§ THE EARL OF SELKIRKasked His Majesty's Government whether they can now state whether it will be possible to send gifts in kind from this country to the Winnipeg relief fund without incurring liability to tax either in this country or Canada.
§ THE PARLIAMENTARY UNDERSECRETARY OF STATE FOR COMMONWEALTH RELATIONS (LORD HOLDEN)Goods exported by registered purchase tax traders from their untaxed stocks are not liable to purchase tax. They may be exported provided that the necessary permission is given by the Bank of England and, where an export licence is required, by the Board of Trade. The Bank of England and the Board of Trade are prepared to consider sympathetically 869WA any applications which they may receive for permission to export goods to persons in Winnipeg who have suffered as a result of the floods. The question of customs duty in Canada on such gifts in kind is, of course, entirely one for the Canadian authorities.
Arrangements have been made to use any sums of money, which members of the public may wish to subscribe to assist the people who have suffered in the floods, to purchase supplies additional to those purchased from Government funds for shipment to Manitoba. The Ministry of 870WA Works is making arrangements for the necessary purchases of goods, which, since they will be exported from the stocks of registered purchase tax traders, will not be subject to purchase tax. Only those supplies which the Manitoba authorities indicate that they need will, of course, be purchased. It is understood that those goods which are consigned to the Canadian Red Cross are being allowed entry into Canada free from customs duty.
House adjourned at five minutes past six o'clock.