the visit of their Majesties to Canada and the United States. Those were pictures of great merit and they will not be in any way obstructed. I think the Committee may safely take it that the scheme has now been fitted in with precision. It has had the advantage of careful examination by the hon. Member for the Don Valley (Mr. T. Williams), and I think we have got a system that is satisfactory all round. I must, however, insist that it is right that we should impose a higher duty on the first copy of the imported film, whether positive or negative. I am quite clear that it is the general intention of Parliament to do that, because a certain amount of protection should be given to the home industry, which is justified. It would certainly not be justified if we were to give a blank cheque by the introduction of the positive copy and enable it thereby to escape four-fifths of the duty.

8.47 p.m.

Mr. T. Williams

I should like to express thanks on my own behalf and on behalf of many others who are more deeply involved than I am, for the right hon. Gentleman's concession. I should, however, like to ask two questions with regard to the news reels. As the right hon. Gentleman truly said, in the process of manufacture very often 10 times as much copy is produced as is exhibited on the screen. Some portion of that copy not used on the screen may be diverted to the library and fished out perhaps 10 or 50 years hence. Can the right hon. Gentleman say, in view of the Amendments, whether the portion of the news reel imported and not literally destroyed but diverted to the library, would have to pay the ordinary Id. per linear foot duty? This is a highly complicated business and it is difficult for anyone to get even an elementary grasp of it. If it was felt that the comparatively small burden of the present Import Duty of Id. on news reels was such as not to make it worth while to import that portion of the film which was desired for library purposes and not for exhibition purposes, it might very well be that such parts of such imported copies as the right hon. Gentleman referred to last week would need a library, which would perhaps have to be set up in Paris or elsewhere to store British historic films. Can he tell me whether that is the case or not? The other question which I intended to ask was in regard to the sub-standard film, but it is so highly complicated that I do not think I will put the question to-night, but will leave it to correspondence, out of which perhaps we can make much better progress than by trying to work out meticulously this highly complicated problem here.

8.49 p.m.

Sir J. Simon

I thank the hon. Gentleman for sparing me the extreme technicality of dealing with the sub-standard film. Knowing that he was an expert I spent a little time in preparing myself and, therefore, I suppose I am rather disappointed at not having to explain the sub-standard film. I understand that the sub-standard film has this advantage that being composed of much smaller pictures it travels at a much slower rate across the camera. For example, 400 feet of 16 millimetre and 200 feet of eight millimetre sub-standard film contain as many pictures and therefore show for as long a time as 1,000 feet of 35 millimeteres. With this abstruse explanation I am preparing my hon. Friend for the correspondence which is to take place between us.

As regards the news reel, it has always been admitted to this country on the basis that it pays the duty whether it is all shown, in this country or not. I do not think in the circumstances the Customs authorities can be asked to apply any other test. It cannot be ascertained by inspecting at the port, whether it is to be shown, whether it is to be put into a library or what will happen to it. That is more than the poor Customs officer can be expected to know. It always has paid Id. and it should continue to pay Id. duty. The public who look at news reels have by this rearrangement got a very considerable advantage. There will be no duty at all so far as the home news reel, printed at home, is concerned, and that is the greater part of the day to day exhibition of news reels; there will be no higher duty on imported news reel. I think these things, put together, will enable us on both sides of the auditorium to be satisfied that no obstruction is being put in the way of what is most desirable for the presentation of news on the screens in this country.

Amendment agreed to.

Further Amendments made:

In page 38, line 7, leave out the second "paragraph," and insert "sub-paragraphs."

Leave out lines 10 to 22.

In line 23, column 1, leave out "(v)," and insert "(ii)."

In line 24, column 2, leave out "9d. per square," and insert "⅓d. per linear."

In line 25, column 1, leave out "(vi)," and insert "(iii)."

In line 27, column 1, leave out "or."

In column 2, leave out "2d.," and insert "1d."

In line 29, column 1, leave out "or."

In column 2, leave out "2d.," and insert "1d."

In line 29, at the end, insert:

" (c) shown to the satisfaction of the Commissioners to consist wholly of photographs (with or without sound track) which at the time of importation are means of communicating news 1d. per linear foot."

In line 34, column 1, leave out "sixpence," and insert "fivepence."

In line 35, column 2, leave out "2d.," and insert "1d."

In line 36, column 2, leave out "6d.," and insert "5d."

In page 39, line 3, leave out from beginning, to "shall," in line 4.

In line 5, at the end, insert: and in the case of unexposed sensitized cinematograph film of less than the standard width, the Customs duty chargeable shall be-decreased in proportion to the extent to which the width is less than the standard width.

In line 10, leave out "sub-paragraphs (i), (v) and (vi) of."

In line 15, leave out "(i), (v) and (vi)," and insert "(ii) and (iii)."

In line 18, leave out "said sub-paragraphs of the."

In line 21, leave out "sub-paragraphs (i) and (v)," and insert "sub-paragraph (ii)."

In line 22, leave out from "Table," to "and," in line 26.

In line 31, leave out "(vi)," and insert "(iii)."

In page 40, line 25, leave out paragraph 7, and insert:

  1. "7. Where two or more equal lengths of exposed cinematograph film are imported together and it is shown to the satisfaction of the Commissioners that they all represent the same objects and are intended to be used as a set, each complementary to the others, in the production of a coloured picture, and are not suitable to be used separately, they shall be charged as a set with the duty that would be chargeable if one length only were being imported.
  2. 8. Where in the case of any exposed cine matograph film security is given to the satisfaction of the Commissioners—
    1. (a) that no duplicate will be made in the United Kingdom from the film or from any part thereof or from any duplicate of the film or of any part thereof except for the purpose of preparing a single version adapted for exhibition in the United Kingdom; and
    2. (b) that the film and any duplicate made from the film or from any part thereof will be destroyed or otherwise disposed of to the satisfaction of the Commissioners within such period as they may require,
    the duty of customs chargeable on the film shall be at the rate of one penny per linear foot.
  3. 9. Where, in the case of any exposed cine matograph film, it is shown to the satisfaction of the Commissioners—
    1. (a)that customs duty was paid on the film at the rate of fivepence per linear foot;
    2. (b) that no duplicate has been made in the United Kingdom from the film or from any part thereof; and
    3. (c) that no duplicate of the film or of any part thereof has been imported into the United Kingdom;
    there shall, if the film has been destroyed or otherwise disposed of to the satisfaction of the Commissioners, be allowed a rebate at the rate of fourpence per linear foot."

In line 35, leave out "sixpence," and insert "fivepence."

In line 43, leave out paragraphs 9, 10 and 11.

In page 41, leave out lines 36 to 40.

n page 42, line 1, after "film," insert "representing the same objects."

In line 3, after "or," insert: by reason that the objects are represented on different scales and the dimensions of the lengths of film are correspondingly different, or.

In line 4, leave out "represent the same objects and."

In line 8, leave out "8," and insert "10."

In line 14, leave out "and 7,"and insert "to 9."

In line 22, leave out "12," and insert "11."—[Sir J. Simon.]

Fourth and Fifth Schedules agreed to.