HC Deb 23 July 1969 vol 787 cc1695-6
3. Sir R. Russell

asked the President of the Board of Trade if, following his discussions with the interests concerned, he will now abandon his proposal to reduce the customs duty on boned and boneless beef imported from foreign countries.

31. Mr. Biffen

asked the President of the Board of Trade what tariff changes he proposes in respect of imports of boned meat following the recommendations of the Northumberland Commission.

68. Mr. Oakes

asked the President of the Board of Trade if he has now completed his negotiations on the revision of the tariff on boneless beef; and if he will make a statement.

The President of the Board of Trade (Mr. Anthony Crosland)

After considering the views expressed by the home and overseas interests concerned, the Government have decided that the present 20 per cent. duty on boned or boneless beef and veal in fresh, chilled or frozen form should be reduced to 5 per cent. with effect from 1st October, 1969. I will review the new rate if necessary in the light of experience.

Sir R. Russell

Is the President of the Board of Trade aware that this reduction in duty will reduce by 15 per cent. the margin of preference afforded to Commonwealth countries and, therefore, damage their trade and possibly throw their whole trade into chaos? Will he not reconsider this matter from the point of view of Commonwealth producers?

Mr. Crosland

No, Sir. The hon. Gentleman is much too pessimistic. Commonwealth producers will gain from the ban on bone-in beef, and this decision will merely offset the gain that they would have had from that. If there were to be the disruption which the hon. Gentleman fears, this would constitute the kind of circumstances in which I would review the decision.

Mr. Biffen

In view of the overriding importance of health considerations in dealing with this subject, will the right hon. Gentleman confirm that boned beef which will now be subject to a 5 per cent. tariff must be accompanied by the lymphatic glands which will enable the health inspection to be carried out also in this country.

Mr. Crosland

Yes, Sir; that is the case.

Mr. Oakes

Is my right hon. Friend aware that his decision to reduce this duty will be widely welcomed by the housewife and the trade in this country? Why is he sticking to the percentage basis rather than a duty of so much according to weight?

Mr. Crosland

There are two reasons why we are sticking to an ad valorem duty rather than having a specific duty. One is that the great majority of our duties are ad valorem. The other, which is more important, is the fact that a specific duty can be eroded in value simply by a movement in prices. The general opinion is that ad valorem duties make much more sense.