Dáil Éireann díospóireacht -
Wednesday, 6 May 1931

Vol. 38 No. 7

Financial Resolution No. 3—Customs and Excise.

Mr. Blythe

I move:

(1) That in addition to the present customs duties, drawbacks, and allowance in respect of sugar, molasses, glucose, and saccharin, there shall, as and from the 7th day of May, 1931, be charged, levied, and paid the duties specified in the second column of Part I. of the Schedule to this Resolution, and there shall be paid and allowed the drawbacks and allowance set out in Part II. of the said Schedule.

(2) That in addition to the present excise duties, drawbacks, and allowance in respect of sugar, molasses, glucose, and saccharin, there shall, as on and from the 7th day of May, 1931, be charged, levied, and paid the duties specified in the third column of Part I. of the Schedule to this Resolution, and there shall be paid and allowed the drawbacks and allowance set out in Part II. of the said Schedule.

(3) That on or in respect of all sugar, molasses, glucose, and saccharin in the hands of the manufacturer thereof on the 7th day of May, 1931, there shall be charged, levied, and paid, in addition to the present excise duties, the duties specified in the third column of Part I. of the Schedule to this Resolution, and there shall be paid and allowed, in addition to the present drawbacks and allowance, the drawbacks and allowance set out in Part II. of the said Schedule.

(4) For the purpose of securing the payment of the duties mentioned in the next preceding paragraph of this Resolution, any officer of customs and excise may at any time enter any premises in which the manufacture of sugar, molasses, glucose, or saccharin is or is believed by such officer to be carried on or in which there is or is believed by such officer to be any sugar, molasses, glucose, or saccharin chargeable with any of the said duties, and there inspect and take account of the sugar, molasses, glucose, and saccharin in such premises and search for, inspect and take copies of or extracts from and, if he thinks fit, for that purpose take away any books, account letters, and other documents in such premises relating or believed by such officer to relate to sugar, molasses, glucose, or saccharin chargeable with any of the said duties or to the manufacture of such sugar, molasses, glucose, or saccharin.

(5) Every person who resists, obstructs, or impedes an officer of customs and excise in the exercise of any right or power conferred on such officer by the next preceding paragraph of this Resolution or refuses without lawful and sufficient excuse to produce any document which he is required by such officer under the said paragraph to produce shall be guilty of an offence under this paragraph of this Resolution and shall be liable on summary conviction thereof to an excise penalty of fifty pounds.

(6) Every manufacturer of sugar shall, if and whenever so required by the Revenue Commissioners, furnish to the Revenue Commissioners such returns and information as they shall specify in relation to all sugar, molasses, glucose, and saccharin chargeable with the duty mentioned in the third paragraph of this Resolution which is for the time being or was on the 7th day of May, 1931, in the hands or under the control of such manufacturer, and if he fails or refuses to furnish any such returns or information he shall be guilty of an offence under this paragraph of this Resolution and shall be liable on summary conviction thereof to an excise penalty of one hundred pounds.

(7) 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).

FIRST SCHEDULE.

SUGAR, MOLASSES, GLUCOSE, SACCHARIN. RATES OF DUTIES, DRAWBACKS AND ALLOWANCES.

PART I.—DUTIES.

ARTICLES	Customs Duty	Excise Duty
		s.	d.	s.	d.
Sugar which, when tested by the polariscope, indicates a polarisation exceeding ninety-eight degrees	the cwt.	4	8	4	8
Sugar of a polarisation not exceeding seventy-six degrees	the cwt.	2	4	2	4
Sugar of a polarisation—	the cwt.
Exceeding 76 and not exceeding 77 the cwt.	2	3.8	2	3.8
,, 77 ,,,,,,78,,	2	4.7	2	4.7
,, 78 ,,,,,,79,,	2	5.6	2	5.6
,, 79 ,,,,,,80,,	2	6.5	2	6.5
,, 80 ,,,,,,81,,	2	7.4	2	7.4
,, 81 ,,,,,,82,,	2	8.3	2	8.3
,, 82 ,,,,,,83,,	2	9.2	2	9.2
,, 83 ,,,,,,84,,	2	10.2	2	10.2
,, 84 ,,,,,,85,,	2	11.2	2	11.2
,, 85 ,,,,,,86,,	3	0.2	3	0.2
,, 86 ,,,,,,87,,	3	1.2	3	1.2
,, 87 ,,,,,,88,,	3	2.3	3	2.3
,, 88 ,,,,,,89,,	3	3.4	3	3.4
,, 89 ,,,,,,90,,	3	4.8	3	4.8
,, 90 ,,,,,,91,,	3	6.1	3	6.1
,, 91 ,,,,,,92,,	3	7.5	3	7.5
,, 92 ,,,,,,93,,	3	8.8	3	8.8
,, 93 ,,,,,,94,,	3	10.1	3	10.1
,, 94 ,,,,,,95,,	3	11.5	3	11.5
,, 95 ,,,,,,96,,	4	0.8	4	0.8
,, 96 ,,,,,,97,,	4	2.2	4	2.2
,, 97 ,,,,,,98,,	4	3.5	4	3.5
Molasses (except when cleared for use by a licensed distiller in the manufacture of spirits) and invert sugar, and all other sugar and extracts from sugar which cannot be completely tested by the polariscope, and on which duty is not specially charged by reference to the other provisions of this part of this Schedule:—
If containing 70 per cent. or more of sweetening matter the cwt.	the cwt.	2	11½	2	11½
If containing less than 70 per cent. and more than 50 per cent. of sweetening matter the cwt.	the cwt.	2	1½	2	1½
If containing not more than 50 per cent of sweetening matter the cwt.	the cwt.	1	0½	1	0½
The amount of sweetening matter to be taken to be the total amount of cane, invert and other sugar contained in the article as determined by analysis in manner directed by the Revenue Commissioners:—	the cwt.
Glucose:	the cwt.
Solid	the cwt.	2	11½	2	11½
Liquid	the cwt.	2	1½	2	1½
Saccharin (including substances of a like nature or use) the oz.	the cwt.	1	6	1	6

PART II.—DRAWBACKS AND ALLOWANCES.

A.—CUSTOMS DRAWBACKS.

Nature of Drawback	Amount or Rate of Drawback
(1) Drawback on the export or on the shipment or deposit in a bonded warehouse, for use as ship's stores, of duty-paid sugar or molasses (including sugar or molasses produced from duty-paid sugar or molasses) and which has passed a refinery in Saorstát Eireann.	In the case of molasses produced in bond an amount equal to the duty paid and in any other case an amount equal to the duty which would be chargeable on the importation of the like article.
(2) Drawback on the deposit in a bonded warehouse for export of beer in the brewing of which duty-paid sugar or glucose has been used.	An amount equal to the duty paid in respect of the sugar or glucose.
(3) Drawback on the export, or on the shipment, or deposit in a bonded warehouse for use as ship's stores (other than beer) in the manufacture or preparation of which in Saorstát Eireann any duty-paid sugar, molasses, glucose or saccharin has been used.	An amount equal to the duty chargeable in respect of that quantity of the sugar, molasses, glucose or saccharin which appears to the satis- faction of the Revenue Commissioners to have been used in the manufacture or preparation of the goods, or, in the case of residual products, to be contained in the goods.
(4) Drawback to be allowed to a refiner on molasses produced in Saorstát Eireann from sugar, on which the import duty has been paid at the current rate and delivered to a licensed distiller for use in the manufacture of spirits...................................the cwt.	1s. 0½d.

B.—EXCISE DRAWBACKS.

Nature of Drawback	Amount or Rate of Drawback
(1) Drawback on the export, or on the shipment or deposit in a bonded warehouse for use as ship's stores of duty-paid sugar, molasses, glucose or saccharin.	An amount equal to the duty paid.
(2) Drawback on the deposit in a bonded warehouse for export of beer in the brewing of which duty-paid sugar or glucose has been used.	An amount equal to the duty paid in respect of the sugar or glucose.
(3) Drawback on the export, or on the shipment, or deposit in a bonded warehouse for use as ship's stores of goods (other than beer) in the manufacture or preparation of which in Saorstát Eireann any duty-paid sugar, molasses, glucose or saccharin has been used.	An amount equal to the duty paid in respect of that quantity of the sugar, molasses, glucose or saccharin which appears to the satisfaction of the Revenue Commissioners to have been used in the manufacture or pre- paration of the goods.
(4) Drawback to be allowed to a refiner on molasses produced in Saorstát Eireann from duty-paid sugar and delivered to a licensed distiller for use in the Manufacture of spirits............................ the cwt.	1s. 0½d.
(5) Drawback on the deposit of duty-paid glucose in a warehouse approved by the Revenue Commissioners under Section 2 of the Manufactured Tobacco Act, 1863, for the manufacture of cavendish and negrohead tobacco.	An amount equal to the drawback which would have been payable on the export of the glucose.

C.—ALLOWANCES TO REFINERS ON MOLASSES PRODUCED IN SAORSTÁT EIREANN AND USED SOLELY FOR THE PURPOSE OF FOOD FOR STOCK.

Nature of Allowance	Rate of Allowance
Allowance on molasses produced from sugar on which duty has been paid on importation or on which the excise duty has been paid...................................the cwt.	1s. 0½d.

Mr. de Valera

Although these are only temporary resolutions as far as the Opposition Party is concerned, and speeches made after the Budget statement are regarded as formal, I think we will have to protest by opposing the resolution on this particular article, not because it is part of the sum proposed to be given to the farming community but for reasons I indicated already. Our objection is that it is an indirect tax and falls on the poorer sections of the community more than upon any other section. I indicated also that from the Minister's own statement there was an alternative source from which half the amount could be got, by an increase of sixpence in the income tax, which would have given £150,000. As to his statement with regard to tobacco, while I know that Deputies have different views as to whether or not it could be regarded as a luxury, it is certainly less of a necessity of life than sugar. If I had to choose between getting portion of the sum required from tobacco or sugar I would not hesitate to put it on tobacco rather than upon sugar, just as I protested on a previous occasion and said that as long as sugar would have to be taxed I would prefer to see the tax placed upon something that was not in the nature of such an absolute necessity. The whole attitude of the Minister justifies the statement Deputy O'Connell made with reference to the Budget, that it is a rich man's Budget rather than a poor man's Budget, that it was the outlook of a Party particularly anxious to keep in the good graces of the wealthier sections of the community. I heard the remark made when the statement was being made by the Minister that it was the eve of an election Budget. It was certainly an election fund Budget, and in order to mark our disapproval of it I propose to vote against this resolution.

Mr. Davin

The members of the Labour Party desire to register their emphatic protest against this tax. The only way in which that can be done is by asking Deputies who agree with us or who are opposed to it to go into the Lobby and vote against it. We realise as well as Deputy Redmond that the £750,000 required for the relief of the agricultural community has to be raised in some way by a direct tax. Deputy Redmond apparently agreed—and that is where I differ from him—that in approaching consideration of the means by which the money is to be raised we are to abolish the betting tax, and then go and impose a halfpenny in the lb. on sugar, which affects the poorer sections of the community. This tax is going to have a direct and a very serious effect on the 84,000 people at present drawing home help, upon the 30,000 unemployed, and upon every old age pensioner in receipt of 10/- a week, many of whom have no other means of support. The mentality that says you can get rid of the betting tax, make it easier for people with money to bet, and that then looks for money in this direction is certainly the Chamber of Commerce outlook.

Mr. Good

That is a dangerous one.

Mr. Davin

It is a dangerous one. Deputy Good repeated the Minister's statement in this direction when he said that when income tax was reduced by 1/- in the £ the benefit would go to the development of industry and that there would be greater industrial production. Is Deputy Good in a position to say that the reduction of 1/- in the £ on income tax has helped production in any industry?

Mr. Good

It has helped existing industries.

An Ceann Comhairle

We will have to keep to the tax on sugar now.

Mr. Davin

I agree with Deputy de Valera that the House will have to divide on this question. We contend that the Minister in looking for portion of the £750,000 should have looked to people who are in a better position to pay than those who will have to pay the extra ½d. per lb. on sugar. The farming community, a great many of whom will be getting portion of the £750,000 relief, will also have to pay, and this is merely a means of taking the money out of one pocket and putting it into another. We protest against this duty because it hits the poorer sections of the people.

Mr. Blythe

I do not intend to reply at length to what has been said at this stage. I would just mention that you cannot get a large sum of money in this way without being faced with difficulties of all kinds. For instance, it might be argued that you should tax tobacco rather than sugar, but I should not like to create the same position with regard to tobacco, from the revenue point of view, that exists at present with regard to alcoholic liquors. I know that there are grounds for stating that the consumption of alcoholic liquor has decreased, but notwithstanding the fact that the decrease is a good thing, nevertheless it has caused a great many difficulties in balancing the Budget. I should not like to get the sort of decline we have experienced in regard to tobacco. The other alternative, an increase in income tax, was also mentioned. We have to have regard to the possibility of development. The situation is quite different in this country from that in countries where industrial development has proceeded to a very large extent. I know business, some of them tariffed businesses, which are extending and financing their extensions to a very large extent out of profits. Firms like those are the sort of firms which are most directly hit by income tax. To hit firms like those would do harm not only in the present but also in the future. When we look at the question of taxation we have to look all round. There is the point that the price of sugar now is abnormally low. Sugar is being sold—I am talking of the duty-free price—very much below the cost of production. When this tax is added, sugar will be sold to the public at a cheaper rate than it was sold a comparatively short time ago.

Mr. Lemass

Will the Minister remit the tax when the price of sugar rises?

Mr. Blythe

I was about to say that the consumption of petrol has gone up tremendously. If, in future, the consumption proceeded to rise in anything approaching the degree to which it has risen in the past we would have a source of revenue which ought to make it possible to review the means which we are now adopting of finding this sum of £750,000.

Question put.

The Committee divided: Tá, 71; Níl, 49.

Tá

• Aird, William P.
• Alton, Ernest Henry.
• Beckett, James Walter.
• Bennett, George Cecil.
• Blythe, Ernest.
• Bourke, Séamus A.
• Brennan, Michael.
• Byrne, John Joseph.
• Carey, Edmund.
• Coburn, James.
• Cole, John James.
• Collins-O'Driscoll, Mrs. Margt.
• Conlon, Martin.
• Connolly, Michael P.
• Cosgrave, William T.
• Craig, Sir James.
• Crowley, James.
• Daly, John.
• Davis, Michael.
• Doherty, Eugene.
• Dolan, James N.
• Doyle, Peadar Seán.
• Duggan, Edmund John.
• Dwyer, James.
• Egan, Barry M.
• Finlay, Thomas A.
• Fitzgerald, Desmond.
• Fitzgerald-Kenney, James.
• Good, John.
• O'Sullivan, Gearóid.
• O'Sullivan, John Marcus.
• Redmond, William Archer.
• Reynolds, Patrick.
• Rice, Vincent.
• Roddy, Martin.
• Shaw, Patrick W.
• Gorey, Denis J.
• Haslett, Alexander.
• Hassett, John J.
• Heffernan, Michael R.
• Hennessy, Thomas.
• Hennigan, John.
• Henry, Mark.
• Hogan, Patrick (Galway).
• Holohan, Richard.
• Jordan, Michael.
• Kelly, Patrick Michael.
• Keogh, Myles.
• Law, Hugh Alexander.
• Lynch, Finian.
• Mathews, Arthur Patrick.
• McDonogh, Martin.
• McFadden, Michael Og.
• McGilligan, Patrick.
• Mongan, Joseph W.
• Mulcahy, Richard.
• Myles, James Sproule.
• Nolan, John Thomas.
• O'Connell, Richard.
• O'Connor, Bartholomew.
• O'Donovan, Timothy Joseph.
• O'Higgins, Thomas.
• O'Leary, Daniel.
• O'Mahony, The.
• O'Reilly, John J.
• Sheehy, Timothy (West Cork).
• Thrift, William Edward.
• Tierney, Michael.
• White, Vincent Joseph.
• Wolfe, George.
• Wolfe, Jasper Travers.

Níl

• Aiken, Frank.
• Allen, Denis.
• Anthony, Richard.
• Boland, Gerald.
• Bourke, Daniel.
• Brady, Seán.
• Briscoe, Robert.
• Broderick, Henry.
• Buckley, Daniel.
• Carney, Frank.
• Carty, Frank.
• Cassidy, Archie J.
• Clancy, Patrick.
• Corkery, Dan.
• Corish, Richard.
• Corry, Martin John.
• Crowley, Tadhg.
• Davin, William.
• Derrig, Thomas.
• De Valera, Eamon.
• Everett, James.
• Fahy, Frank.
• Flinn, Hugo.
• Fogarty, Andrew.
• Gorry, Patrick J.
• Goulding, John.
• Hayes, Seán.
• Hogan, Patrick (Clare).
• Houlihan, Patrick.
• Kennedy, Michael Joseph.
• Kilroy, Michael.
• Lemass, Seán F.
• Little, Patrick John.
• Maguire, Ben.
• MacEntee, Seán.
• Moore, Séamus.
• Morrissey, Daniel.
• Mullins, Thomas.
• Murphy, Timothy Joseph.
• O'Connell, Thomas J.
• O'Dowd, Patrick Joseph.
• O'Kelly, Seán T.
• O'Reilly, Matthew.
• Ryan, James.
• Sexton, Martin.
• Sheehy, Timothy (Tipp.).
• Smith, Patrick.
• Walsh, Richard.
• Ward, Francis C.

Tellers: Tá, Deputies Duggan and P. Doyle; Níl, Deputies G. Boland and Cassidy.

Resolution declared carried.