HC Deb 01 March 1955 vol 537 cc1860-1
8. Mr. Driberg

asked the Chancellor of the Exchequer if, in view of the present high cost of tea, he will institute a scheme of tea-tokens for old-age pensioners.

Mr. R. A. Butler

I regret that I cannot accept the hon. Member's suggestion.

Mr. Driberg

Can the Chancellor explain why, if it is possible to do this in respect of tobacco, which is consumed by far fewer people, it is not possible to do something like it in respect of tea?

Mr. Butler

Relief to pensioners comes from a remission of duty on tobacco, which is a very much larger factor than the possibility of remission of the duty on tea, for the reason that the proportion of tea taxed is only the foreign portion. That amounts to very little compared with the Commonwealth portion, and, therefore, the remission of tea duty to help old-age pensioners in this way would give practically no relief at all.

Mr. Driberg

If the right hon. Gentleman merely means that it is administratively inconvenient, could he not look at the matter again and see whether, by some form of subsidy or another, he cannot do it?

Mr. Butler

The Government thought it preferable, apart from the difficulties to which I have drawn the hon. Member's attention, to deal with the problems of pensioners by raising the pensions themselves.