§ 86. Mr. SNOWDENasked the Chancellor of the Exchequer if he is aware of the profits that potato growers are making; if he is aware that one potato grower in South Lincolnshire has just cleared a profit of £63,000 from his potato crop from 1,000 acres; if he can say if such a profit will be subject to Excess Profits Tax; and, if not, whether he proposes to take any steps to secure for the National Exchequer a much larger share of the profits now being made by farmers of all classes?
§ Mr. McKENNAPotato growers, like other occupiers of land for the purpose of husbandry, are charged to Income Tax. 47 in the ordinary course under the rules of Schedule B, and no returns of the actual amount of profits realised are required in these cases. The profit of husbandry in the United Kingdom are not within the scope of the charge to Excess Profits Duty. As regards Income Tax, I would remind the hon. Member that under the Finance (No. 2) Act, 1915, the statutory measure of the Schedule B assessments in respect of the occupation of lands was increased from one-third of the annual value of the lands to the full amount of that value.
§ Mr. SNOWDENIn view of the fact that the profits of farmers to-day bear no relation at all to the amount of rent they are paying but are enormously in excess, will the Chancellor of the Exchequer take into consideration and deal with in his next Budget these enormous profits which are being made by the exploitation of the food of the people?
§ Mr. McKENNACertainly that will be considered, but I cannot make any statement now as to what will be in the next Budget.
§ Mr. PRINGLEThey are inadequate.
§ Mr. HOUSTONCan the right hon. Gentleman not introduce immediate legislation so that farmers can be brought within the Excess Profits Tax?
§ Mr. McKENNANo, Sir; I have no such intention.
§ Mr. HOUSTONIt is because they cannot keep books, I suppose.
§ 122. Mr. FINNEYasked the President of the Board of Trade whether he can state the price per cwt. paid by the Government to Shropshire farmers for potatoes for the use of soldiers; whether soldiers are employed in removing the potatoes from the farms to the camps; whether this is one of the conditions of the bargain between the Government and the farmers; whether he is aware that farmers in Shropshire and elsewhere are holding up potatoes for higher prices, the effects being an artificial scarcity of potatoes and the civil population rendered unable to obtain necessary supplies; and, if so, will he say what steps he will take to protect the Government and the people against such cornering of food supplies?
§ Mr. FORSTERSo far as I am aware, the Government has bought no potatoes in Shropshire for the use of soldiers in camps at home. I am, however, informed that the Agricultural Produce Supplies, Limited, has bought potatoes for supply through canteens at various prices ranging as high as £11 10s. per ton; but in no case has there been any condition or arrangement that the potatoes should be removed by soldiers. For the last two parts of my hon. Friend's question I would refer to the replies on this subject which were given last Thursday by my right hon. Friend the President of the Board of Trade.
§ Mr. SNOWDENIs the War Office aware that statements are being very generally made that the War Office buyers are very largely responsible for the increase in the price of potatoes by going about the country offering much higher figures than the current market prices, and, if so, will steps be taken to stop that by commandeering supplies at fixed prices?
§ Mr. FORSTERI have not heard that War Office agents have put up the price of potatoes, but I am seriously considering whether or not something in the nature of commandeering may not have to be resorted to.