§ 25. Mr. WILSON-FOXasked the Prime Minister whether, having regard to the uncertainty which exists in regard to many matters of financial, economic, industrial, and social importance as to which official statistics as at present compiled by Government Departments are either silent, imperfect, or inaccurate, he will consider the immediate appointment of a Royal Commission to report and advise upon the whole question of the scope and preparation of official statistics with special regard to the inclusion in them of such information as would be of service to Parliament when considering proposals for financial legislation?
§ Mr. BONAR LAW (Leader of the House)The Government do not consider that the appointment of a Royal Commission would serve any useful purpose. A Committee under the Chairmanship of Sir Alfred Watson, the Government Actuary, has been enquiring into this question, and has made certain recommendations which will be carefully considered by the Government.
§ Mr. WILSON-FOXWill that Report be published?
§ Mr. BONAR LAWThat will be considered.
§ 28. Mr. G. TERRELLasked the Prime Minister whether the Government propose to introduce legislation to give effect to the recommendations of the Royal Commission on Income Tax; and, in particular, whether, in view of the great depression in trade and the circumstance that the continuance of the three years' average in connection with Income Tax will in many cases operate very oppressively, he will propose any alteration of the law in respect of it?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)The hon. Member will recall that effect was given in the Finance Act, 1920, to the very important recommendations of the Royal Commission in regard to the graduation and differentiation of the Income Tax and to the problem of the double charge of Income Tax within the Empire. While I cannot undertake to deal this Session with the whole of the remaining recommendations of the Commission, I hope to introduce early in the Session a Bill dealing with certain urgent matters, including the recommendations as to the three years' average.
§ Mr. TERRELLDoes my right hon. Friend propose this year to assess incomes on the single year or on the three years' average? I ask for a definite statement on this matter, as it is one of great interest and importance to the trading community.
§ Mr. CHAMBERLAINI made a statement a week ago to a deputation and, I think, it appeared in the Press. I cannot hope to change the law in time for the change to be operative for the coming financial year, but I hope to get the legislation through so that the change may be operative in the financial year following the coming one.
§ Mr. TERRELLDoes not my right hon. Friend recollect that when I pressed him on this subject on the Budget discussion last April he said he would make the change at the earliest possible moment, and gave everyone the impression that the change would be made that year, not to be operative that year, but this year? Is the right hon. Gentleman aware that the continuance of the three years' average is going to greatly affect industry and to aggravate the present unemployment?
§ Mr. CHAMBERLAINI said last Session that I hoped to introduce legislation in the course of last Session, but I found that impossible, and, considering that the House only rose on Christmas Eve, I think hon. Members will not blame me. I said, and it remains true, that I cannot hope to make the change operative in the year in which the House legislates; but it is still my desire to legislate as early as possible. I hope to do so this Session so that the change would be brought into effect in the next current year. As regards assessments, the present year's assessments must be made on the three years' average. The three years' average has been very much in favour of the taxpayer, who has had the advantage of it during the last seven years, and I am afraid he must put up with it for one year longer now that it may possibly result to his disadvantage.
§ Mr. TERRELLAm I to understand that the change will be made as from the commencement of the new financial year?
§ Mr. CHAMBERLAINNo, I have said that it will not be made in the new financial year.
§ Mr. KILEYCan we have an opportunity of discussing this matter before we discuss the Anti-Dumping Bill?
§ Mr. CHAMBERLAINYou can discuss it on the Budget.
§ Mr. TERRELLI am afraid I must oppose my right hon. Friend.