asked the Minister for Finance what special concessions, if any, have been obtained from the Governments of India and Nyassaland in consideration of the admission into the Saorstát of their surplus tobaccos at a preferential rate of duty, and if he is aware that owing to the cheapness of labour in those countries Irish tobacco is hopelessly handicapped in the home market, and whether steps will be taken to remove this handicap.
CEISTEANNA—QUESTIONS. ORAL ANSWERS. - IRISH TOBACCO INDUSTRY.
No special concessions have been obtained from the Governments of India or Nyassaland.
The scheme of Imperial Preference forms part of the fiscal system which was taken over from the British Government by the Saorstát, and which it was felt should not be amended without careful consideration, not possible at the time of taking over. The preferential rate of duty at which tobacco imported from India and Nyassaland is admitted does not adversely affect Irish-grown tobacco, inasmuch as the Excise duty on Irish-grown tobacco has been reduced to an even lower figure, which would probably be increased in the event of the abolition of the Imperial Preference rate. To attempt to remove the handicap caused by cheapness of production in other countries would require a permanent subsidy.