Wines and Spirits (Withdrawals from Bond)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 25 March 1948.

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Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale 12:00, 25 March 1948

asked the Chancellor of the Exchequer why clearances of wines and spirits from bond have been refused, although duty had been paid some days previously and physical removal was only delayed by shortage of staff and transport, particularly as these withdrawals only represented the normal seasonal trade.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

The legal powers under which clearances are restricted before a Budget relate to actual physical clearances during the period to which the restrictions apply. It would tend to defeat the object if account were taken of duty paid before the restrictions came into operation.

Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale

As these were purely normal withdrawals and there was no suggestion of a panic withdrawal, and as the physical withdrawal was only limited by transport difficulties, could not an exception be made in this case?

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

The procedure which has been followed is, in fact, the normal procedure which has always been followed in these circumstances.

Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale

But the circumstances are not normal.

Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale

asked the Chancellor of the Exchequer why he has chosen withdrawals during the months of January and February, 1948, as a basis for imposing a percentage restriction on the withdrawal of wines and spirits from bond prior to the Budget.

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

These months were selected because clearances were about normal then and were considered to represent a fair basis.

Photo of Mr Frederick Erroll Mr Frederick Erroll , Altrincham and Sale

Did the hon. Gentleman take into account the fact that a similar restriction has not been made in previous Budgets, with the exception of the Interim Budget, since 1943 and also that the months of January and February were particularly bad months for the trade?

Photo of Mr Douglas Jay Mr Douglas Jay , Battersea North

My information is that those months showed normal withdrawals and, therefore, provided the fairest basis on which to take this action.