HC Deb 28 July 1975 vol 896 cc1286-7
17. Mr. Bryan Davies

asked the Secretary of State for Trade whether he will introduce an import levy on tea, the proceeds of which will form a welfare fund for the benefit of workers on tea estates.

Mr. Deakins

I am not convinced that such a scheme would be practicable. However, as far as Sri Lanka is concerned, we are continuing our discussions with the Ceylon Association following the report produced by the group of Members who visited Sri Lanka at Easter. These discussions now need to take account of the Sri Lanka Government's plans to nationalise all foreign-owned estates.

Mr Davies

I thank my hon. Friend for that reply, but does he accept that many of us will find it somewhat disappointing? Does he agree that something concrete ought to be put forward to help tea workers in Sri Lanka in particular and on many other estates throughout the world where there are British tea interests? Should he not capitalise on the real feeling among public opinion that tea is somewhat underpriced in this country and could bear a modest increase if the proceeds were directed to this meritorious end?

Mr. Deakins

The Government's policy is to work towards international commodity agreements, of which tea would be one. However, the fact is that to impose a levy for this purpose would require new legislation and could be implemented only with the agreement of all tea exporting countries, not all of which are in need of this type of welfare fund and some of which might be reluctant to see a weakening of the competitiveness of tea vis-à-vis coffee.

Sir John Hall

Has the hon. Gentleman any reason to believe that the Governments of the countries concerned would be prepared to accept a fund raised in this way for the benefit of one section of workers only? This applies particularly to Sri Lanka, which has been reluctant to accept any help directed specifically to tea plantation workers.

Mr. Deakins

I cannot speak for the Sri Lanka Government, but I should have thought that other tea exporting countries which would be affected by the levy would be most unlikely to tolerate a levy on all tea exports the proceeds of which were directed merely to one country.