Tobacco Re-exports

Oral Answers to Questions — National Finance – in the House of Commons am 12:00 am ar 13 Mai 1947.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Sir Walter Fletcher Sir Walter Fletcher , Bury 12:00, 13 Mai 1947

asked the Chancellor of the Exchequer what proportion of tobacco imported into this country was re-exported after processing to other countries in the hard-currency area and in the soft-currency area, respectively, from 1st January, 1946, to 1st April, 1947

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

0.2 per cent. and 6 per cent. respectively.

Photo of Sir Walter Fletcher Sir Walter Fletcher , Bury

That is a considerable figure to soft currency areas. Will the Chancellor of the Exchequer say what means he proposes to take so that we do not expend our dollar loan in order to sell tobacco and cigarettes to soft currency countries where they, in turn, sell them to the public at a much cheaper price than that at which the consumer is able to buy them here?

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

For the purposes of this classification the whole of the British Empire, including Canada, is classified as a soft currency area, and, in fact, 77.5 per cent. of the soft currency exports here defined go to British Empire markets. I think the hon. Gentleman is slightly misunderstanding the situation.

Photo of Sir Walter Fletcher Sir Walter Fletcher , Bury

That is not a satisfactory answer. Will the Chancellor explain whether in his view it is wise to expend a high proportion of our dollar loan on buying tobacco and cigarettes which are then sent to soft currency areas, even though they are in the British Empire?

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

Over 77 per cent. go to the British Empire and I think that is a pretty good proportion, and we ought to be pleased with it.

Photo of Sir Walter Fletcher Sir Walter Fletcher , Bury

That is not the answer to my question.

Photo of Hon. Oliver Stanley Hon. Oliver Stanley , Bristol West

Can the right hon. Gentleman say what proportion processing adds to the price of the tobacco bought in America?

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

With notice, with pleasure.

Photo of Sir Frank Sanderson Sir Frank Sanderson , Ealing East

Would the right hon. Gentleman consider the importation of tobacco from Bulgaria where I understand there is a considerable quantity available for export?

Photo of Sir Waldron Smithers Sir Waldron Smithers , Orpington

The Russians have it all.