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PUBLIC RECORD OFFICE

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PUBLIC RECORD OFFICE, LONDON:

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Governor in Executive Council, but by the Legislative Council. The Select Com- mittee, therefore, recommends that the first four lines of the section be amended to read as follows:

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21. The Legislative Council may, by resolution, from time to time impose a duty at such rate or rates, either generally or for any specified local area, on any excisable article the rest of the section remaining unamended.

The marginal note should also be amended to read as follows: "Duties may be imposed by resolution of the Legislative Council."

24. The Select Committee recommends the following amendments to Section 22:-

(i.) The substitution of the word "place" for the word "port" in two places in sub-section (a) (i.), viz., in lines 1 and 2 thereof respectively. (ii) The deletion of sub-section (c) (ii.).

(iii) The insertion after sub-section (c) of the following new sub-section (d) :-

(d) Generally by such other methods of taxation as the Legislative Council may, by resolution, from time to time appoint.

The object of this addition to this section is, now that the power of imposing duties is transferred from the Governor in Executive Council to the Legislative Council, to secure a greater elasticity with regard to the methods whereby in the future intoxicants can be taxed than is afforded by the Ordinance as drafted.

25. The Select Committee recommends the following amendment to Section 27 (2):-The deletion of the words "clause (b) of sub-section (1)" and the substi- tution of the words "this section " therefor; and the substitution of the word "may for the word "shall" in line 2.

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26. The Select Committee recommends the amendment of Section 30 by the the" and "grant " in insertion of the words "licence or" between the words "

declare" and "the" in line 8, and, again, between line 7, and between the words the words "a" and "grant" in line 9. Also by the insertion of the words "re-issue or " between the words " and " and " re-sell" in line 8.

27. The Select Committee, after prolonged discussion, has arrived at the con- clusion that the provisions with regard to the making of rules contained in Section 31 as drafted are not altogether satisfactory, and recommends that Section 31 (1) be amended to read as follows:-

31.-(1) The Governor in Executive Council may make rules for the purpose of carrying out the provisions of this Ordinance or other law for the time being in force relating to excise revenue; and all such rules shall be laid as soon as conveniently may be before the Legislative Council, and upon being confirmed, with or without modification, by a resolution of the Legislative Council, and upon such confirmation being notified in the Government Gazette," shall have the force of law from the date of such notification, or upon such date as may be therein fixed.

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Provided that in any case of urgency the Governor in Executive Council may by notification declare any such rules to be in force from a date named therein, and such rules shall thereupon come into force on such date; but if within forty days of the date upon which such rules are laid before the Legislative Council a resolution be passed praying that all or any of such rules be modified or annulled, such rules or rule shall be modified or annulled accordingly, but without prejudice to anything done thereunder.

The object of this amendment is—while avoiding hampering of the Executive where immediate action is necessary in cases of urgency-to convert the approval of the Legislative Council from a passive into an active force; as under the amended section all rules made under this Ordinance will, in the ordinary course of pro- cedure, come before the Legislative Council for discussion, instead of being merely laid upon the table.

28. The Select Committee further recommends the amendment of Section 31, as follows:-

(i.) Sub-section (2) (c).-By the substitution of the following for the sub-

section as drafted :---

(c) Prescribing the procedure in appeals from orders of the Excise Commissioner or the Government Agents to the Governor in Executive Council.

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This amendment is rendered necessary by the amendment already recommended to be made to Section 8, which does away with the appeal from the order of a Government Agent to the Excise Commissioner, and makes the Governor in Executive Council the sole court of appeal. The Select Committee are unanimously of opinion that the dual appeal is unnecessary, and that in practice it would be apt to lead to undesirable friction.

(ii.) By the addition of a new clause (p) to sub-section (2) to read as follows:- (p) Prescribing the instruments to be used in the testing of liquor and the tables of corrections according to tempera-

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ture to be used therewith.

In connection with Section 31 several matters of importance were discussed. 30. With reference to sub-section (2), clauses_(d) and (e), the Honourable the Senior Tamil Member drew attention to the alleged necessity for native vedaralas and practisers of native medicine being enabled to obtain a supply of ganja for the treatment of their patients; and asked that, in connection with rules under these clauses, the matter might be inquired into, and, in the event of the necessity being proved, rules framed to enable the supply to be secured to vedaralas, under proper and sufficient safeguards, for use in the bond fide exercise of their pro- fessional duties.

With reference to sub-section (2), clause (h), the question of local option was discussed at length, and the Select Committee unanimously desires to place on record the following recommendations for the guidance of the officers entrusted with the framing of rules under this clause :--

31.

That when it is proposed that a new tavern should be established, or an existing tavern suppressed, or an existing tavern removed from one locality to another, sufficient notice of this proposal shall be given both by notifica tion in the "Government Gazette," and locally in the neighbourhood con- cerned, by methods similar to those by which land sales are now locally advertised.

That all recognised public bodies, such as municipal councils, local boards, planters' or other local associations, shall be consulted.

That an opportunity be afforded by the Government Agent, or some other responsible officer of Excise, to the adult male and female residents in the locality concerned to make to him any representations or expressions of their views on the subject of the proposed establishment, suppression, or removal of a tavern.

That the representations and expressions of opinion that may thus reach him be duly and carefully considered by the officer in question; but that the final decision as to the action to be taken be vested in him, subject, how- ever, under Section 8, to an appeal to the Governor in Executive Council. 32. The Select Committee, after careful deliberation, arrived at the conclusion that it is not at present possible to vest the final decision in any one save the responsible officer concerned, subject to an appeal to the Governor in Executive Council, without incurring the danger of exposing the majority of those affected to the tyranny of an energetic and articulate minority in certain localities, and the further danger of suppressing places of sale at the instance and for the benefit of traffickers in illicit liquor.

33. The question of the advisability or otherwise of defining arrack as a liquor distilled from the toddy drawn from the coconut palm was raised by the Honour- able the European Rural Member.

34. After full discussion it was decided that such action was undesirable for the following reasons :—

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That it has not been found necessary to define such spirits as whisky, or the base from which such liquors are distilled, in the United Kingdom or elewbere;

That there is no reason to justify differentiation between arrack distilled from the toddy of the coconut palm and arrack distilled from toddy drawn from any other species of palm cultivated in Ceylon;

That such a definition would enable owners of coconut plantations to effect a corner in the supply of toddy for distillation into arrack, and to run the local prices up to an exorbitant and artificial figure, to the detriment of others, and eventually to that of the general taxpayer."

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