57. Mr. TERRELLasked the Prime Minister whether, at the time the Excess Profits Duty was introduced, definite pledges were given by the then Chancellor of the Exchequer, Mr. M'Kenna, with the concurrence of the Government, that the tax was not to be continued in time of peace; and whether the present Government consider themselves in any way bound by such pledges?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)The statements made by Mr. McKenna, when Chancellor of the Exchequer, show that he regarded the Excess Profits Duty as a temporary tax imposed primarily for the War period, but that he contemplated that it would continue for some undefined period after the end of the War. I have no doubt that we are continuing it for a longer period than was contemplated when the tax was first imposed. Our action must be considered and, in our belief, is justified by the immense burden of debt which the prolongation of the War has left us, and by the continuance after the War of abnormal conditions which prevailed during the War.
Mr. TERRELLIs the right hon. Gentleman aware that Mr. McKenna gave definite pledges, with the concurrence of the Cabinet? That is the question which I should like the right hon. Gentleman to answer.
§ Mr. CHAMBERLAINI am not aware that Mr. McKenna gave definite pledges as to the date of the withdrawal of the tax. I have consulted a good many of his statements before answering this question, and I have one before me now, which he made 2180 on the 27th October, 1915, in the course of which he said:
We have to impose this tax for the War, but we do not impose it unless the firm is assured, during the whole course of the War, and for the period after the War, while the tax is still working, of the average profit made in the two best of the three years before the War.
§ Mr. RONALD MCNEILLIs it not a fact that when Mr. McKenna was Chancellor of the Exchequer he expressed the opinion that we should be financially unable to fight the War to a finish?
§ Mr. CHAMBERLAINNot to my knowledge.