HC Deb 08 December 1977 vol 940 cc1625-6
6. Mr. Hodgson

asked the Chancellor of the Exchequer whether he will take steps to reduce the duty payable on British wines.

Mr. Robert Sheldon

Our obligations under the Treaty of Rome require that any reduction in the duty on wine produced from grapes grown in the United Kingdom could only be made if the duty was reduced at the same time on imported wines. This raises questions of a budgetary nature.

Mr. Hodgson

Is the Minister aware that wines produced in Germany, Italy and Luxembourg for domestic consumption carry no duty at all? Will he make that kind of concession available to British wine-growers for wine produced in this country for consumption here?

Mr. Sheldon

The difficulty is, as I have said, that any advantage here would be largely to the benefit of imported wines. I note the recent comment of the English Vineyards Association that many growers sell all their wine within 12 months. I am delighted that that is so. I look forward to the industry's expansion, but any concession here is not possible at present.

Mr. Shepherd

Is the Financial Secretary aware that the excessively high level of taxation imposed upon the cider industry has led to a tremendous degree of deferred investment—about £3 million? Will he consult the industry to establish a level of taxation which will restore confidence, to enable employment to be started up again and the investment programme to go ahead?

Mr. Sheldon

I am aware that the cider industry had certain advantages through the absence of duty and that the imposition of the duty brought about certain changes of which it had to take account. I am delighted to consult the industry. I think that my relations with it are close. If there is any matter on which it wishes to make representations, I shall be happy to accommodate it.