Dáil Éireann debate -
Tuesday, 4 May 1948

Vol. 110 No. 9

Financial Resolutions. - Resolution No. 4—Customs—Wine.

Mr. McGilligan

I move:—

(1) That, in lieu of the customs duties on wine imposed by Section 5 of the Finance (No. 2) Act, 1947 (No. 33 of 1947), there shall (subject to the provisions of this Resolution) be charged, levied and paid as on and from the 5th day of May, 1948, the following customs duties on all wine imported into the State, that is to say:—

Wine—

		£	s.	d.
Not exceeding 25 degrees of proof spirit	the gallon	0	7	6
Exceeding 25 but not exceeding 30 degrees of proof spirit	the gallon	0	12	6
Exceeding 30 but not exceeding 42 degrees of proof spirit,	the gallon	1	10	0
And for every degree or fraction of a degree beyond the highest above charged, an additional duty,	the gallon	0	2	6
Sparkling wine in bottle, an additional duty,	the gallon	1	11	3
Still wine not exceeding 25 degrees of proof spirit in bottle, an additional duty,	the gallon	0	5	0
Still wine exceeding 25 degrees of proof spirit in bottle, an additional duty,	the gallon	0	10	0

(2) That the provisions of Section 8 of the Finance Act, 1919, shall apply to the duties imposed by this Resolution with the substitution of the expression "the area of application of the Acts of the Oireachtas" for the expression "Great Britain and Ireland".

(3) That for the purposes of this Resolution wine rendered sparkling or effervescent and bottled in a bonded warehouse shall be deemed to be sparkling wine imported in bottle, and upon delivery for home consumption shall be charged with the duty imposed on sparkling wine by this Resolution.

(4) That Section 24 of the Finance Act, 1933 (No. 15 of 1933), shall not apply or have effect in relation to the customs duties imposed by this Resolution.

(5) That in this Resolution the word "wine" includes the lees of wine.

(6) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

This Resolution provides for a reduction in the rate chargeable on wines. The amounts are shown in the Resolution.

Mr. Lemass

The Minister assumes that, by reducing the duty, he will so increase the consumption of wines that there will be a yield of another £250,000 in revenue. Does that mean that he will give additional exchange facilities to enable traders to provide for the increased consumption?

Mr. McGilligan

There will not be any increase on the quantities that used to come in, but there might be an increase on what is coming in now.

Mr. Lemass

Will exchange facilities be given to traders to import more wine so as to enable them to meet the increased consumption?

Mr. McGilligan

It will not be necessary.

Major de Valera

Is this designed to increase the consumption of wine?

Mr. Lemass

The Minister is probably aware that, following the restrictions imposed by the Department of Finance last year upon the importation of wines through the foreign exchange control, traders claimed that the allocation of exchange for wine purchases was inadequate and was in some cases unfair in its effect as between one trader and another. You cannot have increased wine consumption so as to yield another £250,000 in revenue—despite a reduction in taxation—unless there is wine to drink. Presumably that involves, on the Minister for Finance, a moral obligation to give foreign exchange facilities to buy increased quantities.

Mr. McGilligan

I am not increasing—I am restoring the position to the old point. If that necessitates the granting of foreign exchange to the way in which it was pre-October of last year that will be done—if it means that.

Mr. Lemass

We will let this Resolution go. We would hate to deprive Deputy Davin of his cheaper champagne.

Mr. McGilligan

In that case the amount is infinitesimal.

Resolution put and agreed to.