HC Deb 19 November 1940 vol 365 cc1801-2
1. Mr. Wedgwood

asked the Parliamentary Secretary to the Board of Trade, in view of the ruling by the United States of America's Treasury that the Purchase Tax must be included in the value of goods imported from the United Kingdom for the purpose of establishing ad valorem duties, what is the Board's estimate of reduction in dollars of our annual exports to the United States of America?

Mr. Harcourt Johnstone (Secretary, Department of Overseas Trade)

The proportion of this country's current exports to the United States which are subject to ad valorem duties appears to be about one-third of the total. I am not in a position to say what proportion of this one-third will attract the higher valuation for duty purposes in the U.S.A. or to estimate the consequent reduction in trade.

Mr. Wedgwood

Has the right hon. Gentleman the President of the Board of Trade made any representations to the Treasury about the effects of this tax, and are any modifications in the system of collecting the tax being made?

Mr. Johnstone

The tax was, of course, imposed only after due consultation between all the Departments affected. At present conversations are going on in the United States about the incidence of the tax. I can add nothing to answers that I have previously given on the subject.

Mr. Wedgwood

Was the Department really not aware, when it sanctioned the Treasury's proposals for this tax, that the American duties would go up as a result?

Mr. Johnstone

Yes, Sir. The Department was aware of all the effects of the tax, but the Revenue had naturally first consideration.

Mr. Wedgwood

Is the Revenue, or production, the first consideration of the Board of Trade?