§ 73. Sir WILLIAM DAVISONasked the Chancellor of the Exchequer whether he has considered the communication sent to him by the grand council of the National Citizen's Union, supported by the administrative committee of the National Union of Manufacturers, urging that the Government will set up a com mission to investigate as to the propriety of compelling co-operative societies to pay Income Tax or its equivalent; and whether the Government will be prepared to take the action suggested, especially 1014 having regard to the fact that, notwithstanding the general fall in prices, the sales of co-operative societies in 1929 amounted to £332,694,000, an increase of £13,470,000 over 1928?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Pethick-Lawrence)My right hon. Friend does not see his way to adopt the suggestion put forward in the communication to which the hon. Member refers.
§ Sir W. DAVISONHaving regard to the great increase in the business done by these co-operative societies a" disclosed in the report referred to in the question, and that it means that private businesses which pay Income Tax are thereby closed down, does the Chancellor of the Exchequer not think it desirable to look into the matter from that point of view?
§ Mr. PETHICK-LAWRENCEI have already answered that question in the negative. If the hon. Member will pursue the subject further, I would recommend him to peruse the speech of the right hon. Member for Epping (Mr. Churchill), who dealt very fully with this question on 27th June, 1928.
Sir F. HALLIs the hon. Gentleman aware that many Members on this side of the House do not agree with that statement?
§ Mr. BROCKWAYWould my hon. Friend draw public attention to the fact contained in the statement in the question, that co-operative societies are succeeding while capitalist companies are going bankrupt?