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THE HONGKONG DAILY PRESS, THURSDAY, AUGUST 2ND, 1993.
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IMPERIAL PREFERENCE. REDUCING INDIAN ARMY.
THE DUTY ON TEA”
The House of Commens went into Com. ! mittee on the Finance Bilisu June 11th. On Clause 1, which provides for a duty of l. in the pound on tea, subject to Sections of the Finanes Act of 1919, relating to Imperial preference.
|
IMPORTANT SPEECH BY
COMMANDER-IN-CHIEF.
In_The_Calexten Tagislative. Assembly? the Commander-in-Chief made an import-
t, statement regarding reductions the strength of the Arty, rreonumended: i by the Inchenpe Committee, and ssid that Mr. Bonwick moved to leave out the His Majesty's Government, After roview, words providing for Imperial preference the commendations of the Indian with regard to tea. It seems to him that Government, and agreed to the following the British taxpayer had to make up the in each of forty-five battalions of British measures:—(1) A reduction of strength loss in duties resulting from the grant infantry by 130 men: (2) A reduction of ing of Imperial preference, and set did one battery of Royal Horse Artillery and not get the commodities any cheaper Anumanition Column; (3) A reduction of The Dominions did not want preference the Royal Field Artillery establishment at the expenas of the people of Great of men and horses on a reale sufficient to Britain,
secure financial saving equivalent to Mr. Remer suggested that unless we ftant obtainable, by the abolition of one had a business association with our | Reyal Field Artillery Brigade; (4) 'A res Empire of a very wide nature sooner or duction of odb Cavalry Brigade head- later the Dominions would want to quarters and one full felt troop of Sap- separate themselves from the Empire, pers and Minors: (5) A reduction of GI Lieut-Commander Kenworthy sub men in rach active Infantry and Pioneer | mitted that it was ridiculous to suggest Battalion, of the Indian ́Army, other that the integrity of the Empire depends wan the Gurkhas and Hazarus, coupled ed upon these twopenny halfpenny pre- with the addition of 7 Chas One Reser ference duties on ten. etc.
vists. per battalion; and (6) The with Livut.-Colonel Craft said it wag drawal from Indin of two British "mockery" to say that the preference did | Cavalry Regiments.
not affect the Overseas Dominions.
The withdrawal of
a third Cavalry Mr. Barnes said the preference duty on | Regiment, as recommended by the Inch- ton gave no advantage to either" the cape Committer and the Inglian Gowente Indian grower or the consumer, and it ment, is still under discussion. was unanimously opposed by the British: The Commander-in-Chief stated that f ten trade. There was nothing to defend the annual saying involveg by dàn redure |
tion of combatant troops aminants more than two and a half crares.
it.
Capt. Berkeley, as a convinced Free trader, supported the preference, though ho would have preferred to see the duty taken off altogether.
Sir W. Joynson-Hicks replied that the duty on tea had always been part of the
The amendment was rejected by 202 to e-Government amjority. 7.
An amendraent moved by Mr. Anderson general system of taxation of this eun to reduce the fea duty from sd, to 4d. Try, the idea being that all svetions of i was rejected by 1 votes to 185. Clause the community should contribute a share. I was then adopted by 239 votes to 150,
to the taxation. Imperially produced texį was 20 per cent. of the whole amount icaported. That was a case in which Im- perial purference' had given a distinct advantage to the consumer. In the case of cocoa the consumption of the Imperial produce had increased from 50 to 90 per erut, of the imports. The increnge in the consumption of Imperially grown coffer was from 20 per cent, of the import to 45 per cent, in 199 Last year it fell to 35 per cent, owing to the failure of the erop in East Africa. The proportion of! Empire Sugar had increased from 7 per cent. before the war to 22 per cent. this yeas. The import of Empire-grown rum and tobacco had also increased. Imperial preference had either, as in the case of tea, reduced the cost to the consumer, or, as in the cast of many other commodities,! incrensed production in the. Dominions.
Mr. T. Johnston: Is your Chanellor vet in favour of it.
Sir W. Joynson-Hicks said that when Mr. McKenun was a number of the House the hon. members, would be able to put questions to him. In the words of Mr. PA. Chamberlain last year, this was n spiritual recognition of a spiritual bond. Ciberal and Labour laughter.) That laughter showed on which sul of the House were those who had the interests of the Empire at heart,
Mr. Pringle said that rubbish" could, do duty in the Tast Parliament, but not in this. The bond which bound the Domin- ions to this country was not the Customs Houses, duties, and taxes. As Burke once") said, it was the spirit of kindred lang, unge and kindred blood. I wondered if and when Mr. McKenna came into the House he would maintain his old attitude towards those duties.
On division the amendment, was negative by 255 voles to 130-Govern- ment majority, 105.
TO ABOLISH THE DUTT."
Mr. Johnston moved an amendment to abolish the duty on tea as from December 31st next. The ten trade wond offer no objection to the amendment, because, ac- cording to report, members of that trade were at present, making fabulous profit.
Commander Bellairs said the argumenla against the ten duty might with oqual"} fores be applied in the case of sugar, which, if the duties in each case were abolished, would mean that the person with a small income would pay no taxa tion at all.
Mr. Broad, in supporting the nmend- ment, said that of all indirect taxes those on tea and sugar were about the meanest ever imposed, except, perhaps, the tax which was once put on bread.
Sir W. Joynson-Hicks defended the tax on two grounds. In the first case it in-. volved. £11,500,000, and in the second place every member of the community should pay something. It was hard on the old-age pensioner and the agricul tural labourer getting 25, a week, but at the same time it was desirabin in tho interests of good government that every body should take a share.
Sir A. Mond said that of all the in- direct taxe the ten tax bure most heavily on the population. If it was possible to give a greater reduc- tion on beer it should be possible to give a greater reduction on tea. Ho was amazed at the patience of the taxpayer who really went on believing the state- ment that came from the Treasury year after year that he must, like a patient mule or donkey, go no bearing this heavy burden of taxating sa ho reduction could be made. That statement was not true; and no competent financier in the City or clawbere agreed with it. He would like to enter a protest against this stereo. typed effetu méthod of dealing with the great financial problems which faced us today. This country was sick and tired. of being told that nothing more could be done in the way of reducing taxation, Something must be done.
Sir T. Inskip (Solicitor-General), in replying, said that it would be very dif ficult to impose an ad valorem duty on tea The effect of such a duty was to drive people to lower-valued articles, and the poorer classes, who by no means used: only the cheapest tea, would be driven to same what had been described as the swoopinga of the tea shops. Although it was dicairable to relieve the poor of taxa- tion on tea as soon as possible, that could not be done this year.
(Continued on next column.)
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