I will, if I may, deal with that presently. It is true that the order would appear to place an ad valorem duty of 300 per cent. on the value of imported films, but that is, phraseology which the Customs use and which, as I hope to show presently, is the correct way of putting it; but it does mean that only 75 per cent. of the value of a film imported from overseas will, in fact, be taken under this particular order. The House will remember that as a result of what my right hon. Friend the Prime Minister announced, a new Clause (now Section 7) was moved to the Finance Act of this year. We then had a Debate on this matter, and it is my hope that that Debate will be fresh in the minds of Members in all quarters of the House, and that, as a result, we shall be able to shorten our Debate tonight.

I would, however, remind the House of the reason why this imposition has been laid. It is, as is freely admitted, a very high and heavy duty. I want to make it clear that neither is it intended to obtain additional revenue, nor is it an aggressive act against Hollywood in the interests of our own British film industry. The step has been taken simply and solely because the country cannot afford to allocate the dollars necessary to pay for the exhibition of American films in this country at the present time. This duty applies not only to films coming in from America and other overseas countries. It applies also to the Commonwealth countries and the countries within the sterling area. The existing Empire preference of 5d. per foot, which the Dominions at present enjoy, will continue to be enjoyed by them, but nothing more; apart from that they will suffer in so far as they send films here, the same duty of 75 per cent. as Hollywood.

The dollar cost of films has gone up since before war. In the last three prewar years, the amount spent by this country in dollars in payment for films coming in from Hollywood was in the region of £7 million. In 1946–47 it had gone up to something between £17 and £18 million. As the House is aware, we have made a number of cuts in imports from hard currency countries because of the shortage of dollars. Those cuts have had to be imposed in the light of the existing situation, and we have had to make a cut of at least £12 million per month in imports of food from hard currency countries. That being so, if in this drastic fashion we are cutting food, which is an essential to the life of the country, it is impossible to continue importing films and allowing a drain upon our dollar resources to the extent of £17 or £18 million per year.

Contrary to the view held in some quarters, Duties have been imposed on films for over 30 years. They began with what were known as the McKenna duties, and they have continued from that time until now. The new Duty, of course, is very much heavier, and is based on a rather different conception. Under the original Duties, which existed up to 7th August, the Duty was levied on the footage of a film coming in. Here, we are levying the new Duty on the actual value of the film.