§ 42. Mr. FELLasked the Chancellor of the Exchequer if he will reconsider the subject of the profits made by agents and go-betweens on Government contracts and the question of making the contractors themselves the agents of the Government for the collection of Income Tax on such profits at least for the period of the War?
§ Mr. McKENNAAs I stated in reply to the hon. Member's question of the 29th June, Income Tax will be collected in the ordinary course, and I am unable to adopt his suggestion.
§ Mr. FELLDoes the Chancellor of the Exchequer think that these profits will be included by the people who get them in their next return? I do not know.
§ Mr. McKENNAI hope so.
§ 43. Mr. HOGGEasked the Chancellor of the Exchequer what action the Government are taking with regard to contractors to the Government who are losing heavily on contracts made prior to the War owing to the increased cost; and whether similar losses to contractors to other public bodies have been considered by the Government with a view to any emergency legislation?
§ Mr. McKENNAThe answer to the first part of the question is that each case is being dealt with on its merits: the answer to the second part is in the negative.
§ Mr. HOGGEIs my right hon. Friend aware that in many cases in connection with the municipalities, workhouses, and asylums contractors have been held to their contracts, obviously at a greatly increased cost; and can he do anything to approach the municipalities and those who take the same view as the Government?
§ Mr. McKENNAThat will be a question for the President of the Local Government Board. I understand, however, that everything possible is being done in the direction indicated.
§ Mr. W. THORNEWhen these matters are considered, will the right hon. Gentleman see that if any concessions are made to contractors that consideration is given to the desirability of these firms increasing the wages of their men to meet the increased high cost of living?
§ Mr. McKENNANo, Sir, it is not a question of the increase of wages; it is a question of the increase of the cost of the material.
§ Mr. W. THORNEIf any concessions are made to the firms in question in consequence of the high cost of raw material, by the same method of reasoning ought not the Chancellor of the Exchequer see that the wages are increased?
§ Mr. McKENNANo, Sir, because if wages are increased prices will become higher still. There is no question that the wages are too low, but the difficulty has arisen owing to raw materials being too expensive.
§ Mr. JONATHAN SAMUELIs it not a fact that many of the asylum authorities in this country have made concessions to these contractors?
§ Mr. McKENNAYes, Sir; I believe that to be the case.