§
Motion made, and Question proposed,
That the Import Duties (Exemptions) (No. 14) Order, 1956 (S.I., 1956, No. 1799), dated 13th November, 1956, a copy of which was laid before this House on 16th November, be approved.—[Mr. Low.]
§ 10.0 p.m.
§ Mr. Douglas Jay (Battersea, North)Perhaps the Minister of State, Board of Trade, will explain what he is doing in this case. He appears to be imposing an import duty on refractory bricks of a certain kind which have been exempt from duty since 1948. Refractory bricks are a very important raw material of industry, as I am sure the right hon. Gentleman knows. I remember from my experience in war time, that they were at one time one of the worst bottlenecks in the economic war effort. It is a general principle of our policy that we do not, if we can help it, impose import duties on industrial raw materials. Perhaps the right hon. Gentleman can explain why, in this case, he is departing from that principle.
§ 10.1 p.m.
§ The Minister of State, Board of Trade (Mr. A. R. W. Low)I will certainly try to answer the right hon. Gentleman's question. This Order ends the suspension, or rather the exemption from duty, of imports of silica refractory bricks and, in doing so, restores the 10 per cent. general ad valorem duty upon them.
The history of the duty on these bricks since 1932 is as follows. From 1932 until 1948 they were subject to the 10 per cent. general ad valorem duty. They were placed on the Free List in 1948, because it was then feared that the maintenance and expansion of coke ovens and gas plants would be prejudiced unless additional supplies could be brought in from the Continent free of duty. It was not intended that they should be permanently exempt from duty. The exemption was to be temporary.
1005 In fact, the anticipated shortage never materialised. In the most difficult year, imports were only half of 1 per cent. of domestic production. The annual United Kingdom production of these bricks is over a quarter of a million tons. In 1955, the brick makers applied, as they were entitled to do, for the restoration of the 10 per cent. general ad valorem duty which had been in force between 1932 and 1948. Some opposition was expressed, but after full consideration it seemed to us right to restore the 10 per cent. duty: for that duty is the basic duty imposed by the Import Duties Act on all imports into the United Kingdom for which no special case has been made out either for increased protection or for duty-free admission. In this case no special case was made out.
United Kingdom suppliers can meet all but the most marginal needs, and the brick makers had been clearly given to understand that the 1948 exemption was a temporary one. Imports of other bricks, including fireclay refractory bricks, are subject to the 10 per cent. general ad valorem duty. With that explanation, I hope that the House will let us have the Order for which we ask.
§ Question put and agreed to.