Second Schedule.

Part of Orders of the Day — Finance Bill. – in the House of Commons at on 23 June 1925.

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Photo of Captain William Benn Captain William Benn , Leith

I will give the hon. Member the full particulars. The retail price is 1s. 11d. a pair or 23s. per dozen; the weight of artificial silk in them is seven ounces per dozen valued at 2s. 6d. per dozen, and the Excise Duty per dozen is 6d. The 2s. 10d. per dozen is the measure of the protection. Some hon. Members will be surprised to learn that this is not a Silk Duty but a general tariff on clothing which happens to have a trace of silk in it. Then there is the case of Fred W. Millington, of Manchester. These people import an article known as men's cotton fleece vests and pants for working men's wear. They are ordered from the United States and as the winter is coming on the sale of these goods begins about this time. By the time these goods are delivered there will be a demand for winter clothes. What are the facts about these articles? This firm tell me that there is in these goods a thin braid and one little trace of silk, the proportion being about one-twentieth of 1 per cent. That is the amount of silk in these particular articles, which are of the commonest use by the poorest class of consumer. This consignment of goods from America with one-twentieth of 1 per cent. of silk in them is going to be taxed 2 per cent. on the value of the article. The whole suit, which may cost 10s., may suffer a tax when it gets to the retail shop of 6d. I want hon. Members opposite to understand that under the guise of a tax on luxuries our working people are paying 4d. or 6d. extra on the ordinary commodities they wear. I consulted people in the trade, and I find it amounts to 2d. on the c.i.f. price and 4d. or 6d. on the retail price. If the hon. Gentleman thinks that is exaggerated, I will make it 4d. It is a speculative figure, but that does represent taxes on workmen's clothing I have not the least doubt.

That is the main burden of the charge against this part of the Schedule. The Financial Secretary said we must tax on the value of the article. Why not tax the silk content of the article? The right hon. Gentleman cannot answer. I know he thinks his perfect answer is going to be, "We cannot tell when an article made up like that comes, what the silk content is—it is too complicated." When the exporter applies for a drawback he has to find out somehow what the silk content is. Yet the Financial Secretary cannot find it out for the purpose of getting rid of this objectionable part of the Schedule. I am certain if these Schedules could have been debated in the light of day, when the Debates were reported, the serious objections that would have been raised would have destroyed the whole proposal. I do not think the Treasury would have dared to thrust this thing through if they understood the chaos it would involve and the hardship upon poor consumers of a number of articles. Whether anything can be done at this stage beyond amending the grammar of the Bill, I do not know. I suppose not, but I think anyone would be lacking in his duty if he did not make, as I make, an emphatic protest against the latter part of this Schedule.