§ 56. Lieut.-Colonel Liptonasked the Chancellor of the Exchequer whether he is aware that in consequence of the increase in Tobacco Duty last April, Carreras, Limited, made a profit on tobacco stocks amounting to £533,339; and whether he will take steps to ensure that similar profits out of fiscal changes shall not be made in future.
§ Mr. Glenvil HallI have seen statements to that effect. It is the usual practice of tobacco manufacturers to raise their prices shortly after a Budget, but the leading manufacturers, including Messrs. Carreras, have given an assurance that any amount so gained would be earmarked to cover the loss on any future reduction in duty.
§ Lieut.-Colonel LiptonIs my right hon. Friend aware that as a result of crediting this sum to this year's profits, it has now become possible for this company to make a dividend distribution of 35 per cent. for the year? Will he look into the matter again?
§ Mr. Glenvil HallThat has nothing to do with it.
§ Sir F. SandersonIs the right hon. Gentleman aware that the dividend of 35 per cent. represents no increase, and that it is payable on their shares which have been issued at or quoted at 600 to 700 per cent. above their nominal value?