§ 61. Mr. BILLINGasked the Chancellor of the Exchequer whether, as advertising expenses are allowed to be deducted before assessing firms for excess profits, he has considered the advisability of putting a limit on such expenditure; and whether he is aware that a certain newspaper recently spent a sum equal to 75 per cent. of its total capital in advertising the contributions of a certain Member of this House?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)Provision already exists for restricting the amount which can be deducted for expenses of advertisement where they represent an expenditure of a capital nature rather than a normal working expense.
§ Mr. BILLINGWould the right hon. Gentleman kindly state what percentage is allowed?
§ Mr. McKENNAIt depends upon the circumstances of each case.
§ Mr. BILLINGCould the right hon. Gentleman state the case of a newspaper being allowed to spend 75 per cent. of its total capital in ten days in advertising one feature?
§ Mr. McKENNAIf it were the normal practice of newspapers to spend 75 per cent. in advertising one feature, I have no doubt it would be allowed to do so again; but I can hardly believe that it is the normal practice.
§ Mr. BILLINGIf I give the right hon. Gentleman the name of the newspaper and the feature, will he be good enough to get some of the money back?
§ Mr. McKENNAI shall be very glad.