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Wednesday, 15 August 1906


Mr KENNEDY (Moira) .- The amendment raises the whole question as to how far the recommendations of the Tariff Commission shall be adopted. I understand that the Prime Minister proposes at a later stage to depart from the differentiation made by the Commission between brandy distilled wholly from grape wine and blended brandy. The Commission recommend that there shall be a difference of is. in the amount of duty levied upon the respective spirits. The Government now propose, and I think they are right, to differentiate between the two classes of spirit to the extent of 29. per gallon. The members of the Commission state that a differentiation of 2s. between these two spirits will not be sufficient to re-establish the manufacture of pure brandy in Australia. That is the reason why I stated earlier in the evening that I proposed to move that brandy distilled wholly from grape wine should be subject to an Excise dutv of only 9s.


Mr Deakin - That would involve the sacrifice of more revenue.


Mr KENNEDY - I stated that my proposal was intended to give greater encouragement to an industry that is natural to our conditions.


Mr JOSEPH COOK (PARRAMATTA, NEW SOUTH WALES) - That would be equivalent to 5s. per gallon protection.


Mr KENNEDY - According to my experience, a difference of 4s. between the import and the Excise duty would afford ample protection to the pure grape spirit, but I do not think that 2s. difference would be sufficient to assist the grape spirit as against the blended spirit.


Mr Deakin - There is a difference of 2s. between the pure grape brandy and the blended spirit, and also a difference of 2s. between the proposed duty upon blended brandy and imported spirits.


Mr KENNEDY - The Commission proposedand I think they should insist upon their recommendation - that the blended brandy should be subject to an Excise duty of us., and that is why I take this opportunity of bringing the -case from my point of view before the Committee. There would be no difficulty, so far as I am concerned, in accepting a differentiation of 4s- as between the import duty and the Excise duty on pure grape spirit. But a difficulty will occur if the blended spirit is brought within is. of the pure grape spirit.


Mr Deakin - The Government purpose to differentiate between the two classes of spirit to the extent of 2s. per gallon.


Mr KENNEDY - But we know what became of the last Government proposal, and I want to safeguard the position' so far as it relates to pure grape spirit.







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