HC Deb 27 January 1955 vol 536 cc402-3
12. Mr. Albu

asked the President of the Board of Trade what discussions he has had with the Governments of India and Ceylon on the export duty on tea; and what effect this duty has had on wholesale prices of stocks destined for this country.

Mr. P. Thorneycroft

None, Sir. I have no evidence that the export duty has had any significant effect on prices at the tea auctions in London or Calcutta.

Mr. Albu

I take it that the right hon. Gentleman does not agree with the remark of the Lord Privy Seal on the debate on the Address that these export duties have a very great effect on the price of tea in this country. I take it also that the right hon. Gentleman agrees that the Government of Ceylon and India have a perfect right to take back part of these large profits and use them for social development in their own countries?

Mr. Thorneycroft

This is a revenue matter for the Indian Government and there is no doubt that there is a limit to the extent to which we can protest about revenue action of that kind. It is not in our interests to see the export tax on tea put up—that was a fair point which my right hon. Friend was making—but this is essentially a revenue matter.

Mr. E. Fletcher

Would the Minister say what steps the Government are taking to reduce the price of tea, which is causing such grave hardship to so many sections of the community?

Mr. Thorneycroft

If I may say so, that is a different question, and should not be addressed to me.

Mr. K. Thompson

Will my right hon. Friend agree that the export duty on tea charged by India and Ceylon is in the end paid by the British consumer?

Mr. Thorneycroft

I am not prepared to debate whether this is a tax on producer or consumer. It is undoubtedly a revenue tax imposed by the Indian Government.