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Dáil Éireann debate -
Wednesday, 3 Dec 1947

Vol. 109 No. 3

Ceisteanna—Questions. Oral Answers. - Stout and Tobacco Tax.

Mr. Corish

asked the Minister for Finance whether his attention has been called to a statement in which it is alleged that, at the annual meeting of St. Peter's Fianna Fáil Cummann, Drogheda, he stated that, if the situation improved, there might be a reduction of the tax on stout and tobacco; whether this statement is an accurate report of his speech; whether it represents Government policy; and whether he is prepared to indicate when proposals will be introduced for the purpose of giving effect to this policy.

I have seen the account of the meeting of St. Peter's Fianna Fáil Cumann, Drogheda, held on Sunday the 16th ultimo, which contained the words quoted by the Deputy that I said: "If the situation improved there might be a reduction of the taxes on stout and tobacco."

My remarks were much fuller and more satisfactory to an audience concerned with the economic situation than the forecasting of a possible reduction of taxation in unspecified circumstances in the unknown future. A full and accurate account of what I said on that occasion in Drogheda, and on many other occasions in public and private from the introduction of the Supplementary Budget until it became law, would include at least the following points: That the Government introduced the Supplementary Budget in order to meet the increased subsidies out of taxation, because any attempt to meet them by increasing the national debt or inflating the currency would be disastrous, particularly to the poorer sections of the community; that no change could or would be made in the Budget proposals regarding the increased taxation on tobacco, beer, spirits, wines, cigarettes, entertainments, incometax, etc.; that any alteration in the rates of taxation in a future Budget would depend upon the conditions at the time of its preparation; that the lowering of the general rates of taxation in future Budgets would depend upon an increase in national production which would have the effect of increasing revenue yields and of decreasing prices and lowering the cost of subsidies, which at present rates would amount to £15,000,000 in a full year; and that those who pretended that the easy cure-all for shortages of goods was a coalition of groups with divergent views upon everything, except, perhaps, inflating the currency, were attempting to lead the people towards the chaos and disaster that followed like movements in other countries.

The answer to the last part of the Deputy's question is that my remarks in Drogheda do not in any way lend substance to the charge made by his colleague in another place that he was "assured" that I had given "an assurance" at the meeting in question that the duty on beer "is coming off" and again "that the duty on beer and spirits was to be reduced".

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