HC Deb 09 March 1971 vol 813 cc219-20
3. Mr. Cronin

asked the Chancellor of the Exchequer what non-Departmental advice he has received as to the effect on the revenue arising from a decrease in duties on wines and spirits.

Mr. Maurice Macmillan

The Wine and Spirit Association has suggested that a 10 per cent. reduction in the duties would result in a slight increase in revenue.

Mr. Cronin

Is it not a fact that a reduction in these duties would have a very slight effect on Treasury receipts but would, at the same time, produce a decrease in consumer prices in a psychologically important area? Would this not be an appropriate action to take in the present conditions of the wage-cost inflationary spiral?

Mr. Macmillan

I will note the hon. Gentleman's suggestion, as I am sure that my right hon. has also done.

Sir Harmar Nicholls

Will my hon. Friend take into account my view, as one who has interests in hotels and restaurants with bars, that what his Department regards as a slight improvement would be to the industry a very considerable improvement?

Mr. Macmillan

I have little doubt of my hon. Friend's special knowledge in these matters, both subjective and objective.

Mr. Simon Mahon

Is the hon. Gentleman aware of the number of my constituents who are sick, elderly and poor who are constantly being advised by doctors that a drop of whisky would do them the world of good? Is there anything that he can do to aid my constituents to come by the necessary at the right time?

Mr. Macmillan

This is another aspect of the matter and one which I agree is not unimportant. I will certainly take note of what the hon. Gentleman said.