§ Major Procter
asked the Chancellor of the Exchequer whether he is aware that the Trade and Navigation Returns for October, 1938, show that 9,914,362 gallons of power methylated spirits were used in the first three quarters of 1938 free of duty; and what is the explanation, in view of the tax of 9d. per gallon imposed by the Finance Act, 1938?
§ Sir J. Simon
The figure which my hon. and gallant Friend quotes represents "proof gallons" and not "bulk gallons." With regard to the second part of the question, the figure is shown under the heading "Spirits," and the expression "Free of Duty" refers to the spirit 1773W duty and does not imply that power alcohol duty was not duly paid as from 2nd May last since when all spirits used for making power methylated spirits have paid the duty of 9d. per gallon imposed by Section 3 of the Finance Act, 1938.