Dáil Éireann díospóireacht -
Wednesday, 24 Apr 1929

Vol. 29 No. 7

Private Business. - Financial Resolution No. 2—Customs.

Mr. Blythe

I move:—

(1) That the new import duties which were first imposed by Section 12 of the Finance (No. 2) Act, 1915, and were (with the exception of the duty on records and other means of reproducing music, the duty on blank film on which no picture has been impressed, and the duty on motor cars (including motor bicycles and motor tricycles) and accessories and component parts thereof other than tyres) continued up to the 1st day of May, 1929, by Section 18 of the Finance Act, 1928 (No. 11 of 1928), shall, with the exceptions aforesaid, continue to be charged, levied, and paid on and from the said 1st day of May, 1929, up to the 1st day of May, 1930.

(2) That whenever the Revenue Commissioners are satisfied that any cinematograph film imported into Saorstát Eireann is of an educational character, they shall, subject to compliance with such conditions as they think fit to impose, exempt such film from the payment of the duty on cinematograph films included in the duties mentioned in this Resolution.

(3) That the provisions of Section 8 of the Finance Act, 1919, shall apply to the duty mentioned in this Resolution, with the substitution of the expression "Saorstát Eireann" for the expression "Great Britain or Ireland."

(4) 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).

These are what are called the McKenna duties—the new import duties on musical instruments, cinema films and motor cars, including motor bicycles and motor tricycles.

Mr. de Valera

If I mistake not, last year there was a number of suggestions with respect to differentiation between component parts and complete vehicles, the idea being that it might lead to getting a number of makes of motor cars assembled here and so give employment. I would like to know whether the Minister has examined that question, and whether there is any possibility of employment being given in assembling cars here by such differentiation.

Mr. Blythe

We do not believe that any substantial employment would be given by relieving motor parts from duty. That has been suggested several times here, and has often deen discussed, but the view— and I think it is the view of expert people—is that the assembly of motor cars, unless we were to raise the duty, would not be taken up in consequence of the remission of duty on parts. In order to prevent simply nominal employment being given, and a great deal of revenue being lost, there would have to be some sort of very strict definition as to what is a separate part. If we did not do that we would have many claims for the remission of duty on entire vehicles which might be in such a condition that they could be put together with a comparatively small amount of labour. I am perfectly satisfied that employment to any substantial extent would not be given as a result of that.

Mr. Little

Would the Minister consider giving a drawback where people had actually assembled the parts?

Mr. Blythe

As a matter of fact, when we extended it last year, we made that particular McKenna duty permanent, so that really it is not before the House and this deals only with cinema films, musical instruments, clocks and watches. I think that the question of drawback could not arise unless there was a firm that was going to assemble. If it were going to assemble different parts or do all the assembling we would then have a proposition which we could consider.

Mr. Little

There is such a firm if you wish to consider it.

Mr. Blythe

I have not had any representations from such a firm. If it were going to give some sort of employment here we would consider it.

Mr. Good

Would the Minister say whether this Resolution varies from that which was adopted last year and, if so, to what extent?

Mr. Blythe

Up to last year, we had motor cars included in the Resolution, but then, when the tax was extended to include commercial vehicles and tyres, the motor car duty was made permanent and it does not come up annually. This Resolution imposes the same rate of duty on cinema films, musical instruments, and clocks and watches as has been in force since the beginning.

Mr. Good

There are no new burdens of taxation under this Resolution?

Mr. Blythe

No.

Resolution put and agreed to.