§ Mr. MACKARNESSasked the Chancellor of the Exchequer whether it is proposed to impose a tax upon the estimated royalty value of common surface clay excavated by the owner of the land and used by him for carrying on his industry of brick and tile making; and, if so, whether he can state how it is intended to estimate the value of the royalty?
§ Mr. HOBHOUSEThe answer to the first part of the question is in the affirmative. As regards the second part, the value of the royalty will be estimated on the basis of what a tenant would give for the right to work the clay.
§ Mr. MACKARNESSIs the right hon. Gentleman aware that the House of Lords decided in a case brought before it on appeal that surface clay is not mineral, and whether he proposes that this clay should be subject to the duty?
§ Mr. HOBHOUSEIn the case the hon. Member refers to no tax will be imposed.
§ Mr. MACKARNESSIs it not proposed to place any other interpretation on this clay than that which has been placed upon it by the courts?
§ Mr. W. THORNEDoes it mean a tax on the royalty or a tax on the clay?
§ Mr. HOBHOUSEIt means a tax on the royalty.