BENZENE (DUTY) (Hansard, 19 May 1969)

§ The Minister of State, Board of Trade (Mr. William Rodgers)
I beg to move, That the Import Duties (Temporary Exemptions) (No. 3) Order 1969 (S.I., 1969, No. 573), dated 21st April, 1969, a copy of which was laid before this House on 25th April, be approved. The Order I am asking the House to approve restored as from 1st May an import duty which would otherwise have remained suspended until the end of this year. This is the 25 per cent. ad valorem duty on a chemical known as 1, 4-Di-(2- Hydroxyethoxy) benzene.
This chemical is used to make synthetic rubbers for seals and gaskets, and as an intermediate in the production of certain fibres. Along with certain other items, it was exempted from import duty on 6th March by the Import Duties (Temporary Exemptions) (No. 1) Order, 1969 (S.I. 1969 No. 232).
This particular exemption on 6th March was the result of a mistake. The present Order corrects that mistake.
Our general policy is to suspend the duty on a chemical subject to a duty of 25 per cent. or more when application is made and supplies are not available from United Kingdom or Commonwealth sources in quantities substantial in relation to demand. We suspended this duty because we were unaware at the time of any adequate United Kingdom or Commonwealth production.
Before recommending the suspension, we published the application and made our usual inquiries. This procedure has proved generally successful over a long period. But in this case we have become aware that there is adequate production in this country only after the No. 1 Order was made.
Our failure to appreciate this earlier stemmed from two causes. As a result of a most unusual breakdown in the normal channel of commercial consultations, we did not receive in time an objection made by a United Kingdom manufacturer. Even so, we should probably have discovered the position had we in the Board of Trade made further inquiries quickly enough following a late telephone approach from the applicant which indicated that a United Kingdom 182 manufacturer might possibly be able to supply after all.
I regret this rare breakdown in our normal consultation procedures and the need to bother the House on this occasion. But there is adequate United Kingdom production, and the U.K. producer is facing overseas competition in supplying a number of users in this country. In the circumstances, I am sure that it is right to ask the House to approve this Order to restore the duty.

§ Mr. Patrick Jenkin (Wanstead and Woodford)
The House will be glad to learn that I do not propose to make a long speech about this Order. I have no doubt that the Minister of State will also be glad to know that we have no objection to it.
In thanking him for the frank way in which he put the Order before us and recognising that genuine errors have been at work in this instance, as a result of which the product in question was included in a list exempting it from import duty, in spite of the fact that the firm in question in this country had taken steps to secure its exclusion, I would only add that, in my considerable experience of the operation of this legislation, this is the first time that there has been a breakdown in the communications between the relevant trade association and the Board of Trade. It is so rare as to be almost unique. Hundreds, possibly thousands, of products are dealt with annually by the relevant section in the Board of Trade, and it is remarkable, not that an error should have occurred, but that it should occur so rarely.
This is an opportunity whereby we in this House can pay a tribute to the small band of civil servants who exercise a little noticed but vitally important function in clearing these long lists of chemicals either for exemption from import duty or for the imposition of a temporary import duty. It is a tedious task which goes on week in, week out, and it is performed with notable accuracy. The fact that we have a case which has gone wrong should not detract from the value which we in this House must place upon their services, and I hope that the Minister will feel it right to bring this tribute to the notice of those concerned.

§ Sir Ronald Russell (Wembley, South)
Can the Minister say where the imports are coming from? Are they from foreign or Commonwealth countries? If they are from Commonwealth countries, will they, under this Order, be subject to duty, or will they get Commonwealth preference?

§ Mr. William Rodgers
I shall have to confirm this to the hon. Gentleman, but I think that they would be entitled to Commonwealth preference. However, I am not sure from which source this is coming. I will find out, and let the hon. Gentleman know.

§ Mr. Patrick Jenkin
With the leave of the House, perhaps I may assist by putting a question to the Minister of State. Is is not a fact that the imports in question were coming from Germany? If so, my hon. Friend's fear may be regarded as groundless.

§ Mr. Rodgers
I am grateful for the hon. Gentleman's guidance. I am sure that he is right, but I will make doubly sure.