HC Deb 11 June 1952 vol 502 cc343-4

10.20 p.m.

The Secretary for Overseas Trade (Mr. H. R. Mackeson)

I beg to move, That the Import Duties (General Ad Valorem Duty Reduction) Order, 1952, (S.I., 1952, No. 996), dated 20th May, 1952, a copy of which was laid before this House on 22nd May, be approved. Before I begin to explain this Order, perhaps I might be allowed to tell the House why an affirmative Resolution is necessary in this case. This Order reduces the duty on any un-processed softwood sleepers and sleeper blocks from the sum of about £7 to the sum of 8s. per standard. So long as softwood sleepers cost more than £4 a standard, 8s. a standard will be less than the present ad valorem duty of 10 per cent. If, however, the price per standard ever fell to less than £4 per standard, that would represent an increase in the existing rate of duty, and therefore it is considered that an affirmative Resolution is desirable.

The House will no doubt not be very optimistic of the prospect of a fall from £4. The present price of softwood sleepers is about £70 per standard and has not been less than £4 since 1900.

In January, 1951, as hon. Members will know, the Government allowed private trading in softwood timbers to re-commence. During the war, and until 1951, there was no anomaly as the State was doing the purchasing, but under the present arrangements, which were introduced in 1951, softwood sleepers are charged at a rate which works out at about £7 a standard whereas ordinary softwood is charged at the rate of 8s. a standard.

The reason for this is that under the Import Duties Act, 1932, a large range of goods became liable to a 10 per cent. ad valorem duty. Since that time there have, under various trade agreements, been reductions of duty on softwood, apart from sleepers, which have reduced the duty on softwoods now to roughly the equivalent of one half per cent. ad valorem.

The House will note from the Schedule to the Order that only wood and timber of coniferous species in the round, hewn or square sawn, but not further prepared or manufactured, except boxboards, are included. This means that it is simply a question of softwood cut to a particular size. It does not mean that sleepers which have been processed, creosoted or shaped in any way are included.

The present position is that exactly the same types of wood are, owing to the anomaly which has arisen, being charged at the very different rates of £7 and 8s. per standard. The Order does not apply to hardwoods nor does it apply to hardwood sleepers. The duty on these remains at 10 per cent. This is a common-sense Order, which has arisen out of the decision made in January, 1951.

Resolved: That the Import Duties (General Ad Valorem Duty Reduction) Order, 1952 (S.I. 1952, No. 996), dated 20th May, 1952, a copy of which was laid before this House on 22nd May, be approved.