§ THE EARL OF DENBIGHI beg to ask, with reference to the answer given by the Chancellor of the Exchequer in the House of Commons on March 7, to the effect that the terms of the Sugar Convention Act, 1903, are such as to necessitate a charge of Excise duty on sugar manufactured from sugar-beet grown in the United Kingdom—(1) whether it is not 510 the fact that by Article 3 of the Brussels Convention contracting countries are only obliged to impose an Excise duty on home-grown sugar when the import duty is in excess of 6 francs per 100 kilos. (or 2s. 6d. per cwt.) and whether, as the import duty has now been reduced to below that figure, there is now no obligation under the Convention to impose any Excise duty on sugar grown in the United Kingdom; (2) whether, in the event of sugar being manufactured in the United Kingdom, it would be necessary to obtain Parliamentary sanction by legislation for the imposition of an Excise duty.
LORD DENMANMy Lords, the answer to the first part of the Question is that the effect of Article 3 of the Brussels Convention has been correctly stated by the noble Earl. I understand there is no obligation under the Convention to impose an Excise duty on home-grown sugar in the United Kingdom so long as the Customs duty remains at its present figure; but recently my right hon. friend the Chancellor of the Exchequer stated in the House of Commons that it is held, although the question has not yet been settled, that the terms of the Sugar Convention Act of 1903 are such as to necessitate an Excise duty on sugar manufactured from home-grown beet in the United Kingdom. He is advised, however, that the actual charge of duty would have to be the subject of special legislation.
§ THE EARL OF DENBIGHIt is only an enabling clause. There is no obligation whatever in the Sugar Convention Act, and I cannot understand how anybody reading that Act can say that there is any obligation whatever under the Act to impose that duty.
LORD DENMANIt is a technical matter, but if I refer to the Act I think I may be able to point out to the noble Earl the point at issue. Section 2 of the Act runs—
The duties payable under the Finance Act, 1901, or any Act amending that Act, shall be taken on the delivery of any article from the factory or refinery and shall be the same as those payable on the like articles on importation.
§ THE EARL OF DENBIGHWhat Act is the noble Lord quoting from? I have in my hand the Sugar Convention Act of 1903.
§ THE EARL OF DENBIGHThere is no obligation whatever under the Act to impose the duty.
LORD DENMANIf the noble Earl will refer to the end of Section 2 he will see the words that I have quoted.
§ THE EARL OF DENBIGHI am not in any way convinced that the clause which the noble Lord has quoted is not simply dependable on the enabling clause. It is all dependent on what His Majesty may do by Order in Council. But I will put another Question on the subject later on.