HC Deb 03 April 1963 vol 675 cc486-7

There is one other aspect of oil duty, that on light oils used as raw materials, or as solvents or preservatives, or for similar purposes, in industrial processes, The duty of 2s. 9d. a gallon on industrial light oils imposes a special additional burden on a number of industries which happen to use oil in the actual manufacture of their products, one which many of their overseas competitors do not have to carry. I accept in principle the claim for some form of duty relief for industrial light oils. I do not propose, however, to ask the Committee to agree to a Resolution on this subject today, because the method of giving relief requires further consideration.

Customs and Excise will at once begin discussions about this with the industries concerned and with the oil companies. They are bound to be technical and complex; but rather than proceed in a piecemeal way, I would prefer to deal with the case for relief as a whole, and I see no reason why legislation which substantially meets the case should not be introduced next year.

This relief will represent a useful reduction in costs in a number of industrial processes. When fully operative it is expected to reduce the burden on costs of production by up to £10 million a year.

I also propose to make certain minor improvements in the administration of the duties on hydrocarbon oils, to take account of technical developments.

Back to