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I must now turn to a different topic, and once again address a few words to the Committee on the subject of tobacco. When I increased the Tobacco Duty in the April Budget I asked for a reduction of 25 per cent. in total consumption and I appealed—I quote the words I then used:
… to all our fellow-citizens to regard this particular economy as a minimum, and as a patriotic duty at this time."—[OFFICIAL REPORT, 15th April. 1947; Vol. 436, c. 88.]
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I dwelt in particular on the need to save dollars. I am sorry to say that this reduction has not been achieved. After a sharp drop in the first few months, consumption of tobacco has again been steadily rising, and it has now reached a figure of more than 80 per cent. of the pre-Budget level. I said in April—I am quoting my speech again:
… we are smoking much more, as a nation, than we can afford."—[OFFICIAL REPORT, 15th April, 1947; Vol. 436, c. 87.]
This is even more true now than when I first said it. The shortage of dollars has become much more serious since then, and, as the Committee know, we have now stopped the purchase of United States tobacco altogether. Nor can we tell how long it will be before we can afford to start buying in the United States again. No one can tell how long it will be. Food and essential raw materials must come first, before tobacco, in the priorities of our import programme.
§ Therefore, although we shall continue to buy what tobacco we can from the sterling area and from soft currency countries outside the sterling area, and although, for the moment, we have substantial stocks, yet, unless we now reduce our rate of smoking, we shall be smoking away our stocks, and rapidly approaching a very extreme shortage of tobacco. I am told that one third of the adult population over 18 years of age do not smoke at all; but it is clear that the other two thirds—male and female—are still smoking too much. In the mass, we are reluctant, even with the discouragement of the higher prices following my last Budget, to look ahead and to modify our habits in this respect, while we still have something in hand in the way of tobacco stocks. I must continue to watch the figures very carefully; but since it is only just over six months since I increased the duty pretty substantially, I do not propose, in this Budget, to raise it again.
§ Mr. Gallacher (Fife, West)A hearty vote of thanks.
§ Mr. DaltonI think the Revenue has been benefiting over the last week or two, from some degree of uncertainty as to what the intentions of the Government on this subject might be.