I move that this Bill be now read a Second time. It gives effect, as far as the schedules are concerned, to the Resolutions which have already been before the House. In addition, it makes one or two additional provisions to which, I think, it might be desirable to draw the attention of the Dáil. The first of these is provided for in Section 7 of the Bill. The object of this provision is to exempt from customs duties cinematograph films made outside the Saorastát when Saorstát residents organise the production and the producer and a majority of the persons engaged in the production are Saorstát nationals or are resident ordinarily in the Saorstát. It also makes provision to exempt from customs duty cinematograph films made wholly or for the most part in the Saorstát when the majority of persons employed in the production are nationals or ordinary residents of the Saorstát. Hitherto, exemption was granted to negatives of films produced anywhere when the organisers and the producer and principal artists were Saorstát nationals resident in the Saorstát, but this concession was found to be valueless owing to the absence of any film printing industry in this country. On the other hand, cases have arisen where the negative was produced entirely in this country by Saorstát residents and the copies (positives) were printed abroad and these were chargeable with duty on return for showing here. Obviously, this was a hardship. The provision in this section will remove it and will help persons who take small films in their home surroundings and send the negatives abroad for the ordinary printing of the negatives.
Section 8 authorises the repayment of duty in certain cases. This section is designed to alleviate a case of hardship which was brought to the notice of the Department of Finance by the Department of Agriculture. In January last a duty was imposed on bacon for the first time at a rate varying for non-Commonwealth countries with the price of bacon, imports from the Commonwealth being untaxed. The duty on American bacon in July last was, approximately, 15/- a cwt., and this was the position when the Emergency Imposition of Duties (No. 1) Order, 1932, was made. This Order imposed a duty of 84/- a cwt. on all pigs' meat, except pigs' heads and pigs' feet, where the duty was at the rate of 42/- a cwt; the Commonwealth preference rate was 56/- per cwt., and 28/- per cwt. for pigs' heads and pigs' feet.
Remembering the circumstances in which this duty was imposed it will be quite clear that it came as a surprise. The earlier duty had been to a large extent ineffective, and importers had continued to bring in consignments and were, apparently, of opinion that no change in the duty was to be anticipated. Messrs. Looney and Company of Limerick were on the point of importing a quantity of American bacon which they had bought and paid for at Liverpool, but the consignment did not actually arrive in the Saorstát until after the duty had been increased.
In connection with this particular case, I should like to emphasise that the Department of Finance does not admit the principle that consignments in transit at a time when import duties are imposed, or are increased, should be admitted free of the increase. It had refused an application made by Messrs. Looney in January last for the exemption of a consignment actually in transit on the ground that the company had notice that an application for a duty on bacon was being examined by the Tariff Commission and should have taken steps not to be caught heavily committed on imports. The circumstances, therefore, in the present case are rather exceptional. No notice of a probable increase was given. The amount of the increase was exceptionally severe, not more severe than the circumstances warranted, however, and there was no possibility of the company reimbursing itself in any way. As the long-run protective effect of the duty would not be materially diminished by allowing this consignment to be imported, it was agreed, on representations made by the Department of Agriculture, to grant a concession.
In the first Order imposed, however, under the Emergency Imposition of Duties (No. 1) Order, 1932, it was found that no licensing clause had been included, and though steps were taken to have an amending order made conferring on the Minister such licensing power, the Department was advised that it could not be retrospective and that legislation would be necessary to enable the bacon to be imported without payment of the additional duty. To have delayed importation until this legislation had been enacted would have involved complete deterioration of the bacon, and it was, accordingly, arranged that if Messrs. Looney and Company imported the consignment and paid the full duty due under the Emergency Order power would be sought from the Oireachtas for the additional duty to be repayable.
On this understanding the company imported the consignment and paid the duty. The amount of duty payable on the consignment at the rate of 15/- per cwt., applicable since January last, would have been £289 10s., while the increased rates would have involved a payment of £1,621 4s., so that the increased amount that had to be paid was £1,331 14s. The import value of the consignment was £1,262. If the concession had not been granted Messrs. Looney would not have imported the bacon because by importing it they would have lost more than if they had not imported and had not been able to dispose of it in any way. On the other hand, if they had not been permitted to import it, if some undertaking of the sort mentioned had not been given to them, the Revenue would have lost a sum of £289 10s., and Messrs. Looney and Company would have lost £1,262.
The position which we are now seeking to put the company in is that in view of the extraordinary circumstances under which the importation was made, in view of the fact that no notice had been given of the proposed emergency duty, and in view of the fact that if the licensing clause had been embodied in the original order Messrs. Looney would undoubtedly have been permitted to import the bacon, it seems to us that the case being clearly one in which that licensing power would have been exercised, the Dáil should confer the authority which we are now asking and permit us to repay the sum of £1,331 14s. to the importers of this particular consignment of bacon.
Section 9 amends in some minor ways several provisions of the Finance Act of 1932. These are mentioned in the second column of the Third Schedule. The first of these amendments, Reference No. 1, is an amendment to Section 16 of the Act. The amendment is sought in order to admit, as hitherto, without payment of duty, such articles as musical instruments of comparatively small value. The power was given in 1915 and was renewed from year to year since, until the duty was made permanent this year. This provision was not originally included, but it was felt it should have been. Reference No. 2 makes preparations of malt extract and cod liver oil liable to a package duty of 1d. per pint, with a minimum charge of 2d. Reference No. 3 exempts from package duty single gelatine capsules, leaving any quantity of those articles imported in a package under 7 lbs. in weight liable to the said duty at the statutory rate of 1d. per lb., minimum 2d. Reference No. 4 repeals the duty on stone as formerly described, a new description for assessment being included in this Bill. Reference Nos. 5, 7 and 9 are necessary in order to grant exemption from all duty in respect of blankets made of cotton. Reference No. 6 makes the alterations indicated in the scope of the linen piece goods and woven textile goods duty. Reference No. 8 is a corollary to the revised duty on articles of wood set forth in the First Schedule of the Bill. Reference No. 10 gives effect to the alteration in the wood smoking pipe duty. Reference Nos. 11, 12, 13 and 14 are consequent on the changes in classification or rating made in duties on roof felting, lead, cordage and plaster of Paris.
Section 10 provides for the alterations of duty set forth in the Fourth Schedule of the Bill. These have all been covered by the Financial Resolutions that were recently before the House. Reference No. 1 applies a preferential rate of 6d. per lb. to cut flowers of British origin. Reference No. 2 applies a duty of 21/- per cwt. to potatoes of British origin. Reference No. 3 provides for the exemption of rubber soles and heels for boots which are to be fitted to boots after they are finished and ready for wear. It also provides power to readmit, without payment of duty, boots, etc., which are returned to this country. Reference No. 4 provides for exemption of small household shovels, such as fire shovels. Reference No. 5 provides exemption for motifs, crests and badges, exemption for such articles as electricians' gloves, smoke helmets, gas masks, etc., and it enables articles of clothing returned from abroad to be admitted without a second charge of duty. Reference No. 6 exempts certain classes of small brushes. Reference No. 7 extends to single proofed cloth an exemption which applied only to the double texture proofed variety. Reference No. 8 frees castors from duty and re-enacts the exemption of patent cleaners and parts thereof. Paragraphs (d), (e), (f) and (g) remove certain items in the category of furniture duty which are now covered by the category of articles wholly or mainly of wood. Reference No. 9 refers to parts of horse-drawn vehicles. This duty is reimposed in a modified form.
