Captain TUDOR-REESasked the Prime Minister whether paper is the raw material of the printing industry; and whether, in pursuance of his pledge that raw materials should not be taxed, he will immediately abolish the Order which, in restricting the importation of foreign paper, is in effect a tax on that commodity?
§ Mr. BRIDGEMANI have been asked to reply. It is an undoubted fact that paper is a raw material of the printing industry, but it is also a manufactured article. No tax is imposed upon paper by the Regulations now in force, which merely restrict importation. When articles are the product of one industry and the raw material of others, it is necessary to con-2276W sider the effect which unrestricted imports would produce upon both the producing and consuming industries. So far as can be judged by the experience gained during the past month, the Regulations are working in the direction intended, namely, to avoid unncessary disturbance to the numerous and important industries whose raw material consists of various kinds of paper, to enable mills to resume full working and employ their labour fully, and to cheapen the cost of production. It is accordingly not proposed to abolish the Order restricting the importation of foreign paper.
Captain TUDOR-REESasked the President of the Board of Trade whether his attention has been called to a resolution passed by the Federation of South Western Newspaper Owners protesting against the Order which restricts the freedom of paper users to import paper from abroad and compels them to purchase 80 per cent. of their supplies from British mills; and whether he proposes to take any and, if so, what action in the matter?
§ Mr. BRIDGEMANI would refer the hon. and gallant Member to the answer which my right hon. Friend gave to the right hen. Member for South Molton on 2nd June.
Captain TUDOR-REESasked the President of the Board of Trade whether he is aware that the order restricting the importation of paper is having the effect of inflating the price and producing a scarcity of paper; and whether he will consider the advisability of modifying or cancelling the Order?
§ Mr. BRIDGEMANNo, Sir; I am not aware that the Order in question is having the effects indicated. On the contrary I am advised that prices, generally, have not been pushed up, and that such scarcity as may exist in certain grades of paper is due to the circumstances attending production and shipping rather than to the effect of the Regulations now in force. These Regulations, indeed, provide that in cases where it is proved that qualities or descriptions of paper of Imperial manufacture cannot be obtained in sufficient quantities within the British Empire, or that the prices demanded for such qualities or descriptions are unreasonable, import licences will be issued to relieve such situation.