The Eastern Extension Company's cable ship Patrol recently visited Perth and a claim has been made for the refund of duty paid on food, beer, gin, whisky and aerated waters consumed as ship's stores whilst the vessel was in Australian waters. The matter was referred to the Crown Solicitor who advised as follows:

The Agreement between the Company and the State Governments of New South Wales, South Australia, Western Australia and Tasmania by clause 18 contains a provision to the effect that each Government shall cause the following goods to be relieved from all Customs duties in its respective Colonies, viz:

• All cables of the Company;
• All cable apparatus of the Company;
• All telegraph instruments of the Company;
• All machinery of the Company;
• All stationery of the Company;
• All goods of any kind of the Company;
• All goods for laying, repairing or working any of the Company's cables, land lines or cable ships.

I have taken considerable liberty in rearranging the clause, but I think the above correctly states its effect as regards Customs duties.

The exemption, I think, only extends to goods which are charged with duty and would not entitle the Company to a refund of duty on duty-paid imported goods purchased by it.

The exemption is very wide, but, I think it would be read as extending only to goods necessarily used or for use in the Company's business.

The duty in this case was paid in respect of food, beer, gin, whisky and aerated waters.

Beer, gin, whisky and aerated waters (unless used as medical comforts) may be regarded as luxuries and not as necessities for use in the Company's business, and I think, subject to the exception as regards medical comforts, would not come within the exemption.

Food for the crew may be regarded as goods used or for use for the working of the cable ship, and would, I think, come within the exemption.

The opinion of 25.2.07 was given by Mr Powers when Crown Solicitor ⁽¹⁾, and is an opinion and not a decision, but I think it does not mean that duty will be refunded on articles imported by the Company to work the ship but not on food, wines etc., for the crew, as it does not say that, and it can only be read as saying what it does say.

Mr Powers, inter alia, says:

I think the only Customs duties that the Company are exempted from are those payable on goods imported by ... the Company...

I think this view is too narrow, as I think the exemption would apply to goods coming within clause 18 purchased by the Company in bond.

The opinion given by Mr Powers, when Crown Solicitor in 1907 is as follows:

In my opinion duties of Customs would not be held to come within the words 'rates and taxes' above quoted, especially as customs duties and rates are distinguished in the first part of the clause, and I therefore think that the duty collected on the goods should not be refunded except the duty 10s on brush ware oils and paints, which I think should be offered without prejudice.

I think the only Customs duties that the Company are exempted from are those payable on goods imported by or for the Company, and the Company cannot claim refunds of Customs duties paid by others because the goods are purchased by the Company [after duties paid] ⁽²⁾ and used or consumed by them.

The Secretary, Postmaster-General's Department, has now referred the matter for opinion as to whether clause 18 of the Agreement is capable of being read to cover food and similar articles.

The goods which, under clause 18 of the Agreement, are relieved from Customs duties and wharfage rates are 'all cables, cable apparatus, telegraph instruments, machinery, stationery and goods of any kind of the Extension Coy or their assigns, which are used solely for the purpose of the cable business of the Extension Coy or their assigns'.

The fact that certain articles are specifically mentioned in conjunction with the words 'goods of any kind' must I think be taken into account in construing the general words and the result is that those general words have a restricted application.

I agree with the opinion of the Crown Solicitor that the exemption must be read as extending only to goods necessarily used or for use in the Company's business.

On the facts before me beer, gin, whisky and aerated waters are not goods so used. Food for the use of the crew engaged in the Company's work is necessary to the carrying on of the business of the Company and in my opinion is covered by the exemption.

[Vol. 19, p. 304]

(1)Presumably when this matter was referred to the Crown Solicitor, the Secretary, Postmaster-General's Department, had made reference to the earlier Crown Solicitor's opinion, which bears date 26 (not 25) February 1907.

(2)These words not in the original opinion of 26 February 1907.