§ Mr. Boyd-Carpenterasked the Chancellor of the Exchequer whether he is aware that the increase in the effective rate of Excise Duty imposed in his Budget on a large proportion of the wines produced in this country amounts approximately to a shilling a gallon; and whether he will approve, under the Prices and Incomes Act, the consequential price increase of 2d. a bottle.
§ Mr. CallaghanThe July surcharges had the effect of increasing, beyond the limits agreed in international commitments, the margins between the rates of duty on British, Commonwealth and foreign heavy wines. On consolidating the surcharges the agreed margins had to be restored. Consequently, an effective duty increase of approximately I s. a gallon on heavy British wine was needed, balanced by decreases in duty on foreign heavy wines.
I see no reason for any overall increase in the price of wines. The question of any specific increase is for my right hon. Friend the Minister of Agriculture, Fisheries and Food.