HC Deb 03 May 1934 vol 289 cc494-5W

asked the Chancellor of the Exchequer whether, in view of the fact that alcohol distilled from foreign molasses, which is used as motor fuel in this country, is not only exempt from the Petrol Duty of 8d. per gallon but, in addition, receives a subsidy from the Exchequer under the Revenue Act, 1906, of approximately 8½d. a gallon, making a total loss of revenue of 1s. 4½d. a gallon, he will state why such fuel receives preferential treatment as compared with petrol motor spirit; and if he is prepared to take steps to alter this?


The comparatively negligible quantity of power alcohol used in this country as motor fuel is outside the scope of the duty on light hydrocarbon oils, because it is not a hydrocarbon oil. I cannot accept the statement that it receives a subsidy of approximately 8½d. a gallon. I do not consider that any alteration is called for at present, but, as my hon. Friend has been previously informed, the matter is being kept under careful observation.